Property Valuation

IMMOFINANZ has its property portfolio valued by external experts once a year.

Since IMMOFINANZ prepares its financial statemens in accordance with the fair value method recommended by the European Public Real Estate Association (EPRA), properties are recorded on the balance sheet at fair (present) value. This requires the revaluation of the portfolio objects at regular intervals, whereby the results of this valuation have a significant influence on the company's earnings. In accordance with EPRA’s Best Practices Policy Recommendations, the property portfolio is valued using the fair value method defined by the IFRS.

The present (fair) value reflects the current market situation and circumstances as of the balance sheet date. The best possible evidence for fair value is normally obtained from a comparison with the prices of similar properties at the same place and in the same condition listed on an active market that are subject to comparable leases and other contracts related to the properties.

Changes of the portfolio during the year are reviewed internally on a quarterly basis. The property portfolio is valued by renowned independent experts at the end of each financial year.

The following appraisers were responsible for the valuation of the various property portfolio objects during the 2009/10 financial year:

IMMOAUSTRIA: Expert committee comprised of three court-certified appraisers and BNP Paribas Real Estate Consult GmbH

IMMOEAST: Jones Lang LaSalle

IMMOWEST: BNP Paribas Real Estate Consult GmbH

BUWOG: CBRE (CB Richard Ellis)