DGAP-News

IMMOFINANZ with stable operating performance in the first half year, but burdened by Russian crisis - share repurchase program resolved - Seite 3

The like-for-like decline in rental income in Russia equalled -1.1% (versus
Q1 2014/15), but there was an increase in impairment losses to receivables
from previous quarters due to the rising uncertainty. From the current
point of view, an increase in impairment losses to Russian receivables in
the coming quarters is likely.

In spite of this solid operating performance, net profit for the first half
of 2014/15 was negative at EUR -30.2 million (H1 2013/14: EUR 110.3 million
resp. EUR 165.0 million incl. 100% BUWOG). This development resulted
primarily from the negative effects caused by the foreign exchange-adjusted
revaluation of investment properties in the second quarter, which reflected
the decline in the value of properties in Eastern Europe and above all in
Russia, Poland and the Czech Republic. These foreign exchange-adjusted
revaluation results of EUR -75.0 million reduced net profit, but have no
effect on cash. Income tax expense was also higher in the second quarter
due to the sale of logistics properties in Switzerland. Earnings before tax
improved substantially over the first quarter to plus EUR 8.9 million in
the second quarter (Q1 2014/15: EUR -18.5 million), but net profit for the
second quarter was negative at EUR -16.2 million (Q1 2014/15: EUR -14.0
million).

Sustainable free cash flow (FFO) amounted to EUR 64.3 million for the first
half of 2014/15, which represents an annualised FFO yield after tax of
9.8%* based on market capitalisation. After an FFO of EUR 47.7 million in
the first quarter 2014/2015, the FFO totalled EUR 16.7 million in the
second quarter 2014/15. This reduction in FFO is explained almost equally
by lower property sales in the second quarter, higher income tax payments
in Switzerland and an increase in gross rent receivables in Russia.

* Sustainable cash flow (excl. BUWOG): Gross cash flow (EUR 143.9 million)
+ interest received on financial investments (EUR 2.6 million) - interest
paid (EUR 76.0 million) - cash outflows for derivative transactions (EUR
11.9 million) + results of property sales (EUR 5.7 million) based on market
capitalisation as of 16 December 2014 (share price: EUR 2.03) excl.
treasury shares and market capitalisation of the BUWOG shares held (EUR
756.0 million based on a share price of EUR 15.49 as of 16 December 2014).

Rental income declined to EUR 234.6 million following the sale of
properties during the first half of 2014/15 (H1 2013/14: EUR 246.1
million). The results of property sales totalled EUR 5.7 million, compared
with EUR 7.2 million in the previous year. The results of property