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CA Immobilien Anlagen AG

Quarterly Report May 24, 2016

738_10-q_2016-05-24_612456a0-3bde-402e-9ff8-9c2acbb4ec6a.pdf

Quarterly Report

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URBAN BENCHMARKS.

FINANCIAL REPORT
AS AT 31 MARCH 2016

FINANCIAL KEY FIGURES1)

INCOME STATEMENT
1.1.-31.03.2016 1.1.-31.03.2015
Rental income €m 40.2 34.7
EBITDA €m 28.8 27.8
Operating result (EBIT) €m 46.5 25.2
Net result before taxes (EBT) €m 19.1 18.3
Consolidated net income €m 13.2 19.3
Operating cash flow €m 34.4 30.1
Capital expenditure €m 22.1 26.7
FFO I (excl. Trading and pre taxes) €m 20.9 21.8
FFO II (incl. Trading and after taxes) €m 14.9 19.5

BALANCE SHEET

31.03.2016 31.12.2015
Total assets €m 4,066.5 3,984.0
Shareholders' equity $\epsilon$ m 2.119.7 2,120.5
Long and short term interest-bearing liabilities $\epsilon$ m 1.486.1 1,404.0
Net debt €m 1.201.0 1.191.4
Net asset value (EPRA NAV) €m 2.357.6 2,354.4
Triple Net asset value (EPRA NNNAV) €m 2.191.4 2,196.3
Gearing $\frac{0}{0}$ 56.7 56.2
Equity ratio $\%$ 52.1 53.2
Gross LTV $\frac{0}{0}$ 45.9 43.8
Net LTV $\frac{0}{0}$ 37.1 37.2

PROPERTY PORTFOLIO2)

. .w.
31.03.2016 31.12.2015
Total usable space (excl. parking, excl. projects) 3) sam 1.652.451 1,655,187
Gross yield investment properties 4) $\%$
Fair value of properties €m 3.599.8 3,655.8
Occupancy rate 4) $\%$ 92.2 92
SHARE RELATED KEY FIGURES
1.1.-31.03.2016 1.1.31.03.2015
Rental income / share 0.42 0.35
Operating cash flow / share 0.36 0.30
Earnings per share 0.14 0.20
FFO 1 / share 0.22 0.22
31.03.2016 31.12.2015
NAV/share 22.12 21.90
EPRA NAV/share 24.61 24.32
EPRA NNNAV/share 22.87 22.69
Dividend 0.50 0.45
Dividend vield $\%$ 2.89 2.67

SHARES

31.03.2016 31.12.2015
Number of shares pcs. 98,808,336 98,808,336
Treasury shares pcs. 3.000.000 2,000,000
number of shares outstanding pcs. 95.808.336 96,808,336
Ø number of shares pcs. 98,808,336 98,808,336
Ø Treasury shares pcs. 2,663,343 866,601
Ø number of shares outstanding pcs. 96,144,993 97,941,735
$Ø$ price/share 15.83 16.80
Closing price $(31.03.)$ 17.28 16.83
Highest price 17.32 18.59
Lowest price 14.35 14.82

The comparative figures include all fully consolidated properties, i.e. all properties wholly owned by CA Immo. The comparative figures for the previous
year have been adapted 2) Includes fully consolidated real estate (

$\operatorname{stabilisation}$ phase

FOREWORD BY THE MANAGEMENT BOARD

DEAR SHAREHOLDERS.

Following a record result last year, CA Immo made a successful start to the new business year 2016 with an operationally strong first quarter.

Results for quarter one 2016

In the first three months, rental income for CA Immo increased by a significant 15.7% to $\epsilon$ 40.2 m. This positive trend was essentially made possible by the acquisition of the minority share of the EBRD early in quarter three 2015 and the increase in rent this entailed. Net rental income stood at $\epsilon$ 35.3 m, up 13.1% on the 2015 figure of $\epsilon$ 31.2 m.

The overall result from property sales amounted to €0.6 m in the first quarter of 2016 (€ 1.1 m in 2015). Earnings before interest, taxes, depreciation and amortisation (EBITDA) stood at $\epsilon$ 28.8 m, 3.5% above the previous vear's level of $\epsilon$ 27.8 m. The revaluation result on key date 31 March 2016 was $\epsilon$ 16.7 m, well up on the reference value of 2015 ( $\epsilon$ -3.8 m). Earnings before interest and taxes (EBIT) stood at $\epsilon$ 46.5 m on key date 31 March 2016, up by a significant 84.4% on the 2015 figure of $\epsilon$ 25.2 m.

