VIENNA, Nov 27 (Reuters) - Austrian real estate group Conwert said it more than doubled its funds from operations before sales income (FFO I) in the first nine months to 28 million euros ($38 million).
The company reiterated its target to raise 2013 FFO I to 36 million euros from 21 million, excluding restructuring charges, and said it had already reached its full-year job-cuts goal by slashing 22 percent of its staff in the first nine months.
Conwert is undergoing an upheaval as it switches focus from buying and selling real estate to residential property management and its administrative board chief Johannes Meran is stepping back from running day-to-day operations.
"The search for a new CEO is underway and progressing as planned; Conwert expects to announce an additional Executive Director as CEO in the coming weeks," the company said in a statement late on Tuesday.
Conwert's rental income rose 17 percent in the first nine months to 168 million euros, thanks to the consolidation of its German acquisition Kommunale Wohnen and an improvement in its net rental income margin.
The company said it expected full-year sales revenue of around 250 million euros, down from 410 million in 2012 as it slows down sales activities, with a sales margin of around 7 to 9 percent.
Pretax earnings should be 50-55 million euros, not including the impact of a portfolio revaluation at the end of 2013, helped by a reduction in personnel and other operating expenses to around 70 million euros from 95 million in 2010.
Conwert said it expected full-year restructuring charges of 3 to 5 million euros, mainly due to severance payments, and that the full effect of the job cuts on personnel expenses would be felt only in 2014. ($1 = 0.7374 euros) (Reporting by Georgina Prodhan; Editing by Michael Shields)