EANS-News: GSW Immobilien AG plans dividends of EUR 0.90 per share

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Annual Reports/FY 2011

Berlin (euro adhoc) - Press conference on financial performance:

GSW plans dividends of EUR 0.90 per share

• Consolidated net income improves to EUR 105.1 million
• EBIT rises to EUR 177.2 million
• FFO I amounts to EUR 56.6 million (EUR 1.38 per share)
• Vacancy rate decreases to 3.4 percent
• Equity ratio improves to 38.4 percent
• Net asset value (EPRA) rises to EUR 29.72 per share

Berlin, 30 March 2012 - GSW Immobilien AG can look back at an
eventful and successful 2011 fiscal year. Following the successful
refinancing in February and the IPO in April 2011, GSW was rapidly
included in the EPRA and the SDAX. The company has been listed in
the MDAX since September 2011, and by November 2011, it had
already fulfilled its promise of growth from the IPO with the
acquisition of around 4,800 apartments in Berlin.

The 2011 fiscal year was also a very successful year for GSW from an
operating perspective. For instance, the listed real estate company
increased its income from rents by EUR 4.2 million (2.3 percent
as against 2010) to EUR 183.1 million in the reporting year.
"This was achieved by means of a 0.3 percentage points reduction in
the vacancy rate to the current level of 3.4 percent, and through
the acquisition of a real estate portfolio with 4,857 units," said
Jörg Schwagenscheidt, COO of GSW Immobilien AG. "Overall, the
average rent for leased apartments increased by 3.7 percent from
EUR 4.90/sqm to EUR 5.08/sqm," he said.

GSW invested around EUR 13/sqm for maintenance and modernisation in
the 2011 fiscal year (approximately EUR 41.1 million in total) and
predicts that this level will continue in the medium term.

Significant rise in operating result and consolidated profit

In the past year, GSW generated net rental income of EUR 141.1
million. The operative result (EBIT) also increased to
EUR 177.2 million (2010: EUR 101.5 million). This was mainly due
to a positive valuation result of EUR 56.2 million and
non-recurring effects totalling EUR 25.4 million, essentially
resulting from the sale of BMH Berlin Mediahaus GmbH. These
extraordinary effects also led to a rise in consolidated profit to
EUR 105.1 million.

Investment in long-term stability

The key figure funds from operations (FFO I), which is
important for the dividend policy, amounted to EUR 56.6
million (EUR 1.38 per share). In comparison to the previous
year, FFO I fell by around 28 percent. This decrease was primarily
due to the increased interest expenses resulting from the
refinancing of the CMBS loan in February 2011 in the amount of
EUR 890 million. Net interest payments consequently increased by
EUR 21.2 million to EUR 61.7 million in the reporting year. As of
31 December 2011, the company had loans with a total of 14 banks
with a nominal volume of EUR 1,874.8 million, of which 98.75 percent
is hedged by means of fixed-interest agreements or interest rate
swaps. "We are delighted to have been able to provide GSW with
a stable financial footing," said Andreas Segal, CFO of GSW. "This
investment in GSW´s long-term stability was the key prerequisite
for our successful IPO last year," he said.

GSW intends to pay out a dividend of EUR 0.90 per share

"We would like to thank our shareholders for the confidence they
placed in us during the past financial year, particularly in
connection with our IPO. This made an important contribution to
GSW´s success. The Management Board and Supervisory Board will
propose to the General Shareholders´ Meeting on 28 June 2012 that a
dividend of 90 cents per share be distributed," said Thomas
Zinnöcker, CEO of GSW. In relation to the volume-weighted average
price in 2011 of EUR 21.80, this results in a dividend yield of 4.1
percent. "If the General Shareholders´ Meeting approves our
proposed dividend, we will have paid a dividend to our
shareholders in our first year as a listed company. We are
delighted to fulfil our promise from 2011 in this way," Zinnöcker
said.

Further improvement in equity ratio - value of property assets
rises to approximately EUR 3 billion

The positive consolidated performance and the expansion of the
portfolio meant that the EPRA net asset value (NAV), i.e. the
economic equity of the group, increased by around 23 percent to
EUR 1,219.9 million at the end of the financial year. This
corresponds to a figure of EUR 29.72 per share as of 31 December
2011. The equity ratio improved to 38.4 percent
(31 December 2010: 36.4 percent). After the property acquisition
and revaluation, the loan-to- value ratio decreased year-on-year
to 58.0 percent (31 December 2010: 61.1 percent). Overall,
GSW´s portfolio at the end of the reporting period had a market
value of approximately EUR 2,947 million (EUR 873/sqm).