The financial result for the first quarter was $\epsilon$ -27.4 m, compared to $\epsilon$ -6.9 m last year. The Group's financing costs, a key element in long-term earnings, rose to $\epsilon$ -11.2 m (against $\epsilon$ -14.9 m in 2015). Earnings before taxes (EBT) increased from $\epsilon$ 18.3 m in 2015 to $\epsilon$ 19.1 m. Owing to a positive tax effect in the first quarter of the previous year, the result for the period declined to € 13.2 m or € 0.14 per share (€ 19.3 m or € 0.20 per share in 2015).

FFO I, a key indicator of the Group's long-term earnings power, reported before taxes and adjusted for the sales result and other non-permanent effects, totalled $\epsilon$ 20.9 m in quarter one of 2016 ( $\epsilon$ 21.8 m in 2015). FFO I per share amounted to € 0.22 (2015: € 0.22 per share).

CA Immo has upheld a robust balance sheet with an equity ratio of 52% and a conservative loan-to-value ratio (net debt to property assets) of 37%. On the key date, NAV (shareholders' equity) per share was $\epsilon$ 22.12 (against $\epsilon$ 21.90 per share on 31.12.2015). EPRA NAV stood at 24.61 € per share (against € 24.32 per share on 31.12.2015).

Core shareholder sells 26% stake in CA Immo

The CA Immo Group has been informed by O1 Group Limited that O1 sold 25,690,163 bearer shares (indirectly held through Terim Limited of Cyprus and representing approximately 26% of the total capital stock of CA Immo) along with four registered shares in CA Immo directly held by O1 to Immofinanz AG on the basis of the share purchase agreement of 17 April 2016. The purchase price was $\epsilon$ 23.50 per share, with the total transaction volume approximately $\epsilon$ 604 m. The transaction is subject to conditions precedent (in particular authorisation from antitrust authorities in Austria, Germany and other jurisdictions) as well as approval of the CA Immo Management Board to transfer the registered shares. Closing of the transaction is expected to take place in summer this year.

Potential merger of CA Immo and Immofinanz

CA Immo and Immofinanz have agreed to enter into constructive dialogue concerning a potential amalgamation of the two companies. In line with the Austrian Stock Corporation Act, such a merger must be approved by the Ordinary General Meetings of both organisations with a 75% majority. In addition to closing of the acquisition of a 26% stake, Immofinanz advocates selling or spinning off the Russia portfolio as a precondition to potentially successful merger negotiations. From today's point of view, the process is expected to last around one vear.

Changes in the Supervisory Board

At the 29th Ordinary General Meeting held on 3 May 2016, O1 Group Limited utilised the right of appointment conferred by its registered shares for the first time. Dr. Wolfgang Renner, Marina Rudneva and Timothy Fenwick were duly appointed to the Supervisory Board with immediate effect. Also at this meeting, Torsten Hollstein and Dr. Florian Koschat were elected to the Supervisory Board at the request of the main shareholder until the

Ordinary General Meeting that rules on the approval of actions in business year 2020. The maximum number of shareholder representatives permitted by the Articles of Association (12) has thereby been reached. The following changes also took place: Torsten Hollstein was elected as the new Chairman of the Supervisory Board, with Dr. Florian Koschat elected as the new Second Deputy Chairman; Dmitry Mints was confirmed as Deputy Chairman of the Supervisory Board. The works council also exercised its right to appoint four representatives to the Supervisory Board.

Dividend of $\epsilon$ 0.50 per share

The Management Board's proposal to raise the dividend a third consecutive year to $\epsilon$ 0.50 per share (2014: $\epsilon$ 0.45 per share) on the basis of the strong operational results was approved by shareholders in the 29th Ordinary General Meeting. The dividend payment translated into a distribution of some 60% of recurring earnings (FFO I).

Outlook

Raising value through portfolio growth on defined core markets constitutes the strategic focus of CA Immo. The aim to raise the company's long-term profitability remains the core target for the Group.

In this context, the development of high quality core office properties on the core markets of CA Immo as a driver of organic growth, especially in Germany, will remain critically important in the business years ahead. In 2016 specific efforts will be made to advance development projects under construction in Berlin (KPMG), Frankfurt (Mannheimer Strasse) and Vienna (Laendyard Living). Moreover, dates for the commencement of construction work will quickly be assigned to development projects at the preparation stage; at present, this applies to the office projects MY.O (Munich), ZigZag (Mainz), ViE (Vienna), Rieck 1 (Berlin) and Kubus (Berlin).

