euro adhoc: ECO Business-Immobilien AG / Financial Figures/Balance Sheet / ECO Business-Immobilien AG: Stable revenues - earnings negatively affected by revaluation losses

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25.11.2008

ECO Business-Immobilien AG: Stable revenues - earnings negatively
affected by revaluation losses

Vienna, 25 November 2008. ECO Business-Immobilien AG, which is traded
in the Prime Market segment of the Vienna Stock Exchange, recorded an
increase in revenues for the first nine months of 2008. However, the
financial crisis had a negative effect on the development of
earnings. Revenues rose by 55% to EUR 55.4 million, but profit for
the period was negative at EUR -16.8 million (1-9/2007: EUR 20.2
mill.) above all due to market-related impairment charges of approx.
2% to the value of the property portfolio. Net cash earnings (FFO
after interest and taxes, incl. impairment charges) were positive at
EUR 6.0 million in spite of the challenging environment.

Revenues increased year-on-year to EUR 55.4 million for the first
three quarters of 2008. This growth was driven above all by
acquisitions made in the prior year and the effective asset
management of investment properties. The transaction market for
business properties came to a virtual standstill during the third
quarter. Against the backdrop of this operating environment, ECO
recorded gains of EUR 3.6 million on the sale of properties during
the first nine months of this year (1-9/2007 EUR 6.0 mill.). The
proceeds on sale exceeded the relevant IFRS values by 25.8%.

The market-related impairment charges to the portfolio and
exceptional expenses related to the cancellation of a property
transaction during the second quarter of 2008 led to a decline in
profitability indicators in relation to the comparable prior year
period. Operating profit (EBIT) totalled EUR 7.5 million for the
first three quarters of 2008, compared with EUR 40.8 million in the
first three quarters of 2007. Financial results were negative at EUR
-32.9 million because of the higher volume of financing. Profit
before tax (EBT) declined to EUR -25.4 million and profit after tax
fell to EUR -18.7 million (1-9/2007: EUR 20.4 mill.).

FFO (funds from operations), which exclude revaluation gains and
exceptional non-cash effects, also reflect the increase in interest
rates and financing volume that have taken place during the past
year. Net cash earnings (FFO after interest and taxes, incl.
impairment charges) were still clearly positive at EUR 6.0 million
(1-9/2007: 13.4 mill.). The operational development of the company
had a clearly positive effect, and supported a strong improvement in
FFO before interest and taxes from EUR 27.4 million in the comparable
prior year period to EUR 39.0 million.

The equity ratio equalled 36% and the loan-to-value ratio (LTV) 63%
as of 30 September 2008. Loans from banks and insurance companies
amounted to EUR 685 million at the end of the reporting period,
whereby roughly one-third was hedged against fluctuations in interest
rates. The average interest rate was 5.60% for the reporting period.

Net asset value (NAV) per share declined from EUR 12.04 at the end of
September 2007 to EUR 11.83, in particular as a result of the
above-mentioned impairment charges. Adjusted NAV equalled EUR 12.06
per share.

The ECO property portfolio covered 123 objects with a combined value
of EUR 1.1 billion as of 30 September 2008. Activities in the third
quarter of this year also focused on the optimisation of the existing
ECO properties and the completion of development projects. The
successful implementation of these effective asset management
programmes was reflected in a decline in the vacancy rate from the
June 2008 level. In other words, the impairment losses recognised for
the reporting period were in no way related to the operational
performance of the ECO property portfolio.

The future development of financial markets and the resulting effects
on the real economy are difficult to predict at the present time. ECO
therefore expects the market environment will remain challenging
during the last three months of this year.

Based on the development of business during the third quarter, the
Management Board assumes that revenues and earnings for 2008 will
fall substantially below the prior year level. These results will not
reflect the steady improvement in rental income, but will be caused
above all by a lack of positive revaluation results. Current
developments also indicate that negative earnings for the full year
cannot be excluded due to the possible recognition of additional
impairment losses. However, cash earnings are expected to be positive
for 2008.

Company Data in accordance with IFRS

01-09/2008 01-09/2007

Revenues 55,424 35,818
Thereof rental income 45,838 29,369
Gain on the disposal of non-current assets 3,600 5,973
Net gain from fair value adjustments -23,638 13,487
Operating profit (EBIT) 7,452 40,833
Profit before tax (EBT) -25,419 27,303
Profit after tax (after minority interests) -16,807 20,149

Earnings per share -0.49 0.73
Weighted average number of shares outstanding 34,100,000 27,730,000

FFO (funds from operations) before interest
and taxes, incl. impairment charges 1) 38,982 27,364
Cash earnings (FFO - funds from operations) after
interest and taxes incl. impairment charges 2) 5,981 13,379

NAV (net asset value) per share 11.83 12.04

1) EBIT + depreciation and amortisation +/- fair value adjustments

2) EBIT + depreciation and amortisation +/- fair value adjustments -
financial results - income taxes paid

Property Data

30/09/2008 30/09/2007
Number of objects 123 116
Thereof investment portfolio 72 61
Thereof trading portfolio 45 52
Thereof development projects 6 3
Total rentable space in m² * 666,200 506,600
Thereof trading portfolio 42,100 46,500
Thereof development projects 46,000 25,500
Garage spaces (number) 3,570 2,490
Thereof trading portfolio 270 290
Thereof development projects 230 60
Property assets (in TEUR) 1,094,828 755,173
Thereof construction in progress 46,301 30,488
Thereof trading portfolio 57,539 61,803

* Garage spaces were included at 20 m² each

This release contains forward-looking estimates and statements that
were made on the basis of the information available at this time.
These forwardlooking statements are usually described in terms such
as "expect", "estimate", "plan", "reckon", "assume", "should",
"supposed to", "can", etc. Forward-looking statements reflect the
point of view at the time they are made. ECO would like to point out
that the actual circumstances and, consequently, the actual results
realised at a later date may differ from the forecasts presented in
this report for a variety of reasons.

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

Chief Executive Officer

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