IMMOFINANZ's rental income increased considerably over the first three quarters of the current 2007/08 business year (May 2007 to 31 January 2008). Revenue rose by 30.6 percent from EUR 375.3 million to EUR 490.2 million on the same period in the 2006/07 business year. However the company's earnings fared considerably weaker. EBIT rose slightly by 1.5 percent from EUR 464.5 million to EUR 471.6 million; EBT fell 10.6 percent on the previous year, from EUR 447.9 million to EUR 400.3 million.

The profit situation was negatively influenced by the decrease in the valuation of IMMOEAST subsidiary's real estate portfolio as a result of an internal valuation carried out by the company in the third quarter. Whilst this was counterbalanced by excellent appreciation at IMMOAUSTRIA, in particular at BUWOG/ESG (residential) and an increase in the market value of IMMOWEST's portfolio. However, the revaluation of properties in the third quarter means that the contribution of appreciation to operating income has fallen to only EUR 2.28 million.

The development of IMMOFINANZ's equity ratio has remained extremely positive despite continued growth. The equity ratio rose by 0.4 percentage points on the year as of 31 January, from 50.6 percent to 51 percent, clearly surpassing the long-term target of 50 percent.

“Even if earnings have been negatively impacted by the decrease in valuation at IMMOEAST, the 2007/08 business year has nonetheless been satisfactory overall”, says CEO Karl Petrikovics. “The operative business is developing extremely well as a result of the continuously high occupancy rates and increased development activities. Furthermore additional earnings can be expected in the upcoming periods due to our growing exposure in the development business.”

Petrikovics also expects a reverse in fortune for the valuation of IMMOEAST's portfolio: “The number of property transactions in Central and Eastern Europe has decreased drastically as a result of the global financial crisis. The minimal number of transactions is unsettling market players. There is therefore a form of security premium and the majority of market players predicts yields to rise in the future. We have reacted to the mood of the market despite recent sales by IMMOEAST exceeding the former, higher valuations by third party experts by between 5.4 and 22 percent. In addition, rising rents will have a positive, time-delayed effect on property values.”

The net asset value (NAV) per share rose by 13.1 percent from EUR 9.95 to EUR 11.25 Euro. The book value per share also rose by an impressive 9.8 percent from EUR 8.45 to EUR 9.28. Earnings per share however fell from 60 cents to 45 cents. As a result of a further fall in the share price in the third quarter, the share continued to be strongly undervalued. The share price is 43.7 percent below the NAV per share and 31.8 percent below the book value per share.