PATRIZIA AG

Interim / Quarterly Report • Aug 10, 2011

Key Figures

KEY FIGURES

	2nd quarter 2011	2nd quarter 2010	1st half of 2011	1st half of 2010
	04/01/2011	04/01/2010	01/01/2011	01/01/2010
EUR '000	– 06/30/2011	– 06/30/2010	– 06/30/2011	– 06/30/2010
Revenues and earnings
Revenues	56,018	98,273	106,613	153,087
Total operating performance	87,413	42,270	132,541	77,482
EBITDA	10,823	15,658	23,271	29,697
EBIT	10,037	15,465	21,760	29,319
EBIT adjusted 1	10,530	15,465	22,744	29,319
EBT	–1,460	–492	10,690	–5,552
EBT adjusted 1,2	463	2,910	1,053	5,046
Net profit/loss	–1,999	–1,087	7,802	–5,703
EUR '000			06/30/2011	12/31/2010
Structure of assets and capital
Non-current assets			668,682	623,028
Current assets			571,305	591,520
Equity			306,052	294,732

Equity ratio (in %)	24.7	24.3
Non-current liabilities	537,334	50,986
Current liabilities	396,601	868,830
Total assets	1,239,987	1,214,548

without amortization of other intangible assets (fund management contracts)

in addition adjusted for profit/loss from interest rate hedges without cash effect

SHARE

ISIN	DE000PAT1AG3
SIN (security Identification Number)	PAT1AG
Code	P1Z
Share capital	EUR 52,130,000
No. of shares in issue	52,130,000
Second quarter/First half of 2011 high 3	EUR 5.36/EUR 5.90
Second quarter/First half of 2011 low 3	EUR 4.80/EUR 3.77
Closing price at June 30, 2011 3	EUR 5.18
Market capitalization at June 30, 2011	EUR 270 million
Indices	SDAX, EPRA, GEX, DIMAX

Closing price at Frankfurt Stock Exchange Xetra trading

Values matter

Values provide guidance for people and companies in a changing society. There are three core values that guide us: real estate value enhancement, the principle of sustainability and respect for customers, partners and employees.

Letter to Our Shareholders

Dear shareholders, Dear ladies and gentlemen,

As the residential real estate specialist, PATRIZIA undoubtedly occupies a leading position in the market. The acquisition of LB Immo Invest GmbH at the start of 2011 has not only led to an expansion of our range of commercial property, it has also shifted the focus of the assets under management, around two-thirds of which are now commercial real estate. We have now taken another step forward in the implementation of our real estate investment company strategy. Besides expanding our commercial property area, we are also accelerating the internationalization of our corporate activities in order to secure further growth through a wider geographical spread. We have opened an overseas office in Stockholm, and the Swedish office will look after investments both for our residential and commercial property funds. We believe the potential of the markets in Scandinavia lies mainly in the stable economic situation, the attractive rents and growing urbanization in the future. Thus, PATRIZIA WohnInvest KAG recently invested in its European residential propertyfocused fund approximately EUR 50 million in Denmark and acquired a residential complex in Copenhagen.

PATRIZIA today stands for both residential and commercial property. At the same time our core business remains real estate trading. In the second quarter, the number of apartments sold increased by 22% to 161. Based on the number of registrations and notary appointments, we can see that this total will increase again in the next quarter because the notarization numbers have increased significantly. Block sales at 69 units were 10% higher than in the first quarter of this year. Despite this, the total figures for the first half of the year are still behind the excellent sales figures of last year, not least because no large block sale

was concluded. With our adjusted pre-tax profit of around EUR 1.1 million, we still have some way to go before we achieve our forecast profit of EUR 16-17 million for the full year, but we are still aiming at this figure. You will now be asking how we plan to make up the missing profit in the second half of the year.

The first and second quarters developed in line with our expectations. Profits in the second half of the year will, as already explained, mainly be generated by increased sales. Both residential unit and block sales are set to increase. Without wishing to pre-empt the negotiations currently taking place, our portfolio includes attractive properties in which there is a high level of interest. The funds too will generate increased earnings in the second half of the year. Even though we are aware how ambitious our target is, our outlook remains unchanged.

The Managing Board

Chairman of the Board Member of the Board Member of the Board

Wolfgang Egger Arwed Fischer Klaus Schmitt

Interim Management Report

FOR THE 1ST HALF OF 2011

1 Business Trend in the Second Quarter of 2011

Residential segment

Residential property sales increase

Sales of single residential units have increased in the course of the year. Following sales of 132 units in the first quarter of 2011, a total of 161 units were sold from April through June (+22%). Nevertheless, the second quarter was 9% below the very good sales figures for the same quarter of last year (177 units). At the same time, the number of notarizations increased from the first to the second quarter of 2011 considerably. We are therefore confident that sales of single units will rise again in the third quarter. As outlined in the report for the first quarter, we only anticipate a noticeable upturn in business in the second half of the year.

Private investors continued to constitute the largest group of buyers by some distance, accounting for 65.8% of the total. A further 24.8% were owner-occupiers; 9.3% of the residential units were sold to the tenants who were living in them.

In the second quarter of 2011, the 161 residential units sold were made up as follows:

	Number of
	units sold in Q2	As a %	Area sold	Average size of
Region/city	2011	of sales	in sqm	a unit in sqm
Munich	105	65.2	6,919	66
Cologne/Düsseldorf	24	14.9	1,684	70
Hamburg	19	11.8	1,521	80
Berlin	9	5.6	576	64
Regensburg	2	1.2	197	99
Frankfurt/Main	1	0.6	82	82
Friedrichshafen	1	0.6	55	55
Total	161	100	11,034	69

RESIDENTIAL PROPERTY RESALE IN THE SECOND QUARTER OF 2011

Initial purchase completed for the residential property resale portfolio

The purchase of approximately 480 units in Munich with a total area of about 30,600 sqm, which was announced in the first quarter of 2011, has been completed and ownership of the properties was transferred to PATRIZIA on May 1. The property was purchased for over EUR 50 million, including fees and the cost of the planned renovation of the energy supply system.

Two large-scale sales in Hamburg

In the second quarter of 2011, two apartment blocks with 12 and 25 units respectively were sold in and around Hamburg, as was a hostel and a commercial property in the Munich area. The sales income amounted to EUR 8.4 million, of which EUR 6.2 million is reported as revenue.

