Nov. 16 (Bloomberg) -- Conwert Immobilien Invest SE, Austria’s third-biggest listed real estate company, reported a third-quarter loss on writedowns and interest-rate swaps. The company reiterated its full-year profit forecast.
The net loss was to 4.3 million euros ($5.8 million) in the three months through September, compared with a profit of 31.4 million euros a year earlier, the Vienna-based company said today in a statement. The company booked writedowns of 12.7 million euros on Eco Business-Immobilien AG, which Conwert bought last year. Other writedowns affected its real estate agent Resag.
Conwert “adheres to the target results for the entire year 2011 without change,” according to the statement. The company forecast earnings before interest and tax of 115 million euros to 120 million euros this year and funds from operations of 80 million euros to 100 million euros, according to a presentation on Oct. 25. The developer published “preliminary” results today ahead of its scheduled earnings release on Nov. 23.
The developer of apartment blocks in Austria and Germany plans to take advantage of demand from investors concerned about financial market volatility and inflation. The company is selling as much as 600 million euros in assets this year to reduce the debt it assumed by acquiring Eco.
Conwert, 20 percent owned by Petrus Advisers according to data compiled by Bloomberg, fell 3.5 percent to 9.15 euros at the 5:30 p.m. close of trading in Vienna. The stock has declined 15 percent this year, outperforming the 65-member Bloomberg EMEA Real Estate Index, which is down 23 percent this year.
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