Vienna, May 2016

The Management Board

Frank Nickel (Chief Executive Officer)

Klow

Florian Nowotny (Member of the Management Board)

. . . . . . . . . . . . . . . . . . .

RATE DEVELOPMENT, STOCK EXCHANGE SALES AND MARKET CAPITALISATION

The CA Immo share opened business year 2016 at a rate of €16.98; during the first quarter, the price developed broadly in line with many European share markets. By mid-February the share had fallen by 15.5%, reaching a low for the year of €14.35 on 11 February. The share started to climb again in the second half of quarter one, closing the first quarter at an annual high of $\epsilon$ 17.32 (up) 2.6% since the beginning of the year). By contrast, the ATX reported a loss of 5.3%; reference values IATX and EPRA also closed the first quarter down 3.5% and 3.9% respectively.

As at 31 March 2016, market capitalisation for CA Immo stood at $\text{\textsterling}1,706.9$ m (compared to $\text{\textsterling}1,662.9$ m on 31.12.2015). Since the end of 2015, the average trading volume has risen marginally to 435,100 shares (against 431,700 on 31 December 2015). In the first three months, the average liquidity of the share was $\epsilon$ 6,854.8 K $(\text{\textsterling}7,319.1 \text{ K} \text{ on } 31.12.2015)$ . CA Immo is currently weighted at 4.07% on the ATX.

Share buyback programme 2016

On the basis of the enabling resolution passed at the 27th Ordinary General Meeting on 8 May 2014 in accordance with article 65 subsection 1 line 8 of the Stock Corporation Act, a total of 1,000,000 bearer shares of the company (ISIN AT0000641352) were acquired between 13 January 2016 and 19 February 2016 for an approximate price of $\epsilon$ 15.4 m. The weighted equivalent value was approximately $£15.3929$ per share. The highest/lowest equivalent value per share in the buyback programme was €16.38/€14.385 respectively. Another buyback programme for up to two million own shares (approximately 2% of the capital stock) was launched on 25 March 2016; it will conclude by 7 October 2016 at the latest. The upper limit is $\epsilon$ 17.50 per share. As at the balance sheet date, CA Immobilien Anlagen AG held 3,000,000 own shares in total; given the total number of voting shares issued (98,808,336), this is equivalent to

ONE YEAR PERFORMANCE

$(31.3.2015 \text{ to } 31.3.2016)$

CA Immo-share $-1.06\%$
ATX $-9.35\%$
TATX $-6,33\%$
EPRA Developed Europe $-6.19%$
.
__

Source: Bloomberg

around 3.04% of the voting shares. Details of transactions completed, along with any changes to the programme, will be published at http://www.caimmo.com/de/investorrelations/aktienrueckkauf/.

ANALYST COVERAGE

CA Immo is currently assessed by eight investment companies. Analysts from Deutsche Bank, Kepler Chevreux, RCB and SRC Research recently affirmed their recommendations to purchase along with target prices; Baader Helvea remained 'neutral' with a target rate of €17.00. In overall terms, the 12-month target rates most recently published fluctuated between $£17.00$ and $£22.00$ . The valuation median of $\epsilon$ 19.55 implies price potential of 12.9% (based on the closing rate for 31 March 2016).

ANALYST-RECOMMENDATIONS

Helvea Baader Bank 27.4.2016 17.00 Neutral
Deutsche Bank 23.3.2016 22,00 Buy
Erste Group 1.10.2015 19.80 Buy
Goldman Sachs 22.1.2016 19.40 Neutral
HSBC 2.2.2016 18.60 Neutral
Kepler Cheuvreux 20.4.2016 19.50 Buy
Raiffeisen Centrobank 21.4.2016 19.60 Buy
SRC Research 20.4.2016 21,00 Buy
Average 19.61
Median 19.55

CAPITAL STOCK AND SHAREHOLDER STRUCTURE

The company's capital stock amounted to €718,336,602.72 on the balance sheet date. This was divided into four registered shares and 98,808,332 bearer shares each with a proportionate amount of the capital stock of $\epsilon$ 7.27. The bearer shares trade on the prime market segment of the Vienna Stock Exchange (ISIN: AT0000641352).

