EANS-Adhoc: Sparkassen Immobilien AG / S IMMO starts 2011 financial year with strong quarter

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3-month report

18.05.2011

S IMMO starts 2011 financial year with strong quarter

EBIT improved by more than 60% to EUR 26.6 million
Gross profit increased by more than 40%
Rental income up to EUR 30 million
Substantial increase in operating cash flow of EUR 12.2 million

Stock exchange listed Sparkassen Immobilien AG (Bloomberg: SPI:AV,
Reuters: SIAG.VI) has had a successful start to 2011: Major financial
indicators - rental income, gross profit and EBIT - all improved
significantly compared with the same period last year.

Gross profit up more than 40% year on year Rental income for the
first quarter of 2011 was more than satisfactory at EUR 30.3m
(Q1 2010: EUR 21.9m), an increase of 38%. This remarkable increase
was the result of the opening of the Group´s development projects
(shopping centres Sun Plaza and Serdika Center, the office building
Galvaniho 4 and the mixed office and residential property Neutor
1010) and the acquisition of three buildings located in Vienna´s
Viertel Zwei, all during the last financial year.

The excellent performance of the Vienna and Budapest hotel markets
had a positive effect on S IMMO Group´s income from hotel operations,
which grew to EUR 8.4m from EUR 7.1m in the same period last year.
Earnings from hotel operations as of 31 March 2011 were up by around
50% to EUR 1.2m. For the Group as a whole, overall gross earnings for
the first quarter of 2011 improved by 40.8% to EUR 27.7m (Q1 2010:
EUR 19.7m).

Marked EBIT improvement of more than 60% The successful sale of four
apartments in the mixed residential and office building Neutor 1010
in Vienna brought gains on property disposals amounting to EUR 0.6m.
For the period under review, EBITDA also climbed from EUR 18.1m to
EUR 24.1m, an impressive 32.7% increase.

As a result, EBIT was up 68.7% compared with the first quarter of
2010, to EUR 26.6m (Q1 2010: EUR 15.8m). As of 31 March 2011
financing costs amounted to EUR 17.6m, including a non-cash foreign
exchange loss of EUR 4.1m resulting from the appreciation of the
Romanian lei and the Hungarian forint. For the first quarter of 2011
the Group´s consolidated net income came out at EUR 5.4m (Q1 2010:
EUR 6.0m).

Substantial increase in operating cash flow to EUR 27.5 million
Despite the increase in financing costs, funds from operations at
EUR 10.0m were 9.8% higher than in the same period last year.
Following the completion of development projects and the acquisitions
in Viertel Zwei, net operating income increased from EUR 18.6m to
EUR 24.1m. The increase in operating cash flow to EUR 27.5m in the
first quarter of 2011 (Q1 2010: EUR 15.3m) was mainly attributable to
the additional rental income from the newly opened properties and the
new acquisitions in Viertel Zwei. The increase is a clear indication
of the long-term improvement in the Group´s profitability. The
EPRA NAV, the net asset value of the share calculated in accordance
with the guidelines of the European Public Real Estate Association,
was up again in the first quarter of 2011, to EUR 8.45 per share
(31 December 2010: EUR 8.34 per share).

Property portfolio of more than EUR 2 billion S IMMO Group´s
portfolio as at 31 March 2011 comprised 248 properties with a market
value of EUR 2,012.5m and total lettable space of approximately
1.5 million m². The properties are mainly located in Vienna, Berlin,
Hamburg, Prague, Bratislava, Budapest, Sofia, Bucharest and Zagreb.
In terms of market value, the largest parts of the portfolio
consisted of properties in Austria (31.5%) and Germany (28.4%),
followed by SEE (21.1%) and CEE (19.0%). The portfolio is diversified
and well balanced by property type and region. By property type, the
portfolio was made up of office properties (32.8%), retail properties
(27.0%), residential properties (24.3%) and hotels (15.9%).

Satisfactory occupancy rate through active asset management Letting
activities for existing properties have been intensified by
internalising major parts of S IMMO´s asset management and have shown
first signs of success. Despite the sometimes difficult economic
climate, a highly satisfactory occupancy rate of 91.6% was achieved.

