EANS-Adhoc: Sparkassen Immobilien AG / Financial year 2009 - a year of contrasts

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annual report

28.04.2010

Ad hoc release Vienna, 28 April 2010

Sparkassen Immobilien AG
Financial year 2009 - a year of contrasts

* First ever post-tax full-year loss following market-related property
revaluations
* Increase in revenues less directly attributable expenses to EUR 70.9
million
* Occupancy rate steady at 90.3%
* Conversion of participating certificates into shares planned
* Outlook: strong Q1, cash from operations set to double starting in 2011

For stock exchange listed Sparkassen Immobilien AG (Bloomberg: SPI:AV, Reuters:

SIAG.VI), the financial year 2009 was a successful year
operationally. However, for the first time in the Group´s 22-year
history the final results for the year were negative, as a
result of the effects of the financial crisis and non- cash property
revaluations.

For Sparkassen Immobilien AG the financial year 2009 was a year of
contrasts. While for 2009 the effects on post-tax results of the
financial crisis and non- cash revaluations were significantly
negative, the consistent, long-term business strategy produced
satisfactory operating results. Major operating indicators such
as rental income, occupancy rate and cash flow were maintained at
their existing level or even improved. Starting in the financial
year 2011, the Company will more than double its operating cash
flow, as development projects are completed.

Operating results: rental income up, occupancy rate stable at high
level The highly satisfactory operating results were primarily
attributable to persisting high occupancy levels. Despite the
difficult market environment, Sparkassen Immobilien AG has been
successful in holding its occupancy rate constant, at 90.3%. The
rental yield was 6.65%. In the last financial year rental
income rose by 2% and property assets increased to EUR 1.901bn
(2008: EUR 1,808bn). As at 31 December 2009, Sparkassen
Immobilien AG´s property portfolio comprised 256 properties with
total lettable space of 1,355,000 m².

The revenues less directly attributable expenses increased to
EUR 70.9m, after EUR 70.5m in 2008. Cash flow from operations of
EUR 49.4m was approximately at the same level as last year
(EUR 50.0m). The completed development projects will be making
their full contribution to profits starting in the financial
years 2010/2011. One-off increases in expenses in connection
with the successful completion of the projects resulted in a
fall in Funds From Operations (FFO) to EUR 22.0m.

Taking advantage of favourable sales opportunities During 2009 six
rental properties were disposed of at a profit. This included the
Gemini office building in Prague, which was sold to Deka
Immobilien GmbH for a price far in excess of the land acquisition
costs and construction costs. This transaction, with a value of
around EUR 110m, was not only the biggest sale in the history of
Sparkassen Immobilien AG, but also one of the Company´s most
successful development projects to date.

Increased transparency with EPRA standards The financial statements
for 2009 have been prepared in accordance with the standards of
the European Public Real Estate Association (EPRA). The changes in
presentation affect the income statement and the method of
calculating NAV. This change as a result of the increased
transparency makes the Company even more attractive to
institutional investors, and easier to compare with other
property companies. EBITDA fell from EUR 59.2m to EUR 53.3m. The good
operating results were outweighed by non-cash property
revaluations of EUR 97.2m, resulting in a negative EBIT of
EUR 53.1m (2008: positive EBIT of EUR 23.8m).

Sparkassen Immobilien AG´s cash reserves as at 31 December 2009
stood at EUR 210m.

All development projects on schedule In spite of the extremely
difficult market environment, in 2009 Sparkassen Immobilien AG
was able to continue all development projects - the shopping
centres and office buildings Serdika Center in Sofia and Sun Plaza in
Bucharest - as planned. Two other projects - the fully let
student residence and geriatric centre in Sechshauser Strasse in
Vienna and the Austria Trend Hotel in Bratislava - were
successfully completed in 2009 and officially opened.

The two biggest projects in the history of the Group to date,
the shopping centres Serdika Center in Sofia and Sun Plaza in
Bucharest, are almost fully let. The biggest shopping centres in
their respective countries, they were successfully opened in the
first quarter of 2010.

s IMMO Share: year-to-date gain of 152.5% Sparkassen Immobilien AG´s
share performed outstandingly in 2009, closing the year at
EUR 5.00 (closing price 27 April 2010: EUR 5.10), a
year-on-year increase of 152.5%. Erste Group and Vienna Insurance
Group, two of the region´s largest established financial service
providers, continue to be Sparkassen Immobilien AG´s strategic
core shareholders.

Analysts´ interest in the s IMMO Share also continued to strengthen:
Prominent names such as HSBC and SRC Research have started
providing coverage of the share. All the analysts have currently
issued "buy" recommendations, and stress as a special strength the
balanced portfolio in terms of use type and regional spread, the
consistently high occupancy rate, the good tenant mix and the broad
spread of investors.

