annual financial statement 2011 - conwert Immobilien Invest SE

INTRO |
| CONSOLIDATED FINANCIAL STATEMENTS | FINANCIAL STATEMENTS
MANAGEMENT REPORT
Development of business
DEVELOPMENT OF RENTS AND VACANCIES
The positive market environment led to a successful development of new rentals. The average residential
rent in 2011 amounted to 5.37 €/sqm/month versus 5.19 €/sqm/month in the prior-year
reference period. The average rent in the commercial sector equalled 9.32 €/sqm/month, also an
increase in comparison with 2010 (8.25 €/sqm/month).
Development of rents (sqm in €/m.) 2011 2010 Change (in %)
Residential 5.37 5.19 3.5
Retail/Offices 9.32 8.25 13.0
Due to the successful sale of properties with high vacancy rates, strategic vacancies improved
from 4.4% in prior-year period to 5.1% in the past financial year 2011. Actual vacancies increased
slightly to 10.1% at the end of 2011 so that the vacancy rate amounted to 14.6% overall at the end
of the financial year (2010: 15.1%). 47.8% of the total vacancies are attributable to only 30 objects,
whose share in the property assets of conwert amounts to only 13.9%. Of the 30 objects with the
highest vacancies, 13 are attributable to ECO.
A consideration of the conwert portfolio not including that of ECO shows that a reduction of vacancies
from 13.3% to 11.6% was realised in the past financial year. This significant improvement is
primarily attributable to the sale of 77,902 sqm of vacant space. However, 6,976 sqm of new vacant
space were added as a result of purchases.
A separate consideration of the ECO portfolio shows that strategic vacancies in the property portfolio
rose from 0% in the year 2010 to 2.0% in the year 2011 due to development measures, which
entailed additional space that cannot be let in the short term. However, 13,973 sqm of vacant space
were disposed of in the course of sales of properties from the ECO portfolio. Consequently, total
vacancies at ECO rose from 23.5% to 26.7%. However, 57.4% of the ECO vacancies are attributable
to only 5 objects, which represent only 12.3% of the property value of ECO (621.7 million €) and
2.7% of conwert. The market value of these properties taken together totalled 76.6 million €.
DEVELOPMENT VACANCIES
CONWERT (in sqm/rate in %) ECO (in sqm/rate in %)
280,000
210,000
140,000
70,000
267,000
13.3%
5.8%
63,767
6,976
–9,936
200,273
11.6%
5.0%
2010 sale acquisition organic +/– 2011
120,000
90,000
60,000
30,000
Total vacancies Strategic vacancies
103,649
23.5%
13,973
22,321 111,997
26.7%
2.0%
2010 Verkauf Kauf Organisch +/– 2011
15