Black Friday is Now! Don’t miss out on up to 60% OFF InvestingProCLAIM SALE

UPDATE 1-Conwert 2008 profit slips to 60 mln eur, mulls div

Published 02/05/2009, 08:38 AM
Updated 02/05/2009, 08:40 AM

* 2008 funds from ops down about 4 percent from 2007

* 2009 prospects "not worse" than H2, 2008

* Will propose dividend if 2009 begins well

(Adds details)

FRANKFURT, Feb 5 (Reuters) - Austrian real estate company Conwert Immobilien Invest SE achieved funds from operations (FFO) of about 60 million euros ($78.2 million) in 2008, down 4 percent on 2007, its chief executive said.

"FFO in 2008 was about 60 million euros," CEO Johann Kowar told reporters in Frankfurt on Thursday. In 2007, the company's FFO -- a key indicator of profitability -- was 62.4 million euros.

Conwert's management was still considering whether to pay a dividend for 2008.

"If 2009 begins well, we will propose a dividend to the annual general meeting (AGM) in May. But if this year's business outlook turns negative, we must consider if it's intelligent (to propose a dividend)," he said.

Asked about this year's prospects, he said: "We don't expect 2009 to be worse than the second half of 2008."

"Prices will hold up, I don't see any significant erosion," he said, adding: "For quality properties in good locations there's very little pressure on prices."

Conwert has around 3 billion euros in assets and 1.6 billion euros in debts, on which the company pays interest of on average 4.6 percent, Kowar said. The company has bought back 5 percent of its shares, which fell 73.4 percent last year, underperforming the FTSE EPRA/NAREIT European real estate sector index, which dropped 50.9 percent in the same period.

"We are considering more share buy-backs but we are at the moment prevented by law to do so, we don't have the required AGM authorisation," Kowar said.

Under Austrian rules, buy-backs can only be carried out within a price band authorised by the AGM. Conwert's existing buy-back authorisation has a lower limit of 8 euros per share, almost double the current market price.

At 1335 GMT, Conwert's shares were up 7.9 percent on the day at 4.37 euros. ($1=.7672 Euro) (Reporting by Peter Starck; Editing by Jon Loades-Carter)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.