In the second quarter of 2011, block sales comprised the following:

BLOCK SALES IN THE SECOND QUARTER OF 2011

	Number of
	units sold in Q2	As a %	Area sold	Average size of
Region/city	2011	of sales	in sqm	a unit in sqm
Munich	32	46.4	2,678	84
Hamburg	37	53.6	2,464	67
Total	69	100	5,142	75

Taking into account the sales completed in the first six months of 2011, the additional purchase in Munich and the redensification measures that have been carried out, the following summary of our portfolio emerges:

	Number of units			Area in sqm
	Residential	Asset			Residential	Asset
	property	reposi		Share	property	reposi		Share
Region/city	resale	tioning	Total	%	resale	tioning	Total	%
Munich	1,686	2,082	3,768	40.2	124,438	132,634	257,072	39.6
Cologne/
Düsseldorf	746	608	1,354	14.5	61,047	58,262	119,309	18.4
Leipzig	0	970	970	10.4	0	63,730	63,730	9.8
Berlin	253	544	797	8.5	18,263	28,478	46,741	7.2
Frankfurt/Main	11	785	796	8.5	766	49,320	50,086	7.7
Hamburg	264	447	711	7.6	19,144	27,084	46,228	7.1
Hanover	11	385	396	4.2	527	27,047	27,574	4.2
Regensburg	20	352	372	4.0	1,189	24,367	25,556	3.9
Dresden	0	152	152	1.6	0	10,284	10,284	1.6
Friedrichshafen	17	30	47	0.5	988	2,171	3,159	0.5
Total	3,008	6,355	9,363	100	226,362	423,377	649,739	100

PATRIZIA PORTFOLIO AS OF JUNE 30, 2011

PATRIZIA WohnInvest KAG

On June 1, 2011 PATRIZIA Immobilien Kapitalanlagegesellschaft mbH, which is based in Augsburg, changed its name to PATRIZIA WohnInvest Kapitalanlagegesellschaft mbH.

In July, a residential complex in Copenhagen was registered to the EuroCity Residential Fund I for approximately EUR 50 million. The complex comprises a new building that was completed in 2009, with 159 units and total residential space of about 14,400 sqm. It is anticipated that the property will be transferred into the assets of the fund beginning of September. With a total investment target of EUR 1.6 billion for all KAG funds, the volume already invested will then rise to EUR 708 million. PATRIZIA WohnInvest KAG is currently responsible for five funds, three of which are individual funds.

Commercial segment

Renaming of LB Immo Invest GmbH

The integration of LB Immo Invest, which was acquired at the beginning of 2011, into the PATRIZIA Group has now led to a standardization of its market presence: The asset management company, which is based in Hamburg, has been trading as PATRIZIA GewerbeInvest Kapitalanlagegesellschaft mbH since June 1, 2011. As of June 30, 2011 the special fund provider manages 13 funds with gross assets of EUR 2.3 billion.

2 Other Events

The supervisory board of PATRIZIA Immobilien AG unanimously agreed to extend the contract of Wolfgang Egger as chairman of the Managing Board for a further five years to June 30, 2016.

The Annual General Meeting of June 29, 2011 voted in favor of the proposal by the Administration to carry forward the entire unappropriated profit for 2010. All of the other points on the agenda requiring a resolution were also passed with clear majorities. The current members of the Supervisory Board were re-elected for a further three years.

3 Employees

At the end of the first half of the year, PATRIZIA employed 447 permanent staff, of which 13 are trainees, 52 part-time staff and 19 employees on parental leave. In comparison to December 31, 2010 (370 employees), staff numbers have increased by 77, or 20.8%. 53 are currently part of PATRIZIA GewerbeInvest. Adjusted for the impact of this consolidation, the number of staff would have increased by 6.5%. In terms of full-time equivalents, the number of staff as of June 30 was 413 active employees.

4 Net Assets, Financial and Earnings Situation

Earnings Situation of the PATRIZIA Group

	2nd quarter 2011	2nd quarter 2010	1st half of 2011	1st half of 2010
	04/01/2011	04/01/2010	01/01/2011	01/01/2011
EUR '000	– 06/30/2011	– 06/30/2010	– 06/30/2011	– 06/30/2010
Revenues from residential property resale	25,063	29,735	45,713	60,765
Revenues from asset repositioning	6,233	42,100	11,733	42,100
Rental revenues	14,472	16,054	28,834	32,765
Revenues from fund transactions	4,110	2,767	8,178	3,469
Other	6,140	7,617	12,155	13,988
Group revenues	56,018	98,273	106,613	153,087

SPLIT OF REVENUES

Group revenues fell significantly in comparison with last year, for both the quarter and the half-year. The background to this is a block sale in the second quarter of 2010, the size of which it has not yet been possible to match in the current fiscal year. As far as the resale of residential property is concerned, sales figures also remained behind the very good sales over the same period of last year. In the second quarter of 2011, an average square meter price of EUR 2,324 was achieved in residential property resales (second quarter of 2010: EUR 2,505); over the six-month period, the selling price was EUR 2,295/sqm (first half of 2010: EUR 2,499/sqm). It should be noted in this context that different regional price levels are reflected in the average figures.

SALES REVENUES FROM PROPERTIES SOLD

	2nd quarter 2011	2nd quarter 2010	1st half of 2011	1st half of 2010
	04/01/2011	04/01/2010	01/01/2011	01/01/2010
EUR '000	– 06/30/2011	– 06/30/2010	– 06/30/2011	– 06/30/2010
Sales revenues from inventories
– Single unit sales	25,063	29,735	45,713	60,765
– Block sales	6,233	42,100	11,733	42,100
Sales revenues from investment property1
– Single unit sales	533	0	533	0
– Block sales	2,125	5,050	3,725	5,050
Sales revenues	33,954	76,885	61,704	107,915

Sales revenues from investment properties is not shown in revenues

The rental revenues continued to fall in parallel with the size of the portfolio and at EUR 28.8 million accounted for 27% of group revenues (first half of 2010: EUR 32.8 million). This figure is almost entirely accounted for by the residential segment (9,335 units), with EUR 27.7 million. The average monthly rent per square meter over the whole portfolio was EUR 7.95 in June (December 31, 2010: EUR 7.67/sqm, March 31, 2011: EUR 7.99/sqm).

PORTFOLIO FIGURES BY QUARTER

	1st quarter 2011	2st quarter 2010	1st half of 2011	1st half of 2010	2010
	01/01/2011	04/01/2010	01/01/2011	01/01/2010	01/01/2010
EUR '000	– 03/31/2011	– 06/30/2010	– 06/30/2011	– 06/30/2010	–12/31/2010
Units sold	132	161	293	360	801
Average sales price	2,260 Euro/m2	2,324 Euro/m2	2,295 Euro/m2	2,499 Euro/m2	2,370 Euro/m2
Units via block sales	63	69	132	297	1,002
Average sales price	1,597 Euro/m2	1,587 Euro/m2	1,592 Euro/m2	1,987 Euro/m2	1,625 Euro/m2
Average monthly rent1	7.99 Euro/m2	7.95 Euro/m2	7.95 Euro/m2	7.73 Euro/m2	7.67 Euro/m2

¹ As in the portfolio at the end of the quarter. The figure for the 1st half-year refers to June 30, the figure for 2010 to December 31

Services in the residential and commercial sector account for revenues of EUR 10.9 million. Of this, EUR 8.2 million was generated from special fund business. As far as other revenues are concerned, please see the segment reports in Section 12 of the Appendix. The changes in inventories in the second quarter of 2011 amounted to EUR 30.0 million. Capitalizations of EUR 54.8 million increased the inventory. The majority of this is accounted for by the purchase of approximately 480 units in Munich. The decreases in carrying amounts for properties in the inventory assets of EUR –24.8 million had the effect of reducing the inventories. This is counterbalanced by sales revenues of EUR 31.3 million. The changes in inventories for the first six months (EUR 18.2 million) comprise inventory reductions of EUR 46.9 million and inventory increases of EUR 65.1 million. In addition, the land purchased for EUR 5.5 million in Augsburg for project development has been capitalized.

