annual financial statement 2011 - conwert Immobilien Invest SE

INTRO |
| CONSOLIDATED FINANCIAL STATEMENTS | FINANCIAL STATEMENTS
MANAGEMENT REPORT
Risk management report
KEY FINANCING AND FOREIGN EXCHANGE RISKS
DESCRIPTION OF RISK EFFECTS COUNTER-MEASURES
Capital market
+ Volatility or crashes on
exchanges
+ Financial risks
Interest rate risks
+ Rising interest rates
Credit risks
+ Restrictive supplies of
loans by banks
Foreign exchange risks
+ Volatile foreign currencies
Risks from financial instruments
+ Negative effects from
evaluations
+ Inefficient hedging of loan
liabilities
+ More difficult to secure equity
+ Less liquidity
+ Impaired capabilities of
expansion
+ Increasing costs of financing
+ Scarcity of liquidity
+ Increasing costs of financing
+ Scarcity of liquidity
+ Scarcity of liquidity
+ Lessening of equity
+ Evaluation of inefficient
hedges negatively influences
financial results
+ Broad and long-term
spreading of loans
+ Strengthening of in-group
financial resources
+ Ongoing planning and
management of liquidity
+ Extending of liquidity base
+ Entering into interest rate
hedges (84.0% of the
variable-interest volume of
financing is hedged)
+ Ongoing assessing of risks
from non-hedged credit volume
+ Broad and long-term spreading
of loans
+ Strengthening of in-group
financial resources
+ Broad and long-term spreading
of loans (average term of
11 years, received from more
than 51 banks)
+ conwert is nearly exclusively
active in Eurozone (96% of
property assets)
+ conwert has basically no foreign
currency liabilities
+ Umbrella hedges in holding
company enable flexible
assignment of loan liabilities
at the SPV level
+ The average interest rate on
hedges amounts to 4.09%
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