PATRIZIA AG

Quarterly Report • Nov 8, 2012

REPORT ON THE THIRD QUARTER OF 2012

Creating value with values

Key Figures

REVENUES AND EARNINGS

EUR '000	3rd quarter 2012	3rd quarter 2011	9 months 2012	9 months 2011
	07/01/ – 09/30/2012	07/01/ – 09/30/2011	01/01/ – 09/30/2012	01/01/ – 09/30/2011
Revenues	59,233	54,609	162,607	161,222
Total operating performance	47,499	46,822	136,221	179,363
EBITDA	14,188	14,967	34,332	38,237
EBIT	13,083	14,138	31,240	35,897
EBIT adjusted1	13,575	14,630	32,716	37,373
EBT	7,287	–3,631	16,314	7,059
EBT adjusted1, 2	5,762	4,459	12,916	5,511
Net profi t/loss	6,426	–4,788	11,736	3,013

STRUCTURE OF ASSETS AND CAPITAL

EUR '000	09/30/2012	12/31/2011
Non-current assets	535,663	597,007
Current assets	480,425	505,277
Equity	322,070	310,075
Equity ratio (in %)	31.7	28.1
Non-current liabilities	438,983	480,250
Current liabilities	255,035	311,959
Total assets	1,016,088	1,102,284

SHARE

ISIN	DE000PAT1AG3
SIN (Security Identifi cation Number)	PAT1AG
Code	P1Z
Share capital at September 30, 2012	EUR 57,343,000
No. of shares in issue at September 30, 2012	57,343,000
Third quarter/9 months 2012 high3	EUR 5.02/EUR 5.10
Third quarter/9 months 2012 low3	EUR 4.16/EUR 3.32
Closing price at December 31, 20113	EUR 3.43
Closing price at September 30, 20123	EUR 4.44
Share price performance	29.6%
Market capitalization at September 30, 2012	EUR 254.6 million
Average trading volume per day (9 months 2012)4	72,736 shares
Indices	SDAX, EPRA, GEX, DIMAX

Without amortization of other intangible assets (fund management contracts)

In addition adjusetd for profi t/loss from interest rate hedges without cash eff ect

3 Closing price at Frankfurt Stock Exchange Xetra trading

All German stock exchanges

Contents

Letter to Our Shareholders

Consolidated Interim Management Report

• 04 General Economic Conditions
• 05 PATRIZIA on the Capital Market
• 05 Our Employees
• 06 The Course of Business in the Third Quarter of 2012
• 12 Net Assets, Financial and Earnings Situation
• 22 Opportunity and Risk Report
• 22 Supplementary Report
• 23 Forecast Report

Consolidated Interim Financial Statements

• 24 Consolidated Balance Sheet
• 26 Consolidated Income Statement
• 27 Consolidated Statement of Comprehensive Income
• 28 Consolidated Cash Flow Statement
• 29 Consolidated Statement of Changes in Equity

Notes to the Consolidated Interim Financial Statements

• 30 General Disclosures
• 30 Principles applied in preparing the Consolidated Financial Statements
• 31 Scope of Consolidation
• 33 Investment Property
• 34 Participations
• 34 Inventories
• 35 Equity
• 35 Bank Loans
• 37 Revenues
• 37 Financial Result
• 38 Earnings per Share
• 38 Segment Reporting
• 44 Transactions with related Companies and Individuals
• 44 Declaration by the legal representatives of PATRIZIA Immobilien AG

Financial Calendar and Contact

Letter to Our Shareholders

Dear shareholders, Dear ladies and gentlemen,

In the third quarter of the 2012 fi nancial year we took a number of signifi cant steps towards achieving our strategic goal of becoming a European fully integrated real estate investment company by the year 2015. We thus opened a new offi ce in Copenhagen at the beginning of July 2012, followed shortly – in mid-July – by the opening of our Paris offi ce. This has allowed us to signifi cantly increase our local presence in what we regard as two very important real estate markets in Europe. Our offi ce in Copenhagen is now our second location in Northern Europe after Stockholm. A presence in this region is of great importance for us in view of the volume of investment totaling EUR 300 million that we manage there. However, the Nordic markets are not just attractive for real estate investment but also for gaining new institutional investors. PATRIZIA has now attracted equity there that has been invested in residential and commercial properties in Germany in the order of some EUR 500 million.

Important milestones in the growth of our company were also the capital increase from company funds and the issuance of bonus shares in a ratio of 10:1 that we performed in the course of the third quarter. With regard to current developments on the real estate markets, we are pleased to report that PATRIZIA again and again manages to invest successfully in attractive properties and projects irrespective of the by all means intense competition among purchasers. This is in no small part proof of the excellent market access that we have built up systematically in the course of the past almost 30 years.

In recent weeks we have proven our strength in acquisition through, among other things, three large purchases in Munich and Frankfurt. In total we have invested more than EUR 300 million in the funds that we manage. We assume that interest on the part of institutional investors in well managed real estate investments will continue into the future, too.

A further signifi cant purchase was made for WohnModul I shortly before the end of the reporting period through the acquisition of an approximately 65,000 sqm plot of land in Hofmannstrasse in Munich-Obersendling. The vendor of the property, which so far has been used for commercial pur poses, was Siemens Real Estate. The investment volume here amounts to around EUR 300 million. This transaction has given a major boost to our presence on the market in Munich, increasing the currently realized development volume of PATRIZIA in the Bavarian state capital to approximately 100,000 sqm.

Besides investments for our funds, we also made good progress with our other activities in the third quarter. We began residential property resale of our WohnModul I holdings. We have already sold around half of all residential units in the "Belsenpark 1" new development project in Düsseldorf and started construction work on two building sites. Our new development project "Living in Provinopark" in Augsburg, where more than two-thirds of the residential units of the fi rst tranche of sales have already been sold, is also making good progress. Building permission has been given and initial excavations have commenced. We will probably be able to bring forward the start of the second tranche of sales, meaning that it can already begin in the fourth quarter of 2012. The fi rst residential units in this project will be ready for occupancy at the end of 2013.

PATRIZIA Immobilien AG continued the successful operational performance seen in the fi rst six months through the third quarter, too. A total of 219 units were sold individually from our own stock in the area of residential property resale and a further 332 units were sold in six block sales in the area of asset repositioning. Private investors, with a share of 72.5%, again constituted by far the largest group of purchasers for individual sales.

Sales revenues in the period January through September 2012 totaled EUR 162.6 million (previous year: EUR 161.2 million). However, they included only sales from current assets. Sales from non-current assets gained importance in the reporting period but cannot be reported as sales revenues (9 months 2012: EUR 88.4 million; 9 months 2011: EUR 54.0 million). EBT adjusted in the third quarter amounted to EUR 5.8 million and was thus signifi cantly higher than in the third quarter of the previous year (EUR 4.5 million). EBT adjusted of EUR 12.9 million was achieved in the fi rst nine months of 2012, which corresponds to more than twice the fi gure for the same period last year (EUR 5.5 million). EBT according to IFRS increased by more than 100% and amounted to EUR 16.3 million at September 30, 2012 (September 30, 2011: EUR 7.1 million).

PATRIZIA aims to increase adjusted earnings before taxes (EBT adjusted) for the whole of 2012 by approximately 20% and to sell around 1,800 residential units. The developments over the fi rst nine months make it possible for us to maintain this ambitious goal.

The Managing Board

Wolfgang Egger Arwed Fischer Klaus Schmitt Chairman of the Board Member of the Board Member of the Board

Consolidated Interim Management Report

FOR THE FIRST NINE MONTHS OF 2012

1 GENERAL ECONOMIC CONDITIONS

The German economy is currently navigating rough water. While it experienced solid growth of 0.3% in the second quarter of 2012 compared with the fi rst quarter, the details show that economic activity has lost momentum signifi cantly. Industrial production fell for a third quarter in succession. Businesses are increasingly adapting their production to match the volume of orders which are no longer arriving in such great numbers. Domestic orders in particular have fallen over the past few months, while demand from outside Europe has again risen and demand from the euro area does at least appear to have stabilized. Given shrinking order books and falling sentiment indicators, it has to be feared that businesses will continue to cut back production over the coming months. There is therefore even the possibility that the German economy could even shrink slightly in the second half of the year. Growth of around 0.7% is currently expected for 2012, and this is likely to grow to 1.0% in 2013.

REAL ESTATE MARKET

Residential

The positive development in construction activity in the past 2 years appears to have continued into the current year, too. Permission was granted for the construction of 114,000 residential units in Germany in the fi rst six months of 2012, which represented an increase of almost 5% over the corresponding period last year. However, the continuing momentum in rents and purchase prices for newly built residential property together with increases in rents for existing residential property, above all in economically strong conurbations, show that the growth in supply on the residential property market still continues to lag signifi cantly behind demand. The main driver for this development continues to be sustained migration to the cities and the resultant increase in population, leading to a continuing high demand for housing through the associated growth in the number of households. In addition to this, qualitative aspects such as the level of appointment, location, transport connections or quality of the surroundings are playing an ever greater role in demand from medium- and upper-income households, particularly in the area of new build.

Commercial

Compared with the previous year, the fi rst six months of 2012 saw a slight decline in sales by fl oor space in the top 7 offi ce markets. There was, nevertheless, a signifi cant reduction in the vacancy rate as a result of the low volume of completion for speculative offi ce space and an increased level of conversion of no longer marketable offi ce space for use as hotels or housing. There was an upward trend in rents over the past few months in the top 7 locations, particularly in the high-end segment, not least because of declining vacancies. At the same time, a robust German labor market continued to be a cornerstone of sales growth in the retail trade, which was able to increase by 0.7% in real terms in 2012. As a result, the demand for space from retailers remained at a high level. The high demand for space also resulted in increases in premium once more.

