DGAP-News: KWG Kommunale Wohnen AG / Key word(s): Quarter Results/Real Estate KWG Kommunale Wohnen AG: KWG reports good operating performance along with significant increase in earnings 13.11.2014 / 08:00 --------------------------------------------------------------------- - Net cold rents of around EUR22.9 mn - FFO up from EUR4.6 mn to EUR5.7 mn Berlin, 13 November 2014 - KWG Kommunale Wohnen AG (KWG) is a German property company focusing on developing and marketing residential property. Today the company, in which Austrian majority stakeholder conwert Immobilien Invest SE holds around 79%, announced the figures for the first nine months of 2014. In the reporting period revenue rose by almost 5% to EUR45.4 mn (1-9/2013: EUR42.9 mn). Rental income accounted for the largest share of revenue, although at EUR33.2 mn it was somewhat lower than the previous year due to the sale of properties (1-9/2013: EUR33.6 mn). Consequently, net cold rents also slipped back from EUR23.2 mn to EUR22.9 mn. Overall, 486 units and 167 parking spaces were sold in the first three quarters of 2014, representing sales income of EUR12.1 mn (1-9/2013: EUR8.3 mn). The sales margin was 15.1%. These profitable sales allowed KWG to successfully continue its strategic portfolio streamlining, initiated in 2013. Surplus liquidity from property sales will be reinvested in developing the hold portfolio in order to increase the quality of property held. KWG will continue to implement its strategy of portfolio streamlining in the fourth quarter of 2014 and selectively dispose of properties which are not an ideal fit for the corporate profile in light of structural or regional aspects. Successful property sales caused the number of rental units to fall to 8,846 residential and commercial units (30/09/2013: 9,416), representing a reduction in usable space of around 36,000 sqm or 6%. As of 30 September 2014 the vacancy rate of the KWG portfolio improved by 10.4% to 12.9% (30/09/2013: 14.4%). At the same time, average portfolio rents rose slightly from EUR5.00/sqm/m to EUR5.10/sqm/m. For the first three quarters of 2014 KWG reported FFO excluding sales of EUR5.7 mn (1-9/2013: EUR4.6 mn). This represents yoy growth of around 24% and is already above the forecasts for the full year 2014 of around EUR5 mn. Consolidated profit fell by around 63% to EUR4.3 mn (1-9/2013: EUR11.7 mn), primarily due to positive fair value adjustments of EUR8.9 mn caused by acquisitions of KWG in the same period 2013. In the first three quarters of 2014 KWG recorded fair value gains on properties of EUR0.4 mn. N.B.: KWG group reporting was adjusted in the current business year to conform to that of the conwert group by means of reporting amendments to the income statement, balance sheet, statement of changes in equity and cash flow statement, along with other key performance indicators. Comparative figures were also amended. As a result, comparison with the data published by the KWG group as of the third quarter 2013 is only possible to a limited extent. Contact: KWG Kommunale Wohnen AG T +49 30 60 90 24-0 E [email protected] --------------------------------------------------------------------- 13.11.2014 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG. The issuer is solely responsible for the content of this announcement. The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Media archive at www.dgap-medientreff.de and www.dgap.de --------------------------------------------------------------------- Language: English Company: KWG Kommunale Wohnen AG Leipziger Platz 9 10117 Berlin Germany Phone: 030 60 90 24 - 0 E-mail: [email protected] Internet: www.kwg-ag.de ISIN: DE0005227342 WKN: 522734 Listed: Freiverkehr in Berlin, Düsseldorf, Hamburg, Hannover, München, Stuttgart; Frankfurt in Open Market (Entry Standard) End of News DGAP News-Service --------------------------------------------------------------------- 296886 13.11.2014