annual financial statement 2011 - conwert Immobilien Invest SE

CONWERT IMMOBILIEN INVEST SE
ANNUAL FINANCIAL STATEMENT 2011
14
DEVELOPMENT USABLE SPACE
BY REGION (IN 1,000 SQM)
3,000
2,400
1,800
1,200
600
3,000
2,400
1,800
1,200
600
3,500
2,800
2,100
1,400
700
955
1,422
1,405
1,008
1,624
1,439
23
93
DEVELOPMENT USABLE SPACE
BY SEGMENT (IN 1,000 SQM)
2,453
1,262
894
2010 2011
DEVELOPMENT OF PROPERTY ASSETS
(IN MILL. €)
175
2,453
3,238
826
1,221
2010 2011
Austria Germany
Other Total
Residential Retail/Offi ces
Other Total
1,362
1,304
2010 2011
Austria Germany
Other regions Total
26
99
163
2,146
2,146
2,829
DEVELOPMENT OF BUSINESS
PROPERTY PORTFOLIO AND PROPERTY ASSETS
In 2011, conwert used the market environment in Austria and Germany, which is still positive in the
letting and sale of residential properties sector, to further expand its business activity. An
increase in demand by private and institutional investors in these markets allowed conwert to realise
the highest proceeds on the sale of properties in the company’s history in the past financial year.
Moreover, conwert bought properties only in Germany. No properties were purchased in Austria.
At 31 December 2011, the conwert property portfolio consisted of 1,666 objects (2010: 1,811) in
Austria, Germany and the other regions. The decline in the number of objects is attributable to
the strong sales activities. This development is also reflected in the total usable space and the
number of rental units. At the end of the year 2011, total usable space amounted to 2,146,097 sqm
(2010: 2,453,049 sqm) and the number of rental units to 22,923 (2010: 25,194 rental units), with
apartments accounting for 18,312 units (2010: 20,307) and the commercial segment for 4,093 units
(2010: 3,550). In addition conwert had 11,213 units parking spaces (2010: 11,894) and 518 „other
units“ (2010: 580).
The residential share amounted to 57% of conwert’s total usable space at 31 December 2011.
However, as conwert plans to sell ECO properties in the next 2 to 3 years, the share of residential
space in relation to commercial space is expected to increase again in the future.
At the end of 2011, conwert’s property assets totalled 2,829 million € (2010: 3,238 million €), down
12.6% due to a number of property sales. In the fourth quarter of 2011, the entire portfolio of the
conwert Group was subject to revaluation. For Germany, CBRE was commissioned. Their initial
valuation of the German portfolio (including ECO) resulted in impairments of (48.1) million €, which
were, however, offset by valuation gains of 58.7 million €. Consequently, the net result from the
revaluation of the German portfolio was plus 10.6 million €. For Austria, the other countries and
the ECO portfolio, a consortium led by Cushman & Wakefield won the bid for the valuation contract.
The revaluation of the Austrian portfolio (including ECO) resulted in impairments of (33.9) million €,
which were offset by valuation gains of 25.3 million €. The net gain from the revaluation of the
Austrian portfolio amounted to (8.6) million €. In the other countries, the valuation (including ECO)
resulted in (5.9) million € of impairments and 2.5 million € of valuation gains. The net valuation
result equalled (3.4) million €. The net gain from the adjustment of fair value at 31 December 2011
amounted to 7.8 million €. The revaluation result of conwert contains impairments on ECO properties
of (18.0) million € valuation gains of 5.5 million €. Overall, negative fair value adjustments of
(7.5) million € were recognised for properties held for sale in the past financial year. The bottom
line is that the revaluation result for 2011 is basically unchanged (plus 0.3 million €). In the third
quarter, the valuation result of conwert had still amounted to a (10.0), which was primarily attributable
to the fact that a revaluation of the portfolio had to be carried out for Kapital & Wert Immobilienbesitz
AG, as part of the ECO portfolio, due to the financial year deviating from the calendar year
and related impairment losses had to be recognised. The capitalisable investments in properties
(CAPEX) amounted to approx. 74.4 million € in the past financial year. conwert confirms its NAV
2011 through the tender of the revaluation of the entire property portfolio of the conwert Group and
at the same time records impairments on problematic properties.