Core shareholder sells 26% stake in CA Immo

On 18 April 2016, the O1 Group informed the company that the Group had sold 25,690,163 bearer shares (indirectly held through Terim Limited of Cyprus and representing approximately 26% of the total capital stock of CA Immo) along with four registered shares in CA Immo directly held by O1 Group Limited to IMMOFINANZ AG on the basis of the share purchase agreement of 17 April 2016. The purchase price was $£23.50$ per share, with the total transaction volume standing at approximately $\epsilon$ 604 m. Since the closing of the transaction is subject to conditions precedent, O1 Group remains the largest shareholder in CA Immo. O1 Group constituted around 52.3% of the capital represented at the 29th Ordinary General Meeting.

The remaining shares of CA Immo (approximately 74%) of the capital stock) are in free float with both institu-

tional and private investors. The second largest shareholder is AXA S.A. with a holding of more than 4%, held in turn via various mutual funds. The company is not aware of any other shareholders with a stake of more than $4\%$ or $5\%$ .

SHAREHOLDER STRUCTURE

Change to the Supervisory Board

At the 29th Ordinary General Meeting, O1 Group Limited utilised the right of appointment conferred by its registered shares for the first time. Dr. Wolfgang Renner, Marina Rudneva and Timothy Fenwick were duly appointed to the Supervisory Board with immediate effect. Also at this meeting, Torsten Hollstein and Dr. Florian

Koschat were elected to the Supervisory Board at the request of the main shareholder until the Ordinary General Meeting that rules on the approval of actions in business year 2020. The maximum number of shareholder representatives permitted by the Articles of Association (12) has thereby been reached. The following changes also took place: Torsten Hollstein was elected as the new Chairman of the Supervisory Board, with Dr. Florian Koschat elected as the new Second Deputy Chairman; Dmitry Mints was confirmed as Deputy Chairman of the Supervisory Board. The works council also exercised its right to appoint four representatives to the Supervisory Board.

Resolutions of the Ordinary General Meeting

The 29th Ordinary General Meeting, held on 3 May 2016 and attended by 560 shareholders and their delegates (representing around 49% of the capital stock), recommended payment of a dividend amounting to 50 cents per share. The payment took the form of a capital repayment under Austrian taxation law and was thus taxfree for natural persons living in Austria holding shares as personal assets. The dividend was paid on 10 May 2016 and the ex-dividend date was 6 May 2016. Eligible stock in connection with the payment (record date) was determined on 9 May 2016.

Alongside the usual agenda items (approval of the actions of Management and Supervisory Board members, the definition of Supervisory Board remuneration and confirmation of KPMG Austria GmbH Wirtschaftsprüfungs- und Steuerberatungsgesellschaft as the (Group) auditor for business year 2016) and the changes to the Supervisory Board outlined above, the agenda also covered redrafting of the authorisation of the Management Board to acquire own shares in accordance with article 65 subsection 1 line 8 of the Stock Corporation Act (nonspecific acquisition), the associated usage approval and amendments to the statutes.

.......................................

KEY FIGURES PER SHARE

31.3.2016 31.12.2015
EPRA NNNAV/share 22.87 22.69
NAV/share 22.12 21.90
Price (key date)/NAV per share $-1^{1}$ $\%$ $-21.92$ $-23.16$
Price (key date)/NNNAV per share $-1$ 1) $-24.47$ $-25.82$
Number of shares pcs. 98,808,336 98,808,336
Treasury shares pcs. 3,000,000 2,000,000
Number of shares outstanding pcs. 95,808,336 96,808,336
Ø Number of shares pcs. 98,808,336 98,808,336
$\emptyset$ Treasury shares pcs. 2,663,343 866,601
$\emptyset$ Number of shares out
standing
pcs. 96,144,993 97,941,735
Ø Price/share 15.83 16.80
Market capitalisation (key date) $\epsilon$ m 1,707 1,663
Highest price 17.32 18.59
Lowest price 14.35 14.82
Closing price 17.28 16.83
Dividend 0.50 0.45
Dividend yield $\%$ 2.89 2.67

1) Before deferred taxes

BASIC INFORMATION ON THE CA IMMO SHARE

Type of shares: No-par value shares
Stock market listing: Vienna Stock Exchange, prime market
Indices: ATX, ATX-Prime, IATX, FTSE EPRA/NAREIT Europe, GPR 250, WBI
Specialist: Spire Europe Limited
Market maker: Baader Bank AG, Erste Group Bank AG, Flow Traders B.V., Hudson River Trading Europe
Ltd., ODDO SEYDLER BANK AG, Raiffeisen Centrobank AG, Socíété Générale S.A., Virtu
Financial Ireland Limited, WOOD & Company Financial Services, a.s.
Stock exchange symbol / ISIN: CAI / AT0000641352
Reuters: CAIV.VI
Bloomberg: CAL AV
E-Mail: [email protected]
Web site: www.caimmo.com

