EANS-Adhoc: S IMMO increases earnings to over EUR 20m

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9-month report

23.11.2011

S IMMO increases earnings to over EUR 20m

• EBIT up by 63%
• Net profit for the period increased to EUR 20.3m
• Operating cash flow up by 40%
• Strong focus on further improving earnings performance
• Dividend payment proposal planned for next Annual General Meeting

The excellent performance of Austrian stock exchange listed S IMMO AG
(Bloomberg: SPI:AV, Reuters: SIAG.VI) in the first half of the year
continued into the third quarter 2011. Rents were thoroughly
satisfactory at EUR 91.8m (Q3 2010: EUR 75.5m). Income from hotel
operations for the first three quarters climbed from EUR 27.1m in
2010 to EUR 29.3m this year. Profits from hotel operations were up
16.7% to EUR 6.9m. In the first nine months of 2011 S IMMO improved
its gross profit by an impressive 30.9% to EUR 80.1m (Q3 2010:
EUR 61.2m).

EBITDA up by roughly 40% In the first three quarters of 2011,
properties were sold in Austria and Germany. Proceeds from disposals
came to EUR 40.5m and the gains on disposal came to a very
satisfactory EUR 9.2m. EBITDA climbed significantly to EUR 76.6m
(Q3 2010: EUR 55.0m), an increase of 39.4% compared with the same
period last year. EBIT also increased, by roughly 63%, to EUR 74.0m
(Q3 2010: EUR 45.5m).

For the nine months ending 30 September 2011, net financing result
totalled EUR -40.3m, including a non-cash foreign exchange gain of
EUR 3.3m, which was attributable to the rise of the EURO´s value
against currencies in Central and Southeastern Europe. Overall,
S IMMO´s consolidated net income for the period was a very impressive
EUR 20.3m, compared with EUR 1.3m for the same period last year.

Operating cash flow up by 40% S IMMO´s funds from operations (FFO) in
the first three quarters improved markedly - by 45.7% - to EUR 32.9m,
compared with EUR 22.6m for the same period last year. Including
participating certificates expenses, FFO for the first nine months in
2011 was EUR 23.1m, compared with EUR 14.5m in 2010. The Group´s
excellent performance was also reflected in the improved NOI, which
rose from EUR 57.5m last year to EUR 75.0m. The operating cash flow
amounted to EUR 74.0m, a 40.0% increase compared with the same period
last year.

As at 30 September 2011 the balance sheet NAV was EUR 7.11 per share
(31 December 2010: EUR 7.07 per share). The EPRA NAV, the net asset
value of the share calculated in accordance with the guidelines of
the European Public Real Estate Association, was EUR 8.64 per share
(31 December 2010: EUR 8.34 per share).

Dividend payment proposal planned for next Annual General Meeting On
the assumption that the financial year 2011 will be a successful
year, S IMMO AG´s Management Board intends to propose the
distribution of a dividend of EUR 0.10 per share at the Annual
General Meeting in June 2012.

Participating certificate and share repurchase programmes At the
balance sheet date the S IMMO Share price stood at a discount of more
than 50% to its net asset value. The year-to-date performance showed
a drop of 24.8%. To improve the liquidity of the S IMMO Share and
also to attract new investors, the company has been working with a
second market maker since August 2011. As a further initiative,
S IMMO launched a share repurchase programme at the beginning of
October which, in view of the current difference between share price
and net asset value per share, Management at present considers to be
the most sensible investment possible.

Streamlining the capital structure requires addressing the
participating certificate issue, which S IMMO´s new repurchase
programme for the certificates is intended to do. Overall,
approximately 12% of the participating certificates issued have now
been repurchased. The annual participating certificate distribution
will in future be based on actual results.

Consolidated income statement for the nine months ended 30 September
2011 EUR m / fair value basis

| |01 - 09/2011 |01 - 09/2010 |
|Revenues |151.9 |126.2 |
| Rental income |91.8 |75.5 |
| Revenues from service charges |30.8 |23.6 |
| Revenues from hotel operations |29.3 |27.1 |
|Other operating income |5.1 |3.6 |
|Expenses directly attributable to properties |-54.5 |-47.5 |
|Hotel operating expenses |-22.5 |-21.2 |
|Gross profit |80.1 |61.2 |
|Income from property disposals |40.5 |81.2 |
|Carrying value of property disposals |-31.3 |-74.4 |
|Gains on property disposals |9.2 |6.8 |
|Management expenses |-12.6 |-13.0 |
|Earnings before interest, tax, depreciation and |76.6 |55.0 |
|amortisation (EBITDA) | | |
|Depreciation and amortisation |-7.0 |-7.2 |
|Gains / losses on property valuation |4.3 |-2.2 |
|Operating result (EBIT) |74.0 |45.5 |
|Financing costs |-40.3 |-32.9 |
|Participating certificates results |-9.8 |-8.1 |
|Net income before taxes (EBT) |23.9 |4.5 |
|Taxes on income |-3.7 |-3.3 |
|Consolidated net income for the period |20.3 |1.3 |
| of which attributable to shareholders in parent |16.7 |1.6 |
|company | | |
| of which attributable to non-controlling interest|3.6 |-0.4 |
| | | |
|Earnings per share (EUR) |0.24 |0.02 |

|Property information | |30 September |
| | |2011 |
|Standing properties |units |239 |
|Floor space |m² |1,413,165 |
|Gross rental yield |(%) |6.6 |
|Occupancy rate |(%) |91.8 |

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