The acquisition costs for the two purchases also have an effect on the cost of materials: this almost trebled year-on-year, from EUR 26.9 million in the first six months of 2010 to EUR 80.1 million currently. EUR 7.6 million was allocated to renovation and conversion work (first half of 2010: EUR 5.0 million), of which EUR 6.1 million has been capitalized. A further EUR 2.2 million (first half of 2010: EUR 2.7 million) was spent on ongoing maintenance (which cannot be capitalized).

The increase in staff costs from EUR 12.7 million in the first half of 2010 to EUR 16.3 million currently can be explained, on the one hand, by the acquisition of PATRIZIA GewerbeInvest, which brought with it an increase in staff numbers (52 full-time equivalents). On the other hand, the effect of the increase in staff numbers in the course of 2010 is now being felt over the whole of 2011. On the deadline of June 30, 90 more staff were in employment than was the case last year.

The other operating costs of EUR 12.9 million (first half of 2010: EUR 8.2 million) include, among other things, administrative costs of EUR 6.5 million (first half of 2010: EUR 4.0 million) and sales costs of EUR 4.8 million (first half of 2010: EUR 2.3 million). The increase in sales costs comes from expenditure on fees by PATRIZIA GewerbeInvest KAG of EUR 2.0 million. The administrative costs were affected in particular by the conversion of the IT system that took place on July 1 and by higher rents for office space as a result of the growth in staff numbers.

The EBIT in accordance with IFRS for the first half of 2011 was EUR 21.8 million (first half of 2010: EUR 29.3 million). Of this, EUR 10.0 million came from the second quarter (second quarter of 2010: EUR 15.5 million). The residential segment accounted for most of this; the results from the commercial segment are determined by the contribution from PATRIZIA GewerbeInvest KAG. To arrive at the adjusted EBIT, an adjustment was made for the noncash effect of the amortization of other intangible assets (fund management contracts), which came about in the course of the acquisition of PATRIZIA GewerbeInvest KAG mbH

(formerly LB Immo Invest GmbH). In the first half of 2011, ongoing amortizations of EUR 1.0 million were carried out, resulting in an adjusted EBIT of EUR 22.7 million. Further information is available in the segment reports in Section 12 of the Appendix.

The market value adjustment of the interest rate hedging instruments had a positive effect on the financial results for the first six months of 2011 of EUR –11.1 million. The interest rate hedges, which guarantee us an average fixed interest rate of 4.07%, were largely set up at the end of 2006/beginning of 2007 in connection with the financing of larger property portfolios and expire at the latest in 2014. Currently, approximately 75.2% of our loan liabilities are protected by interest rate hedges. Depending on changes in interest rates, either non-cash income or non-cash costs must be accounted for, which can cause considerable fluctuations in the IFRS results. In the first half-year, the effect of this was EUR 10.6 million; taking the second quarter on its own, the interest rate hedges had a negative effect of EUR –1.4 million. In the previous year, the financial results were affected by these market value adjustments both in the second quarter (EUR –3.4 million) and in the first half-year (EUR –10.6 million).

The adjusted financial results, i.e. the pure interest costs for bank liabilities and the cash costs for interest rate hedges, were therefore EUR 21.7 million. In relation to servicing these loans, it is important that the rental income goes towards covering this cash amount. In the first six months of 2011, 32.9% is covered; taking the second quarter on its own, this figure even rises to 43.8%. The finance costs (interest and margin) are currently running at an average of 4.90%. The composition of the financial results is explained in Section 10 of the Appendix.

The IFRS results before tax (EBT) rose strongly in the first half of 2011 from EUR –5.6 million last year to EUR 10.7 million currently, as a result of the positive effect of the market value adjustment of the interest rate hedges. Over the second quarter, this figure was EUR –1.5 million, which is below the comparable figure for last year (second quarter of 2010: EUR –0.5 million).

The operating result before tax is arrived at by excluding the non-cash factors. At EUR 1.1 million this so-called adjusted EBT fell below the figure for the first six months of last year of EUR 5.0 million. Nor did the figure for the quarter of just TEUR 463 match that of last year (second quarter of 2010: EUR 2.9 million).

Under IFRS, PATRIZIA ended the second quarter of 2011 with a loss over the period of EUR 2.0 million (second quarter of 2010: EUR –1.1 million). The first six months show a surplus of EUR 7.8 million, following a loss of EUR 5.7 million in the same period of last year.

The earnings per share for the first six months improved from EUR –0.11 to EUR 0.15.

	2nd quarter 2011	2nd quarter 2010	1st half of 2011	1st half of 2010
	04/01/2011	04/01/2010	01/01/2011	01/01/2010
EUR '000	– 06/30/2011	– 06/30/2010	– 06/30/2011	– 06/30/2010
Revenues	56,018	98,273	106,613	153,087
Total operating performance	87,413	42,270	132,541	77,482
EBITDA	10,823	15,658	23,271	29,697
EBIT	10,037	15,465	21,760	29,319
EBIT adjusted 1	10,530	15,465	22,744	29,319
Profit/loss before income taxes (EBT)	–1,460	–492	10,690	–5,552
EBT adjusted 1,2	463	2,910	1,053	5,046
Profit/loss after tax	–1,999	–1,087	7,802	–5,703

SUMMARY OF THE KEY ITEMS IN THE CONSOLIDATED INCOME STATEMENT

adjusted for the amortization of other non-tangible assets (fund management contracts)

also adjusted for non-cash profit/loss from interest rate hedges

Net Asset and Financial Situation of the PATRIZIA Group

PATRIZIA ASSET AND FINANCIAL KEY FIGURES

	06/30/2011	12/31/2010	Change
	EUR '000	EUR '000	%
Total assets	1.239.987	1.214.548	2,1
Equity (including non-controlling partners)	306.052	294.732	3,8
Equity ratio	24,7 %	24,3 %	0,4 PP
Bank loans	849.885	841.380	1,0
Cash and cash equivalents	21.393	70.537	–69,7
Property assets 1	1.139.200	1.125.383	1,2
Loan to value 2	74,6 %	74,8 %	–0,2 PP

¹ Real estate assets comprise the investment properties valued at fair value and real estate held in inventories valued at amortized costs

² Proportion of credit volume to real estate assets

As of June 30, 2011, our total assets stood at EUR 1,240 million and were therefore slightly above the position at the end of 2010 (December 31, 2010: EUR 1,215 million, +2.1%).

The carrying amount for the property assets of PATRIZIA was EUR 1,139 million and comprises investment properties worth EUR 611.3 million and inventories worth EUR 527.9 million. Our project developments are also entered under the inventories; they were allocated a carrying amount of EUR 61.9 million.

Cash and cash equivalents fell further, as a result of new financing: the fall of EUR 20.8 million since the end of March 2011 primarily results from the acquisition of the property in Munich comprising approximately 480 units. The share of equity for this was EUR 14 million.