Stable financial footing

In the past year, GSW also adapted its financing structure at an
early stage. As planned, GSW successfully concluded the refinancing
of a CMBS loan with a volume of around EUR 890.0 million in
February 2011. Six bilateral loan agreements with a total volume
of EUR 875.0 million were concluded with German banks and
additional cash was used for the early repayment of the loan.
This means that no further significant liabilities are scheduled
for refinancing between now and 2016.

Successful IPO and growth strategy

On 15 April 2011, GSW was successfully floated on the stock
exchange. GSW´s shares were listed in the Prime Standard of the
Frankfurt Stock Exchange for the first time. Despite the difficult
conditions on the capital markets, GSW´s IPO - which had an issue
volume of around EUR 468.0 million - was the largest on the
Frankfurt Stock Exchange in 2011 and, internationally, the largest
by a real estate company in recent years.

The company also received gross proceeds of EUR 115.0 million from
the capital increase implemented at the same time. Over the
remainder of the year, GSW´s shares outperformed the market as a
whole. They were included in the SDAX on 20 June 2011 and promoted
to the MDAX on 19 September 2011. This means that GSW is now one of
the 80 largest listed companies in Germany. In addition, a total of
16.1 million GSW shares held by the former shareholders Cerberus and
Whitehall were successfully placed on 13 October 2011 and 12 January
2012, resulting in a significant increase in the free float to
around 94 percent.

Successful acquisitions increase profitability

With the restructuring over recent years and the two major
projects of refinancing and the IPO, the group now boasts a
robust and significantly improved financing structure. This has
allowed it to expand its property portfolio and realise new
earnings potential. In November 2011, GSW added roughly 4,800
residential and commercial units in attractive locations in
Berlin to its portfolio. "The above-average rents and relatively
low vacancy rate in this portfolio will lead to a further
improvement in the company´s profitability from the 2012
financial year onwards," said Management Board Member Jörg
Schwagenscheidt. GSW anticipates that the acquisitions will have a
positive influence on its income from management.

Outlook for 2012

External growth through additional acquisitions is also planned for
the future. In addition to the efficient business model, the
positive developments on the Berlin housing market form the basis
for GSW´s success: Firstly, construction activity is generally
low, while demand for housing space is rising in Berlin, driven by
the growing number of residents in the city. At the same time,
the number of households is increasing on the back of the trend
towards single- occupant apartments. This will continue to have
a positive impact on the company´s revenues and earnings. "With a
slight rise in rents and an unchanged property portfolio, we expect
FFO I to increase to between EUR 59 million and EUR 63 million in
the 2012 financial year," said CFO Andreas Segal.

GSW Immobilien AG´s full 2011 annual report can be viewed and
downloaded at www.gsw.de.

Appendix: Highlights page from the 2011 annual report

Contact
GSW Immobilien AG
Charlottenstrasse 4, 10969 Berlin, Germany

Press Investor relations
Thomas Rücker Sebastian Jacob
E-mail: thomas.ruecker@gsw.de E-mail:
sebastian.jacob@gsw.de
Tel.: +49. (0) 30. 25 34-13 32 Tel.: +49. (0) 30. 25 34-18
82

Fax: +49. (0) 30. 25 34-19 34 Fax: +49. (0) 30. 25 34-
233 1960

About GSW With a portfolio of around 53,000 residential units, GSW
Immobilien AG, which was formed in 1924, is one of the leading
listed residential property companies in Berlin. A GSW subsidiary
also manages around 17,500 residential units for third parties.
GSW´s corporate strategy is focused on the long-term management of
rental properties, applying a systematic approach aimed at
increasing both customer satisfaction and operating efficiency. As
of 31 December 2011, the company´s real estate portfolio was
valued at around EUR 2.95 billion.

Further inquiry note:
René Bergmann
Tel.: +49 30 2534 1362
Fax: +49 30 2534 1909
E-Mail: rene.bergmann@gsw.de

end of announcement euro adhoc
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company: GSW Immobilien AG
Charlottenstr. 4
D-10969 Berlin
phone: +49 30 68 99 99 0
FAX: +49 30 68 99 99 999
mail: kundenservice@gsw.de
WWW: http://www.gsw.de
sector: Real Estate
ISIN: DE000GSW1111
indexes: MDAX
stockmarkets: regulated dealing: Berlin, regulated dealing/prime standard:
Frankfurt
language: English