2 PATRIZIA ON THE CAPITAL MARKET

The PATRIZIA share closed the third quarter of 2012 at EUR 4.44. In the fi rst nine months, PATRIZIA Immobilien AG saw a further rise in its share price, which is now 29.4% above the closing price of EUR 3.43 at the end of 2011. The highest closing price of the third quarter was EUR 5.02 on August 9, 2012, while the lowest closing price was EUR 4.16 on July 9, 2012.

3 OUR EMPLOYEES

The number of permanent employees at PATRIZIA increased to 567 as at September 30, 2012, of whom 33 were trainees and 53 part-time employees. A further 20 employees are currently on parental leave. Compared with December 31, 2011, (498 employees), the number of staff increased by 69, or 13.9%. In terms of full-time equivalents, PATRIZIA had 534 permanent employees at the end of the third quarter. New employees were taken on in the fi rst nine months of the year in order to meet the demand due to the expansion of the service business.

4 THE COURSE OF BUSINESS IN THE THIRD QUARTER OF 2012

Business Development in the Residential Segment

Own investments

Residential property resale

Individual sales in the third quarter of 2012 by region were as follows:

INDIVIDUAL SALES IN THE THIRD QUARTER OF 2012

Region/city	Number of units sold in Q3/2012	As a % of sales	Area sold in sqm	Average size per unit in sqm
Munich	166	75.8	12,954	78
Cologne/Düsseldorf	22	10.0	1,741	79
Berlin	16	7.3	1,201	75
Hamburg	10	4.6	805	81
Friedrichshafen	4	1.8	240	60
Frankfurt/Main	1	0.5	53	53
TOTAL	219	100	16,994	78

Residential property resale sold a total of 219 units in the third quarter of 2012. Individual sales decreased by 4.8% compared with the same quarter of the previous year (230 units). With a share of 72.5%, private investors were again by far the most predominant category of purchasers in the period under review. In comparison, the other categories of purchasers accounted for signifi cantly smaller shares. 20.2% of purchasers bought apartments for own use, while 7.3% of apartments were purchased by tenants.

Asset repositioning

BLOCK SALES IN THE THIRD QUARTER OF 2012

Region/city	Number of transactions	Number of units sold	Area sold in sqm	Average size per unit in sqm
Munich	41	53	2,340	44
Berlin	1	34	3,779	111
Regensburg	1	245	17,680	72
TOTAL	61	332	23,799	72

1 Includes one plot of land sold

Six transactions were concluded with the transfer of ownership, usage and encumbrances as part of block sales in the third quarter of 2012. These had an eff ect on the consolidated income statement at September 30, 2012.

The following is a summary of our portfolio after taking into account the sales completed in the third quarter of 2012 of 551 units, redensifi cation measures and consolidations.

Region/city	Number of units				Area in sqm
	Resi dential property resale	Asset repo sitioning	Total	Share in %	Resi dential property resale	Asset repo sitioning	Total	Share in %
Munich	1,297	371	1,668	25.5	102,789	27,526	130,315	28.0
Cologne/ Düsseldorf	604	685	1,289	19.7	50,933	62,940	113,873	24.4
Leipzig	0	986	986	15.1	0	58,066	58,066	12.5
Frankfurt/Main	7	776	783	12.0	491	49,309	49,800	10.7
Hamburg	170	467	637	9.7	11,400	29,527	40,927	8.8
Berlin	114	465	579	8.8	8,893	22,394	31,287	6.7
Hanover	0	386	386	5.9	0	27,047	27,047	5.8
Dresden	0	152	152	2.3	0	10,284	10,284	2.2
Regensburg	0	65	65	1.0	0	4,028	4,028	0.9
Friedrichshafen	3	0	3	< 1	182	0	182	< 1
TOTAL	2,195	4,353	6,548	100	174,688	291,121	465,809	100

PATRIZIA PORTFOLIO – BREAKDOWN BY REGION AS OF SEPTEMBER 30, 2012

Co-investments

CO-INVESTMENT PORTFOLIO AS OF SEPTEMBER 30, 2012

	Number of units				Area in sqm
	Resi dential property resale	Asset reposi tioning/ stock	Total	Share in %	Resi dential property resale	Asset reposition ing/ stock	Total	Share in %
WohnModul I1	2,057	212	2,269	9.4	130,674	13,517	144,191	9.1
Süddeutsche Wohnen	0	21,142	21,142	87.8	0	1,404,365	1,404,365	88.9
Other	0	679	679	2.8	0	30,538	30,538	1.9
TOTAL	2,057	22,033	24,090	100	130,674	1,448,420	1,579,094	100

1 Without project developments

The co-investment residential portfolio of PATRIZIA Immobilien AG included 24,090 units with an area of 1,579,094 sqm as of September 30, 2012. This comprises WohnModul I, Süddeutsche Wohnen GmbH and other co-investments.

Services

SERVICES PORTFOLIO AS OF SEPTEMBER 30, 2012

	Number of units				Area in sqm
	Resi dential property resale	Asset reposi tioning/ stock	Total	Share in %	Resi dential property resale	Asset reposi tioning/ stock	Total	Share in %
TOTAL	29	1,743	1,772	100	2,637	233,526	236,163	100

At the end of the third quarter there were 1,772 units with an area of 236,163 sqm in the services portfolio of PATRIZIA Immobilien AG.

Funds

PATRIZIA WohnInvest KAG

PATRIZIA WohnInvest KAG was able to set up its seventh special fund at the end of August. This fund invests regionally, primarily in residential real estate but also in commercial properties. The investor is a savings bank.

Properties with a market value volume in the amount of EUR 113.4 million were transferred to the fund in the third quarter of 2012. Furthermore, additional properties with a market value volume totaling EUR 66.2 million could be secured by purchase agreement.

PATRIZIA Nordics A/S has established an offi ce in Copenhagen, which will strengthen its local presence. With its own property management performed by an affi liated Group company, PATRIZIA EuroCity Residential Fund I in particular will benefi t from this.

Number of funds	Target volume	Committed equity	Gross fund volume
	in EUR million	in EUR million	in EUR million
7	2,034	972	761

Business Development in the Commercial Segment

Co-investments

CO-INVESTMENT PATROFFICE AS OF SEPTEMBER 30, 2012

Number of units				Area in sqm
	Resi dential property resale	Asset reposi tioning/ stock	Total	Share in %	Resi dential property resale	Asset reposi tioning/ stock	Total	Share in %
TOTAL	0	1,504	1,504	100	0	195,136	195,136	100

As of the reporting date of September 30, 2012, the co-investment PATRoffi ce included a total of 1,504 units with an area of 195,136 sqm in the commercial fi eld.

Funds

PATRIZIA GewerbeInvest KAG

PATRIZIA GewerbeInvest KAG initiated further special fund in the third quarter of 2012. Written undertakings have been received for 90% of the targeted equity commitments for the special fund initiated in the second quarter of 2012 regarding the total volume of EUR 150 million. The fi rst share certifi cates will be issued in the fourth quarter of 2012. Relationships with the German savings banks, who have invested primarily in the modular funds of PATRIZIA GewerbeInvest KAG, could also be signifi cantly strengthened. In these, the savings banks account for equity capital totaling EUR 960 million. If other companies from the Savings Banks Finance Group such as the federal state banks (Landesbanken) and insurance companies are included, the volume of committed equity totals approximately EUR 1.2 billion. In terms of volume, PATRIZIA Gewerbe-Invest KAG is one of the strongest partners of the savings banks in the fi eld of special real estate funds. A total of 39 savings banks from all over Germany have currently invested in funds of PATRIZIA GewerbeInvest KAG across diff erent types of use. Further purchases for the modular funds and for the label fund GLL BVK International Immobilien-Spezialfonds were prepared in the third quarter of 2012 which will be transferred to the funds in the fourth quarter of 2012.

Number of funds	Target volume	Committed equity	Gross fund volume
	in EUR million	in EUR million	in EUR million
13	5,692	2,314	2,682

Business Development in the Special Real Estate Solutions Segment

Co-investments

Süddeutsche Wohnen GmbH

Real estate markets in the south of Germany, particularly in Baden-Württemberg, are developing very well, and Süddeutsche Wohnen GmbH and its customers are benefi ting from this. Favourable, long-term fi nancing has been successfully concluded and a program of selling and purchasing has been initiated.

The portfolio is also reported in the Residential segment since it essentially involves residential properties. It is managed in the Special Real Estate Solutions segment.

WohnModul I – Project Development

A 50:50 joint venture was concluded for WohnModul I with CA Immo Deutschland GmbH in the second quarter which will manage the development of the "Baumkirchen Mitte" quarter in Munich. The competition for the pre-selection of the architects for the fi rst stage of construction was completed in September. Two planning concepts are currently in the revision phase. The project volume of the joint venture between CA Immo and PATRIZIA amounts to approximately EUR 238 million. It involves a total area of approximately 29,000 sqm with currently planned fl oor space of approximately 45,500 sqm for apartments and approximately 18,500 sqm for offi ces .

A further property in Munich was successfully acquired for WohnModul I in the third quarter. It is a 65,000 sqm development site in Munich-Obersendling. In the past, the site was used mainly for commercial purposes and it is now planned to reclassify it for primarily residential purposes. It has been possible to conclude a lease-back agreement with the vendor, Siemens AG, for at least two years. The planned investment volume amounts to approximately EUR 300 million.

