* Q1 loss seen at 5.9 mln eur vs 3.6 mln profit yr ago
* FFO 1 8.4 mln eur vs 9.1 mln eur
* Final results due on May 28 (Adds details on results, background, shares)
VIENNA, May 14 (Reuters) - Austrian property group Conwert said it would make a first-quarter loss of about 5.9 million euros ($8.1 million) after an adjusted profit of 3.6 million euros a year earlier as it would take a bigger hit from interest rate swaps.
Conwert said on Wednesday the non-cash impact on its result would be around 18 million euros, mainly from interest rate swaps, almost four times the 5 million euros in non-cash negative effects it had a year earlier.
Conwert has been through upheavals in its personnel and strategy over the past year, and is now focusing on its German and Austrian residential properties while making massive cost cuts.
It is due to report full first-quarter results on May 28.
"Owing to the current interest rate levels, which are at an all-time low, Conwert believes that a further decline of the interest rate curve is improbable and that it may even rise slightly over the course of the year. This would have a corresponding positive impact on finance costs," it said.
The company said its funds from operations before sales income (FFO 1) shrank to 8.4 million euros from 9.1 million a year earlier, due to higher maintenance costs for newly acquired portfolios in Germany.
The fall came despite a more than 20 percent cut in personnel costs to 6.9 million euros and also a 20 percent drop in other operating expenses to 7.6 million euros.
Conwert shares slipped 0.2 percent to 9.68 euros by 1131 GMT, in line with the European real estate index. ($1 = 0.7296 Euros) (Reporting by Georgina Prodhan; Editing by Michael Shields)