ECO Business-Immobilien AG

EANS-Adhoc: ECO Business-Immobilien AG with fivefold increase in Group EBIT to EUR 25.0 million for the first three quarters of 2010

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23.11.2010

ECO Business-Immobilien AG with fivefold increase in Group EBIT to EUR 25.0 million for the first three quarters of 2010

Vienna, 23 November 2010. ECO Business-Immobilien AG (Vienna  Stock   Exchange  / Prime Market: ECO) continued its stable positive development  during  the  first three quarters of 2010. Earnings   improved  significantly  over  the  comparable prior year period, which was influenced by impairment charges. Profit after  tax rose to EUR 9.1 million (1-9/2009: EUR -8.2 million) and  Group  EBIT   increased 380% to EUR 25.0 million. ECO´s liquidity and equity base remained  solid,  with the equity ratio equaling 45% as of 30 September 2010.

ECO generated revenues of EUR 41.1 million during the first nine months of  this year. These results were slightly lower than the comparable  prior  year  period (EUR 46.8 million) due to the  sale   of  several  properties.  Income  from  the disposal of non-current assets increased substantially to EUR  4.3  million  (1- 9/2009: EUR 0.3 million), above all due to  the  sale  of  the  Opernringhof  in Vienna. The positive trend in property valuation continued during the reporting period, with the valuation of the  property  portfolio  by independent  experts producing a net gain of EUR 3.0 million in fair value adjustments. In  contrast, the first nine months of 2009 brought a  valuation  loss  of  EUR 18.6  million. Earnings before interest and taxes (EBIT) amounted to EUR 25.0 million  for  the reporting period (1-9/2009: EUR 5.3 million).

A decline in the volume of financing and lower interest  rates  had   a  positive effect on financial results, but the positive  interest   effect  was  offset  in part by exceptional legal and consulting expenses of  EUR  1.9  million  in  the third quarter of 2010. In spite of this development, financial results  improved notably from EUR -16.0 million to EUR -14.2  million.  Profit  before  tax  rose significantly to EUR 10.7 million for the reporting period (1-9/2009: EUR  -10.7 million). Moreover, profit after tax turned positive to   equal  EUR 9.3  million (1-9/2009: EUR -8.3 million). Funds from operations (FFO)  before  interest  and taxes totalled EUR 31.2 million for the first three quarters of 2010  (1-9/2009: EUR 0.6 million). FFO after interest and taxes was also  positive  at  EUR   15.9 million, compared with EUR -15.4 million in the  first  three   quarters  of  the previous year.

The sale of properties during the first  three  quarters  of  2010   reduced  the balance sheet total to EUR 784.9 million as of 30 September  2010  (31  December 2009: EUR 858.6 million). A decline in liabilities increased  the  equity  ratio to 45.0% as of 30 September 2010 (31 December 2009: 41.6%).  Net  debt  fell  to EUR 384.3 million (31  December  2009:  EUR 470.1  million).  The   loan-to-value ratio (LTV) equalled 53.5% at the end of September   2010.  ECO  has  no  further financing requirements for 2010. Cash and cash  equivalents  totalled  EUR  30.5 million at the end of the third quarter of 2010, which represents a  significant improvement over the EUR 16.0 million reported  as  of  31  December  2009.  Net asset value (NAV) per share amounted to  EUR  10.34  as  of   30 September  2010, compared with EUR 10.45 at year-end 2009.

The ECO property portfolio comprised 58 objects  with  521,700  m²   of  rentable space as of 30 September  2010.  Occupancy  levels  as   well  as  average  rents remained  largely  constant  throughout  the reporting  period.  The business activities for the  first  three   quarters  of  2010  focused  on  redevelopment projects, on profitable sales and on the completion of the  development  project in Ukraine.

The  extended  acceptance  period  for  the  takeover  offer  made   by    conwert Immobilien Invest SE to the free float shareholders of   ECO  Business-Immobilien AG for the purchase of their ECO shares (offer price: EUR 7.15 per share)  ended on 3 November 2010. After the expiration of this extension and the  purchase  of 229,014 shares owned by parties acting in concert (Johann Kowar and  Kowar  KG), conwert held 32,653,279 shares in ECO Business-Immobilien  AG.  This represents approx. 95.76% of the share capital of ECO Business-Immobilien AG.

