EANS-Adhoc: Sparkassen Immobilien AG / record cash flows, portfolio valuation impacted by economic crisis

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19.11.2009

Ad hoc information Vienna, 19 November 2009

Sparkassen Immobilien AG: record cash flows, portfolio valuation impacted by
economic crisis

- Non-cash valuation effects totalling EUR -96.5 million
    - First ever accounting loss: EUR -71.6 million
    - Record operating cash flows: up 17%
    - Steady increase in revenues and rental income: up 6% and +4 %
      respectively
    - Occupancy rate stable at 90.2%
    - 12 November 2009: EUR 110 million Gemini sale - one of biggest CEE
      transactions in 2009

Stock exchange listed Sparkassen Immobilien AG (Bloomberg: SPI:AV, Reuters:
SIAG.VI) is reporting operating successes for the first nine months of 2009,
although the results of the property valuation were massively impacted by the
effects of the international economic and financial crisis. "The continuing
disappointing performance of our markets - in particular the higher yields
expected by investors from property investments in Eastern Europe and the
consequent decline in property valuations - had no effect on cash flows but
meant that valuations had to be revised downwards, resulting in an accounting
loss," comments Holger Schmidtmayr, member of Sparkassen Immobilien AG´s
Management Board, on the Group´s performance for the first three quarters of
2009.

Operating results: increases in revenues, rental income and cash flows
Revenues for the first three quarters of 2009 came to EUR 86.0m, compared with
EUR 81.5m for the same period last year. Of this, EUR 66.62m was rental income.
This represents an increase of 6% and 4% respectively, as against the
comparable period in 2008. Other operating income in the same period also
climbed, from EUR 4.3m to EUR 11.0m. Operating cash flows for the first three
quarters rose by a satisfactory 17% to EUR 48.2m, compared with EUR 41.3m for
the same period last year.

Property valuations
Valuation writedowns for the period amounted to EUR -96.5m (Q3 2008: valuation
losses of EUR -1.0m). Of this amount, 98% was attributable to Central and South
Eastern Europe. "The results of the revaluation in the main reflect the
repeated increases in property yields resulting from persisting effects of the
economic and financial crisis - the yield shift. This triggered a decline in
real estate values, necessitating the revision of book valuations downwards,
but these are non-cash effects," says Ernst Vejdovszky, Sparkassen Immobilien
AG Management Board member.

Earnings performance
EBITDA for the first nine months of 2009 was steady at EUR 49.4m (Q3 2008:
EUR 49.6m), while EBIT dropped from EUR 45.4m (Q3 2008) to EUR -54.1m. The
overall results for the period were a loss of EUR -71.6m, compared with a
profit of EUR 11.7m for the same period last year. Finance costs increased to
EUR -30.8m from EUR 22.4m in the same period last year, due to higher financing
volumes.

Net operating income (NOI) grew from EUR 52.2m to EUR 54.4m, and the NOI margin
(NOI / revenues) stood at 60%.
Growth of property portfolio
All Sparkassen Immobilien AG´s development projects are progressing to
schedule, and in the first three quarters of 2009 the Group´s property
portfolio grew to EUR 1.839 billion. As at 30 September 2009, Sparkassen
Immobilien AG´s property portfolio comprised 260 properties with total lettable
space of 1,515,100 m². The occupancy rate was a steady 90.2%, and the gross
rental yield was around 6.7%.

The Group´s cash reserves stood at EUR 188m.

All development projects on schedule
"The market environment continues to be difficult, but on all our projects
construction is proceeding to plan, and some of them have recently been
completed and officially opened. In the first three quarters of 2009 Sparkassen
Immobilien AG has invested more than EUR 150m in its development projects,
which make up 20% of the property portfolio. When the projects are completed
our rental income will grow significantly, and our cash flow will be doubled,"
explains Friedrich Wachernig, Sparkassen Immobilien AG Management Board member.