Equity rose from EUR 294.7 million as of December 31, 2010 to EUR 306.1 million currently; the equity ratio was 24.7% (December 31, 2010: 24.3%). It was therefore not possible to sustain the improvement to 25.1% that was achieved by March 31, 2011.

In contrast to the trend of previous quarters, our bank loans increased again and amounted to EUR 849.9 million at the end of the quarter (March 31, 2011: EUR 834.8 million). Financing for the property purchase increased the loans, the reduction of debt using sales income had the opposite effect. A detailed profile of the due dates for loans by fiscal year is provided under Section 8 of the Group Appendix to this quarterly report.

CALCULATION OF THE NAV

EUR '000	06/30/2011	12/31/2010
Investment property	611,269	614,945
Participations	3,090	3,090
Inventories	527,931	510,438
Bank balances and cash	18,5231	70,537
Less bank loans	–830,1471	–841,380
NAV	330,666	357,330
No. of shares	52,130,000	52,130,000
NAV/share (EUR)	6.34	6.86

¹ adjusted figures, i.e. without cash and cash equivalents and loans that came about in the course of the acquisition of PATRIZIA GewerbeInvest KAG.

5 Opportunity and Risk Report

In the course of its business activities, PATRIZIA Immobilien AG is confronted with both opportunities 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 fiscal year 2010, there have been no significant changes related to the opportunity and risk profile to indicate new opportunities or risks for the group.

The statements in the risk report in the Annual Report 2010 still apply. For a detailed description of the opportunities and risks for the group, please see the risk report in the Annual Report 2010 of PATRIZIA Immobilien AG. No other risks are currently known to the managing board of PATRIZIA Immobilien AG.

6 Supplementary Report

In May a block sale (20 units) was notarized in Munich. We expect to receive the purchase price revenues of EUR 4.1 million in the third quarter of 2011.

In July, the first branch of PATRIZIA outside Germany was opened in Sweden. The Stockholm office will manage the investments in both residential and commercial property funds in Scandinavia.

7 Forecast Report

As anticipated, the second quarter of 2011 has been as quiet as the start of the year. Overall, the weak first six months should not be regarded as representative for the whole year. As previously reported, we expect business to pick up significantly in the second half of the year and to see new activity in block sales in particular. There are already signs of improvement in the sales figures for residential property resale; in this area, registrations in May and June far exceeded the number of outgoing units. However, as far as the residential properties released for sale in March and April are concerned, which are entered as investment property in non-current assets, we expect that the contribution to earnings will be below that of sales from inventories, because of the fair value adjustment carried out in 2007. We are currently in advanced sales negotiations for a large-scale sale of several properties, while other properties are being prepared to go on the market.

PATRIZIA GewerbeInvest is developing in line with our business plan and is now making purchases once again.

We confirm our forecast of an adjusted pre-tax profit of EUR 16–17 million for the fiscal year 2011.

This report contains specific 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 differ from the results currently expected.

Consolidated Balance Sheet

AT JUNE 30, 2011

ASSETS

	EUR '000	06/30/2011	12/31/2010
A.	Non-current assets
	Goodwill	610	0
	Other intangible assets	46,211	0
	Software	4,680	2,811
	Investment property	611,269	614,945
	Equipment	2,514	1,893
	Investments in joint ventures	27	8
	Participations	3,090	3,090
	Long-term tax assets	281	281
	Total non-current assets	668,682	623,028
B.	Current assets
	Inventories	527,931	510,438
	Securities	1,684	0
	Short-term tax assets	3,313	263
	Current receivables and other current assets	16,984	10,282
	Bank balances and cash	21,393	70,537
	Total current assets	571,305	591,520
	Total assets	1,239,987	1,214,548

EQUITY AND LIABILITIES

	EUR '000	06/30/2011	12/31/2010
A.	Equity
	Share capital	52,130	52,130
	Capital reserves	215,862	215,862
	Retained earnings
	- legal reserves	505	505
	Non-controlling shareholders	2,696	832
	Valuation results from cash flow hedges	–742	–2,372
	Consolidated net profit	35,601	27,775
	Total equity	306,052	294,732
B.	Liabilities
	Non-current liabilities
	Deferred tax liabilities	26,659	9,701
	Long-term financial derivatives	27,468	39,715
	Retirement benefit obligations	368	368
	Long-term bank loans	477,950	0
	Non-current liabilities	4,889	1,202
	Total non-current liabilities	537,334	50,986
	Current liabilities
	Short-term bank loans	371,934	841,380
	Short-term financial derivatives	52	363
	Other provisions	632	666
	Current liabilities	14,013	17,008
	Tax liabilities	9,970	9,413
	Total current liabilities	396,601	868,830
	Total equity and liabilities	1,239,987	1,214,548

Consolidated Income Statement

	2nd quarter 2011	2nd quarter 2010	1st half of 2011	1st half of 2010
	04/01/2011	04/01/2010	01/01/2011	01/01/2010
EUR '000	– 06/30/2011	– 06/30/2010	– 06/30/2011	– 06/30/2010
Revenues	56,018	98,273	106,613	153,087
Income from the sale of investment
property	183	290	308	290
Changes in inventories	29,979	–56,819	18,232	–77,838
Other operating income	1,233	526	7,388	1,943
Total operating performance	87,413	42,270	132,541	77,482
Cost of materials	–61,132	–16,181	–80,079	–26,872
Staff costs	–8,516	–6,399	–16,321	–12,698
Amortization of software and depreciation
on equipment	–786	–193	–1,511	–377
Other operating expenses	–6,942	–4,032	–12,871	–8,215
Finance income	–1,288	324	11,903	569
Finance cost	–10,209	–16,281	–22,972	–35,441
Profit/loss before income taxes	–1,460	–492	10,690	–5,552
Income tax	–540	–595	–2,889	–151
Net profit/loss	–1,999	–1,087	7,802	–5,703
Profit carried forward	37,531	16,913	27,730	21,529
Consolidated net profit	35,531	15,826	35,531	15,826
Earnings per share (undiluted), in EUR	–0.04	–0.02	0.15	–0.11
The net profit/loss for the period is
allocated to:
- Shareholders of the parent company	–1,981	–1,079	7,827	–5,686
- Non-controlling shareholders	–18	–8	–25	–17
	–1,999	–1,087	7,802	–5,703

Consolidated Statement of Comprehensive Income

	2nd quarter 2011	2nd quarter 2010	1st half of 2011	1st half of 2010
	04/01/2011	04/01/2010	01/01/2011	01/01/2010
EUR '000	– 06/30/2011	– 06/30/2010	– 06/30/2011	– 06/30/2010
Consolidated net profit/loss	–1,999	–1,087	7,802	–5,703
Other result
Cash flow hedges
- Amounts recorded during the
reporting period	–80	606	881	257
- Reclassification of amounts that
were recorded	0	0	749	0
Total result for the reporting period	–2,079	–481	9,432	–5,446
The total result is allocated to:
- Shareholders of the parent company	–2,062	–473	9,456	–5,429
- Non-controlling shareholders	–18	–8	–25	–17
	–2,079	–481	9,432	–5,446

