EANS-News: GSW Immobilien AG successfully closes the fiscal year 2012

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annual report/Annual Report 2012

Berlin (euro adhoc) - GSW Immobilien AG successfully closes the
fiscal year 2012

* Consolidated net income improved by 36.3 percent to EUR 143.3
million * Net operating profit (EBIT) increased by 21 percent to EUR
214.4 million * FFO I increased by 13.5 percent to EUR 64.2 million *
Vacancy rate reduced by 0.7 percentage points to 2.7 percent * Equity
ratio improved from 38.4 to 40.4 percent * Net Asset Value (EPRA)
increased from EUR 29.72 to EUR 30.21 per share

Berlin, 22 March 2013- GSW Immobilien AG can look back at an eventful
and successful fiscal year 2012. With the successful capital
increase, the placement of a convertible bond and the acquisition of
7,000 apartments, the MDAX-listed company was able to further
consistently pursue its path of growth. Moreover, GSW was able to
achieve its stated planning and forecasts in its operative business.
Together with the apartments acquired in 2012, the Berlin-based real
estate company managed around 60,000 residential and commercial units
at the turn of the year, and thus one of the largest real estate
portfolios in Berlin. In the fiscal year 2012 the income from rents
increased by around EUR 19.0 million to EUR 202.1 million - a
substantial plus of 10.4 percent. "The acquisition of a real estate
portfolio in the fourth quarter of 2011 influenced this considerably,
and was relevant to the results throughout the whole year of 2012 ",
said Jörg Schwagenscheidt, COO of GSW Immobilien AG. The average
rents, which were higher compared with the previous year, and the
lower vacancy rate also contributed to this improvement in results.
On the whole, the net rental income increased compared with 2011 by
around 13.4 percent to EUR 160.0 million. It was possible to once
again substantially reduce the vacancy rate by 0.7 percentage points
to 2.7 percent. The monthly in-place rent increased in the same
period of time by 2.8 percent to EUR 5.22 per square metre. In the
like- for-like analysis, without acquisitions and sales, the in-place
rent increased by 2.4 percent to EUR 5.20 per square metre in 2012.
Also worth mentioning is the exceptionally good result on disposals:
"Owing to the currently strong demand for real estate in Berlin, we
were able to increase our result on disposals by EUR 6.3 million to
EUR 9.6 million", said Schwagenscheidt.

In the fiscal year 2012, GSW invested a total of around EUR 46.4
million (2011: EUR 41.1 million) in maintenance and modernisation for
its real estate portfolio, of which around EUR 26.3 million (2011:
EUR 19.8 million) were capitalised as measures for increasing the
value.

Net operating profit and the consolidated net income of the period
increase substantially The net operating profit (EBIT) also increased
to EUR 214.4 million (2011: EUR 177.2 million). This is, however,
influenced by special effects. Adjusted for one-off effects and
project expenses, there is an increase in the EBIT by EUR 40.8
million, which primarily results from higher rental, sales and
valuation results. The consolidated net income for the year increased
to EUR 143.3 million (2011: EUR 105.1 million).

GSW is intending to keep the dividend per share constant The
development of the key figure Funds from Operations (FFO I), which is
relevant for the dividend payment 2012, was particularly pleasing.
The FFO I increased by 13.5 percent and was with EUR 64.2 million
slightly higher than the forecast, thanks to one-off special effects.
The Management Board has decided to propose a constant dividend
payment in the amount of EUR 0.90 per share at the Annual General
Meeting on 18 June 2013.

Value of the real estate assets increases to around EUR 3.3 billion
The positive development of the operative business and the market
rents were also further reflected in the valuation results of EUR
76.4 million; this has had a positive effect on the financial equity
of the group. The EPRA Net Asset Value (EPRA NAV) increased by the
end of the fiscal year by around 25 percent to EUR 1,526.2 million.
This corresponds with a value of EUR 30.21 per share as of 31
December 2012. The equity ratio improved to 40.4 percent (31 December
2011: 38.4 percent). Over the course of the year, the Loan-to-Value
ratio (LTV) fell compared with the previous year to 53.8 percent (31
December 2011: 58.0 percent). On the whole, GSW's portfolio showed a
market value of approximately EUR 3.3 billion (EUR 909/ sqm) as of
the key date. During the past fiscal year, GSW continued the course
of expansion and acquired a total of 7,000 residential units. The
rental income generated will have a positive impact on the company
results starting from 2013.

Capital increase and issue of a convertible bond secure the path of
growth The growth was made possible by two essential measures: At the
end of April 2012, GSW carried out a successful capital increase and
placed around 9.5 million new shares. Moreover, GSW was able to
further optimise its cost of debt in 2012 by the placement of a
convertible bond and guarantee a high degree of flexibility with the
financing of new investments. "With the issue on 15 November 2012 we
have, for the first time, placed a convertible bond on the capital
market in the full scope. This has a term of seven years and
securitises a coupon of 2 percent per annum. In total GSW generated
net cash of more than EUR 370 million from the capital measures of
2012", said Andreas Segal, CFO of GSW.

Outlook 2013 "External growth through purchases is also planned in
future", said Schwagenscheidt. "The bases for the success of GSW, in
addition to its efficient business model, are also the positive
economic development in Berlin and the housing market in Berlin." In
recent years, the economic environment of Berlin has improved
continuously. Falling unemployment rates, rising real incomes and a
substantial increase in the population are having a positive
influence on the housing market. Both rental apartments as well as
condominiums were in high demand in the past year. New building
activity has also developed positively, although it cannot satisfy
the consistent increase in the demand for housing space. As a
consequence, the rental and purchase prices increased over all price
segments in 2012, something that will continue to have positive
implications for the revenue position and results of operations of
the company. "Based on further growth, we are expecting an increase
in the FFO I of EUR 73 to 78 million for the fiscal year 2013", Segal
said.

"In 2012, GSW took a further big step towards a sustainable future.
After eight years, I am leaving a well-organised company", said the
leaving CEO Thomas Zinnöcker. With the the business model focused on
the management of residential real estate for a broad-based
population segment in Berlin, and with its conservative financing
structure, GSW has deliberately chosen a low-risk profile with a
reasonable dividend yield for its shareholders. Sustainable growth
and attractive dividend policies are thus combined.

GSW Immobilien AG's full annual report for 2012 is available for
viewing and downloading at www.gsw.de starting today.

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
Phone: +49. (0) 30. 25 34-13 32 Phone: +49.(0)30.2534-18 82
Fax: +49. (0) 30. 25 34-19 34 Fax: +49.(0)30.2534-233 1960

About GSW With a portfolio of around 60,000 residential and
commercial units, GSW Immobilien AG, founded in 1924, is a leading
market-listed real estate company in Berlin. 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 at 31 December 2012, the company's
property portfolio was valued at around EUR 3.3 billion.

Further inquiry note:
René Bergmann
Tel.: +49 30 2534 1362
Fax: +49 30 2534 233 1960
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