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IFM Immobilien AG: IFM Concludes Q1 with Negative Results while Outlook for 2014 as a Whole Remains Bright - Seite 2

authorities. At the same time we are negotiating with potential tenants for
the planned commercial floor area and with potential leads who wish to buy
the planned residential units in order to be able to integrate their ideas
in the planning effort early on. We assume that we will have made
significant progress here, too, before the end of 2014. With a view of the
pace of the progress we are trying to set for the 'Kureck' project in
Wiesbaden, and to the further portfolio sales planned, we assume that the
year as a whole will end with a positive results, and that we will start
into 2015 on a sound basis."

Group Revenue and Earnings Performance
The decline in consolidated revenues is essentially explained by the
cessation of rental income streams due to the disposal of the properties
"Romeo & Julia," "Zeilgalerie" in Frankfurt am Main and "Office Tower" in
Darmstadt, and by the associable reduction in revenues due to change of
incidental expenses. With a total of EUR 4.0 million, the rental income of
the first semester of 2014 declined by around 36.6 % year on year (EUR 6.4
million). The earnings from market valuations of investment properties
totalled EUR 0.2 million by the end of the reporting period (H1 2013: EUR
6.8 million). IFM achieved a consolidated profit after taxes in the amount
of EUR -2.5 million during H1 2014 (H1 2013: EUR 0.4 million). This
translates into EUR -0.26 in basic earnings per share earnings per share
(Q1 2013: EUR 0.04).

Consolidated Balance Sheet Performance
IFM Group's total assets dropped from EUR 272.8 million to EUR 230.7
million by 30 June 2014. The 15.5 % one-year dip since the reporting date
of the previous financial year ending 31 December 2013 is essentially
explained by the fact that the disposal of the "Zeilgalerie" property was
recognised in the meantime, by the corresponding reduction of the loan debt
as a result of the transaction, and by the deconsolidation of the
"Zimmerstrasse / Mauerstrasse" property in Berlin. The value of the
investment property increased by 11.3 % to EUR 167.8 million (up from EUR
150.7 million by 31 December 2013). The increase is attributable mainly to
the acquisition of the "Ulmenstrasse 22" property in Frankfurt that was
concluded during the reporting period. Other factors included the value-add
restructuring work on the properties "Maxxon" in Eschborn, "Das Carré" in
Heidelberg, and "GutenbergPark" in Mainz, as well as recent investments for
the purpose of obtaining new or changed zoning, and investments in the
planning efforts for the project sites of the "Kureck" property in