EANS-News: S IMMO AG / final results for 2011 confirm tenfold increase in consolidated net income

--------------------------------------------------------------------------------
Corporate news transmitted by euro adhoc. The issuer/originator is solely
responsible for the content of this announcement.
--------------------------------------------------------------------------------

annual result

Wien (euro adhoc) - S IMMO AG: final results for 2011 confirm tenfold
increase in consolidated net income

• EBIT up by 52.4% • Consolidated net income up from EUR 2.1m to
EUR 21.2m • FFO yield reaches 9.4% • Dividend proposal for Annual
General Meeting of EUR 0.10 per share

The financial year 2011 proved to be highly successful for S IMMO AG
(Bloomberg: SPI:AV, Reuters: SIAG.VI): Major performance indicators
like EBIT and funds from operations (FFO) were much higher than in
the previous year.

Gross profit up 33.4% S IMMO Group´s rental income in 2011 was
remarkably strong, at EUR 125.9m (2010: EUR 104.0m), a year-on-year
increase of 21.1%. The development projects completed in 2010 were a
major contributor in this improvement, together with the Group´s
acquisitions. Gross profit from hotel operations also rose by 3.9%,
in spite of the difficulties posed by the uncertain economic climate,
and ended the year at EUR 9.0m (2010: EUR 8.7m). Total gross profit
climbed by an impressive EUR 26.8m, to EUR 107.0m, compared to
EUR 80.2m in 2010. This represents an increase of 33.4%.

EBITDA up 42.0% In 2011, management expenses were cut back by
EUR 1.5m from EUR 18.7m to EUR 17.2m, a reduction of more than 8%. In
addition, eleven properties and 16 freehold apartments in Vienna and
Berlin were sold. This is in line with the Group´s strategy of
disposing of parts of the portfolio where a profit can be realised.
The properties were sold well above most recent estimated values, and
the gains on disposal amounted to EUR 11.6m (2010: EUR 9.9m).
Altogether, these factors accounted for a 42.0% increase in EBITDA,
or EUR 30.0m, to EUR 101.4m (2010: EUR 71.4m).

Significant growth in EBIT As in 2010, valuation adjustments were not
material coming in at EUR 0.1m (2010: EUR -0.8m). Germany and Austria
in particular showed significant valuation gains, while values in
Central and Southeastern Europe were down. Operating profit (EBIT) of
EUR 92.3m improved by EUR 31.7m compared with the EUR 60.5m achieved
in 2010, an increase of 52.4%.

Excellent financial results Net financing costs totalled EUR 51.5m
(2010: EUR 41.2m), including a non-cash foreign exchange gain of
EUR 7.3m. The gain was attributable to the rise of the euro against
functional currencies in Central and Southeastern Europe (Romanian
leu, Hungarian forint, Czech crown and Croatian kuna). The income
entitlements of participating certificate holders for 2011 resulted
in expenses of EUR 11.2m (2010: EUR 10.2m). Consolidated net income
up to EUR 21.2m Total tax expense for 2011 amounted to EUR 8.4m
(2010: EUR 7.0m) and for the most part consisted of non-cash changes
in deferred taxes. Compared with the previous year, consolidated net
profit for 2011 increased tenfold, to EUR 21.2m (2010: EUR 2.1m), of
which EUR 20.0m (2010: EUR 1.8m) was attributable to shareholders of
the parent company.

All key performance indicators up S IMMO´s funds from operations
(FFO) in 2011 improved by 54.6% to EUR 28.9m (2010: EUR 18.7m). This
gives a very respectable FFO yield (ratio of FFO to share price) of
9.4%. The Group´s excellent performance was also reflected in the
improved net operating income (NOI), which rose from EUR 75.2m to
EUR 99.3m, also partly as a result of the projects completed in 2010.
Operating cash flow for the year was also very satisfactory, and rose
from EUR 74.2m in 2010 to EUR 96.0m in 2011.