Consolidated Cash Flow Statement

	1st half of 2011	1st half of 2010
	01/01/2011	01/01/2010
EUR '000	– 06/30/2011	– 06/30/2010
Consolidated net profit/loss	7,802	–5,703
Actual income taxes recognized through profit or loss	1,520	–1,823
Financing costs recognized through profit or loss	21,677	28,035
Income from financial investments recognized through profit or loss	–339	–1,466
Amortization of intangible assets and depreciation on property,
plant and equipment	1,511	377
Loss from/gain on disposal of investment properties	–308	–290
Change in deferred taxes	1,534	–1,466
Change in retirement benefit obligations	0	21
Ineffectiveness of cash flow hedges	–10,928	10,398
Changes in inventories, receivables and other assets that are not
attributable to investing activities	–31,055	86,836
Changes in liabilities that are not attributable to financing activities	1,215	6,289
Interest paid	–20,775	–24,742
Interest received	122	128
Income tax payments/refunds	–882	–132
Cash inflow/outflow from operating activities	–28,907	96,462
Capital investments in intangible assets and property, plant and equipment	–4,020	–175
Cash receipts from disposal of intangible assets and property,
plant and equipment	4	62
Cash receipts from disposal of investment property	4,257	5,050
Payments for development or acquisition of investment property	–356	0
Acquisition of subsidiaries	–28,626	0
Cash inflow/outflow from investing activities	–28,741	4,937
Borrowing of loans	78,676	4,768
Repayment of loans	–70,171	–103,549
Cash inflow/outflow from financing activities	8,504	–98,781
Changes in cash	–49,144	2,618
Cash January 1	70,537	56,183
Cash June 30	21,393	58,801

Statement of Changes in Consolidated Equity

						Thereof
						attributa
			Valuation			ble to	Thereof
			results	Retained	Consoli	the share	attributab
			from	earnings	dated net	holders of	le to non
	Share	Capital	Cash Flow	(legal	profit/	the parent	controlling
EUR '000	capital	reserves	Hedges	reserves)	loss	company	partners	Total
Balance January 1, 2011		52,130 215,862	–2,372	505		27,775 293,900	832	294,732
Additional non-controlling
partners which originated
in the course of the
LB Immo Invest GmbH
acquisition							1,889	1,889
Net amount recognized
directly in equity, where
applicable less income
taxes			1,630			1,630		1,630
Net profit/loss for the
period					7,826	7,826	–25	7,802
Full overall result for the
period			1,630		7,826	9,456	–25	9,432
Balance June 30, 2011		52,130 215,862	–742	505		35,601 303,356	2,696	306,052
Balance January 1, 2010		52,130 215,862	–6,079	505		21,529 283,947	877	284,824
Net amount recognized
directly in equity, where
applicable less income
taxes			257			257		257
Net profit/loss for the
period					–5,686	–5,686	–17	–5,703
Full overall result for the
period			257		–5,686	–5,429	–17	–5,446
Balance June 30, 2010		52,130 215,862	–5,822	505		15,843 278,518	860	279,378

Interim Financial Statements and Notes to the Financial Statements

TO JUNE 30, 2011 (FIRST HALF OF 2011)

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 real estate market. PATRIZIA Immobilien AG, along with its subsidiaries, is a real estate agent and investment house. It specializes in buying high-quality residential and commercial real estate at commercially attractive locations in Germany with the aim of increasing their value and subsequent reselling of the real estate. Therefore, the PATRIZIA Group performs all services along the value-added chain in the real estate sector.

2 Principles Applied in Preparing the Consolidated Financial Statements

These unaudited consolidated interim financial statements of PATRIZIA Immobilien AG for the first half of 2011 (January 1 through June 30, 2011) were prepared in accordance with Article 37x (3) of the Wertpapierhandelsgesetz (WpHG – German Securities Trading Act) in conjunction with Article 37w (2) WpHG in line with IFRSs and in compliance with the provisions of German commercial law additionally applicable as per Article 315a (1) of the German Commercial Code. All compulsory official announcements of the International Accounting Standards Board (IASB) have been applied, i.e. those adopted by the EU in the context of the endorsement process and published in the Official Journal of the EU.

From the perspective of the Company's management, the present unaudited consolidated interim financial statements for the period ended June 30, 2011 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. Earnings generated in the first six months of 2011 are not necessarily an indication of future earnings or of the expected total earnings for fiscal year 2011.

When preparing the consolidated financial statements for the interim report in line with IAS 34 Interim Financial Reporting, the management of PATRIZIA Immobilien AG must make assessments and estimates as well as assumptions that affect the application of accounting standards in the Group and the reporting of assets and liabilities as well as income and expenses. Actual amounts may differ from these estimates.

These consolidated interim financial statements have been prepared in accordance with the same accounting policies as the last consolidated financial statements for fiscal year 2010. A detailed description of the principles applied in preparing the consolidated financial statements and the accounting methods used can be found in the notes to the IFRS consolidated financial statements for the year ended December 31, 2010, which are contained in the Company's 2010 Annual Report.

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

3 Scope of Consolidation

All of the Company's subsidiaries are consolidated in the consolidated financial 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 55 subsidiaries. They are recognized in the consolidated financial statements in line with the rules of full consolidation. In addition, one joint venture is accounted for at equity in the consolidated financial statements.

Joint ventures are companies that do not meet the criteria to be classified as subsidiaries since with regard to their business and financial policies two or more partner companies are bound to common management via contractual agreement. Joint ventures are accounted for at equity within the Group.

Company Acquisitions

Under a notarial purchase agreement dated December 9, 2010, PATRIZIA Immobilien AG acquired a 94.9% stake in LB Immo Invest GmbH, Hamburg, via its indirect subsidiary PATRIZIA Project 600 GmbH (formerly PATRoffice Real Estate 997 GmbH). The date of acquisition for implementing full consolidation of the shares has been set at January 3, 2011. Legal and financial transfer of the shares took place on January 3, 2011 following full payment of the purchase price.

LB Immo Invest GmbH is a Hamburg-based asset management company focusing on the management of special real estate funds. At the time of acquisition the company administered 13 real estate funds with a gross fund volume of EUR 2.3 billion.

The acquisition of the asset management company LB Immo Invest GmbH has added commercial special real estate funds to our existing portfolio of services. The reasoning behind the acquisition of the company was the intensification of the group's activities in the field of commercial real estate.

The final cash purchase price for the shares that were acquired indirectly by PATRIZIA Immobilien AG (94.9%) was EUR 35.7 million (excluding ancillary acquisition costs). The ancillary acquisition costs amounted to EUR 0.4 million and were treated as an expense. Acquisition costs are shown under other operating expenses.

