euro adhoc: ECO Business-Immobilien AG / quarterly or semiannual financial statement / ECO Business-Immobilien AG: strong business performance in Q1 2008

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21.05.2008

ECO Business-Immobilien AG: strong business performance in Q1 2008

Vienna, 21 May 2008 - Vienna Prime Market listed ECO
Business-Immobilien AG reported another strong operating performance
in the first quarter of 2008, with improvements in all revenue and
earnings indicators. Operating profit (EBIT) jumped 64% year on year
to EUR 19.4 million as a result of higher revenues and revaluation
gains, which were mainly attributable to changes in the fair value of
the BAWAG portfolio. Total real estate assets at 31 March 2008
amounted to around EUR 1.2 billion, compared with EUR 697.5 million
at the end of the first quarter of 2007.

Following significant portfolio expansion in 2007, the first quarter
of 2008 was fully taken up with improving the effectiveness of asset
management of existing properties. ECO increased the value of its
properties, and secured several new long-term tenants. Unlocking the
value of the BAWAG real estate - which was acquired late in 2007 -
was the key to this success. ECO introduced effective measures that
successfully increased revenues and raised the occupancy rate.

ECO´s revenues and earnings increased once again in the period under
review. Revenues for the quarter rose 60% year on year to EUR 15.2
million, which can be attributed to organic growth from the real
estate acquired in 2007 and new rentals from the existing portfolio.
Due to current market conditions and the focus on developing the
existing portfolio, acquisitions were made only selectively. As a
result of seasonal factors, trading activities in the first quarter
of 2008 were flat. Total trading income of EUR 2.75 million was
slightly higher than the EUR 2.29 million achieved in the previous
period, with a consistently higher margin of 28% on IFRS values. The
real estate asset revaluation required under IFRS accounting amounted
to EUR 5.7 million (Q1 2006: EUR 2.4 million), or 0.5% of the value
of real estate held as investment properties. This is primarily a
reflection of value-adding asset management activities and increases
in market prices for attractive locations.

In line with the strong operating performance, EBIT rose by 64% to
EUR 19.4 million (Q1 2007: EUR 11.8 million). Profit before tax (EBT)
increased to EUR 8.5 million, compared with EUR 7.4 million in the
first quarter of 2007. Consolidated net profit was up by 55% to EUR
8.7 million, while earnings per share (on a higher number of shares)
rose some 13%, to EUR 0.25.

Net asset value (NAV) per share at 31 March 2008 was 4.4% higher than
a year earlier, increasing from EUR 12.00 to EUR 12.53.

Total real estate assets jumped from EUR 697.5 million at the end of
the first quarter of 2007 to EUR 1.2 billion, mainly as a result of
the acquisitions made at the end of 2007. ECO´s real estate portfolio
at 31 March 2008 amounted to 126 properties (including development
projects), compared with 119 at the end of the first quarter of 2007,
while total usable space amounted to around 671,500 m2.

Following the good start to financial 2008 and the strong earnings
performance in the opening months of the year, the Management Board
of ECO expects solid results for 2008 as a whole. ECO´s focus in the
current financial year will be on increasing earnings through
effective real estate management (raising revenues with new rentals
and reduced vacancy rates), profitable trading activities and an
expansion of development activities. Plans for selective growth in
the property portfolio will be implemented using a balanced mix of
own funds and debt capital.

Key financial indicators in accordance with IFRS

Q1 2008 Q1 2007
Revenues (EUR ´000) 18,303 11,522
of which rental income (EUR ´000) 15,232 9,543
Profits on disposal of non-current assets (EUR ´000) 2,748 2,292
Net gain from changes in fair value (EUR ´000) 5,700 2,410
Earnings before interest and tax (EBIT) (EUR ´000) 19,350 11,785
Earnings before tax (EBT) (EUR ´000) 8,453 7,417
Consolidated net profit (EUR ´000) 8,694 5,625
(after minority interests)

Earnings per share (EUR) 0.25 0.23
Weighted average number of shares 34,100,000 25,000,000

FFO before interest and taxes* (EUR ´000) 15,209 9,382
FFO after interest and taxes* (EUR ´000) 4,234 4,852
NAV per share (EUR) 12.53 12.00

* Earnings before tax + depreciation +/- changes in fair value

Property information

March 31, 2008 March 31, 2007
Number of properties 126 119
of which hold portfolio 72 55
of which trading portfolio 46 63
of which development projects 8 1
Total usable space in m2 * 671,500 463,300
of which trading portfolio 42,600 49,200
of which development portfolio 53,100 5,600
Underground parking spaces (number) 3,470 2,330
of which trading portfolio 280 270
of which development portfolio 230 0
Total real estate assets (EUR ´000) 1,244,601 697,533
of which properties under construction 38,597 11,982
of which trading portfolio 58,195 81,973

* Garage spaces calculated at 20 m2 per space

end of announcement euro adhoc
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ots Originaltext: ECO Business-Immobilien AG
Im Internet recherchierbar: http://www.presseportal.de

Further inquiry note:

ECO Business-Immobilien AG

Friedrich Scheck

CEO

Tel.: +43(1)535 21 99-12

mailto:scheck@eco-immo.at

Peter Pechar

Head of Investor Relations

Tel.: +43(1)535 21 99-35

mailto:pechar@eco-immo.at

Hochegger Financials

Roland Mayrl

Tel.: +43(1) 504 69 87-31

mailto:r.mayrl@hochegger.com

Branche: Real Estate
ISIN: AT0000617907
WKN: A0D8RY
Index: Prime.market
Börsen: Wiener Börse AG / Regulated free trade