City, projects	Project volume in EUR '000	Marketable residential space in sqm	Property area in sqm	Completion in	PATRIZIA's share in %
Augsburg, Provinostrasse	57,440	17,201	27,360	Q2/2012 to Q1/2014 3 CP1	13.726
Düsseldorf, Belsenpark	52,055	11,296	7,615	Q1/2014 2 CP1	13.726
Düsseldorf, Gerresheim	38,440	–2	192,893	Q4/2015	13.726
Munich, Baumkirchen Mitte	215,261	55,638	18,245	Q4/2015 4 CP1	4.545
Munich, Hofmannstrasse	242,676	105,405	63,495	Q4/2019	9.090
GESAMT	605,872	189,541	309,608	–	–

CO-INVESTMENT PROJECT DEVELOPMENTS

CP = Construction phases

This property development project is currently under development.

5 NET ASSETS, FINANCIAL AND EARNINGS SITUATION

EARNINGS SITUATION OF THE PATRIZIA GROUP

CONSOLIDATED REVENUES

	3rd quarter 2012	3rd quarter 2011	9 months 2012	9 months 2011
	07/01 – 09/30/2012 EUR '000	07/01 – 09/30/2011 EUR '000	01/01 – 09/30/2012 EUR '000	01/01 – 09/30/2011 EUR '000
Revenues from residential property resale1	25,275	24,363	67,031	70,076
Revenues from asset repositioning1	2,800	0	4,090	11,733
Rental revenues	10,561	13,878	32,972	42,712
Revenues from fund activities	7,697	10,055	18,935	18,234
Revenues from other services	8,608	1,829	26,691	4,477
Other2	4,293	4,479	12,888	13,990
TOTAL	59,233	54,604	162,607	161,222

Purchase price receipts from investment property are not included in revenues.

The item "Other" primarily includes rental ancillary costs.

In the fi rst nine months of 2012, revenues in residential property resale decreased by 4.3% to EUR 67.0 million. The main reason for the fall in revenues was the shift in sales from current assets (shown as revenues) to sales from non-current assets (not included in revenues) totalling EUR 88.4 million (fi rst nine months of 2011: EUR 54.0 million). The share of purchase price receipts from non-current assets in the fi rst nine months of 2012 totalled 55.4% (fi rst nine months of 2011: 39.8%). Total sales revenues (inventory and non-current assets) increased in the fi rst half of 2012 by EUR 23.7 million or 17.5%. As a result of increased concentration on the fund business, it was possible to increase revenues from fund activities from EUR 18.2 million to EUR 18.9 million. The expansion of PATRIZIA's service business is refl ected in revenues from additional services, which again increased by EUR 22.2 million (fi rst nine months of 2011: EUR 4.5 million). This distinct increase by more than 100% to EUR 26.7 million is primarily accounted for by the LBBW transaction and the purchases for WohnModul I. The service segment contributed 28.1% (EUR 45.6 million) to group revenues.

At EUR 59.2 million, group revenues increased in the third quarter of 2012 compared with the previous year (EUR 54.6 million). However, as already indicated, sales revenues have only limited signifi cance for PATRIZIA since the selling prices of properties reported in non-current assets are not refl ected in sales revenues. Profi ts from disposals are reported under item "gain on the disposal of investment property". After deducting carrying amounts of EUR 84.5 million, purchase price receipts between January and September of EUR 88.4 million resulted in a profi t of EUR 3.9 million.

	3rd quarter 2012	3rd quarter 2011	9 months 2012	9 months 2011
	07/01 – 09/30/2012 EUR '000	07/01 – 09/30/2011 EUR '000	01/01 – 09/30/2012 EUR '000	01/01 – 09/30/2011 EUR '000
Sales revenues from inventories	28,075	24,363	71,121	81,809
Residential property resales	25,275	24,363	67,031	70,076
Block sales	2,800	0	4,090	11,733
Sales revenues from investment property1	57,372	49,750	88,442	54,008
Residential property resales	17,662	21,590	45,742	22,123
Block sales	39,710	28,160	42,700	31,885
TOTAL	85,447	74,113	159,563	135,817

PURCHASE PRICE REVENUES FROM SOLD REAL ESTATE

Purchase price receipts from investment property are not included in sales revenues.

The average price in the fi rst nine months decreased slightly to EUR 2,384/sqm (fi rst nine months of 2011: EUR 2,392/sqm). Due to the disposal of properties and the consequently reduced area available to rent, rental revenues decreased to EUR 33.0 million (–22.8%). Rent increases are moving in the opposite direction. At the end of the third quarter, the average monthly rent per square meter fell to EUR 7.58 due to the above-average sales in metropolitan areas (fi rst nine months of 2011: EUR 7.83/sqm).

PORTFOLIO FIGURES BY QUARTER

	1st quarter 2012	2nd quarter 2012	3rd quarter 2012	9 months 2012	9 months 2011	Change
	01/01 – 03/31/2012	04/01 – 06/30/2012	07/01 – 09/30/2012	01/01 – 09/30/2012	01/01 – 09/30/2011	in %
Own stock
Individual sales	228	168	219	616	523	17.8
Average selling price via residential property resale	EUR 2,287/ per sqm	EUR 2,363/ per sqm	EUR 2,466/ per sqm	EUR 2,384/ per sqm	EUR 2,392/ per sqm	–0.3
Units via block sales	32	0	332	364	261	39.5
Average selling price via asset repositioning	EUR 1,869/ per sqm	–/ per sqm	EUR 1,711/ per sqm	EUR 1,724/ per sqm	EUR 2,129/ per sqm	–19.0
Average monthly rent1	EUR 7.60/ per sqm	EUR 7.58/ per sqm	EUR 7.55/ per sqm	EUR 7.58/ per sqm	EUR 7.83/ per sqm	–3.2
Co-investments	38	42	41	121	0	–
Residential property resale	29	42	24	95	0	–
Block sales	9	0	17	26	0	–
Service business	52	3	37	106	128	–17.2
Residential property resale	5	3	5	13	55	–76.4
Block sales	47	0	32	93	73	27.4

1 In the portfolio at the end of the quarter. The fi gure for the fi rst nine months relates to September 30.

The positive start to residential property resale for the co-investments in the fi rst quarter of 2012 also continued in the third quarter. A total of 121 residential units were sold from co-investments in the fi rst nine months. Of these, 95 units were accounted for by residential property resale and 26 units by block sales. In addition, a total of 106 units were sold from services, 13 units in residential property resale and 93 units in block sales.

Changes in inventory at the end of the third quarter of 2012 amounted to EUR –38.9 million. Decreases in the carrying value of real estate sold from inventory assets reduced stock by EUR 56.6 million, while capitalizations of EUR 17.7 million increased inventory.

At EUR 37.8 million, the cost of materials in the fi rst nine months was less than the previous year (EUR 92.5 million). The previous year included purchases (480 units in Munich and a property for project development). These purchases were performed with the fi rm intention of transferring the properties to WohnModul I. The cost of materials in the fi rst nine months

of 2012 included EUR 1.7 million of ongoing maintenance (which cannot be capitalized) and EUR 9.3 million of renovation and conversion work. A further EUR 13.0 million was accounted for by construction and production costs.

Staff costs in the fi rst nine months totaled EUR 33.6 million. The increase over the previous year (EUR 25.2 million) can be explained by the growth in the number of staff . The number of permanent employees amounted to 567 at September 30, 2012, compared with 498 at December 31, 2011. The number of staff increased accordingly by 13.9%. Furthermore, commission payments to the company's own sales staff increased over the previous year owing to the increased number of sales (in both own investments and in co-investments). The number of privatized units over all areas (own investments, co-investments and services) was 25.3% above the previous year.

The other operating expenses of EUR 30.5 million for reporting period include primarily operating expenses of EUR 6.5 million, administrative expenses of EUR 7.5 million, selling expenses of EUR 12.8 million and other expenses of EUR 3.7 million. This item mainly comprises expenses for consultancy services relating to the co-investments of PATRIZIA.

Earnings before interest and tax (EBIT) in the fi rst nine months of 2012 amounted to EUR 31.2 million, 13.0% below the corresponding fi gure for the previous year (EUR 35.9 million). EBIT adjusted is determined by adjusting the non-cash eff ect from amortization on other intangible assets (fund management contracts). The fund management contracts were transferred in the course of the acquisition of PATRIZIA GewerbeInvest KAG. In the fi rst nine months of 2012, ongoing amortizations of EUR 3.1 million were carried out, resulting in an adjusted EBIT of EUR 32.7 million. Further information is available under segment reporting in Section 12 of the Notes to the Consolidated Financial Statements.

In accordance with IFRS, market value changes arising from interest hedging transactions are reported in the Consolidated Income Statement. The market valuation is recognized in the fi nancial result as income or expense depending on changes in the interest rate level, causing the results to fl uctuate substantially. However, this has no infl uence on PATRIZIA's liquidity. Most of these interest hedging transactions, which guarantee us a fi xed average interest rate of 3.99%, were concluded at the end of 2006/beginning of 2007 in connection with the fi nancing of major real estate portfolios and will expire by mid-2014 at the latest. 91.5% of our loan obligations is currently secured using interest hedging instruments. The change in their fair value for the nine months of 2012 amounted to EUR 4.9 million.

	1st quarter	2nd quarter	3rd quarter	9 months	9 months
	2012	2012	2012	2012	2011
	01/01 –	04/01 –	07/01 –	01/01 –	01/01 –
	03/31/2012	06/30/2012	09/30/2012	09/30/2012	09/30/2011
	EUR '000	EUR '000	EUR '000	EUR '000	EUR '000
Market valuation of interest hedging transactions	735	2,122	2,017	4,874	3,024

MARKET VALUATION OF INTEREST RATE HEDGES

Cash-related changes in interest expenses for bank liabilities plus expenses for interest hedging amounted to EUR 24.2 million after nine months. In the fi rst nine months, fi nancing costs (interest rate plus margin) averaged 5.10% (third quarter of 2011: 4.97%). The main portion of the interest rate hedge will expire at January 30, 2014. PATRIZIA Immobilien AG will then benefi t from the low market interest rate.

