DGAP-News

IMMOFINANZ confirms preliminary data: improvement in results of operations, but net profit negatively influenced by valuation effects - Seite 2

2013/14), primarily due to negative non-cash foreign exchange effects (EUR
-270.6 versus EUR -126.9 million in 2013/14), above all, from the valuation
of the USD financing for the Moscow shopping centers and a negative
non-cash effect from the valuation of the exchangeable bond for BUWOG
shares (EUR -49.3 million). However, this latter factor was contrasted as
of 30 April 2015 by undisclosed reserves of approx. EUR 155.7 million (1)
in IMMOFINANZ's 49.0% investment in BUWOG.

"IMMOFINANZ followed the successful spin-off of BUWOG by further sharpening
its profile as a pure commercial property company and continuing its
portfolio adjustments with targeted sales during the past financial year.
Our exit from Switzerland and the USA during the year and from the
Netherlands after the end of April 2015 illustrates this process",
explained Oliver Schumy, CEO of IMMOFINANZ. "We also completed a number of
development projects, for example in the retail segment: the Tarasy Zamkowe
shopping center in Lublin and the first shopping center in our new VIVO!
brand. These achievements are clearly reflected in the results of property
sales and property development."

The deterioration of the economic environment in Russia led, as expected,
to a notable decline in the rental income from the Moscow shopping centers
and, consequently, also to lower valuation results. Rental income in the
Russia segment totalled EUR 140.2 million in 2014/15 (2013/14: EUR 167.3
million) and declined by EUR 36.3 million to EUR 127.2 million on a
like-for-like basis.

"However, we are well prepared to deal with this situation. We have granted
temporary rental reductions to provide short-term financial relief for our
tenants and, at the same time, hold the occupancy in our shopping centers
as high as possible", added Schumy. As the forecasts for future economic
developments in Russia are still connected with substantial uncertainty,
the temporary rental reductions and fixed exchange rates for the tenants in
the Moscow shopping centers can, from the current point of view, be
expected to continue on a quarterly basis.

Based on the earnings situation in 2014/15 and the uncertainty connected
with future forecasts for Russia, the Executive Board of IMMOFINANZ has
decided not to recommend a dividend for the 2014/15 financial year to the
annual general meeting. IMMOFINANZ repurchased shares for approx. EUR 102.0
million, i.e. approx. EUR cents 10 per share, in connection with its
2014/15 and 2015 share buyback programmes.