EANS-Adhoc: S IMMO AG / earnings more than doubled in the first half of 2011

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6-month report

29.08.2011

S IMMO: earnings more than doubled in the first half of 2011

• Net income for the period doubled to EUR 10.1m
• EBIT up by 70.6% to EUR 51.3m
• Operating cash flow up by 81.9%
• Occupancy rate at impressive 91.2%

Stock exchange listed S IMMO AG (Bloomberg: SPI:AV, Reuters: SIAG.VI)
has excellent results to report for the first half of 2011. Compared
with the same period last year, rental income, gross profit and EBIT
have all increased significantly.

Gross profit up by more than 30% compared with the first half of 2010
Rental income for the first half of 2011 was more than satisfactory
at EUR 61.7m (first half of 2010: EUR 48.2m). The buildings in
Vienna´s Viertel Zwei, acquired last December, contributed fully to
earnings for the first time. The growth in rental income was also
partly attributable to income from development projects that were
completed during the last financial year.

The continuing positive trend in hotel business in Vienna and
Budapest was reflected in the performance of S IMMO´s hotels. Income
from hotel operations increased from EUR 17.0m to EUR 19.6m. Despite
a slight increase in expenses of hotel operations, profits in the
first half of 2011 were up by 25% to EUR 4.2m. Overall, gross profit
for the first half of 2011 rose 30.5% to EUR 54.5m compared with
EUR 41.8m in the same period last year.

EBIT up by more than 70% In the first half of 2011, S IMMO disposed
of four properties in Vienna and Berlin as well as four apartments in
the mixed residential and office building Neutor 1010 in Vienna. The
gains on property disposal amounted to EUR 3.9m and were a major
contribution to raising the EBITDA from EUR 36.8m to EUR 49.5m, an
increase of 34.7% compared with the same period last year. EBIT was
up by 70.6% to EUR 51.3m (first half of 2010: EUR 30.1m).

As at 30 June 2011, financing costs amounted to EUR 32.0m, including
a non-cash foreign exchange loss of EUR 3.4m. The loss was a result
of the decline of the EURO against currencies in Central and
Southeastern Europe (Romanian leu, Hungarian forint, Czech crown and
Croatian kuna). The overall net income for the period doubled
compared with the same period last year and amounted to EUR 10.1m.

Operating cash flow up by 81.9% Compared with the first half of 2010,
S IMMO achieved a significant increase in funds from operations
(FFO), which jumped 31.6% to EUR 21.6m. The Group´s excellent
performance was also reflected in improved NOI, which rose from
EUR 38.7m to EUR 50.2m. Operating cash flow for the first half year
was EUR 51.3m, an increase of 81.9% compared with the same period
last year. EPRA NAV, the net asset value of the share calculated in
accordance with the guidelines of the European Public Real Estate
Association, was also up again to EUR 8.54 per share, compared with
EUR 8.34 per share at the end of 2010.

244 properties: portfolio worth more than EUR 2bn As at 30 June 2011,
the Group owned a total of 244 properties - mostly in European Union
capitals and large German cities. At balance sheet date, the property
portfolio had a market value of EUR 2,005.9m with total let floor
space of over 1,400,000 m². The portfolio is diversified by region as
well as by property use type, with approximately 60% of the property
portfolio in Western Europe and the remaining 40% in Central and
Southeastern Europe. A detailed breakdown by region shows that 31.5%
of the portfolio is in Austria, 28.3% in Germany, 21.1% in SEE and
19.1% in CEE. By property use type, the portfolio is made up of
office properties (35.7%), retail properties (26.5%), residential
properties (23.9%) and hotels (13.9%). Rental yield is a very
satisfactory 6.6%.

Successes in asset management and focus on development projects
S IMMO´s active asset management also proved effective in the first
half of 2011. Despite the extremely difficult economic environment in
some countries, S IMMO achieved outstanding letting successes in the
first half of this year. For example, the Company was able to acquire
renowned companies such as H&M and Diesel as tenants for the shopping
centres Sun Plaza and Serdika Center. The overall occupancy rate of
the portfolio is at a very satisfying 91.2%.