In order to judge the productive effi ciency of the portfolio and the cash infl ow from the properties during the holding period it is important to determine to what degree rental income covers the fi nancing costs. Rental revenues between January and September 2012 (EUR 33.0 million) exceed the fi nal result adjusted for income and expenses from interest rate hedging (EUR 25.3 million) by 30.6%. Further information on the fi nancial result is available in Section 10 of the Notes to the Consolidated Financial Statements.

After deduction of the fi nancial result, earnings before tax (EBT) amounted to EUR 16.3 million. As explained with reference to the fi nancial result, diff erences are mainly due to the counteractive valuation eff ects arising from interest hedging transactions. We therefore report the adjusted pre-tax result – so-called EBT adjusted – in order to enable a comparison of the group's operating earning power. The reconciliation of EBT in accordance with IFRS to EBT adjusted is eff ected by making an adjustment to the fi nancial result, which only includes cash-related fi nancial income and expenses. After adjustment for the eff ects of changes in the market value of interest hedging transactions and amortization on fund management contracts already explained with reference to EBIT adjusted, there was an EBT adjusted of EUR 12.9 million for the period between January and September 2012. This signifi cantly exceeded the result of the previous year (EUR 5.5 million). This positive development is mainly due to sales from residential property resale and to the conclusion and continuous provision of services to our co-investments.

DERIVATION OF THE ADJUSTED FIGURES

	3rd quarter 2012	3rd quarter 2011	9 months 2012	9 months 2011
	07/01 – 09/30/2012 EUR '000	07/01 – 09/30/2011 EUR '000	01/01 – 09/30/2012 EUR '000	01/01 – 09/30/2011 EUR '000
EBIT posted in accordance with IFRS	13,083	14,138	31,240	35,897
Amortization of intangible assets that resulted from the acquisition of PATRIZIA
GewerbeInvest KAG	492	492	1,476	1,476
Change in value of investment property	0	0	0	0
EBIT adjusted1	13,575	14,630	32,716	37,373
Income from participations	0	0	5,438	0
Income from participations valued
at equity	14	0	14	0
Financial result	–5,810	–17,768	–20,378	–28,837
Change in the value of derivatives	–2,017	7,598	–4,874	–3,024
Change in the value of fund shares	0	0	0	0
EBT ADJUSTED1,2	5,762	4,459	12,916	5,511

Adjusted for amortization on other intangible assets (fund management contracts) and change in the value of investment property

Additionally adjusted for non-cash-related results from interest hedging transactions and change in the value of fund shares

The consolidated result after deduction of taxes amounted to EUR 11.7 million at the end of the fi rst nine months. The tax expense in the third quarter mainly consisted of tax prepayments and contributions to tax provisions.

Earnings per share for the fi rst three quarters of 2012 were EUR 0.22 (9 months 2011: EUR 0.06).

The table below provides a summary of the key items in the consolidated income statement according to IFRS:

	3rd quarter 2012	3rd quarter 2011	9 months 2012	9 months 2011
	07/01 – 09/30/2012 EUR '000	07/01 – 09/30/2011 EUR '000	01/01 – 09/30/2012 EUR '000	01/01 – 09/30/2011 EUR '000
Revenues	59,233	54,609	162,607	161,222
Total operating performance	47,499	46,822	136,221	179,363
EBITDA	14,188	14,967	34,332	38,237
EBIT	13,083	14,138	31,240	35,897
EBIT adjusted1	13,575	14,630	32,716	37,373
EBT	7,287	–3,631	16,314	7,059
EBT adjusted1,2	5,762	4,459	12,916	5,511
Consolidated annual profi t	6,426	–4,788	11,736	3,013

SUMMARY OF THE KEY ITEMS IN THE CONSOLIDATED INCOME STATEMENT
---------------------------------------------------------------	--

1 Adjusted for amortization on other intangible assets (fund management contracts) and change in the value of investment property

2 Additionally adjusted for non-cash-related results from interest hedging transactions and change in the value of fund shares

NET ASSET AND FINANCIAL SITUATION OF THE PATRIZIA GROUP

	09/30/2012 EUR '000	12/31/2011 EUR '000	Change in %
Total assets	1,016,088	1,102,284	–7.8
Equity (including
non-controlling partners)	322,070	310,075	3.9
Equity ratio	31.7%	28.1 %	3.6% points
Bank loans	602,608	693,352	–13.1
Cash and cash equivalents	68,861	31,828	> 100
of which intended for
repayments1	39,285	0	> 100
Net fi nancial debt	533,747	661,524	–19.3
Real estate assets2	817,035	939,850	–13.1
Loan to value3	67.0%	71.7%	4.6% points
Net gearing4	166.5%	214.4%	–47.9% points

PATRIZIA NET ASSET AND FINANCIAL KEY FIGURES

1 These are purchase price accounts – allocated to cash and cash equivalents – that serve for the repayment of loans and which only fl ow out in the following month.

Real estate assets comprise investment property valued at fair value and real estate held in inventories valued at amortized cost. 3 Proportion of loans less repayment-related liquidity to real estate assets. Only investment property is calculated at fair value.

Inventories are stated at amortized cost. Loans were adjusted for the fi nancing of PATRIZIA GewerbeInvest KAG. The net gearing corresponds to the ratio between net fi nancial debt and equity adjusted for minority interests.

As of September 30, 2012, total assets amounted to EUR 1,016.1 million. This represents a fall of EUR 7.8% compared with the fi gure at the 2011 balance sheet date and is primarily due to the sales of real estate and the associated repayment of debts. In contrast, the increase in co-investments resulted in a rise in participations.

Inventories relate to those properties that are off ered for sale as part of ordinary business operations . Since the 2011 balance sheet date, inventories fell by EUR 407.5 million to EUR 368.0 million due to disposals made in the fi rst nine months of 2012.

The total value of investment property decreased as a result of sales by EUR 88.4 million while refurbishment measures increased the value by EUR 5.2 million to EUR 449.1 million. Taking inventories and investment property together results in a carrying value of real estate assets at the reporting date, September 30, 2012, of EUR 817.0 million (December 31, 2011: EUR 939.9 million).

PATRIZIA's fi nancing structure has continued to improve since the end of 2011. Bank loans decreased by a further EUR 29.0 million to EUR 602.6 million (-13.1%) in the third quarter of 2012. Sales enabled loan repayments in a volume of EUR 86.7 million in 2012. In addition, an amount of EUR 4.0 million was repaid in respect of purchase loans of PATRIZIA GewerbeInvest. No new fi nancing was taken out for our own book. A schedule of maturities for our loans is listed in Section 8 of the Notes to the Consolidated Financial Statements of this interim report. Cash and cash equivalents increased by more than 100.0% to EUR 68.8 million (December 31, 2011: EUR 31.8 million). This resulted in net fi nancial debt of EUR 533.7 million. The group's equity ratio improved to 31.7% (December 31, 2011 28.1%). It is therefore above our target range of 25 – 30%.

In order to underline the signifi cance of the net asset value (NAV) current liabilities will in future also be included.

CALCULATION OF NAV

	09/30/2012 EUR '000	12/31/2011 EUR '000
Investment property1	449,066	532,321
Participating interests in joint ventures	0	18
Participating interests in associated companies	14,056	6,809
Participations	18,413	3,134
Inventories2	367,969	407,529
Current receivables and other current assets3, 4	28,099	48,735
Bank balances and cash3	81,318	43,690
Current liabilities3, 4	–16,463	–16,354
Less bank loans3	–587,008	–673,752
NAV	355,449	352,130
No. of shares	57,343,000	52,130,000
NAV/SHARE (EUR)	6.20	6.75

1 Fair market valuation

Valuation at amortized cost

3 Figures excluding PATRIZIA GewerbeInvest KAG mbH, purchase loans eliminated and cash and cash equivalents increased by outfl ow of equity

Adjusted for non-property-specifi c items

At this point it is important to mention that service business is not mapped in the calculation of NAV and that inventory assets are accounted for at purchase cost.

6 OPPORTUNITY AND RISK REPORT

In the course of its business activities, PATRIZIA Immobilien AG is confronted with both opportu nities and risks. The necessary measures have been taken and processes put in place in the group to identify negative trends and risks in good time and to counteract them. Since the annual accounts for the fi scal year 2011 there have been no signifi cant changes related to the opportunity and risk profi le to indicate any new risks or opportunities for the group. The assessment of probabilities and potential extent of damage has led to no signifi cant changes in the interim risk audit.

From the current perspective, all risks are limited and do not pose a threat to PATRIZIA's continued existence. The statements in the risk report of the Annual Report 2011 still apply. Please refer to the risk report on pages 73 ff . of the Annual Report 2011 of PATRIZIA Immobilien AG for a detailed description of the opportunities and risks for the group. No other risks are currently known to the managing board of PATRIZIA Immobilien AG.

7 SUPPLEMENTARY REPORT

After the reporting period, two new construction projects of PATRIZIA, "Belsenpark1" in Düsseldorf and "Wohnen im PROVINOPARK" in Augsburg, were awarded the silver seal in the category "New residential construction" by the German Sustainable Building Council (DGNB). This precer tifi cation is given to buildings that have been planned to be particularly sustainable. The criteria that are examined for the award of the DGNB seal includes ecology, economy, socio-cultural, functional and technical quality, but also process and location quality.

8 FORECAST REPORT

It was possible to include further new properties for sale in the area of residential property resale in the second quarter of 2012. We expect the initial eff ects of this to be seen in our results in the fourth quarter. We continue to assume that the number of block sales will be at least at the level of the past quarter in the fourth quarter.