The Group has received the following assets and liabilities:

	Fair Value
	EUR million
Intangible assets (including fund management contracts)	47.2
Property, plant and equipment	0.2
Total non-current assets	47.4
Shares and other variable-yield securities	1.6
Trust receivables	0.6
Other assets, prepaid expenses and deferred charges	3.5
Cash and cash equivalents	7.1
Total current assets	12.7
Total assets	60.2
Deferred taxes	15.3
Total non-current liabilities	15.3
Trust liabilities	0.6
Other current liabilities	3.1
Other current provisions	4.2
Total current liabilities	7.9
Total liabilities	23.1
Net assets	37.0
attributable to non-controlling partners	1.9
attributable to the controlling parent company	35.1
Purchase price	35.7

ASSETS AND LIABILITIES

The value of the share accounted for by the non-controlling partners (5.1%) in LB Immo Invest GmbH was stated at the fair value of the net assets purchased and amounts to EUR 1.9 million. The resulting goodwill amounts to EUR 0.6 million. Fund management contracts assigned to intangible assets are subject to amortization over the expected remaining life of the contracts. In the reporting period, there have been amortizations of EUR 1.0 million.

The resulting goodwill is based on the expected synergy effects between the purchased company and the existing company PATRIZIA WohnInvest KAG as well as the other service providers within the PATRIZIA Group.

The goodwill will not be tax-deductible in future periods.

With the exception of the disclosure of hidden reserves in the fund management contracts and in fund shares held and a resulting adjustment of deferred tax liabilities, it was possible to take over the carrying amounts unchanged. The gross receivables are equivalent to the shown amounts as no irrecoverable debt is expected. There were no other intangible assets that could be recognized in expectation of a future economic benefit.

The new fair values to be determined autonomously in accordance with IFRS 3 (i.e. without any link to existing carrying amounts under local accounting provisions) are determined in accordance with uniform group-wide accounting provisions applicable within the PATRIZIA Group.

The acquired cash amounted to EUR 7.1 million.

LB Immo Invest GmbH was renamed PATRIZIA GewerbeInvest Kapitalanlagegesellschaft mbH as of June 1, 2011. It contributed revenues of EUR 6.4 million and net earnings of EUR 0.2 million to the group accounts for the time of the acquisition until June 30, 2011.

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 time period and, accordingly, an increase in value. The share of owner-occupier use does not exceed 10% of the rental space. In contrast to the real estate posted under inventories, investment property is not intended for sale in the ordinary course of business or for such sale within the framework of the construction or development process. Investment property is measured at fair value, with changes in value recognized through profit 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 resale process was launched in 2010 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 defined as the value reasonably obtainable on the market based on a hypothetical buyer/purchaser situation. Investment property is reported at this fictitious 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 residential property 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 offer 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 income statement.

5 Participations

PATRIZIA Immobilien AG's interest of 6.25% in PATRoffice Real Estate GmbH & Co. KG, our co-investment with both pension funds APG and ATP, is also accounted for under this item. Participations amounted to EUR 3.1 million.

6 Inventories

The Inventories item contains real estate that is intended for sale in the context of ordinary activities or is intended for such sale in the context of the construction or development process, especially real estate that has been solely acquired for the purpose of resale in the near future or for development and resale. Development also covers modernization and renovation activities. The assessment and qualification as inventory is completed in the context of the purchasing decision and integrated into the balance sheet as at the date of addition.

PATRIZIA has defined the operating business cycle as three years, because based on experience, the majority of the units to be sold are sold during this time period. However, inventories are still intended for direct sale even if it is not realized in three years.

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

7 Equity

As at the reporting date, the share capital of PATRIZIA Immobilien AG remained at 52,130 TEUR and was divided into 52,130,000 no-par value shares. For the development of equity, please see the statement of changes in equity. Equity amounted to EUR 306.1 million as of June 30, 2011 (December 31, 2010: EUR 294.7 million, March 31, 2011: EUR 308.1 million).

8 Bank Loans

The 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 flows. To limit the risk, the Group has concluded interest hedging transactions for the majority of the loans.

All loans are in euro. In the event of real estate sales, financial liabilities are redeemed through repayment of a specific share of the sale proceeds.

Such loans are posted as bank loans due in less than one year, whose term ends within the 12 months following the reporting date as well as revolving lines of credit taken out. Regardless of the terms presented in the table below, loans which serve to finance inventories are reported as current bank loans in the balance sheet.

The residual terms of the bank loans are as follows:

	Bank loans as at	Bank loans as at	Bank loans as at
EUR '000	06/30/2011	03/31/2011	12/31/2010
Less than 1 year	58,129	58,720	523,314
1 to 2 years	88,852	89,098	88,775
More than 2 to 5 years	702,903	687,013	229,291
More than 5 years	0	0	0
Total	849,885	834,831	841,380

BANK LOAN

			Amount of loans due as at
	06/30/2011		03/31/2011		12/31/2010
Year	EUR '000	%	EUR '000	%	EUR '000	%
2011	54,129	6.4	54,720	6.6	523,314	62.2
2012	88,852	10.5	89,098	10.7	88,775	10.6
2013	63,466	7.5	76,650	9.2	81,020	9.6
2014	614,097	72.3	606,763	72.7	148,270	17.6
2015	7,600	0.9	7,600	0.9	0	0
2016	21,740	2.6	0	0	0	0
Total	849,885	100	834,831	100	841,380	100

MATURITY BY FISCAL YEAR (JANUARY 1 TO DECEMBER 31)

MATURITY BY QUARTER

Quarter	EUR '000	%
		6.0
Q4	2,827	0.3
		0.5
Q3	43,202	5.1
Q4	41,650	4.9
		0.5
Q4	59,466	7.0
		0.5
Q2	594,206	69.9
Q3	15,890	1.9
Q1	7,600	0.9
		2.6
	849,885	100
	Q3 Q1 Q1 Q1 Q1	Amount of loans due as at 06/30/2011 51,302 4,000 4,000 4,000 21,740

9 Revenues

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

10 Financial Result

	2nd quarter 2011	2nd quarter 2010	1st half of 2011	1st half of 2010	2010
	04/01/2011	04/01/2010	01/01/2011	01/01/2010	01/01/2010
EUR '000	– 06/30/2011	– 06/30/2010	– 06/30/2011	– 06/30/2010	– 12/31/2010
Interest on bank
deposits	50	83	208	215	573
Income from securities	35	0	71	0	0
Income from interest
hedges	0	0	0	0	0
Changes in value of
the derivatives	–1,430	137	11,511	183	10,546
Other interest	57	104	114	171	375
	–1,288	324	11,903	569	11,494
Interest on revolving lines of credit and
bank loans	–5,965	–5,451	–11,533	–10,487	–25,782
Expenses from interest
hedges	–4,336	–6,263	–8,969	–12,145	–23,024
Changes in value of
the derivatives	0	–3,539	–889	–10,781	–12,172
Other finance cost	92	–1,027	–1,581	–2,028	–272
	–10,209	–16,281	–22,972	–35,441	–61,250
Financial result	–11,497	–15,957	–11,069	–34,872	–49,756
Financial result
adjusted for changes
in the derivatives	–10,067	–12,554	–21,690	–24,274	–48,130

	2nd quarter 2011	2nd quarter 2010	1st half of 2011	1st half of 2010	2010
	04/01/2011	04/01/2010	01/01/2011	01/01/2010	01/01/2010
	– 06/30/2011	– 06/30/2010	– 06/30/2011	– 06/30/2010	– 12/31/2010
Net profit/loss for the
period (in EUR '000)	–1,999	–1,087	7,802	–5,703	–6,202
Number of shares issued	52,130,000	52,130,000	52,130,000	52,130,000	52,130,000
Weighted number of
shares	52,130,000	52,130,000	52,130,000	52,130,000	52,130,000
Earnings per share
(in euro)	–0.04	–0.02	0.15	–0.11	0.12

11 Earnings per Share

There were no diluted earnings per share in the reporting period or in the previous period. As at June 30, 2011, there was authorized capital of TEUR 26,065.

