EANS-Adhoc: Sparkassen Immobilien AG starts 2010 with a strong first quarter

--------------------------------------------------------------------------------
ad-hoc disclosure transmitted by euro adhoc with the aim of a Europe-wide
distribution. The issuer is solely responsible for the content of this
announcement.
--------------------------------------------------------------------------------

3-month report

20.05.2010

Ad hoc release Vienna, 20 May 2010

Sparkassen Immobilien AG starts 2010 with a strong first quarter

* Successful opening of both major development projects
* Further property disposals significantly above estimated values
* EBIT increased to EUR 15.8 million (Q1 2009: EUR 13.5m)
* Outlook: cash flow from operations to double starting in 2011

Stock exchange-listed Sparkassen Immobilien AG (Bloomberg:
SPI:AV, Reuters: SIAG.VI) has started the financial year 2010 with a
strong first quarter: the major financial indicators have improved
significantly compared with the same period last year.

High quality property portfolio These two international flagship
projects - the shopping centres Sun Plaza and Serdika Center - have
further strengthened Sparkassen Immobilien AG's high quality
property portfolio. The Group has now added two more top
quality properties in excellent locations and with long-term,
reliable tenants to its portfolio.

The Group´s property investments at 31 March 2010 totalled
EUR 1.847bn, as compared with EUR 1.828bn a year earlier. In the
first quarter of 2010 a package of three properties in Vienna was
sold significantly above estimated values. The portfolio now
contains 253 properties with total usable space of 1.407 million
m². The occupancy rate is 89%, the gross rental yield increased
slightly to 6.8%.

Excellent operating performance Rental income for the first quarter
of 2010 was EUR 21.9m, compared with EUR 22.3m for the same
period last year. Contributions to earnings from the two shopping
centres opened in Bucharest and Sofia towards the end of the
first quarter will make themselves felt in the quarters to come.

Expenses for property management declined - for the first quarter of
2010 they were EUR 10.6m, compared with EUR 11.4m a year
earlier. Income from hotel operations rose slightly to EUR 7.1m,
while the corresponding expense remained at the same level as in
the comparison period last year.

As in 2009, office property formed the largest rental income
segment by property use type, with 33.7%, followed by residential
property with 31.4% and retail property with 30.0%. Hotels, with
4.9%, made up the smallest share, as they did a year ago. The
Vienna Marriott and Budapest Marriott Hotels are operated under
management agreements, and are not included here.

The gross profit in the first quarter of 2010 increased by 6% to
EUR 19.7m.

Marked improvement in results EBITDA for the first quarter of 2010
was EUR 18.1m (Q1 2009: EUR 15.9m). The operating profit (EBIT)
improved significantly from EUR 13.5m in the comparison quarter last
year to EUR 15.8m in the first quarter of 2010. The sharp increase
in profit before taxes (EBT) from EUR 0.4m to EUR 4.1m is
especially satisfactory.

Funds From Operations (FFO) in the first three months rose
to EUR 9.1m (Q1 2009: EUR 6.8m), and EPRA NAV per share rose from
EUR 8.13 at the end of 2009 to EUR 8.15 at 31 March 2010. Net
operating income (NOI) increased from EUR 17.7m in the comparison
period last year to EUR 18.6m, as a result of the changes in the
portfolio in the first quarter of 2010 (property sales and
opening of the shopping centres).

In the first quarter of 2010 operating cash flow fell slightly, to
EUR 15.3m, as compared with EUR 15.9m in the same period last year.
This is a reflection of the property sales and the fact that the
shopping centres were only opened towards the end of the first
quarter.

Successful progress with development projects Within only three
weeks, in the first quarter of 2010 Sparkassen Immobilien AG opened
the biggest property developments in the Group´s history. The
official opening ceremony for Romania´s largest shopping centre, Sun
Plaza, took place on 25 February 2010. Only a few weeks later,
on 16 March 2010, Bulgaria´s largest shopping centre, Serdika
Center, opened its doors to the public.