PATRIZIA is continuing to expand its service segment. Even in the current year, we are expecting this segment's share of the consolidated result to increase to around 50%.

The Managing Board of PATRIZIA Immobilien AG expects to increase EBT adjusted by around 20% in the 2012 fi scal year compared with 2011. Based on development in the fi rst nine months, this target continues to appear realistic.

This report contains specifi c forward-looking statements that relate in particular to the business development of PATRIZIA and the general economic and regulatory environment and other factors to which PATRIZIA is exposed. These forward-looking statements are based on current estimates and assumptions by the Company made in good faith, and are subject to various risks and uncertainties that could render a forward-looking estimate or statement inaccurate or cause actual results to diff er from the results currently expected.

Consolidated Balance Sheet

AS OF SEPTEMBER 30, 2012

ASSETS

EUR '000	09/30/2012	12/31/2011
A. Non-current assets
Goodwill	610	610
Other intangible assets	43,896	45,227
Software	5,964	5,280
Investment property	449,066	532,321
Equipment	3,459	2,762
Investments in joint ventures	0	18
Participations in associated companies	14,056	6,809
Participations	18,413	3,134
Long-term tax assets	199	846
Total non-current assets	535,663	597,007
B. Current assets
Inventories	367,969	407,529
Securities	10	1,634
Short-term tax assets	6,159	4,279
Current receivables and other current assets	37,426	60,007
Bank balances and cash	68,861	31,828
Total current assets	480,425	505,277
TOTAL ASSETS	1,016.088	1,102,284

EQUITY AND LIABILITIES

EUR '000	09/30/2012	12/31/2011
A. Equity
Share capital	57,343	52,130
Capital reserves	210,644	215,862
Retained earnings
Legal reserves	505	505
Non-controlling shareholders	1,477	1,563
Valuation results from cash fl ow hedges	–1,067	–1,331
Consolidated net profi t	53,168	41,346
Total equity	322,070	310,075
B. Liabilities
NON-CURRENT LIABILITIES
Deferred tax liabilities	23,890	26,314
Long-term fi nancial derivatives	28,267	33,470
Retirement benefi t obligations	371	371
Long-term bank loans	383,884	417,685
Non-current liabilities	2,571	2,410
Total non-current liabilities	438,983	480,250
CURRENT LIABILITIES
Short-term bank loans	218,724	275,667
Short-term fi nancial derivatives	249	233
Other provisions	640	1,092
Current liabilities	20,541	22,644
Tax liabilities	14,881	12,323
Total current liabilities	255,035	311,959
TOTAL EQUITY AND LIABILITIES	1,016,088	1,102,284

Consolidated Income Statement

EUR '000	3rd quarter 2012	3rd quarter 2011	9 months 2012	9 months 2011
	07/01/ – 09/30/2012	07/01/ – 09/30/2011	01/01/ – 09/30/2012	01/01/ – 09/30/2011
Revenues	59,233	54,609	162,607	161,222
Income from the sale of investment
property	738	3,073	3,871	3,381
Changes in inventories	–14,844	–13,650	–38,910	4,582
Other operating income	2,372	2,790	8,653	10,178
Total operating performance	47,499	46,822	136,221	179,363
Cost of materials	–11,885	–12,457	–37,816	–92,536
Staff costs	–12,007	–8,879	–33,593	–25,200
Other operating expenses	–9,419	–10,519	–30,480	–23,390
EBITDA	14,188	14,967	34,332	38,237
Amortization of software and depreciation on equipment	–1,105	–829	–3,092	–2,340
Profi t/loss before interest and income taxes (EBIT)	13,083	14,138	31,240	35,897
Income from participations	0	0	5,438	0
Earnings from companies accounted
for using the equity method	14	0	14	0
Finance income	2,182	–7,248	5,384	4,655
Finance cost	–7,992	–10,521	–25,762	–33,493
Profi t/loss before income taxes (EBT)	7,287	–3,631	16,314	7,059
Income tax	–861	–1,157	–4,578	–4,046
Net profi t/loss	6,426	–4,788	11,736	3,013
Profi t carried forward	46,533	37,531	41,223	27,730
CONSOLIDATED NET PROFIT	52,959	32,743	52,959	30,743
Earnings per share (undiluted), in EUR	0.11	–0.09	0.22	0.06
The net profi t/loss for the period is allocated to:
Shareholders of the parent
company	6,458	–4,884	11,822	2,943
Non-controlling shareholders	–32	95	–86	70
	6,426	–4,788	11,736	3,013

Consolidated Statement of Comprehensive Income

EUR '000	3rd quarter 2012	3rd quarter 2011	9 months 2012	9 months 2011
	07/01/ – 09/30/2012	07/01/ – 09/30/2011	01/01/ – 09/30/2012	01/01/ – 09/30/2011
Consolidated net profi t/loss	6,426	–4,788	11,736	3,013
Other result
Cash fl ow hedges
Amounts recorded during the reporting period	28	–483	264	398
Reclassifi cation of amounts that were recorded	0	0	0	749
Total result for the reporting period	6,454	–5,271	12,000	4,160
The total result is allocated to:
Shareholders of the parent company	6,486	–5,366	12,086	4,090
Non-controlling shareholders	–32	96	–86	70
	6,454	–5,271	12,000	4,160

Consolidated Cash Flow Statement

EUR '000	01/01 – 09/30/2012	01/01 – 09/30/2011
Consolidated net profi t/loss	11,736	3,013
Actual income taxes recognized through profi t or loss	4,578	1,931
Financing costs recognized through profi t or loss	25,762	31,561
Income from fi nancial investments recognized through profi t or loss	–394	–319
Amortization of intangible assets and depreciation on property, plant and equipment	3,092	2,340
Results from fair value adjustments to investment property	0	0
Loss from/gain on disposal of investment properties	–3,871	–3,381
Change in deferred taxes	–6,901	2,705
Change in retirement benefi t obligations	0	0
Ineff ectiveness of cash fl ow hedges	200	–3,239
Changes in inventories, receivables and other assets that are not attributable to investing activities	61,677	25,860
Changes in liabilities that are not attributable to fi nancing activities	78	1,261
Interest paid	–24,221	–29,589
Interest received	119	659
Income tax payments/refunds	–5,677	–1,233
Cash infl ow from operating activities	66,178	31,569
Capital investments in intangible assets and property, plant and equipment	–2,997	–3,925
Cash receipts from disposal of intangible assets and property, plant and equipment	0	5
Cash receipts from disposal of investment property	87,797	54,008
Payment for acquisition of a subsidary company	0	0
Payments for development or acquisition of investment property	–671	–2,078
Payments for the acquisition of shareholdings	–22,526	0
Cash receipts from the disposal of consolidated companies and other business units	0	47
Payments for the acquisition of consolidated companies and other business units	0	–30,281
Cash infl ow from investing activities	61,603	17,776
Borrowing of loans	5,940	94,113
Repayment of loans	–96,683	–114,050
Payment for the issuance of shares	–5	0
Cash outfl ow from fi nancing activities	–90,748	–19,938
Changes in cash	37,033	29,407
Changes in cash resulting from changes in the scope of consolidation	0	–36,316
Cash January 1	31,828	70,537
Cash September 30	68,861	63,629

Consolidated Statement of Changes in Equity

EUR '000	Share capital	Capital reserve	Valuation result from Cash Flow Hedges	Retained earnings (legal reserve)	Consoli dated net profi t/ loss	Share holders of the parent company	Non control ling share holders	Total
Balance January 1, 2011	52,130	215,862	–2,372	505	27,775	293,900	832	294,732
Net amount recognized directly in equity, where applicable less income taxes			1,147			1,147		1,147
Additional non-controlling shareholders which origi nated in the course of the PATRIZIA GewerbeInvest KAG mbH acquisition							1,889	1,889
Net profi t/loss for the period					3,013	2,943	70	3,013
Full overall result for the fi scal year			1,147		3,013	4,090	70	4,160
BALANCE SEPTEMBER 30, 2011	52,130	215,862	–1,225	505	30,788	297,990	2,791	300,781
Balance January 1, 2012	52,130	215,862	–1,331	505	41,346	308,512	1,563	310,075
Net amount recognized directly in equity, where applicable less income taxes			264			264		264
Expenses for the issuance of shares	5,213	–5,213				-5,213		–5,213
Expenses for the issuance of shares		–5				-5		–5
Net profi t/loss for the period					11,822	11,822	–86	11,736
Full overall result for the fi scal year			264			12,086	–86	12,000
BALANCE SEPTEMBER 30, 2012	57,343	210,644	–1,067	505	53,168	320,593	1,477	322,070

Notes to the Consolidated Interim Financial Statements

TO SEPTEMBER 30, 2012 (FIRST NINE MONTHS OF 2012)

1 GENERAL DISCLOSURES

PATRIZIA Immobilien AG is a listed German stock corporation based in Augsburg. The Company's headquarters are located at Fuggerstrasse 26, 86150 Augsburg. The Company operates on the German and European real estate market. PATRIZIA Immobilien AG, along with its subsidiaries, is a fully integrated real estate investment company. It specializes in buying high-quality residential and commercial real estate at commercially attractive locations in Germany and in Europe and in optimizing them with the aim of increasing their value and subsequently reselling the real estate. The PATRIZIA Group performs all services along the value-added chain in the real estate sector. The Company also launches special real estate funds in accordance with investment law via its subsidiaries PATRIZIA WohnInvest KAG mbH and PATRIZIA GewerbeInvest KAG mbH.

