DGAP-News

IMMOFINANZ with stable operating performance in the first half year, but burdened by Russian crisis - share repurchase program resolved - Seite 2

continued deterioration of the situation in Russia would presumably also
have negative consequences for the foreign exchange-adjusted revaluation of
the Group's Russian assets.

"The tenants in our Moscow shopping centers are confronted with a variety
of problems, above all from the sharp drop in the Ruble. That means an
increase in costs because in general our lease agreements are fixed in US
Dollars or Euros. In order to support these long-term partnerships, we have
met with numerous retailers in recent months and offered temporary
reductions in lease payments on a case by case basis. That will help them
to reduce the higher costs caused by foreign exchange effects. Since the
Ruble has fallen further in the past months, we will have to continue this
temporary payment reduction policy", comments Zehetner. "We do not expect
any significant improvement in the situation in Russia over the short-term,
but hope at best for an unsteady sideward development during the coming
months. In spite of the current uncertainties, we believe in the Russian
market and in Russia as an economic factor. Moscow and the surrounding
region are still undersupplied with high-quality retail space compared to
other major European cities. We will therefore continue to evaluate new
investments with a moderate volume in this market."

Payout policy:

The Executive Board and the supervisory board of IMMOFINANZ AG have
resolved today to carry out the share repurchase program 2014-15 with an
intended volume of up 10,167,053 shares (see also ad hoc-announcement on 17
December 2014). "The strong decline in the price of IMMOFINANZ shares due
to the crisis in Russia and the related high discount to net asset value
provide an attractive opportunity to buy back our own shares", says CEO
Zehetner.

The payment of a cash dividend for the current financial year 2014/15
depends on the attainment of a distributable balance sheet profit of
IMMOFINANZ AG. In light of current and further developments in Russia, the
Executive Board doesn't provide a concrete guidance on the size of a
potential dividend.


DEVELOPMENTS IN DETAIL:

The results of operations generated by IMMOFINANZ Group were stable in a
year-on-year comparison at EUR 169.5 million in the first half of 2014/15
(H1 2013/14: EUR 166.8 million). A slight increase in like-for-like rental
income from the final quarter of 2013/14 to the first quarter of 2014/15
(+1.4%) was followed by stable like-for-like development in the second
quarter (-0.04% versus Q1 2014/15).