The topping out ceremony for the Neutor 1010 office and residential project
took place at the start of October 2009. The students´ hall of residence and
senior citizens´ day care centre in the Sechshauserstrasse in Vienna´s
Fifteenth District was completed in September 2009 and opened in November. It
is 100% let on a long-term basis. In addition to the Galvaniho 4 office
building, the Austria Trend Vysoka Hotel is Sparkassen Immobilien AG´s second
development project in Bratislava. This 4-star hotel in the centre of the old
city, began operations in October 2009. The formal opening ceremony takes place
on 19 November. The two shopping centres - Serdika Center in Sofia and Sun
Plaza in Bucharest - will be opening in early 2010, and both have pre-letting
ratios of roughly 90%.

s IMMO Aktie: year-to-date gain of 163.6%
Sparkassen Immobilien AG´s stock market performance this year has also been a
positive factor: the improvement in the stock market price of s IMMO Share
continued unabated in the third quarter of 2009. The closing price of the share
at the end of the quarter was EUR 5.22, making the year-to-date gain 163.6%.
This was in itself a successful achievement for the nine months, but the stock
also outstripped the ATX index, which put on only 50.6% over the period.
Sparkassen Immobilien AG numbers two of the Region´s largest financial service
providers - Erste Group and Vienna Insurance Group - among its core
shareholders. There is also a strong revival of interest among other
institutional investors.

12 November 2009 - Most successful project in the Group´s history
With the successful sale of the Gemini office development project in Prague to
Deka Immobilien GmbH, Sparkassen Immobilien AG has realised impressive cash
gains. With a total value of around EUR 110m, this reference deal is not only
the biggest sale in the history of Sparkassen Immobilien AG, but also its most
successful development project ever. With it, the Group has more than doubled
the value of its transactions in the Czech Republic to date. This is one of the
biggest transactions in Central and Eastern Europe in 2009 so far.

Outlook
Sparkassen Immobilien AG will continue to pursue its proven strategy - a solid,
well balanced portfolio, reliable business partners and stable core
shareholders - with the overriding goal of creating enduring value for its
shareholders. Completion of the development projects will in future years lead
to significant increases in rental income and a doubling of cash flows.

Consolidated income statement for the nine months ended 30 September 2009

EUR m / fair value basis

|                                        |               |              |
|                                        |01.01. - 30.09.|01.01.- 30.09.|
|                                        |2009           |2008          |
|                                        |               |              |
|                                        |               |              |
|Revenues                                |86.0           |81.5          |
|     whereof rental income              |66.6           |63.9          |
|Revaluation of properties               |-96.5          |-1.0          |
|Other operating income                  |11.0           |4.3           |
|Gains on property disposals             |0.8            |7.7           |
|Operating revenue (EBIT)                |1.3            |92.5          |
|Depreciation and amortisation           |-7.0           |-3.2          |
|Other operating expenses                |-48.4          |-43.9         |
|Operating profit (EBIT)                 |-54.1          |45.4          |
|Finance costs                           |-30.8          |-22.4         |
|Participating certificates results      |11.4           |-8.8          |
|Profit before tax (EBT)                 |-73.5          |14.2          |
|Taxes on income                         |1.9            |-2.6          |
|Consolidated net loss / profit          |-71.6          |11.5          |

Property information as at 30 November 2009

|Number of properties                         |260           |
|Total lettable space in m2                   |1,515,100     |
|- Austria                                    |324.600       |
|- Germany                                    |602.700       |
|- Eastern Europe / South Eastern Europe      |587.800       |
|Property portfolio at fair value (EUR mn)    |1,839         |
|Occupancy rate                               |90.2%         |
|Average rental yield                         |6.7%          |

Sparkassen Immobilien AG
Sparkassen Immobilien AG (Bloomberg: SPI.AV, Reuters: SIAG.VI) has been listed
on the Vienna Stock Exchange for 22 years, making it Austria´s oldest real
estate investment company. It is a long-term value investor in residential,
office, hotel and retail property in Austria, Germany, the Czech Republic,
Slovakia, Croatia, Hungary, Romania and Bulgaria. As at 30 September 2009 the
total value of the portfolio was EUR 1.839 billion and total lettable space was
1,515,100 m2.

Further inquiry note:
Investor Relations:
Rebecca Reichmann
Tel.: +43(0)50100-27402
Fax: +43(0)05100-927402
mailto:[email protected]

wwww.sparkassenimmobilienag.at 

Corporate Communications:
Bosko Skoko
Tel.: +43(0)50100-27522
Fax:  +43(0)05100-927522
mailto:[email protected]
wwww.sparkassenimmobilienag.at
end of announcement                               euro adhoc 
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issuer:   Sparkassen Immobilien AG
          Friedrichstraße  10
          A-1010 Wien
phone:    +43(0)50100-27550
FAX:      +43(0)050100-927559
mail:     [email protected]
WWW:      www.sparkassenimmobilienag.at
sector:   Real Estate
ISIN:     AT0000652250
indexes:  ATX Prime, Immobilien-ATX

stockmarkets: official market: Wien
language: English

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