2 PRINCIPLES APPLIED IN PREPARING THE CONSOLIDATED FINANCIAL STATEMENTS

These consolidated interim fi nancial statements of PATRIZIA Immobilien AG for the fi rst nine months of 2012 (January 1 through September 30, 2012) were prepared in accordance with Article 37 (3) of the Wertpapierhandelsgesetz (WpHG – German Securities Trading Act) in conjunction with Article 37w (2) WpHG in line with the IFRS and in compliance with the provisions of German commercial law additionally applicable as per Article 315a (1) of the German Commercial Code [HGB]. All compulsory offi cial announcements of the International Accounting Standards Board (IASB) that have been adopted by the EU in the context of the endorsement process (i. e. published in the Offi cial Journal of the EU) have been applied.

From the perspective of the Company's management, the present unaudited consolidated interim fi nancial statements for the period ended September 30, 2012, contain all of the information necessary to provide a true and fair view of the course of business and the earnings situation in the period under review. The earnings generated in the fi rst nine months of 2012 are not necessarily an indication of future earnings or of the expected total earnings for fi scal year 2012.

When preparing the consolidated fi nancial statements for the interim report in line with IAS 34 "Interim Financial Reporting", the Managing Board of PATRIZIA Immobilien AG must make assessments and estimates as well as assumptions that aff ect the application of accounting standards in the Group and the reporting of assets and liabilities as well as income and expenses. Actual amounts may diff er from these estimates.

These consolidated interim fi nancial statements have been prepared in accordance with the same accounting policies as the last consolidated fi nancial statements for fi scal year 2011. A detailed description of the principles applied in preparing the consolidated fi nancial statements and the accounting methods used can be found in the notes to the IFRS consolidated fi nancial statements for the year ended December 31, 2011, which are contained in the Company's 2011 Annual Report.

The unaudited interim fi nancial statements were prepared in euro. The amounts, including the previous year's fi gures, are stated in EUR thousand (TEUR).

3 SCOPE OF CONSOLIDATION

All of the Company's subsidiaries are included in the consolidated fi nancial statements of PATRIZIA Immobilien AG. The Group includes all companies controlled by PATRIZIA Immobilien AG. In addition to the parent company, the scope of consolidation comprises 57 subsidiaries. They are included in the consolidated fi nancial statements in line with the rules of full consolidation. In addition, one participating interest in a SICAV is accounted for at equity in the consolidated fi nancial statements. The SICAV is a stock corporation with variable equity in accordance with the laws of Luxembourg. In addition, 30% of the limited liability capital is held in one project development company (in the form of a GmbH & Co. KG). A signifi cant infl uence does not apply here because provisions in the partnership agreement mean that management cannot be exercised, that a signifi cant infl uence cannot be exerted on the management and that there is no entitlement to appoint members of the governing organs. The shares in the project development company are administered as an associated company and are accounted for at purchase cost.

Associated companies are companies in which PATRIZIA has a holding and signifi cant infl uence but no supervision or joint management. The shares are accordingly valued at their fair value and changes to the fair value are reported in the net result.

COMPANY ACQUISITIONS

Under a notarial purchase agreement dated April 15, 2012, PATRIZIA Immobilien AG acquired ApS STAKE Nr. 1702, Copenhagen, Denmark; the company name was changed to PATRIZIA Nordics ApS as of April 20, 2012. The company's share capital was initially DKK 80,000. The company name was changed to PATRIZIA Nordics A/S and its share capital was increased to DKK 500,000 on September 24, 2012. The company will provide services in the fi eld of real estate in Denmark.

Under a notarial purchase agreement dated August 31, 2012, PATRIZIA Immobilien AG acquired AM alpha Projekt GmbH, Frankfurt/Main; the company name was changed to PATRIZIA Projekt 700 GmbH as of August 31, 2012. The company's share capital is EUR 25,000. The company will be held as a shelf company within the Group.

Under a notarial purchase agreement dated July 24, 2012, PATRIZIA Immobilien AG acquired a further 50% in meridomus GmbH, Cologne and now holds 100%; the company name was changed to PATRIZIA Projekt 710 GmbH as of September 18, 2012. The company's share capital is EUR 25,000. The company, which serves as a shelf company, is included in the PATRIZIA consolidated fi nancial statements as part of a full consolidation. It is therefore no longer reported under investments in joint ventures.

4 INVESTMENT PROPERTY

Qualifying real estate as an investment is based on a corresponding management decision to use the real estate in question to generate rental income and thus liquidity, while realizing higher rent potential over a long period and accordingly, an increase in value. The share of owneroccupier use does not exceed 10% of the rental space. Investment property is measured at fair value, with changes in value recognized through profi t or loss.

Investment property is measured at market values. In principle, investment property is measured on the basis of external appraisals carried out by independent experts using current market prices or using customary valuation methods and consideration of the current and long-term rental situation. The residential property resales process was launched for individual investment properties. Valuation of these properties is based on current comparative values.

The market value is equivalent to the fair value. According to IAS 40, this is defi ned as the value reasonably obtainable on the market based on a hypothetical buyer/purchaser situation. Investment property is reported at this fi ctitious market value without any deduction of transaction costs.

In contrast to the previous year, when they were valued by independent experts, the properties that are now earmarked for resale were valued by PATRIZIA using detailed project accounting. This project accounting is based on comparative values ascertained in the direct surroundings of the properties. Both off er prices and also selling prices were used for this, but only of comparable properties.

All investment property held by the Group is leased. The resultant rental income and the expenses directly associated with it are recognized in the consolidated income statement.

5 PARTICIPATIONS

The item "Participations" is made up of the following categories:

Participating interests in associated companies

The item includes the 9.09% (previous year: 0%) share in PATRIZIA WohnModul I SICAV-FIS.

Participations

The item includes the 5.2% (previous year: 5.2%) share in Hyrebostädter i Norra Tyskland Verwaltungs GmbH, the 6.25% (previous year: 6.25%) share in PATRoffi ce Real Estate GmbH & Co. KG, the 5.1% (previous year: 5.1%) participations in PATRIZIA Projekt 430 GmbH, PATRIZIA Projekt 440 GmbH, PATRIZIA Real Estate 30 S.à r.l. and in PATRIZIA Projekt 220 GmbH, which was deconsolidated during the reporting period, and the 30% (previous year: 0%) participation in the Projekt Feuerbachstrasse GmbH & Co. KG. Furthermore, this item includes the 10% share in PATRIZIA Projekt 150 GmbH as well as the 14.1% share in CARL A-Immo GmbH & Co KG (formerly Blitz 12-544 GmbH) and the 7.5% share in CARL HR GmbH & Co KG (formerly Blitz 12-546).

6 INVENTORIES

The Inventories item contains real estate that is intended for sale in the context of ordinary activities or that is intended for such sale in the context of the construction or development process; in particular, it includes real estate that has been acquired solely for the purpose of resale in the near future or for development and resale. Development also covers straightforward modernization and renovation activities. Assessment and qualifi cation as an inventory is undertaken within the context of the purchasing decision and implemented in the balance sheet as at the date of addition.

PATRIZIA has defi ned the operating business cycle as three years, because based on experience the majority of the units to be sold are sold and recognized during this time period. However, inventories are still intended for direct sale even if they are not recognized within three years.

Inventories are carried at cost. Acquisition costs comprise the directly attributable purchase and commitment costs; production costs comprise the costs directly attributable to the real estate development process.

7 EQUITY

After bonus shares were issued, the share capital of PATRIZIA Immobilien AG at the reporting date totaled TEUR 57,343 (December 31, 2011: TEUR 52,130) and is divided into 57,343,000 no-par value shares. For the development of equity, please see the consolidated statement of changes in equity. As of September 30, 2012, equity improved to EUR 322.1 million (December 31, 2011: EUR 310.1 million).

8 BANK LOANS

Bank loans are measured at amortized cost. They have variable interest rates. In this respect, the Group is exposed to an interest rate risk in terms of the cash fl ows. To limit the risk, the Group has concluded interest hedging transactions for the majority of the loans.

All loans are in euro. Where real estate is sold, fi nancial liabilities are in principle redeemed through repayment of a specifi c share of the sale proceeds.

In the table below, bank loans with a residual term of less than one year include loans whose terms end within the 12 months following the reporting date and also revolving lines of credit used. Irrespective of the terms presented in the table below, loans which serve to fi nance inventories are in principle reported as current loans in the balance sheet.

The residual terms of the bank loans are as follows:

BANK LOANS

EUR '000	09/30/2012	06/30/2012	03/31/2012	12/31/2011
Less than 1 year	88,257	113,598	82,869	90,044
1 to 2 years	463,855	508,799	72,808	81,095
More than 2 to 5 years	50,478	9,201	502,612	522,213
More than 5 years	18	18	0	0
TOTAL	602,608	631,616	658,289	693,352

Year		Amount of loans due as at
	09/30/2012		06/30/2012		03/31/2012		12/31/2011
	EUR '000	in %	EUR '000	in %	EUR '000	in %	EUR '000	in %
2012	42,811	7.1	84,598	13.4	82,869	12.6	90,044	13.0
2013	47,449	7.9	55,051	8.7	60,808	9.2	81,095	11.7
2014	463,418	76.9	484,349	76.7	503,476	76.5	514,613	74.2
2015	48,912	8.1	7,600	1.2	11,136	1.7	7,600	1.1
2028	18	0	18	0	0	0	0	0
TOTAL	602,608	100	631,616	100	658,289	100	693,352	100

MATURITY OF LOANS BY FISCAL YEAR (JANUARY 1 TO DECEMBER 31)

MATURITY OF LOANS BY QUARTER

Year	Quarter	Amount of loans due as at 09/30/2012
		EUR '000	in %
2012	Q4	42,811	7.1
2013	Q2	27,000	4.5
	Q3	18,446	3.1
	Q4	2,003	0.3
2014	Q1	8,000	1.3
	Q2	453,852	75.3
	Q4	1,566	0.3
2015	Q1	7,600	1.3
	Q4	41,312	6.9
2028	Q2	18	0.0
TOTAL		602,608	100

9 REVENUES

Revenues comprise purchase price receipts from the sale of real estate held in inventories, on-going rental revenues, revenues from services and other revenues. Please refer to the statements on segment reporting.