12 Segment Reporting

PATRIZIA GewerbeInvest Kapitalanlagegesellschaft mbH (formerly LB Immo Invest GmbH) became a new operating subsidiary of the PATRIZIA Group with effect from January 3, 2011 (cf. item 3 Scope of Consolidation). This was the reason for PATRIZIA to alter the existing corporate structure. The changes result in the use of the real estate as residential or commercial property now determining and segmenting the associated activities. The business activities of the PATRIZIA Group are separated into the segments residential, commercial and special real estate solutions.

The segmentation of the corporate divisions is based on the changed internal reporting lines. This means that financial reporting has to reflect the changes. The segments are as follows:

The residential segment bundles all activities relating to own investment, services and funds in the field of residential real estate. A real estate portfolio for residential property resale and asset repositioning is held as own investment. 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 9,335 (December 31, 2011: 9,285) residential units that are listed as investment property and inventories. The asset management company PATRIZIA WohnInvest Kapitalanlagegesellschaft mbH is also part of this segment. The segment manages funds of approx. EUR 1.9bn.

The commercial segment combines the same portfolio of services for commercial real estate.

This also covers PATRIZIA GewerbeInvest Kapitalanlagegesellschaft mbH and the co-investment PATRoffice Real Estate GmbH & Co. KG. The only proprietary investment of PATRIZIA is a commercial property with 28 units or 12,182 sqm. The segment manages funds of approx. EUR 2.7bn.

PATRIZIA Projektentwicklung GmbH and PATRIZIA Immobilienmanagement GmbH, which serve both the residential and commercial real estate sectors, form the segment "special real estate solutions". A significant portion of the services is used by in-house entities. Moreover, both companies act for external third parties.

The internal corporate, cross-company services provided by the holding company will remain unchanged in the segment Corporate. All consolidating entries are also processed via the segment Corporate. Thus all internal output is 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 are listed in the internal control and reporting as EBIT, EBT, EBIT adjusted and EBT adjusted.

EBT comprises a 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 valued at equity and the financial result. EBIT denotes EBT minus the financial result. To determine the adjusted EBIT, allowances are made for the non-liquidity-related effect of amortizations of other intangible assets (fund management contracts) created in the course of the acquisition of PATRIZIA GewerbeInvest Kapitalanlagegesellschaft mbH (formerly LB Immo Invest GmbH). Further adjustments are made 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 among the segments. Intercompany services are invoiced at market rate.

PATRIZIA's activities extend across Germany. For this reason, no geographical segment is set out.

The individual segment figures are set out below. The reporting of amounts in EUR thousands can result in rounding differences. The calculation of the single financial figures is carried out on basis of non-rounded figures. Figures from the previous year have been adapted to the new structure.

SECOND QUARTER 2011 (APRIL 1 – JUNE 30, 2011)

			Special	Corporate/
			Real Estate	Conso
EUR '000		Residential Commercial	Solutions	lidation	Total
Portfolio-Management
Third-party revenues	285	394	851	1	1,531
Rental revenues	0	116	76	1	193
Intercompany revenues	2,987	993	1,261	–5,314	–72
Own Investments
Residential Property Resale
Third-party revenues	38,042	–	1	–	38,043
Rental revenues	5,022	–	1	–	5,023
Purchase price revenues from single
unit sales	25,063	–	0	–	25,063
Purchase price revenues from bloc sales	6,233	–	0	–	6,233
Other revenues	1,724	–	0	–	1,724
Intercompany revenues	55	–	0	–	55
Asset Repositioning
Third-party revenues	11,803	532	–	–	12,335
Rental revenues	8,911	345	–	–	9,256
Purchase price revenues from bloc sales	0	0	–	–	0
Other revenues	2,892	187	–	–	3,079
Intercompany revenues	17	0	–	–	17
Funds
Third-party revenues	1,040	3,069	–	–	4,110
Intercompany revenues	0	0	–	–	0
Total Group revenues
Third-party revenues	51,171	3,995	852	1	56,018
Rental revenues	13,933	461	78	1	14,472
Purchase price revenues from single
unit sales	25,063	0	0	0	25,063
Purchase price revenues from bloc sales	6,233	0	0	0	6,233
Other revenues	5,942	3,534	775	0	10,250
Intercompany revenues	3,059	994	1,261	–5,314	0
Finance income	–1,291	329	243	–569	–1,288
Finance cost	–12,556	–936	–722	4,004	–10,209
Significant non-cash earnings
Market valuation income derivatives	–1,573	143	0	0	–1,430
Market valuation expenditures derivatives	0	0	0	0	0
Amortization of other intangible assets	0	–984	0	492	–492
Segment result EBIT	14,469	114	–1,375	–3,172	10,037
Segment result EBT	622	–492	–1,854	263	–1,460
Segment result EBIT adjusted	14,469	1,098	–1,375	–3,663	10,530
Segment result EBT adjusted	2,196	348	–1,854	–229	463

SECOND QUARTER 2010 (APRIL 1 – JUNE 30, 2010)

			Special	Corporate/
			Real Estate	Conso
EUR '000		Residential Commercial1	Solutions	lidation	Total
Portfolio-Management
Third-party revenues	134	315	802	0	1,251
Rental revenues	0	56	31	0	86
Intercompany revenues	3,301	233	1,334	–4,947	–80
Own Investments
Residential Property Resale
Third-party revenues	80,485	–	401	–	80,886
Rental revenues	6,113	–	10	–	6,124
Purchase price revenues from single
unit sales	29,345	–	390	–	29,735
Purchase price revenues from bloc sales	42,100	–	0	–	42,100
Other revenues	2,927	–	0	–	2,927
Intercompany revenues	61	–	0	–	61
Asset Repositioning
Third-party revenues	12,821	547	–	–	13,368
Rental revenues	9,527	316	–	–	9,843
Purchase price revenues from bloc sales	0	0	–	–	0
Other revenues	3,294	231	–	–	3,525
Intercompany revenues	0	18	–	–	18
Funds
Third-party revenues	2,767	0	–	–	2,767
Intercompany revenues	0	0	–	–	0
Total Group revenues
Third-party revenues	96,215	862	1,197	0	98,273
Rental revenues	15,641	372	41	0	16,054
Purchase price revenues from single
unit sales	29,345	0	390	0	29,735
Purchase price revenues from bloc sales	42,100	0	0	0	42,100
Other revenues	9,130	491	766	0	10,386
Intercompany revenues	3,362	251	1,334	–4,947	0
Finance income	257	65	137	–135	324
Finance cost	–17,984	–328	–692	2,722	–16,281
Significant non-cash earnings
Market valuation income derivatives	137	0	0	0	137
Market valuation expenditures derivatives	–3,539	0	0	0	–3,539
Amortization of other intangible assets
Segment result EBIT	17,670	–299	–1,058	–850	15,465
Segment result EBT	–56	–562	–1,611	1,738	–492
Segment result EBIT adjusted	17,670	–299	–1,058	–850	15,465
Segment result EBT adjusted	3,346	–562	–1,611	1,738	2,910