Investor Relations contacts:

Christoph Thurnberger Tel.: +43 1 532 59 07-504 Fax: +43 1 532 59 07-550 [email protected] Claudia Höbart Tel.: +43 1 532 59 07-502 Fax: +43 1 532 59 07-550 [email protected]

FINANCIAL CALENDAR 2016

23 MARCH

PUBLICATION OF ANNUAL RESULTS FOR 2015
PRESS CONFERENCE ON FINANCIAL STATEMENTS

23 APRIL

VERIFICATION DATE FOR THE 29TH ORDINARY GENERAL MEETING

3 MAY

29TH ORDINARY GENERAL MEETING

$6$ MAY / $9$ MAY / $10$ MAY

EX-DIVIDEND DATE / RECORD DATE (DIVIDEND) /
DIVIDEND PAYMENT DAY

25 MAY INTERIM REPORT FOR THE FIRST QUARTER 2016

25 AUGUST SEMI-ANNUAL REPORT 2016

24 NOVEMBER INTERIM REPORT FOR THE THIRD QUARTER 2016

22 MARCH 2017

PUBLICATION OF ANNUAL RESULTS FOR 2016
PRESS CONFERENCE ON FINANCIAL STATEMENTS

General market climate1)

The International Monetary Fund (IMF) recently issued a revised forecast for 2016, lowering its outlook on global economic growth from 3.4% to 3.2%. Economic development in China remains a fundamental factor of uncertainty for the global economy. While Chinese exports increased by 18.7% in March 2016, the volume of bank loans and other debt instruments had risen considerably at the same time. GDP growth recorded for the first quarter of 2016 arrived at 6.7%. Although this is the slowest growth rate since 2009, it is in line with the new target of 6.5% to 7% set by the Chinese government.

Seasonally adjusted GDP in the eurozone rose by 0.5% in the first quarter of 2016 compared to the previous quarter, or by 1.5% compared to the first quarter of 2015. In Germany GDP went up by 1.6% on the first quarter of the prior year, or by 0.7% on the previous quarter. Development in Austria was less dynamic in the first quarter, with growth arriving at 1.0% year-on-year and 0.6% compared to the previous quarter.

In March 2016 the European Central Bank (ECB) led by Mario Draghi announced a set of measures which exceeded market expectations. Apart from another decrease of the deposit rate to -0.4%, the ECB expanded its policy of quantitative easing. Since April, the programme for purchasing government bonds and other securities has been increased to $\epsilon$ 80 bn per month, replacing the previous volume of $\epsilon$ 60 bn. It was only in December of 2015 that the programme had been extended until at least end of March 2017.

The rate of unemployment in the eurozone recorded in March 2016 was 10.2% compared to 11.2% in March 2015. The lowest unemployment rates in the CA Immo core markets – all of which reported figures considerably below the European average – were recorded in the Czech Republic (4.1%) and Germany (4.5%). Austria and Hungary reported 5.6% and 5.8%, ranking also in the lower segment, followed by Romania at 6.4% and Poland at $6.8\%$ .

The interest environment2)

The 3-month-Euribor rate remained in negative territory, fluctuating between -0.13% and -0.24% in the reporting period. Yields on government bonds from eurozone countries and corporate bonds with good credit ratings also remained at historically low levels.

Central and Eastern Europe3)

CA Immo's core CEE markets maintained their relatively positive growth trends during the first quarter.

In the first quarter, GDP in Poland increased by 2.5% on the prior year, showing a somewhat weakened growth trend $(+0.7\%$ against the previous quarter). Polish currency zloty temporarily traded at a EUR/PLN level of 4.5. Depreciation was associated with the change of government and the ensuing uncertainty among investors. Moreover, rating agency S&P in January downgraded Poland's rating from previously A- with positive outlook to BBB+ with negative outlook. Despite deflationary tendencies (-0.9% in March, -1.1% in April), the Polish National Bank adheres to its interest level of 1.5%.

In Hungary, GDP growth of 0.5% year-on-year and -0.8% against the previous quarter is pointing to a decreasingly dynamic development, mainly due to lower inflows from EU funds. The Hungarian National Bank further reduced the interest rate in two steps, from 1.35% to 1.05% between February and April 2016. The deposit rate was cut to -0.05%, whereas the inflation rate remained at a historically low level.

