euro adhoc: ECO Business-Immobilien AG / Financial Figures/Balance Sheet / ECO Business-Immobilien AG: significant portfolio expansion and strong earnings performance in 2007 (E)

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28.03.2008

ECO Business-Immobilien AG: significant portfolio expansion and strong earnings
performance in 2007

Vienna, 28 March 2008 - Vienna Prime Market-listed ECO Business-Immobilien AG
successfully pursued its policy of selective expansion in 2007. Thanks to a
series of acquisitions during the year, total real estate assets rose to EUR 1.2
billion. Organic growth combined with active portfolio management resulted in
higher revenues and an increase in property values. Intensified trading
activities were also reflected in a sharp rise in profits on disposals.
Operating profit (EBIT) compared with 2006 was up by 59%, to EUR 60.8 million.

All revenue and earnings measures at ECO increased sharply in 2007. Revenues
rose 25% year-on-year to EUR 48.6 million, as a result of organic growth, new
rentals from the existing portfolio and selective acquisitions. Trading
activities were also stepped up, generating profits on disposals of EUR 16.5
million, a rise of 68% on the previous year. In 2007 ECO sold over 30
properties, with a total value of EUR 69 million. With a margin (sales price to
book value) of around 28% and a ratio of profits on disposal to book values of
24%, sales proceeds were also well above the experts´ recent estimates of IFRS
carrying values. Trading activities now represent a significant contribution to
total earnings, and increase the extent to which the Company is self-financing,
which will allow the Company to take advantage of further attractive acquisition
opportunities.

The adjustment of real estate asset values to reflect fair values, which is
required under IFRS accounting, made a significant contribution to the positive
earnings performance of EUR 17.2 million, compared with EUR 6.1 million last
year. This appreciation, representing around 1.5% of the value of investment
properties held as financial investments, was mainly the result of value-adding
asset management measures and increases in market prices for attractive
locations.

Earnings in 2007 also grew satisfactorily. Solid operational performance
resulted in a 59% rise in operating profit (EBIT) to EUR 60.8 million. Profit
before tax (EBT) jumped 68% to EUR 41.7 million, while consolidated net earnings
reached a new record level of EUR 32.8 million, up 83% on the previous year.
Funds from operations (FFO), which is a better measure of a company´s
operational earnings potential because it leaves appreciation of assets out of
account, were also at a record high, totalling EUR 24.8 million. Earnings per
share were up by some 12% to EUR 1.11.

Net asset value (NAV) per share rose by 5% during 2007, from EUR 11.79 to EUR
12.40. NAV per share has increased by an annual average of 6.4% since 2004.

As a result of selective acquisitions and active management of portfolio
properties, the overall value of the ECO portfolio rose from EUR 697.2 million
to EUR 1.2 billion in 2007. This impressive EUR 535.9 million increase is
primarily attributable to the acquisition of a 60% majority stake in
BAWAG-Immobilien at the end of December 2007. As of the end of 2007, the ECO
portfolio consisted of 119 properties and eight development projects, compared
with 126 properties and two development projects at the end of the previous
year. The value of the portfolio increased by 77% year on year, while total
usable space amounted to around 668,000 m2 at 31 December 2007.

For 2008, ECO foresees positive trends in its core Austrian and German property
markets, and in the CEE region. In order to further increase earnings in this
market environment, ECO will be focusing on active real estate management,
profitable property trading activities, and increasingly on development
projects. Selective acquisitions will also be used to expand the portfolio
further, while active property management and innovative sales and letting
policies will add to the attractiveness of the existing portfolio. One major
focus will be on the former BAWAG properties acquired at the end of 2007.

Development projects in collaboration with well established partners in the core
Austrian and German markets and in the CEE will also be a high priority,
allowing ECO to benefit from increased added value and earnings opportunities.
The development projects which began in Austria, Germany, Hungary, Luxembourg
and Ukraine in 2007 will be continued in 2008, while possible new projects are
currently under review.

These factors will be reflected in the company´s revenue and earnings figures.
ECO is expecting rental income to continue to grow, with profits on sales rising
as a result of intensified disposal activities. These revenues will make a key
contribution to earnings in future. Increasing rents and profitable disposals
should lead to a jump in ECO´s cash earnings in 2008.

In its financing, ECO´s policy in 2008 will be to continue to employ a balanced
mix of own funds and debt capital. The Company´s solid equity capital base, its
positive cash flows, and its ongoing real estate trading activities, which make
it to a large extent self-financing, will be a major contribution to
implementing its future plans.

Key financial indicators in EUR ´000 (in accordance with IFRS)

01-12/2007 01-12/2006
Revenues 48,589 38,803
of which rental income 39,959 32,129
Profits on disposal of non-current assets 16,508 9,819
Changes in fair value of investment property 17,146 6,068
Earnings before interest and tax (EBIT) 60,801 38,280
Earnings before tax (EBT) 41,654 24,739
Consolidated net profit (after minority interests) 32,772 17,900

Earnings per share (EUR) 1.11 0.99
Average number of shares 29,550,000 17,997,115

Cash flow from operating activities 1,673 1,532
Funds from operations (FFO)* 24,723 16,957
NAV per share (EUR) 12.40 11.79
* Earnings before tax + depreciation +/- changes in fair value - tax payable

Property Data

31/12/2007 31/12/2006
Number of properties 127 128
of which hold portfolio 73 55
of which trading portfolio 46 71
of which development projects 8 2
Total usable space in m2* 668,000 471,900
of which trading portfolio 42,800 57,400
of which development portfolio 53,100 8,500
Garage spaces (number) 3,380 2,340
of which trading portfolio 280 290
of which development portfolio 230 0
Total real estate assets (EUR ´000) 1,233,083 697,223
of which properties under construction 34,746 3,892
of which trading portfolio 58,319 94,445
* Garage spaces calculated at 20 m2 per space

Further inquiry note:
ECO Business-Immobilien AG
Friedrich Scheck, Chairman of the Management Board
Tel +43 1 535 2199
E-mail: [email protected]

Hochegger|Financials
Roland Mayrl
Tel +43 1 504 6987 31
E-mail: [email protected]

end of announcement euro adhoc
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emitter: ECO Business-Immobilien AG
Albertgasse 35
A-1080 Wien
phone: 535 21 99
FAX: 535 21 99-99
mail: [email protected]
WWW: www.eco-immo.at
sector: Real Estate
ISIN: AT0000617907
indexes: Prime.market
stockmarkets: Regulated free trade: Wiener Börse AG
language: English

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