EANS-Adhoc: ECO Business-Immobilien AG / First quarter results for 2009 influenced by impairment charges - portfolio optimisation leads to reduction in net debt and strengthening of liquidity

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20.05.2009

ECO Business-Immobilien AG: First quarter results for 2009 influenced
by impairment charges - portfolio optimisation leads to reduction in
net debt and strengthening of liquidity

Vienna, 20 May 2009. ECO Business-Immobilien AG (Vienna Stock
Exchange / Prime Market: ECO) implemented numerous measures during
the first quarter of 2009 to optimise its portfolio and balance sheet
structure, and thereby prepare for a continuation of the market
downturn. The sale of 48 properties with a total value of EUR 195.0
million strengthened the clear focus on the core segment of business
properties. It also released liquidity and improved the company´s
equity structure: the equity ratio rose from 34% at the end of 2008
to 38% as of 31 March 2009. Profit for the period was negative at EUR
-9.8 million (1-3/2008: EUR 8.7 mill.) as the result of impairment
charges recognised to the property portfolio (EUR -14.9 mill.).

Rental revenues for the first quarter of 2009 amounted to EUR 16.5
million and fell only 10% short of the comparable prior year level
(EUR 18.3 mill.) despite a significant number of property sales. Due
to the continuing standstill on the transaction market and the sale
of properties at their IFRS carrying value, income from the disposal
of non-current assets reached only EUR 5,000 and was unable to make a
major contribution to earnings (1-3/2008: EUR 2.8 mill.).

As a consequence of the difficult operating environment on the office
and retail property market and a lack of reference transactions in
this segment, the valuation of the property portfolio by independent
experts resulted in impairment charges of EUR 14.9 million for the
first quarter of 2009. Accordingly, operating profit (EBIT) fell from
EUR 19.4 million in the first quarter of 2008 to EUR -6.2 million for
the reporting period.

In contrast, financial results improved from EUR -10.9 million to EUR
-6.5 million in the first quarter due to a lower level of interest
rates and reduced financing volume. Profit before tax declined from
EUR 8.5 million in the first three months of 2008 to EUR -12.7
million for the reporting period. Profit after tax equalled EUR -9.9
million, versus EUR 7.2 million in the comparable prior year period.

Funds from operations (FFO) totalled EUR -12.2 million for the first
quarter of 2009 (1-3/2008: EUR 4.2 mill.) as a result of property
sales that were closed below the historical acquisition cost because
of the current market environment.

The balance sheet total declined from EUR 1.1 billion as of 31
December 2008 to EUR 930.5 million at the end of the reporting
period. The sale of properties allowed ECO to improve the equity
ratio and decrease liabilities. This led to a substantial reduction
in net debt from EUR 701.6 million at year-end 2008 to EUR 543.7
million as of 31 March 2009. The equity ratio rose from 34% at the
end of 2008 to 38% as of 31 March 2009. The loan-to-value ratio (LTV)
equalled 60.6%. Non-current liabilities decreased from EUR 470.8
million on 31 December 2008 to EUR 402.6 million. Current liabilities
also declined substantially from EUR 267.7 million to EUR 172.2
million. Net asset value (NAV) per share decreased from EUR 12.54 to
EUR 10.31, above all due an increase in impairment charges over the
comparable prior year period.

The ECO property portfolio comprised 71 objects with a total value of
EUR 892.8 million at the end of the first quarter of 2009 (EUR 1,074
million at the end of 2008). Nearly all these investments (96%) are
located in the core markets of Austria and Germany. Activities during
the reporting period concentrated on the optimisation of the
portfolio through the sale of selected properties as well as measures
to improve the equipment, structure and management of the individual
objects.

ECO´s goal is to maintain a stable level of occupancy in their
investment properties, and thereby hold rental income at a steady
level. In comparison with 2008, ECO expects a continuous improvement
in the equity ratio. Lower interest rates will provide relief in the
financing area, and financial results should presumably improve
during the course of the year. ECO expects the market environment
will remain difficult and, for this reason, further impairment
charges to the property portfolio cannot be excluded.

Selected Company Data in accordance with IFRS

1-3/2009 1-3/2008
Revenues (TEUR) 16,523 18,303
Thereof rental income (TEUR) 13,444 15,232
Income from the disposal of non-current assets (TEUR) 5 2,748
Net gain/(loss) from changes (TEUR) -14,888 5,700
in the fair value of investment properties
Operating profit (EBIT)(TEUR) -6,193 19,350
Profit before tax (EBT)(TEUR) -12,679 8,453
Profit after tax (after minority interests)(TEUR) -9,828 8,694

Earnings per share (EUR) -0.29 0.25
Weighted average number of shares 34,100,000 34,100,000

FFO (funds from operations) (TEUR) -5,694 15,209
before interest and tax, incl. impairment charges 1)
Cash earnings (FFO - funds from operations)(TEUR) -12,191 4,234
after interest and tax 2)
NAV per share (EUR) 10.31 12.54

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

Balance Sheet Data

Consolidated balance sheet - summary in TEUR
31/03/2009 31/12/2008
Non-current assets 903,679 1,085,709
Thereof investment properties 861,545 981,890
Thereof properties under construction 31,247 40,421
Thereof properties available for sale 0 51,881
Current assets 26,788 27,904
Total assets 930,467 1,113,614
Equity and reserves 355,642 375,113
Thereof minority interests 3,979 6,918
Non-current liabilities 402,601 470,846
Current liabilities 172,224 267,654
Total equity and liabilities 930,467 1,113,614

Property Data
31/03/2009 31/03/2008
Number of objects 71 126
Thereof investment portfolio 69 72
Thereof trading portfolio 0 46
Thereof development projects 2 8
Rentable space in m²* 580,800 671,500
Thereof trading portfolio 0 42,600
Thereof development projects 20,900 53,100
Garage spaces (number) 3,060 3,470
Thereof trading portfolio 0 280
Thereof development projects 90 230
Property assets (in TEUR) 892,792 1,244,601
Thereof properties under construction 31,247 38,597
Thereof trading portfolio 0 58,195

* Garage spaces were included at 20 m² each / parking areas included

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 1 580 88 12

mailto:scheck@eco-immo.at

Peter Pechar

Head of Investor Relations

Tel.: +43 1 580 88 35

mailto:pechar@eco-immo.at

Hochegger Financials

Roland Mayrl

Tel.: +43(1) 504 69 87-331

mailto:r.mayrl@hochegger.com

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