euro adhoc: ECO Business-Immobilien AG / quarterly or semiannual financial statement / ECO Business-Immobilien AG: strong business performance in Q1 2008 (E)

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21.05.2008

ECO Business-Immobilien AG: strong business performance in Q1 2008

Vienna, 21 May 2008 - Vienna Prime Market listed ECO Business-Immobilien AG
reported another strong operating performance in the first quarter of 2008, with
improvements in all revenue and earnings indicators. Operating profit (EBIT)
jumped 64% year on year to EUR 19.4 million as a result of higher revenues and
revaluation gains, which were mainly attributable to changes in the fair value
of the BAWAG portfolio. Total real estate assets at 31 March 2008 amounted to
around EUR 1.2 billion, compared with EUR 697.5 million at the end of the first
quarter of 2007.

Following significant portfolio expansion in 2007, the first quarter of 2008 was
fully taken up with improving the effectiveness of asset management of existing
properties. ECO increased the value of its properties, and secured several new
long-term tenants. Unlocking the value of the BAWAG real estate - which was
acquired late in 2007 - was the key to this success. ECO introduced effective
measures that successfully increased revenues and raised the occupancy rate.

ECO´s revenues and earnings increased once again in the period under review.
Revenues for the quarter rose 60% year on year to EUR 15.2 million, which can be
attributed to organic growth from the real estate acquired in 2007 and new
rentals from the existing portfolio. Due to current market conditions and the
focus on developing the existing portfolio, acquisitions were made only
selectively. As a result of seasonal factors, trading activities in the first
quarter of 2008 were flat. Total trading income of EUR 2.75 million was slightly
higher than the EUR 2.29 million achieved in the previous period, with a
consistently higher margin of 28% on IFRS values. The real estate asset
revaluation required under IFRS accounting amounted to EUR 5.7 million (Q1 2006:
EUR 2.4 million), or 0.5% of the value of real estate held as investment
properties. This is primarily a reflection of value-adding asset management
activities and increases in market prices for attractive locations.

In line with the strong operating performance, EBIT rose by 64% to EUR 19.4
million (Q1 2007: EUR 11.8 million). Profit before tax (EBT) increased to EUR
8.5 million, compared with EUR 7.4 million in the first quarter of 2007.
Consolidated net profit was up by 55% to EUR 8.7 million, while earnings per
share (on a higher number of shares) rose some 13%, to EUR 0.25.

Net asset value (NAV) per share at 31 March 2008 was 4.4% higher than a year
earlier, increasing from EUR 12.00 to EUR 12.53.

Total real estate assets jumped from EUR 697.5 million at the end of the first
quarter of 2007 to EUR 1.2 billion, mainly as a result of the acquisitions made
at the end of 2007. ECO´s real estate portfolio at 31 March 2008 amounted to 126
properties (including development projects), compared with 119 at the end of the
first quarter of 2007, while total usable space amounted to around 671,500 m2.

Following the good start to financial 2008 and the strong earnings performance
in the opening months of the year, the Management Board of ECO expects solid
results for 2008 as a whole. ECO´s focus in the current financial year will be
on increasing earnings through effective real estate management (raising
revenues with new rentals and reduced vacancy rates), profitable trading
activities and an expansion of development activities. Plans for selective
growth in the property portfolio will be implemented using a balanced mix of own
funds and debt capital.

Key financial indicators in accordance with IFRS

Q1 2008 Q1 2007
Revenues (EUR ´000) 18,303 11,522
of which rental income (EUR ´000) 15,232 9,543
Profits on disposal of non-current assets (EUR ´000) 2,748 2,292
Net gain from changes in fair value (EUR ´000) 5,700 2,410
Earnings before interest and tax (EBIT) (EUR ´000) 19,350 11,785
Earnings before tax (EBT) (EUR ´000) 8,453 7,417
Consolidated net profit (EUR ´000) 8,694 5,625
(after minority interests)

Earnings per share (EUR) 0.25 0.23
Weighted average number of shares 34,100,000 25,000,000

FFO before interest and taxes* (EUR ´000) 15,209 9,382
FFO after interest and taxes* (EUR ´000) 4,234 4,852
NAV per share (EUR) 12.53 12.00

* Earnings before tax + depreciation +/- changes in fair value

Property information

March 31, 2008 March 31, 2007
Number of properties 126 119
of which hold portfolio 72 55
of which trading portfolio 46 63
of which development projects 8 1
Total usable space in m2 * 671,500 463,300
of which trading portfolio 42,600 49,200
of which development portfolio 53,100 5,600
Underground parking spaces (number) 3,470 2,330
of which trading portfolio 280 270
of which development portfolio 230 0
Total real estate assets (EUR ´000) 1,244,601 697,533
of which properties under construction 38,597 11,982
of which trading portfolio 58,195 81,973

* Garage spaces calculated at 20 m2 per space

Further inquiry note:
ECO Business-Immobilien AG
Friedrich Scheck
CEO
Tel.: +43(1)535 21 99-12
mailto:[email protected]

Peter Pechar
Head of Investor Relations
Tel.: +43(1)535 21 99-35
mailto:[email protected]

Hochegger Financials
Roland Mayrl
Tel.: +43(1) 504 69 87-31
mailto:[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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