The Neutor 1010 Project, an office and residential development with
11,000 m² of usable space in Vienna´s city centre, is in the final
stages of completion, and will be opened in the third quarter
of 2010. Three quarters of the commercial space has already been
let long-term to tenants with first class credit ratings, and
the upper floors consist of 34 luxury apartments, of which 24 have
already been sold before completion. In Bratislava the
Galvaniho 4 office building is in the process of being completed,
and is already three- quarters let.

Sparkassen Immobilien AG´s land bank currently totals some
12 hectares, and consists of six parcels of land in Bratislava,
Prague, Sofia and Bucharest.

s IMMO Share more than doubles its weighting in the IATX Compared
with its market value a year ago, s IMMO Share improved
impressively, gaining 110% by 31 March 2010. The s IMMO INVEST
participating certificate closed the first quarter down slightly on
its closing price at the year end. A merger in the Austrian real
estate sector meant that the IATX, Austria´s index of major
Austrian property companies, required to be reweighted. The
adjustment of the weighting factor means that as of 15 April 2010
s IMMO Share´s weighting in the IATX has more than doubled, from
8.7% to 18.2%.

Outlook for 2010/2011 Following the successful opening of the
shopping centres in Bucharest and Sofia, further projects will be
completed during the course of the year. These include the office
space in the two shopping centres, the top-quality office and
residential building Neutor 1010 in Vienna, and the Galvaniho
Business Center in Bratislava.

Sparkassen Immobilien AG is expecting a significant improvement
in rental revenues and cash flows in the current financial
year. It is forecasting operating cash flows of EUR 75-85m in
2010. In the following year operating cash flows are set to
increase to EUR 100m - more than double what they were in 2009.

Consolidated income statement for the three months ended 31 March
2010

EUR m / fair value basis

| |Q1/2010 |Q1/2009 1 |
|Revenues |35,575 |35,619 |
| whereof rental income |21,880 |22,260 |
| whereof income from service charges |6,575 |6,287 |
| whereof income from hotel operations |7,120 |7,072 |
|Other operating income |1,122 |782 |
|Property management expenses |-10,625 |-11,411 |
|Hotel operating expenses |-6,381 |-6,469 |
|Gross profit |19,691 |18,521 |
|Income from property disposals |56,664 |0 |
|Carrying values of property disposals |-54,300 |0 |
|Gains on property disposals |2,364 |0 |
|Management expenses |-3,925 |-2,644 |
|Profit before interest, taxes, property |18,130 |15,877 |
|valuation adjustments, and depreciation and| | |
|amortisation (EBITDA) | | |
|Depreciation and amortisation |-2,359 |-2,399 |
|Gains / losses on property valuations |0 |0 |
|Operating profit (EBIT) |15,771 |13,478 |
|Finance costs |-8,922 |-10,232 |
|Participating certificates results |-2,750 |-2,815 |
|Profit before taxes (EBT) |4,099 |431 |
|Taxes on income |1,919 |36 |
|Consolidated net profit / loss |6,018 |467 |
| of which attributable to shareholders in |5,982 |482 |
|parent company | | |
| of which attributable to minority |36 |-15 |
|interests | | |
| | | |
|Earnings per share | 0.09 | 0.01 |

1 Adjusted

|Property indicators | |31.03.2010 |
|Completed properties |Units |253 |
|Total usable space |m2 |1.407m |
|Rental yield |% |6.8 |
|Occupancy rate |% |89 |
|Land bank |Number of plots |6 |

end of announcement euro adhoc
--------------------------------------------------------------------------------

ots Originaltext: Sparkassen Immobilien AG
Im Internet recherchierbar: http://www.presseportal.de

Further inquiry note:

Investor Relations:

Sylwia Milke

phone: +43(0)50100-27402

fax: +43(0)05100-927402

mailto:sylwia.milke@s-immoag.at

www.sparkassenimmobilienag.at

Corporate Communications:

Bosko Skoko

phone: +43(0)50100-27522

fax: +43(0)05100-927522

mailto:bosko.skoko@s-immoag.at

www.sparkassenimmobilienag.at

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