In Budapest the Group was able to let 3,800 m² in its Maros utca
Business Center to the counselling institution Educatio and signed up
a foundation to a long-term lease of over 5,000 m² in its Berlin
Lützow Center. Also in its shopping centres Sun Plaza in Bucharest
and Serdika Center in Sofia, S IMMO was able to add renowned brands
such as Calvin Klein and Pepe Jeans as well as the Adidas Performance
Store - a particularly interesting marketing concept - to its list of
tenants. Talks with international brands as potential new tenants are
making good progress.

Development land in EU capitals S IMMO has a total of 12 hectares of
development land in its investment markets, all in EU capitals, and
is currently working on obtaining planning permissions and approvals.
Zoning permission for its office project Grivitei in Bucharest has
been obtained, and the Company is now focusing on concept and design
as well as preparing the application for the construction permit. As
soon as the relevant permissions and approvals are received and local
market conditions permit, construction on the various projects can
begin.

Still growth potential for S IMMO Share In the capital markets the
Group is continuing to work intensively on highlighting the potential
of the S IMMO Share and on closing the gap between share price and
net asset value. The new coverage by CA Cheuvreux and Edge Capital
means that S IMMO is now on the radar of six research houses. The
analyses agree in pointing out that the discrepancy between share
price and NAV represents significant potential for appreciation.
Inclusion in the industry relevant indices and the simplification of
the Group´s capital structure will continue to be high on the agenda
in the coming quarters.

Consolidated income statement for the three months ended 31 March
2011 EUR m / fair value basis

| |01 - 03/2011 |01 - 03/2010 |
|Revenues |48.3 |35.6 |
| Rental income |30.3 |21.9 |
| Revenues from service charges |9.5 |6.6 |
| Revenues from hotel operations |8.4 |7.1 |
|Other operating income |3.6 |1.1 |
|Expenses directly attributable to properties |-16.9 |-10.6 |
|Hotel operating expenses |-7.2 |-6.4 |
|Revenues less direct expenses |27.7 |19.7 |
|Income from property disposals |4.3 |56.7 |
|Carrying values of property disposals |-3.7 |-54.3 |
|Gains on property disposals |0.6 |2.4 |
|Management expenses |-4.3 |-3.9 |
|Earnings before interest, tax, depreciation and |24.1 |18.1 |
|amortisation (EBITDA) | | |
|Depreciation and amortisation |-2.4 |-2.4 |
|Gains on property valuation |5.0 |0 |
|Operating result (EBIT) |26.6 |15.8 |
|Financing costs |-17.6 |-8.9 |
|Participating certificates result |-3.5 |-2.8 |
|Net income before tax (EBT) |5.5 |4.1 |
|Taxes on income |-0.1 |1.9 |
|Consolidated net income |5.4 |6.0 |
|of which attributable to shareholders in parent |2.8 |6.0 |
|company | | |
|of which attributable to non-controlling interests|2.7 |0.04 |
| | | |
|Earnings per share (EUR) |0.04 |0.09 |

|Property indicators | |31 March 2011|
|Standing properties |units |248 |
|Total usable space |m2 |1,465,500 |
|Gross rental yield |% |6.6 |
|Occupancy rate |% |91.6 |

The Q1 2011 interim report for Sparkassen Immobilien AG (as at 31 March 2011) is
now available to download on the company website www.simmoag.at under investor
relations.

end of announcement euro adhoc
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issuer: Sparkassen Immobilien AG
Friedrichstraße 10
A-1010 Wien
phone: +43(0)50100-27550
FAX: +43(0)050100-927559
mail: office@simmoag.at
WWW: www.simmoag.at
sector: Real Estate
ISIN: AT0000652250
indexes: ATX Prime, IATX
stockmarkets: official market: Wien
language: English

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

Further inquiry note:

Investor Relations:
Andreas J. Feuerstein
Phone: +43(0)50100-27556
Fax: +43(0)05100-927556
E-mail: andreas.feuerstein@simmoag.at
www.simmoag.at

Corporate Communications:
Bosko Skoko
Phone: +43(0)50100-27522
Fax: +43(0)05100-927522
E-mail: bosko.skoko@simmoag.at
www.simmoag.at

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