As at 31 December 2011, the balance sheet net asset value (NAV) stood
at EUR 6.96 per share (31 December 2010: EUR 7.07 per share). The
EPRA NAV, the inner value of the share calculated in accordance with
the guidelines of the European Public Real Estate Association, was
EUR 8.70 per share (31 December 2010: EUR 8.34 per share). EPRA NAV
represents the value of equity adjusted for the factors that have no
long-term effect on the business activities of the Group, such as
valuations of derivatives and deferred taxes.

Capital markets: share repurchase and second market maker The S IMMO
Share performed considerably better than the industry average in
2011, most notably in the fourth quarter. The Management took
advantage of the gap between market price and net asset value of the
share and launched a share repurchase programme last autumn. By
adding a second market maker S IMMO is also aiming to improve the
share´s liquidity and to gain greater access to new groups of
investors.

Outlook and proposed dividend In spite of the positive developments
in Germany, the European property market overall presents a far from
stable picture. Debt crises, euro crash scenarios, and the Austrian
capital gains tax on securities are just some of the negative issues
that will continue to dominate the headlines in the coming months.
Even though the overall economic situation will remain challenging,
S IMMO is exceptionally well positioned to meet the tasks of the
coming years.

In Germany, the refurbishment programme will, for the most part, be
completed by the end of the year. This will reduce exceptional
investment costs, while simultaneously increasing the value of the
properties. S IMMO will take advantage of opportunities to sell
properties at a profit, particularly in Austria and Germany, and aims
to dispose of approximately 5% of its portfolio every year. In the
medium term, the focus will be on the Quartier Belvedere Central
development project, part of one of Europe´s largest inner-city
development projects centred next to Vienna´s future Central Station.
In successive stages, S IMMO and its partners will be constructing a
mixture of office, hotel and retail properties with a gross floor
space of around 136,000 m².

S IMMO will continue to buy back shares until the repurchase
programme ends on 31 May 2012, with the aim of further increasing the
Group´s attractiveness in the capital markets. At the Annual General
Meeting on 01 June 2012 S IMMO´s Management Board will propose a
dividend distribution of EUR 0.10 per share to the shareholders.
Consolidated income statement for the year ended 31 December 2011 EUR
m / fair value basis

| |01 - 12/2011 |01 - 12/2010 |
|Revenues |207.8 |174.9 |
| Rental income |125.9 |104.0 |
| Revenues from service charges |41.3 |32.6 |
| Revenues from hotel operations |40.6 |38.3 |
|Other operating income |7.7 |5.0 |
|Expenses directly attributable to properties |-77.0 |-70.1 |
|Hotel operating expenses |-31.6 |-29.6 |
|Gross profit |107.0 |80.2 |
|Income from property disposals |46.5 |102.7 |
|Carrying value of property disposals |-34.9 |-92.8 |
|Gains on property disposals |11.6 |9.9 |
|Management expenses |-17.2 |-18.7 |
|Earnings before interest, tax, depreciation and |101.4 |71.4 |
|amortisation | | |
|Depreciation and amortisation |-9.3 |-10.1 |
|Gains/losses on property valuation |0.1 |-0.8 |
|Operating profit (EBIT) |92.3 |60.5 |
|Financing costs |-51.5 |-41.2 |
|Participating certificates result |-11.2 |-10.2 |
|Net income before taxes (EBT) |29.6 |9.1 |
|Taxes on income |-8.4 |-7.0 |
|Consolidated net income for the year |21.2 |2.1 |
| of which attributable to shareholders in parent |20.0 |1.8 |
| company | | |
| of which attributable to non-controlling |1.2 |0.3 |
| interests | | |
| | | |
|Earnings per share (EUR) |0.29 |0.03 |

|Property information | |31 December |
| | |2011 |
|Standing properties |units |236 |
|Floor space |m² |1,409,623 |
|Gross rental yield |% |6.7 |
|Occupancy rate |% |92.5 |

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
--------------------------------------------------------------------------------

company: 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