EANS-News: GSW Immobilien AG with positive first half-year 2011

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6-month report/Interim Report H1-2011

Berlin (euro adhoc) - GSW Immobilien AG with positive first half-year
2011

• Net rental income of EUR 69.6 million
• Vacancy rate still low at 3.8%
• Adjusted EBITDA also stable at EUR 59.1 million
• Consolidated net income up significantly to EUR 36.9 million
• Net asset value (EPRA) rises to EUR 27.67 per share
• Equity ratio climbs to 40.1%

Berlin, 30 August 2011 - GSW Immobilien AG has successfully completed
the first half of the 2011 financial year and generated significantly
higher consolidated net income than in the same period of the
previous year. The company´s operating activities continued to
perform in a stable manner. The full interim report for the first
half of 2011 can be viewed and downloaded at www.gsw.de.

Earnings figures verify solid business performance

At EUR 69.6 million, net rental income as at 30 June 2011 was roughly
on par with the first half of 2010 (EUR 70.9 million) despite a
reduction in the property portfolio of around 450 apartments. "The
fact that we were able to generate almost the same net rental income
from a lower number of residential units is thanks firstly to the low
vacancy rate of our residential portfolio, which was 3.8% as at
30 June 2011. Secondly the monthly, in-place residential rent rose
from EUR 4.88 per square metre in the same period of the previous
year to EUR 4.94," explained Andreas Segal, CFO of GSW. The result on
the disposal of investment property climbed to EUR 2.6 million
(H1 2010: EUR 0.8 million).

In addition to the positive development in operating activities, the
clear rise in EBIT from EUR 43.0 million to EUR 76.8 million is also
due to the income of EUR 25.4 million generated predominantly by the
disposal of the cable network.

After adjustment for non-recurring effects - particularly the
proceeds from the sale of BMH and the costs in association with the
IPO in April 2011 - GSW generated adjusted EBITDA of EUR
59.1 million, a figure virtually unchanged as against the same period
of the previous year (EUR 59.7 million).

Overall, at EUR 36.9 million, GSW´s consolidated net income for the
first half of 2011 was significantly higher than the first half of
2010 (EUR 5.8 million). On the basis of the current number of 41.052
million shares, earnings per share increased to EUR 0.90 (previous
year: EUR 0.14).

Management Board confirms guidance for FFO I of EUR 54 to EUR
59 million for year as a whole

In the first half of 2011, the figure relevant to the dividend, FFO I
(funds from operations, not including the result on disposals) was
EUR 29.0 million (previous year: EUR 38.6 million) and was in line
with GSW´s expectations for this period. On the basis of
41.052 million shares, the FFO I per share for the reporting period
was EUR 0.71. In light of the positive performance in operating
activities, the Management Board of GSW confirms the guidance already
published of FFO I of between EUR 54 and EUR 59 million for 2011.

This was also aided by moderate rental increase potential given the
new rent index for Berlin. Average rent index rents rose by around
7.9% from EUR 4.83 per square metre in 2009 to EUR 5.21 in 2011. The
analysis and implementation from the new 2011 Berlin rent index has
been completed for GSW. This leads to a rent increase potential of
around 6.8% for approximately 15,000 apartments over the next two
years.

Net asset value and equity ratio rise significantly

As at 30 June 2011, the IFRS equity ratio was 40.1%
(31 December 2010: 36.4%). The company´s EPRA NAV rose on account of
the positive results for the first half of the year and - taking into
account the net proceeds of around EUR 100 million from the capital
increase accompanying the IPO to a total of EUR 1,135.8 million or
EUR 27.67 per share based on 41.052 million shares (31 December 2010:
EUR 991.4 million). Taking into account the cash and cash
equivalents, the loan-to-value ratio dropped to 55.7% as at
30 June 2011 after 61.1% on 31 December 2010.

Value of portfolio still around EUR 2.6 billion

The property portfolio of GSW is regularly evaluated as at
31 December of each year. Thus, the value of the property portfolio
is still around EUR 2.6 billion. In the first half of the year, GSW
sold a total of 298 apartments, primarily to owner-occupiers and
capital investors, as part of its privatisation strategy. Contracts
were also signed for 142 units with a sales price volume of around
EUR 8.4 million and transfer of benefits and burdens after 30 June
2011.

GSW received well on capital market

While the first quarter was heavily influenced by the large-volume
CMBS refinancing and the preparations for the IPO, GSW was
successfully floated on the stock exchange at the start of the second
quarter. Since the initial listing of GSW shares on the regulated
market (Prime Standard) of the Frankfurt stock exchange, GSW has been
met with a very positive response on the capital market. GSW´s shares
were included in all key EPRA indices on 18 April 2011 thanks to fast
entry regulations. A further key milestone was the inclusion of GSW
in the SDAX as at 20 June 2011. The keen interest on the capital
market and the positive response to GSW are also reflected by the
fact that GSW´s shares are already being covered by eleven banks and
research companies.

Contact
GSW Immobilien AG
Charlottenstrasse 4, D-10969 Berlin

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 19 09

About GSW

Founded in 1924, GSW Immobilien AG is a leading listed real estate
company in Berlin with a portfolio of approximately 48,600
residential units and a total residential space of 3.0 million square
meters. A subsidiary of GSW also manages approximately 16,500
residential- and commercial units for third parties. GSW's corporate
strategy is focused on the long-term rental management of residential
property, using a systematic approach intended to enhance both
customer satisfaction and operational efficiency. As at December 31,
2010, the Company's property portfolio was valued at approximately
2.6 billion euros.

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: SDAX
stockmarkets: regulated dealing/prime standard: Frankfurt, regulated dealing:
Berlin
language: English