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ECO Business-Immobilien AG

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

  Disclosure announcement transmitted by euro adhoc. The issuer is responsible
  for the content of this announcement.
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
end of announcement                               euro adhoc

Further inquiry note:

ECO Business-Immobilien AG
Friedrich Scheck, Chairman of the Management Board
Tel +43 1 535 2199
E-mail: scheck@eco-immo.at

Hochegger|Financials
Roland Mayrl
Tel +43 1 504 6987 31
E-mail: r.mayrl@hochegger.com

Branche: Real Estate
ISIN: AT0000617907
WKN: A0D8RY
Index: Prime.market
Börsen: Wiener Börse AG / Regulated free trade

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