Conversion of participating certificates into shares planned
On 22 April 2010 the Management and Supervisory Boards resolved on
a further step to standardise the treatment of the two groups of
investors in Sparkassen Immobilien AG, the shareholders (ISIN
AT0000652250), and the holders of the participating certificates
(ISIN AT0000630694 und ISIN AT0000795737). On 21 May the Annual
General Meeting of Sparkassen Immobilien AG will vote on a motion to
offer participating certificate holders the option to
convert their certificates into ordinary shares during three
conversion windows.

The new shares necessary for the conversion will be issued out of
conditional capital. Based on the book value of the
participating certificates and depending on the conversion window
in question, the subscription price will be between 15% and 35%
above the current share price of the s IMMO share (closing price
27 April 2010: EUR 5,10). Exercising the conversion option enables
the participating certificate holders to convert to the significantly
more liquid s IMMO Share. The shareholders in Sparkassen Immobilien
AG benefit from a more transparent capital structure and an
increase in market capitalisation, making the s IMMO Share more
attractive.

Outlook: strong Q1, cash from operations set to double staring in
2011 For Sparkassen Immobilien AG, 2010 will be another good year,
which has already started with a strong first quarter. The years
of project development and construction, during which several
hundred million euro were not generating any rental income, are
over and the projects are contributing positively. .For 2010,
the Group is calculating on cash flows of EUR 75-85m from
operations, compared with EUR 49.4m in 2009, and for 2011 cash
flows from operations are expected to be in excess of EUR 100m.

Sparkassen Immobilien AG Sparkassen Immobilien AG (Bloomberg: SPI.AV,
Reuters: SIAG.VI) has been listed on the Vienna Stock Exchange
for 22 years, making it Austria´s oldest established real
estate investment company. It is a long-term value investor in

residential, office, hotel and retail property in Austria, Germany, the Czech
Republic, Slovakia, Croatia, Hungary, Romania and Bulgaria. As at 31 December
2009 the total value of the property portfolio was EUR 1.901 billion and total
lettable space was 1,355,100 m2.

Consolidated income statement for the year ended 31 December 2009

EUR m / fair value basis

| |2009 |2008 1) |
|Revenues |153.555 |125.682 |
| Rental income | 87.553 | 85.737 |
| Revenues from service charges | 29.105 | 23.474 |
| Revenues from hotel operations | 36.897 | 16.471 |
|Other operating income | 8.246 | 2.587 |
|Property management expenses | -61.192 | -45.207 |
|Hotel operating expenses | -29.701 | -12.575 |
|Revenues less directly attributable | 70.908 | 70.487 |
|expenses | | |
|Income from property disposals | 152.173 | 52.975 |
|Carrying values of property disposals | -150.273 | -44.657 |
|Gains on property disposals | 1.900 | 8.318 |
|Management expenses | -19.533 | -19.594 |
|Profit before interest, tax, property | 53.275 | 59.211 |
|valuation adjustments, and depreciation and| | |
|amortisation (EBITDA) | | |
|Depreciation and amortisation | -9.113 | -4.737 |
|Losses on property valuations | -97.238 | -30.682 |
|Operating profit (EBIT) | -53.076 | 23.792 |
|Finance costs | -35.541 | -9.552 |
|Participating certificates results | 11.161 | -6.442 |
|Profit before taxes (EBT) | -77.456 | 7.798 |
|Taxes on income | -1.412 | -2.072 |
|Profit on taxes | -78.868 | 5.726 |
| of which attributable to shareholders in | -78.559 | 5.813 |
|parent company | | |
| of which attributable to minority | -309 | -87 |
|interests | | |
| | | |
|Earnings per share | -1.15 | 0.09 |

1) Adjusted

|Property indicators | |31.12.2009 |
|Completed properties |Units |256 |
|Total usable space |m2 million |1,355 |
|Rental yield |% |6.65 |
|Occupancy rate |% |90.3 |
|Land bank |Units |6 |

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

Further inquiry note:

Investor Relations:

Sylwia Milke

Tel.: +43(0)50100-27402

Fax: +43(0)05100-927402

mailto:sylwia.milke@s-immoag.at

wwww.sparkassenimmobilienag.at

Corporate Communications:

Bosko Skoko

Tel.: +43(0)50100-27522

Fax: +43(0)05100-927522

mailto:bosko.skoko@s-immoag.at

wwww.sparkassenimmobilienag.at

Branche: Real Estate
ISIN: AT0000652250
WKN: 065225
Index: ATX Prime, IATX
Börsen: Wien / official market