IMMOFINANZ AG achieved significant improvements in operations in the 2007/08 business year.

EBITDA rose 31.5% from EUR 229.1 million to EUR 301.4 million compared to the year before. Revenues increased 29.3% from EUR 518.9 million to EUR 670.8 million and cash flow grew 46.7% from EUR 169.6 million to EUR 248.8 million.

Net asset value (NAV) and book value per share rose considerably. The improvement resulted in the first place from the substantial increases in the rental business. Like-for-like, revenues from rent increased 5.1% year-on-year. This is attributed to the rising rents in markets relevant for IMMOFINANZ and to the company’s active asset management.

Revenues from revaluations reached EUR 370 million in 2007/08. The increase in market yields in several submarkets led to a considerably smaller revaluation profit than the year before. This is reflected in a decline of 42% to EUR 514.5 million in EBIT and of 39.2% to EUR 555.3 million in EBT.

Significant increase in value at BUWOG

There was an especially strong rise in fair value at the residential subsidiary BUWOG/ESG. Market yields in the residential business are generally very stable and substantial increases in value were generated through numerous active asset management measures aimed at the improvement of profitability and optimisation of the real estate portfolio. A significant improvement in the valuation results at IMMOWEST made a considerable contribution to the stabilisation of the overall result.

Focal points of growth: Russia, shopping centres, BUWOG and German logistics real estate

During the reporting period the focal points of growth were on the one hand the subsidiary IMMOEAST, particularly Russia and in Central and Eastern Europe the shopping centre chain STOP.SHOP. At IMMOAUSTRIA the residential subsidiary BUWOG launched a development campaign and will commence projects for a total of 640 flats in business year 2008/09. At IMMOWEST the subsidiary Deutsche Lagerhaus expanded its logistics portfolio and had 32 properties totalling 900,000 sqm at the end of 2007/08.

Additional gains from selective sales

In the scope of active asset management at IMMOFINANZ 32 properties were sold from IMMOEAST and IMMOAUSTRIA at the amount of about EUR 430 million. The sales profit was on average 10% above the appraisal values. IMMOEAST sold five properties or stakes in properties for a total of EUR 250 million; the prices were 8.5% on average above estimated value.

IMMOAUSTRIA completed a sales programme for 17 residential buildings in summer 2007. In winter 2008 an office and retail portfolio was sold. In total, revenues of EUR 182 million were generated in this segment – 16% above the assessed values and 44% above the original purchase price. BUWOG sold 175 apartments from its portfolio. The average price generated of EUR 1653 per sqm was 72% above the averaged appraisal values of the portfolio.

Dividend yield of 6.8%

IMMOFINANZ will increase its dividend from 33 cents to 40 cents per share for the 2007/08 business year. This means an increase of 21.2% compared to the previous year. Based on the current share price of EUR 5.89 this is a dividend yield of 6.8%. The total payout will be EUR 183.6 million, up from EUR 151.5 million the year before.

Outlook

In the 2007/08 business year the IMMOFINANZ Group’s operations showed very positive development. For the current 2008/09 business year we also anticipate continued positive overall development at the group. The Austrian market should continue to offer stable conditions. For Germany, as well, we are optimistic that the demand for rental space and rent levels will continue to develop positively. Selective investment in niche areas such as city centre development projects and specialised logistics continues to promise high demand and stable yields. In Central and Eastern Europe sound economic development should also continue to provide high growth rates.

Nonetheless, it cannot be overlooked that the changed market environment, rising yields and more difficult financing options entail challenges for the future. IMMOFINANZ is meeting these challenges by means of strategic portfolio optimisation, taking full advantage of the potential in the existing portfolio and selective growth through the recognition of good investment opportunities.