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• Net rental income increases to EUR 39.7 million
• Vacancy rate decreases to 3.3 percent
• Average rent increases to EUR 5.12 / sqm
• Consolidated net income totals EUR 8.7 million
• Adjusted EBITDA up at EUR 33.3 million
• FFO I amounts to EUR 15 million (EUR 0.37 per share)

Berlin, 21 May 2012 - GSW Immobilien AG saw a strong start to the first quarter of 2012. Successful acquisitions, a long-term optimised financing structure, a sustainable and stable business model and a positive trend in operational business contributed to good development in the first quarter.

The full interim report for the first three months of the 2012 financial year can be viewed and downloaded at www.gsw.de. Net rental income rose by around 14.1 percent year-on-year to EUR 39.7 million. The main factors influencing this rise in income were the acquisition of a property portfolio with more than 4,800 units in the fourth quarter of 2011, rent increases, and a reduction in the vacancy rate. "Over the past months we have worked hard to integrate the new portfolio into the existing housing stock. This process has now been successfully completed. The above-average rents and relatively low vacancy rate in this portfolio will therefore increase the company's profitability this year", said Jörg Schwagenscheidt, member of the Management Board of GSW Immobilien AG. Overall, the vacancy rate as at 31 March 2012 fell by around 11 percent to 3.3 percent (31 March 2011: 3.7 percent).

In-place rent also increased by 4.1 percent in the same period to EUR 5.12 per square metre per month (31 March 2011: EUR 4.92 / sqm).

EBIT and EBITDA up after adjustment for one-off effects

In contrast, net operating profit (EBIT) declined from EUR 48.3 million in the first quarter of 2011 to EUR 31.7 million in the first quarter of 2012. However, adjusted for the one-off effect in relation to the sale of the Berlin Mediahaus GmbH ("BMH") cable network of EUR 25.4 million in January 2011, there was a significant increase in EBIT of EUR 8.8 million. This increase is primarily attributable to higher rental and sales results and a decline in administrative expenses. EBITDA developed in step with EBIT during the reporting period. Adjusted for one-off effects, there was a EUR 4.5 million increase in adjusted EBITDA to EUR 33.3 million. Overall, GSW closed the first three months of 2012 with a consolidated net income of EUR 8.7 million, representing a EUR 24.5 million decrease as against the same period of the previous year (EUR 33.2 million). However, consolidated net income in 2011 was mainly influenced by the sale of BMH in the amount of EUR 25.4 million. Adjusted for this one-off effect, consolidated net income recorded a rise of EUR 0.9 million or 11.5 percent to EUR 8.7 million in the first quarter of 2012.

Management Board confirms FFO I forecast of EUR 59 - 63 million for year as a whole

The figure relevant to the dividend, FFO I (excl. sales results), increased by 13.6 percent to EUR 15.0 million (EUR 0.37 per share), in line with GSW's forecasts for this period, as a result of the good operating performance and the larger portfolio as compared to the same quarter of the previous year. "The booming Berlin housing market and our strong rental income underpin our forecast of generating FFO I of between EUR 59 to 63 million in 2012 as a whole, not including any acquisitions made", said Andreas Segal, CFO of GSW Immobilien AG.

Stable development of net asset value and loan-to-value The company's net asset value (EPRA NAV), the economic equity of the Group, also increased by roughly 1 percent to around EUR 1,230 million by the end of the first quarter. This corresponds to a value of EUR 29.96 per share as at 31 March 2012. The loan-to-value ratio accordingly decreased to 57.4 percent. The property portfolio of GSW, which is regularly assessed as at 31 December of each year, is still valued at around EUR 2.9 billion.

Successful capital increase allows for sustainable growth

With a portfolio of around 53,000 residential units and roughly 17,400 residential units managed for third parties, GSW Immobilien AG is the leading listed residential real estate company operating in Berlin. GSW intends to expand this position further. In late April/early May 2012, the company successfully implemented a capital increase with net issue proceeds of approximately EUR 190.3 million to finance further growth, for future purchases and to optimise strategic and financial flexibility. "The successful placement and the high level of acceptance among our shareholders showed us that the capital market is rewarding the stability and continuity of GSW's business model, which combines sustainable growth with an attractive dividend policy. The additional equity will enable us to continue pushing ahead with this strategy and allow our shareholders to participate in the company's success", said GSW's CEO Thomas Zinnöcker.

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