10 FINANCIAL RESULT

EUR '000	3rd quarter 2012	3rd quarter 2011	9 months 2012	9 months 2011	2011
	07/01 – 09/30/2012	07/01 – 09/30/2011	01/01 – 09/30/2012	01/01 – 09/30/2011	01/01 – 09/30/2011
Interest on bank deposits	40	24	125	232	1,722
Income from securities	0	12	0	83	96
Change in the value of derivatives	2,017	–7,598	4,874	3,913	6,028
Other interest	125	314	385	427	1,142
Finance income	2,182	–7,248	5,384	4,655	8,988
Interest on revolving lines of credit and loans	–2,956	–5,369	–10,414	–16,617	–23,564
Interest-rate hedging expense	–4,476	–4,003	–13,807	–12,973	–16,851
Change in the value of derivatives	0	0	0	–889	–889
Other fi nance costs	–560	–1,149	–1,541	–3,014	–2,414
Financial expenses	–7,992	–10,521	–25,762	–33,493	–43,718
FINANCIAL RESULT	–5,810	–17,768	–20,378	–28,837	–34,730
Financial result adjusted for valuation eff ects	–7,827	–10,170	–25,252	–31,861	–39,869

	3rd quarter 2012	3rd quarter 2011	9 months 2012	9 months 2011	2011
	07/01 – 09/30/2012	07/01 – 09/30/2011	01/01 – 09/30/2012	01/01 – 09/30/2011	01/01 – 12/31/2011
Net profi t/loss for the period (in EUR '000)	6,426	–4,788	11,736	3,013	13,493
Number of shares issued	57,343,000	52,130,000	57,343,000	52,130,000	52,130,000
Weighted number of shares	56,126,633	52,130,000	53,452,415	52,130,000	52,130,000
EARNINGS PER SHARE (IN EURO)	0.11	–0.09	0.22	0.06	0.26

11 EARNINGS PER SHARE

The Annual General Meeting held on June 20, 2012, agreed to the capital increase from company funds in the amount of TEUR 5,213. The entry in the commercial register was eff ected on July 12, 2012. As of September 30, 2012, authorized capital amounted to TEUR 26,065.

12 SEGMENT REPORTING

The corporate divisions are segmented as follows:

The Residential segment bundles all activities relating to own investment, co-investment, ser vices and funds in the fi eld of residential estate. The commission revenues from the co-investment are included in the portfolio management services revenues.The real estate portfolio for residential property resale and asset repositioning is held as own investments. Clients include private and institutional investors that invest either in individual residential units or in real estate portfolios. As of the balance sheet date, the segment had a portfolio of 6,517 residential units (September 30, 2011: 8,526) that are listed as investment property and inventories. PATRIZIA WohnInvest KAG mbH is also part of this segment. The segment currently manages around EUR 3.4 billion in assets under management.

The Commercial segment combines the same portfolio of services for commercial real estate. This also covers the special fund provider for real estate PATRIZIA GewerbeInvest KAG and the co-investment PATRoffi ce Real Estate GmbH & Co. KG. The only proprietary investment of PATRIZA is currently a commercial property with 25 units or 12,182 sqm. The segment manages assets of around EUR 3.4 billion.

PATRIZIA Projektentwicklung GmbH, PATRIZIA Immobilienmanagement GmbH, PATRIZIA Alternative Investments GmbH and PATRIZIA Sales GmbH, which serve both the residential and commercial real estate sectors, form the segment Special Real Estate Solutions. This includes among others services for group companies, the co-investments WohnModul I and Süddeutsche Wohnen GmbH (formerly LBBW Immobilien GmbH) and also third parties. The commission revenues from the co-investment are included in the portfolio management services revenues.

The internal corporate, cross-company services provided by the holding company remain in the Corporate segment. All consolidating entries are also processed via the Corporate segment. All internal output is thus consolidated in the column Group, which represents the external output of the Group.

The PATRIZIA Group's internal control and reporting measures are primarily based on the principles of accounting under IFRS. The Group measures the success of its segments using segment earnings, which for the purposes of internal control and reporting are referred to as "EBIT", "EBT", "EBIT adjusted" and "EBT adjusted".

EBT comprises the total of revenues, income from the sale of investment property, changes in inventories, cost of materials and staff costs, amortization and depreciation, other operating income and expenses as well as earnings from investments (including investment property valued at equity) and the fi nancial result. EBIT denotes EBT minus the fi nancial result. To determine the adjusted EBIT, allowances are made for the non-liquidity-related eff ect of amortizations of other intangible assets (fund management contracts) created in the course of the acquisition of PATRIZIA GewerbeInvest KAG mbH. EBT adjusted includes further corrections to account for the results of the market valuation of the interest-rate hedging instruments.

The PATRIZIA Group's intercompany sales indicate the amount of revenues between the segments. Intercompany services are invoiced at market prices.

PATRIZIA's principal activities extend across Germany. For this reason, no geographical segment is set out. PATRIZIA is currently in the process of expanding its business activities to selected European regions.

The individual segment fi gures are set out below. The reporting of amounts in EUR thousands can result in rounding diff erences. The calculation of individual fi nancial fi gures is carried out on the basis of non-rounded fi gures.

THIRD QUARTER 2012 (JULY 1 – SEPTEMBER 30, 2012)

EUR '000	Residential	Commercial	Special Real Estate Solutions	Corporate/ Consolida tion	Total
Portfolio-Management
Third-party revenues	2,949	380	5,154	126	8,608
Rental revenues	0	0	0	0	0
Revenues from services	2,949	380	5,154	125	8,608
Intercompany revenues	6,596	143	1,364	–8,102	0
Own Investments
Residential Property Resale
Third-party revenues	29,020	–	1	–	29,021
Rental revenues	2,071	–	0	–	2,071
Purchase price revenues from
single unit sales	25,275	–	0	–	25,275
Purchase price revenues from bloc sales	1,000	–	0	–	1,000
Other revenues	674	–	1	–	674
Intercompany revenues	22	–	0	–22	0
Asset Repositioning
Third-party revenues	13,431	476	–	–	13,907
Rental revenues	8,153	336	–	–	8,489
Purchase price revenues from bloc sales	1,800	0	–	–	1,800
Other revenues	3,478	141	–	–	3,618
Intercompany revenues	39	28	–	–67	0
Funds
Third-party revenues	3,207	4,490	–	–	7,697
Revenues from services	3,207	4,490	–	–	7,697
Intercompany revenues	101	96	–	–197	0
Total Group Revenues
Third-party revenues	48,708	5,442	5,155	–71	59,234
Rental revenues	10,225	336	0	0	10,561
Revenues from services Purchase price revenues from single	6,156	4,870	5,154	125	16,305
unit sales	25,275	0	0	0	25,275
Purchase price revenues from bloc sales	2,800	0	0	0	2,800
Other revenues	4,252	236	1	–197	4,293
Intercompany revenues	6,757	266	1,364	–8,387	0
Finance income	3,565	378	1,481	–3,242	2,182
Finance cost	–14,823	–1,718	–2,521	11,071	–7,992
Signifi cant non-cash earnings
Market valuation income derivatives	2,017	0	0	0	2,017
Market valuation expenditures derivatives	0	0	0	0	0
Results from fair value adjustments to investment property	0	0	0	0	0
Amortization of other intangible assets	0	–492	0	0	–492
Valuation of fund shares	0	0	0	0	0
Segment result EBIT	17,163	900	8,365	–13,345	13,083
Segment result EBT	3,832	201	–1,557	4,812	7,287
Segment result EBIT adjusted	17,163	1,392	8,365	–13,345	13,575
Segment result EBT adjusted	1,815	693	–1,557	4,811	5,762
Thereof result from participating interests
(incl. investments valued at equity)	0	0	0	0	0
Segment assets	816,678	109,122	64,990	25,298	1,016,088
of which shareholding carrying amounts of
fi nancial investments valued at equity	0	0	0	14,056	14,056
Segment liabilities	–766,116	–72,082	–36,914	181,094	–694,018

THIRD QUARTER 2011 (JULY 1 – SEPTEMBER 30, 2011)