Activities  during  the  fourth  quarter  of  2010  will  concentrate on    the realisation  of  redevelopment  projects  as  well  as  the sale  of    selected properties. The project in Ukraine will be completed in the near future, and  no other  development  projects   are  planned  at  the  present  time.  The  active management of the properties in the investment portfolio  will  form  the  basis for continued stable rental income and satisfactory occupancy levels.

The Management Board expects  a  substantial  year-on-year   improvement  in  the equity ratio for  2010.  Operating  earnings   will  exceed  the  previous  year, supported by a stable rental business and the positive development of  valuation results. Based on the sound development of operations, the continuing low  level of interest rates and a lower volume of financing, the Management Board expects an improvement in profit over the prior year.

Selected Company Data in accordance with IFRS

@@start.t2@@|                                                                      |          |1-9/2010    |1-9/2009  |
|Revenues                                                         |(TEUR) |41,071        |46,771      |
| Thereof rental income                                  |(TEUR) |32,599        |38,206      |
|Net gain/(loss) from changes in the
|fair value of investment properties              |(TEUR) |2,958         |-18,554    |
|Operating profit (EBIT)                                 |(TEUR) |24,946        |5,253        |
|Profit before tax (EBT)                                 |(TEUR) |10,724        |-10,740    |
|Profit after tax                                            |(TEUR) |9,116         |-8,226      |
(after non-controlling interests)

|Earnings per share                                         |(EUR)  |0.27          |-0.24        |
|Weighted average number of shares                 |(no.)  |34,100,000 |34,100,000|

|FFO (funds from operations)
|before interest and taxes1)                          |(TEUR) |31,219        |603          |
|Cash earnings (FFO - funds from operations)
|after interest and taxes 2)                          |(TEUR) |15,917        |-15,429    |

|NAV per share as of the balance sheet date  |(EUR)  |10.34         |10.37        |@@end@@

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

Balance Sheet Data

@@start.t3@@|Consolidated balance sheet -                      |30/09/2010         |31/12/2009         |
|summary in TEUR
|Non-current assets                                      |741,559              |834,560              |
| Thereof investment property                      |711,489              |782,465              |
| Thereof properties under construction      |17,257                |39,281                |
|Current assets                                            |43,307                |23,990                |
|Total assets                                                |784,866              |858,550              |
|Equity and reserves                                    |353,075              |357,329              |
| Thereof non-controlling interests            |371                    |834                    |
|Non-current liabilities                              |382,443              |452,400              |
|Current liabilities                                    |49,348                |48,822                |
|Total equity and liabilities                      |784,866              |858,550              |


Property Data
|                                                                  |30/09/2010            |30/09/2009      |
|Number of objects                                        |58                         |61                  |
|Investment properties 1)                            |57                         |59                  |
|Thereof development projects                      |1                          |2                    |
|Rentable space in m² 2)                              |521,700                 |538,800          |
|Garage spaces (number)                                |2,950                    |2,840              |
|Property assets (in TEUR)                          |728,746                 |816,760          |
|Thereof properties under construction        |17,257                  |38,768            |

1) Investment property@@end@@

2) Garage spaces were included at 20 m² each / parking areas included

This press release includes forward-looking estimates and  statements that  are based on the information available to ECO Business-Immobilien AG at the  present time. Forward-looking statements are  normally  described  with  terms  such  as "expect", "estimate", "plan", "anticipate", "assume", "should",  "could",   etc., and reflect conditions at the time  they  are  made.  ECO   notes  that  numerous factors may cause actual circumstances and, therefore also  actual  results,  to differ from the expectations described in this press release.

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Further inquiry note: ECO Business-Immobilien AG Elke Englert, Chief Financial Officer Tel +43 1 580 88 0 E    englert@eco-immo.at

Metrum Communications Roland Mayrl Tel +43 1 504 69 87-331 E    r.mayrl@metrum.at

Branche: Real Estate
ISIN:      AT0000617907
WKN:        A0D8RY
Index:    Prime Market
Börsen:  Wien / Regulated free trade



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