euro adhoc: ECO Business-Immobilien AG / Financial Figures/Balance Sheet / ECO Business-Immobilien AG: Stable revenues - earnings negatively affected by revaluation losses (E)

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25.11.2008

ECO Business-Immobilien AG: Stable revenues - earnings negatively affected by
revaluation losses

Vienna, 25 November 2008. ECO Business-Immobilien AG, which is traded in the
Prime Market segment of the Vienna Stock Exchange, recorded an increase in
revenues for the first nine months of 2008. However, the financial crisis had a
negative effect on the development of earnings. Revenues rose by 55% to EUR 55.4
million, but profit for the period was negative at EUR -16.8 million (1-9/2007:
EUR 20.2 mill.) above all due to market-related impairment charges of approx. 2%
to the value of the property portfolio. Net cash earnings (FFO after interest
and taxes, incl. impairment charges) were positive at EUR 6.0 million in spite
of the challenging environment.

Revenues increased year-on-year to EUR 55.4 million for the first three quarters
of 2008. This growth was driven above all by acquisitions made in the prior year
and the effective asset management of investment properties. The transaction
market for business properties came to a virtual standstill during the third
quarter. Against the backdrop of this operating environment, ECO recorded gains
of EUR 3.6 million on the sale of properties during the first nine months of
this year (1-9/2007 EUR 6.0 mill.). The proceeds on sale exceeded the relevant
IFRS values by 25.8%.

The market-related impairment charges to the portfolio and exceptional expenses
related to the cancellation of a property transaction during the second quarter
of 2008 led to a decline in profitability indicators in relation to the
comparable prior year period. Operating profit (EBIT) totalled EUR 7.5 million
for the first three quarters of 2008, compared with EUR 40.8 million in the
first three quarters of 2007. Financial results were negative at EUR -32.9
million because of the higher volume of financing. Profit before tax (EBT)
declined to EUR -25.4 million and profit after tax fell to EUR -18.7 million
(1-9/2007: EUR 20.4 mill.).

FFO (funds from operations), which exclude revaluation gains and exceptional
non-cash effects, also reflect the increase in interest rates and financing
volume that have taken place during the past year. Net cash earnings (FFO after
interest and taxes, incl. impairment charges) were still clearly positive at EUR
6.0 million (1-9/2007: 13.4 mill.). The operational development of the company
had a clearly positive effect, and supported a strong improvement in FFO before
interest and taxes from EUR 27.4 million in the comparable prior year period to
EUR 39.0 million.

The equity ratio equalled 36% and the loan-to-value ratio (LTV) 63% as of 30
September 2008. Loans from banks and insurance companies amounted to EUR 685
million at the end of the reporting period, whereby roughly one-third was hedged
against fluctuations in interest rates. The average interest rate was 5.60% for
the reporting period.

Net asset value (NAV) per share declined from EUR 12.04 at the end of September
2007 to EUR 11.83, in particular as a result of the above-mentioned impairment
charges. Adjusted NAV equalled EUR 12.06 per share.

The ECO property portfolio covered 123 objects with a combined value of EUR 1.1
billion as of 30 September 2008. Activities in the third quarter of this year
also focused on the optimisation of the existing ECO properties and the
completion of development projects. The successful implementation of these
effective asset management programmes was reflected in a decline in the vacancy
rate from the June 2008 level. In other words, the impairment losses recognised
for the reporting period were in no way related to the operational performance
of the ECO property portfolio.

The future development of financial markets and the resulting effects on the
real economy are difficult to predict at the present time. ECO therefore expects
the market environment will remain challenging during the last three months of
this year.

Based on the development of business during the third quarter, the Management
Board assumes that revenues and earnings for 2008 will fall substantially below
the prior year level. These results will not reflect the steady improvement in
rental income, but will be caused above all by a lack of positive revaluation
results. Current developments also indicate that negative earnings for the full
year cannot be excluded due to the possible recognition of additional impairment
losses. However, cash earnings are expected to be positive for 2008.

Company Data in accordance with IFRS
01-09/2008 01-09/2007

Revenues 55,424 35,818
Thereof rental income 45,838 29,369
Gain on the disposal of non-current assets 3,600 5,973
Net gain from fair value adjustments -23,638 13,487
Operating profit (EBIT) 7,452 40,833
Profit before tax (EBT) -25,419 27,303
Profit after tax (after minority interests) -16,807 20,149

Earnings per share -0.49 0.73
Weighted average number of shares outstanding 34,100,000 27,730,000

FFO (funds from operations) before interest
and taxes, incl. impairment charges 1) 38,982 27,364
Cash earnings (FFO - funds from operations) after
interest and taxes incl. impairment charges 2) 5,981 13,379

NAV (net asset value) per share 11.83 12.04

1) EBIT + depreciation and amortisation +/- fair value adjustments
2) EBIT + depreciation and amortisation +/- fair value adjustments - financial
results - income taxes paid

Property Data
30/09/2008 30/09/2007
Number of objects 123 116
Thereof investment portfolio 72 61
Thereof trading portfolio 45 52
Thereof development projects 6 3
Total rentable space in m² * 666,200 506,600
Thereof trading portfolio 42,100 46,500
Thereof development projects 46,000 25,500
Garage spaces (number) 3,570 2,490
Thereof trading portfolio 270 290
Thereof development projects 230 60
Property assets (in TEUR) 1,094,828 755,173
Thereof construction in progress 46,301 30,488
Thereof trading portfolio 57,539 61,803

* Garage spaces were included at 20 m² each

This release contains forward-looking estimates and statements that were
made on the basis of the information available at this time. These
forwardlooking statements are usually described in terms such as "expect",
"estimate", "plan", "reckon", "assume", "should", "supposed to", "can", etc.
Forward-looking statements reflect the point of view at the time they are made.
ECO would like to point out that the actual circumstances and, consequently, the
actual results realised at a later date may differ from the forecasts presented
in this report for a variety of reasons.

Further inquiry note:
ECO Business-Immobilien AG
Friedrich Scheck
Chief Executive Officer
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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