EUR '000	Residential	Commercial	Special Real Estate Solutions	Corporate/ Consolida tion	Total
Portfolio-Management
Third-party revenues	145	521	917	0	1,583
Rental revenues	0	–154	–110	0	–264
Revenues from services	145	668	1,015	0	1,829
Intercompany revenues	3,938	7	1,959	–5,938	–34
Own Investments
Residential Property Resale
Third-party revenues	30,677	–	102	–	30,779
Rental revenues	4,911	–	97	–	5,008
Purchase price revenues from single unit sales	24,363	–	0	–	24,363
Purchase price revenues from bloc sales Other revenues	0 1,402	– –	0 4	– –	0 1,406
Intercompany revenues	–4	–	0	–	–4
Asset Repositioning
Third-party revenues	11,648	543	–	–	12,191
Rental revenues	8,786	348	–	–	9,134
Purchase price revenues from bloc sales	0	0	–	–	0
Other revenues	2,862	195	–	–	3,057
Intercompany revenues	5	33	–	–	38
Funds
Third-party revenues	2,223	7,833	–	–	10,055
Revenues from services	2,223	7,833	–	–	10,055
Intercompany revenues	0	0	–	–	0
Total Group Revenues
Third-party revenues	44,693	8,896	1,019	0	54,609
Rental revenues	13,697	194	–13	0	13,878
Revenues from services	2,368	8,501	1,015	0	11,884
Purchase price revenues from single unit sales	24,363	0	0	0	24,363
Purchase price revenues from bloc sales	0	0	0	0	0
Other revenues	4,264	201	17	0	4,483
Intercompany revenues	3,939	40	1,959	–5,938	0
Finance income	–7,318	150	210	–290	–7,248
Finance cost	–10,618	–38	–697	831	–10,521
Signifi cant non-cash earnings
Market valuation income derivatives	–7,598	0	0	0	–7,598
Market valuation expenditures derivatives	0	0	0	0	0
Results from fair value adjustments to investment property	0	0	0	0	0
Amortization of other intangible assets	0	–492	0	0	–492
Valuation of fund shares	0	0	0	0	0
Segment result EBIT	17,574	1,470	–409	–4,498	14,138
Segment result EBT	–360	859	–896	–3,234	–3,631
Segment result EBIT adjusted	17,574	1,962	–409	–4,498	14,630
Segment result EBT adjusted	7,238	1,351	–896	–3,234	4,459
Thereof result from participating interests
(incl. investments valued at equity)	0	0	0	0	0
Segment assets	991,098	115,007	56,225	19,249	1,181,579
of which shareholding carrying amounts of
fi nancial investments valued at equity	0	0	0	1,636	1,636
Segment liabilities	–945,520	–76,922	–34,210	175,854	–880,798

FIRST NINE MONTHS OF 2012 (JANUARY 1 – SEPTEMBER 30, 2012)

EUR '000	Residential	Commercial	Special Real Estate Solutions	Corporate/ Consolida tion	Total
Portfolio-Management
Third-party revenues	6,447	947	18,999	300	26,692
Rental revenues	0	0	0	1	2
Revenues from services	6,447	947	18,999	298	26,691
Intercompany revenues	11,954	482	3,643	–16,079	0
Own Investments
Residential Property Resale
Third-party revenues	77,577	–	325	–	77,902
Rental revenues	6,821	–	0	–	6,821
Purchase price revenues from
single unit sales	67,031	–	0	–	67,031
Purchase price revenues from bloc sales	1,000	–	0	–	1,000
Other revenues	2,725	–	325	–	3,050
Intercompany revenues	70	–	6	–76	0
Asset Repositioning
Third-party revenues	37,522	1,555	–	–	39,078
Rental revenues	25,115	1,035	–	–	26,149
Purchase price revenues from bloc sales	3,090	0	–	–	3,090
Other revenues	9,317	521	–	–	9,838
Intercompany revenues	91	51	–	–142	0
Funds
Third-party revenues	6,089	12,846	–	–	18,935
Revenues from services	6,089	12,846	–	–	18,935
Intercompany revenues	101	96	–	–197	0
Total Group Revenues
Third-party revenues	127,737	15,444	19,324	103	162,608
Rental revenues	31,936	1,035	1	1	32,972
Revenues from services	12,536	13,793	18,999	298	45,626
Purchase price revenues from single
unit sales	67,031	0	0	0	67,031
Purchase price revenues from bloc sales	4,090	0	0	0	4,090
Other revenues	12,144	616	325	-197	12,888
Intercompany revenues	12,217	628	3,649	–16,494	0
Finance income	6,462	516	1,490	–3,084	5,384
Finance cost	–31,300	–2,497	–2,927	10,963	–25,762
Signifi cant non-cash earnings
Market valuation income derivatives	4,874	0	0	0	4,874
Market valuation expenditures derivatives	0	0	0	0	0
Results from fair value adjustments
to investment property	0	0	0	0	0
Amortization of other intangible assets	0	–1,476	0	0	–1,476
Valuation of fund shares	0	0	0	0	0
Segment result EBIT	38,732	1,187	1,510	–10,189	31,240
Segment result EBT	13,893	–794	5,510	–2,295	16,314
Segment result EBIT adjusted	38,732	2,663	1,510	–10,189	32,716
Segment result EBT adjusted	9,019	682	5,510	–2,296	12,916
Thereof result from participating interests
(incl. investments valued at equity)	0	0	5,438	0	5,438
Segment assets	816,678	109,122	64,990	25,298	1,016,088
of which shareholding carrying amounts of
fi nancial investments valued at equity	0	0	0	14,056	14,056
Segment liabilities	–766,116	–72,082	–36,914	181,094	–694,018

FIRST NINE MONTHS OF 2011 (JANUARY 1 – SEPTEMBER 30, 2011)

EUR '000	Residential	Commercial	Special Real Estate Solutions	Corporate/ Consolida tion	Total
Portfolio-Management
Third-party revenues	631	1,344	2,570	2	4,546
Rental revenues	0	0	0	2	2
Revenues from services	582	1,337	2,558	0	4,477
Intercompany revenues	9,606	1,857	4,937	–16,607	–207
Own Investments
Residential Property Resale
Third-party revenues	101,321	–	322	–	101,644
Rental revenues	14,821	–	310	–	15,131
Purchase price revenues from
single unit sales	70,076	–	0	–	70,076
Purchase price revenues from bloc sales	11,733	–	0	–	11,733
Other revenues	4,691	–	12	–	4,703
Intercompany revenues	119	–	0	–	119
Asset Repositioning
Third-party revenues	35,178	1,621	–	–	36,798
Rental revenues	26,535	1,044	–	–	27,579
Purchase price revenues from bloc sales	0	0	–	–	0
Other revenues	8,643	577	–	–	9,220
Intercompany revenues	36	52	–	–	88
Funds
Third-party revenues	4,050	14,184	–	–	18,234
Revenues from services	4,050	14,184	–	–	18,234
Intercompany revenues	0	0	–	–	0
Total Group Revenues
Third-party revenues	141,179	17,148	2,893	2	161,222
Rental revenues	41,355	1,044	310	2	42,712
Revenues from services	4,632	15,521	2,588	0	22,711
Purchase price revenues from single unit sales	70,076	0	0	0	70,076
Purchase price revenues from bloc sales	11,733	0	0	0	11,733
Other revenues	13,383	583	24	0	13,990
Intercompany revenues	9,761	1,909	4,937	–16,607	0
Finance income	4,589	567	662	–1,163	4,655
Finance cost	–37,288	–1,845	–1,982	7,622	–33,493
Signifi cant non-cash earnings
Market valuation income derivatives	3,770	143	0	0	3,913
Market valuation expenditures derivatives	–889	0	0	0	–889
Results from fair value adjustments
to investment property	0	0	0	0	0
Amortization of other intangible assets	0	–1,476	0	0	–1,476
Valuation of fund shares	0	0	0	0	0
Segment result EBIT	44,758	2,686	–997	–10,551	35,897
Segment result EBT	12,060	1,408	–2,317	–4,091	7,059
Segment result EBIT adjusted	44,758	4,162	–997	–10,551	37,373
Segment result EBT adjusted	9,179	2,741	–2,317	–4,091	5,511
Thereof result from participating interests
(incl. investments valued at equity)	0	0	0	0	0
Segment assets	991,098	115,007	56,225	19,249	1,181,579
of which shareholding carrying amounts of fi nancial investments valued at equity	0	0	0	1,636	1,636
Segment liabilities	–945,520	–76,922	–34,210	175,854	–880,798

13 TRANSACTIONS WITH RELATED COMPANIES AND INDIVIDUALS

At the reporting date, the Managing Board of PATRIZIA Immobilien AG was not aware of any dealings, contracts or legal transactions with associated or related parties and/or companies for which the Company does not receive appropriate consideration at arm's length conditions. All such transactions are conducted at arm's length and do not diff er substantially from transactions with other parties for the provision of goods and services.

The disclosures on related party transactions contained in section 9.3 of the notes to the consolidated fi nancial statements in the 2011 Annual Report remain valid.

14 DECLARATION BY THE LEGAL REPRESENTATIVES OF PATRIZIA IMMOBILIEN AG PURSUANT TO ARTICLE 37Y OF THE WERT-PAPIERHANDELSGESETZ [WPHG – GERMAN SECURITIES ACT] IN CONJUNCTION WITH ARTICLE 37W (2) NO. 3 OF THE WPHG

To the best of our knowledge, and in accordance with the applicable reporting principles for interim fi nancial reporting, we declare that the interim consolidated fi nancial statements give a true and fair view of the assets, liabilities, fi nancial position and profi t or loss of the Group and that the interim management report of the Group includes a fair review of the development and performance of the business and the position of the Group, together with a description of the principal opportunities and risks associated with the expected development of the Group for the remaining months of the fi nancial year.

Wolfgang Egger Arwed Fischer Klaus Schmitt Chairman of the Board Member of the Board Member of the Board

Financial Calendar and Contacts

FINANCIAL CALENDAR 2012

November 8, 2012	Interim report for the fi rst three quarters of 2012
December 12, 2012	Close Brothers Conference, Geneva

PATRIZIA Immobilien AG PATRIZIA Bürohaus

Fuggerstrasse 26 86150 Augsburg Germany T + 49 821 50910-000 F + 49 821 50910-999 immobilien@patrizia.ag www.patrizia.ag

Investor Relations

Verena Schopp de Alvarenga T + 49 821 50910-351 F + 49 821 50910-399 investor.relations@patrizia.ag

Press

Andreas Menke T + 49 821 50910-655 F + 49 821 50910-695 presse@patrizia.ag

This interim report was published on November 8, 2012 and is also available in German. The German text will be the defi nitive version in cases of doubt.

PATRIZIA Immobilien AG PATRIZIA Bürohaus Fuggerstrasse 26 86150 Augsburg Germany

T + 49 821 50910-000 F + 49 821 50910-999 immobilien@patrizia.ag www.patrizia.ag