DGAP-News

IMMOFINANZ Group with increase in net profit - Five-year sales programme completed earlier than planned - Seite 2

for the increase in net profit to EUR 225.8 million (Q1-3 2012/13: EUR
210.8 million). Gross cash flow fell from EUR 315.3 million in the
comparable prior year period to EUR 281.8 million. This decline resulted
mainly from an increase in taxes to EUR 28.6 million based on the property
sales (Q1-3 2012/13: EUR 10.3 million) and a temporary increase in input
VAT credits.


OUTLOOK:

The market recovery - above all on the stock exchanges - has been
negatively influenced by the Crimean crisis. The extent of a potential
effect on the commercial development of our target markets, above all
Russia, cannot be estimated at the present time. "Although the weak Ruble
has a short-term positive effect on results through the valuation of our
properties, it represents a negative factor for the development of our
business in Russia over the medium- and long-term. The rental income on our
Russian retail portfolio is principally coupled to the Euro or US Dollar,
and a change in the Rubel exchange rate therefore has no direct influence
on our results from asset management. However, as the owner of shopping
centers, we are dependent on the economic success of our tenants. A
continuing decline in the value of the Rubel could lead to pressure on some
of these tenants", commented CEO Eduard Zehetner. In the past, IMMOFINANZ
Group has always handled exchange rate situations successfully and avoided
any material economic damage. For example: IMMOFINANZ concluded special
short-term arrangements with a number of tenants during the 2008/09
financial crisis as a means of reducing foreign exchange effects. That is
also a possible scenario in the current situation.

"We do not believe that the so-called 'sanctions' implemented by various
parties to date are capable of negatively influencing the Russian economy
or the flow of goods and capital", added Zehetner.

"Our Russian properties are financed in US Dollars and solely through
Russian banks (Sberbank of Russia) or the Russian subsidiaries of
international banks (e.g. Rosbank, Nordea). These loans have long remaining
terms, with the respective property serving as collateral. Sufficient
longterm financing is also available for our newly developed properties,
such as the recently completed GOODZONE shopping center", explained CFO
Birgit Noggler.

IMMOFINANZ Group expects further growth in the value of the company during
the 2013/14 financial year. This development will be supported by the
further optimisation of the portfolio, the continuation of the extremely