For development projects, the Company´s focus in the second half of
2011 continues to be on preparing the development sites for
construction. Currently, the process of acquiring zoning permissions
is underway, including permission for the new urban development,
Quartier Belvedere. This will be located at the new Vienna Central
Station, where one of Europe´s largest innercity development projects
is taking shape. A unique office, residential and retail quarter is
to be built on a total area of 550,000 m². In cooperation with Erste
Group Immorent and PORR Solutions, S IMMO is developing a prominent
sub-project. The working title for the project, with 136,000 m² of
gross floor space, is "Quartier Belvedere Central". The development
will comprise a mix of offices, hotels and retail space, and will be
constructed in several stages. Zoning permission is expected to be
granted for the beginning of 2012, and the construction permit later
in the same year.

S IMMO Share trading at far below NAV S IMMO Share closed at
EUR 4.632 at the end of the first half of 2011 and did not escape the
effect of stock exchange developments of recent weeks. At the same
time the traded volume has doubled - a reflection of the markets´
volatility. The poor performance of the S IMMO Share is clearly the
result of the upheavals in international capital markets, however,
the Management is anything but satisfied with the Share´s current
discount to net asset value.

Continuing to stress obvious upside potential of S IMMO Share as well
as achieving Share inclusion into the relevant industry indexes and
simplifying the capital structure are on the agenda for the next
months. The Group therefore started another repurchase programme for
S IMMO INVEST participating certificates, and since the beginning of
the year has repurchased approximately 8.5% of the certificates.

Outlook S IMMO´s operating performance is completely in line with
plans, and at this time Management expects the second half of the
year to be equally successful. The Group will continue its building
refurbishment programme in Germany, where over the last twelve months
the occupancy rate rose from 86% to 90% and rental income grew by
3.3% in spite of disposals. S IMMO will also leverage the potential
for growth in SEE countries, in particular, as soon as these
countries have fully recovered from the economic crisis. The economic
growth predicted for this region over the next few years is very
encouraging.

Consolidated income statement for the six months ended 30 June 2011
EUR m / fair value basis

| |01 - 06/2011 |01 - 06/2010 |
|Revenues |102.3 |79.4 |
| Rental income |61.7 |48.2 |
| Revenues from service charges |21.0 |14.1 |
| Revenues from hotel operations |19.6 |17.0 |
|Other operating income |4.3 |3.1 |
|Expenses directly attributable to properties |-36.7 |-26.9 |
|Hotel operating expenses |-15.4 |-13.7 |
|Revenues less direct expenses |54.5 |41.8 |
|Income from property disposals |18.3 |57.7 |
|Carrying value of property disposals |-14.4 |-55.1 |
|Gains on property disposals |3.9 |2.6 |
|Management expenses |-8.9 |-7.6 |
|Earnings before interest, tax, depreciation and |49.5 |36.8 |
|amortisation (EBITDA) | | |
|Depreciation and amortisation |-4.8 |-5.0 |
|Gains / losses on property valuation |6.6 |-1.7 |
|Operating result (EBIT) |51.3 |30.1 |
|Financing costs |-32.0 |-18.5 |
|Participating certificates results |-6.8 |-5.0 |
|Net income before taxes (EBT) |12.5 |6.6 |
|Taxes on income |-2.4 |-1.5 |
|Net income for the period |10.1 |5.0 |
| of which attributable to shareholders in parent |7.3 |6.2 |
|company | | |
| of which attributable to non-controlling interest|2.8 |-1.2 |
| | | |
|Earnings per share (EUR) |0.11 |0.09 |

|Property information | |30 June 2011 |
|Standing properties |units |244 |
|Total let floor space |m² |1,440,837 |
|Gross rental yield |% |6.6 |
|Occupancy rate |% |91.2 |

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

end of announcement euro adhoc
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issuer: S IMMO 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