annual financial statement 2011 - conwert Immobilien Invest SE

Annual Financial Report 2011
Property Portfolio
The business activities of conwert Immobilien Invest SE again focused on the optimisation of
the property portfolio in 2011. Measures designed to increase earnings and value such as
the refurbishment and modernisation of residential space, loft extensions and re-letting of
portfolio properties were at the centre of the company’s activities. The improved situation of
the property markets and increased interest on the part of predominantly private investors in
residential properties led to strong proceeds on the sale of properties, which exceeded the
2010 figures by nearly a third. As of 31 December 2011, proceeds on the sale of properties
amounted to 49.6 million € in comparison with 37.8 million € in the year 2010. Most sales
transactions took place in the third quarter of 2011. At the same time, rental income also
increased as a result of conwert’s efficiency programme. No properties were purchased in
Austria.
The property portfolio of conwert Immobilien Invest SE consisted of 34 objects at the balance
sheet date (2010: 44) with total usable space of 63,922 sqm (2010: 87,935 sqm). All of these
properties were located in Austria. Property assets as of 31 December 2011 amounted to
103.9 million € (2010: 147.9 million €), thus 44.0 million € less than in the previous year
(2010: (29.7) %).
Through its subsidiaries GJ-Beteiligungs- GmbH and G-Unternehmensbeteiligung GmbH as
well as direct investments, conwert Immobilien Invest SE held stakes in property companies
in Austria and abroad. The total property portfolio of the conwert Immobilien Invest SE Group
including subsidiaries and lower-tier subsidiaries comprised 1,666 objects at the balance
sheet date (2010: 1,811) with total usable space of roughly 2,146,097 sqm (2010: 2,453,000
sqm) and a total value (according to IFRS) of 2,829 million € (2010: 3,238 million €).
The average residential rent per month amounted to 5.37 €/sqm in 2011, after 5.19 €/sqm in
the year 2010. This increase was realised despite the sale of numerous apartments with
good rental prices per square meter. Strategic vacancies were reduced to 4.42 % due to the
development programme launched in the year 2011 and targeted sales. This corresponds to
an improvement by 14.0 % in comparison with the previous year (2010: 5.14 %). Actual
vacancies deteriorated slightly to 10.13 % versus 9.97 % at the prior-year balance sheet
date, with the share of construction and development vacancies declining significantly in this
segment. Total vacancies amounted to 14.55 % in the reporting period after 15.11 % in the
previous year.
Property Services
With its subsidiaries in the service sector, conwert is in a position to cover all property
management and property service activities along the entire property value added chain.
Services are provided both within the conwert Group and externally to third parties in the
market. conwert offers services related to asset management, property management,
brokerage as well as construction development and construction management. The
privatisation of apartments and property consulting are also part of the service portfolio. All
services are provided by the subsidiaries of the RESAG Group in Austria and the alt+kelber
Group in Germany.
In Austria and Germany, many things changed in the property service segment in the
financial year 2011 and several successes were accomplished. Amongst other things, three
asset management departments in Austria were merged to one, which led to significant
synergies in the management and re-letting of properties. Moreover, the technical and facility
management departments of the RESAG Group were restructured pursuant to the
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