DGAP-News

IMMOFINANZ plans portfolio concentration on retail and office sectors - growth with focus on Germany, Austria and Poland - Seite 2

distribution between Western and Eastern Europe", noted Schumy. At the
present time, roughly 32% of the portfolio is located in Austria and
Germany and 68% in Eastern Europe, including Moscow.

The geographic focus for the office segment will be placed exclusively on
the capital cities in the core countries and on the "Big-7" cities in
Germany (IMMOFINANZ currently covers Cologne and Düsseldorf). Expansion in
the retail segment could include capital cities (prime shopping centers) as
well as secondary and tertiary cities (VIVO! and STOP.SHOP.) with the goal
to achieve the best possible coverage of the retail market in the
individual core countries.

Activities will also include targeted measures for the standing
investments, above all in the office segment, to maintain their high
quality and improve occupancy and earnings. "With these measures, we not
only want to approach new customers, but also remain an attractive partner
for our current tenants. That is a very important competitive factor",
indicated Schumy.

Project development in 2015/16 will include, among others, the completion
of the first phase of construction on the Gerling Quartier in Cologne, the
first section of the Metroffice complex in Bucharest and our VIVO! shopping
center in the Polish city of Stalowa Wola. From the current point of view,
the planned average investment volume is estimated at approx. EUR 300
million per year.

Dividend policy

The earnings situation in 2014/15 and the uncertainty connected with
forecasts for economic developments in Russia are the reasons for the
decision by the IMMOFINANZ Executive Board not to recommend a dividend for
the 2014/15 financial year to the annual general meeting. However,
IMMOFINANZ repurchased shares for approx. EUR 102 million, i.e. approx. EUR
cents 10 per share, in connection with its 2014/15 and 2015 share buyback
programmes.

The Executive Board is also planning measures to restore the company's
structural capability to pay dividends as quickly as possible and thereby
support a sustainable dividend policy. Several options are currently being
examined. The goal is to simplify the corporate structure, on the one hand,
and to safeguard the generation of distributable balance sheet profit, on
the other hand. A proposal covering the planned measures will be placed
before the annual general meeting for voting. Since the necessary
preparations are expected to take two to three months, the date for the
22nd annual general meeting of IMMOFINANZ AG will be postponed to 1
December 2015.


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