Without PATRIZIA GewerbeInvest KAG (member of the Group since January 3, 2011)

FIRST HALF OF 2011 (JAN. 1 – JUNE 30, 2011)

			Special	Corporate/
			Real Estate	Conso
EUR '000		Residential Commercial	Solutions	lidation	Total
Portfolio-Management
Third-party revenues	486	823	1,653	1	2,963
Rental revenues	0	154	110	1	266
Intercompany revenues	5,669	1,850	2,978	–10,669	–173
Own Investments
Residential Property Resale
Third-party revenues	70,644	–	222	–	70,866
Rental revenues	9,910	–	214	–	10,123
Purchase price revenues from single
unit sales	45,713	–	0	–	45,713
Purchase price revenues from bloc sales	11,733	–	0	–	11,733
Other revenues	3,289	–	8	–	3,297
Intercompany revenues	123	–	0	–	123
Asset Repositioning
Third-party revenues	23,530	1,078	–	–	24,608
Rental revenues	17,749	696	–	–	18,445
Purchase price revenues from bloc sales	0	0	–	–	0
Other revenues	5,781	382	–	–	6,163
Intercompany revenues	31	19	–	–	50
Funds
Third-party revenues	1,827	6,351	–	–	8,178
Intercompany revenues	0	0	–	–	0
Total Group revenues
Third-party revenues	96,487	8,252	1,875	1	106,613
Rental revenues	27,658	850	324	1	28,834
Purchase price revenues from single
unit sales	45,713	0	0	0	45,713
Purchase price revenues from bloc sales	11,733	0	0	0	11,733
Other revenues	11,382	7,402	1,551	0	20,335
Intercompany revenues	5,823	1,869	2,978	–10,669	0
Finance income	11,907	417	452	–873	11,903
Finance cost	–26,671	–1,807	–1,285	6,791	–22,972
Significant non-cash earnings
Market valuation income derivatives	11,367	143	0	0	11,511
Market valuation expenditures derivatives	–889	0	0	0	–889
Amortization of other intangible assets	0	–984	0	0	–984
Segment result EBIT	27,184	1,216	–588	–6,053	21,760
Segment result EBT	12,420	–174	–1,421	–135	10,690
Segment result EBIT adjusted	27,184	2,200	–588	–6,053	22,744
Segment result EBT adjusted	1,942	667	–1,421	–135	1,053

FIRST HALF OF 2010 (JAN. 1 – JUNE 30, 2010)

			Special	Corporate/
			Real Estate	Conso
EUR '000		Residential Commercial1	Solutions	lidation	Total
Portfolio-Management
Third-party revenues	134	846	1,463	3	2,445
Rental revenues	0	119	181	1	302
Intercompany revenues	6,702	1,120	2,355	–10,312	–135
Own Investments
Residential Property Resale
Third-party revenues	120,280	–	410	–	120,690
Rental revenues	12,751	–	11	–	12,763
Purchase price revenues from single
unit sales	60,375	–	390	–	60,765
Purchase price revenues from bloc sales	42,100	–	0	–	42,100
Other revenues	5,054	–	9	–	5,063
Intercompany revenues	128	–	0	–	128
Asset Repositioning
Third-party revenues	25,471	1,011	–	–	26,482
Rental revenues	19,079	622	–	–	19,701
Purchase price revenues from bloc sales	0	0	–	–	0
Other revenues	6,392	389	–	–	6,781
Intercompany revenues	0	6	–	–	6
Funds
Third-party revenues	3,469	0	–	–	3,469
Intercompany revenues	1	0	–	–	1
Total Group revenues
Third-party revenues	149,362	1,857	1,867	1	153,087
Rental revenues	31,830	741	192	1	32,765
Purchase price revenues from single
unit sales	60,375	0	390	0	60,765
Purchase price revenues from bloc sales	42,100	0	0	0	42,100
Other revenues	15,057	1,116	1,285	0	17,457
Intercompany revenues	6,830	1,127	2,355	–10,312	0
Finance income	394	129	346	–301	569
Finance cost	–39,353	–651	–1,066	5,629	–35,441
Significant non-cash earnings
Market valuation income derivatives	183	0	0	0	183
Market valuation expenditures derivatives	–10,781	0	0	0	–10,781
Amortization of other intangible assets	0	0	0	0	0
Segment result EBIT	34,458	–43	–1,675	–3,421	29,319
Segment result EBT	–4,500	–564	–2,394	1,906	–5,552
Segment result EBIT adjusted	34,458	–43	–1,675	–3,421	29,319
Segment result EBT adjusted	6,098	–564	–2,394	1,906	5,046

Without PATRIZIA GewerbeInvest KAG (member of the Group since January 3, 2011)

The assets and liabilities in the Residential segment account for well over 90% of the total assets and liabilities of the Group due to the capital intensity of this segment. For this reason, there is no breakdown of assets and liabilities by individual segment.

13 Transactions with related Companies and Individuals

At the reporting date, the Management Board of PATRIZIA Immobilien AG was not aware of any dealings, contracts or legal transactions with associated or related parties for which the Company does not receive appropriate consideration at arm's length conditions. All such transactions are conducted at arm's length, and hence do not differ 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 financial statements in the 2010 Annual Report remain valid.

14 Declaration of the Legal Representatives of PATRIZIA Immobilien AG in line with Article 37y of the Wertpapierhandelsgesetz (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 financial reporting, we declare that the interim consolidated financial statements give a true and fair view of the assets, liabilities, financial position and profit or loss of the group, and 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 financial year.

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

Financial Calendar 2011 and Contact

FINANCIAL CALENDAR 2011

August 10, 2011	Interim Report – 2nd Quarter 2011
October 4–6, 2011	EXPO REAL, Munich Fair (PATRIZIA in hall B2, booth 234)
October 19, 2011	Real Estate Share Initiative, Frankfurt/Main
November 9, 2011	Interim Report – 3rd Quarter 2011

PATRIZIA Immobilien AG PATRIZIA Bürohaus

Fuggerstrasse 26 86150 Augsburg Germany Phone +49/8 21/5 09 10-0 00 Fax +49/8 21/5 09 10-9 99 immobilien@patrizia.ag www.patrizia.ag

Investor Relations

Margit Miller Phone +49/8 21/5 09 10-3 69 Fax +49/8 21/5 09 10-3 99 investor.relations@patrizia.ag

Press

Andreas Menke Phone +49/8 21/5 09 10-6 55 Fax +49/8 21/5 09 10-6 95 presse@patrizia.ag

This interim report was published on August 10, 2011, and is also available in German. The German text will be the definitive version in cases of doubt.