In the Czech Republic GDP growth in the first quarter of 2016 slowed down to 3.1% from the three preceding quarters. As expected, the Czech Central Bank left the interest rate at 0.05% and confirmed its intention to keep the EUR/CZK exchange rate at 27 until mid-2017.

In Romania solid growth momentum has been observed. Real GDP rose by 1.6% in the first quarter of 2016 against the previous quarter and by 4.2% against the first quarter of 2015.

<sup>1) Eurostat; IMF; Deistatis; Bloomberg; The Economist; Financial Times 2) Eurostat; European Central Bank; Bloomberg

<sup>3) Central Statistical Office of Poland (GUS); Hungary (KSH); Czech Republic (CZSO); National Statistical Institute of Romania (NIS); Eurostat

PROPERTY MARKETS

The real estate investment market1)

Transaction activity on the European investment market for commercial real estate started dynamically in 2016 after a record quarter at the end of the previous year. Although the investment volume of some $\epsilon$ 51 bn was down on the previous year's level of about $\epsilon$ 61 bn, the first quarter of the current year was historically still one of the highest in terms of revenue. Slightly more than 40% of the volume was invested in the office real estate sector. While the European key markets of the UK, Germany and France recorded a downward trend in comparison with the previous year, markets, such as Scandinavia, the CEE region, Russia and the Benelux countries, reported increasing investor interest. The continuing positive investor sentiment means that the expected level of demand remains high, particularly in the core segment, which is characterised by increasingly scarce supply.

The investment volume in Germany in the first quarter of 2016 totalled about $\epsilon$ 8.2 bn, down by around 14% on the reference quarter in the previous year. Some 47% of this is accounted for by the office property asset class, which thus continues to be the segment for which demand is highest. The difference between government bond yields and prime yields remains at a historically high level, although the drop in yields has slowed in recent months. The prime yields for office property are reported for Frankfurt at 4.35% and Berlin at currently 4.0%. Munich, with 3.65%, is already significantly lower.

The transaction volume in Austria in Q1 2016, at about $\epsilon$ 0.5 bn, fell by around 20% in comparison with the previous year. Some 44% of this volume was accounted for by office properties. A high overall investment volume is expected for 2016, as in the previous year. The peak yield in the office sector remains under pressure and is reported as 4.9% for good locations, while the yield for top properties may fall to up to 4.15%.

In the CEE region, transaction activity of about $\epsilon$ 1.8 bn was recorded in the first three months (2015: $\epsilon$ 2.0 bn). Office prime yields are currently reported as follows: Warsaw 5.5%, Prague 5.5%, Budapest 7.0% and Bucharest 7.5%.

Office property markets2)

The German office leasing market demonstrated a good dynamic at the start of the year and was able to achieve an increase of 10% in take-up volume over Q1 2015, at about 890,000 sqm. The total vacancy rate at the end of Q1 2016 was about 16% below the figure for the previous year. The letting performance in Berlin totalled 247,000 sqm, a record figure for a first quarter. The vacancy rate has continued to fall and stands at $6.0\%$ (Q1 2015: 7.4%). In Frankfurt, floor area leased in the first quarter was 131,000 sqm $(+51\%$ over Q1 2015) thus exhibiting the strongest start to the year for four years. The vacancy rate fell in comparison to the previous year and was 8.9% as against $10.3\%$ a year ago. In Munich, the office leasing market exhibited good dynamics with the first quarter showing a take-up volume of 187,000 sqm, well above average. The current vacancy rate at the end of the first quarter was 5.3% which means that it has halved over the past five years.

Letting performance in Vienna declined with a total of 51,000 sqm in the first quarter, about 15% below the previous year's level. The vacancy rate fell slightly, as in the previous quarters, and stands at 6.2%. No new office space came on to the market in Vienna in the first three months of the year.

Six new building complexes with a rentable area of about 113,000 sqm were completed in Warsaw in the first quarter. The total development pipeline amounts to about 685,000 sqm. Office space take-up remains at a high level, but, at 143,000 sqm, was some 15% lower than in the previous year. The vacancy rate is showing a rising trend and is currently at $14.1\%$ . In Budapest, as in the previous quarters, a falling vacancy rate can be seen, currently lying at 11.3% and likely to reduce further in the face of shortterm, limited supply of new space. In comparison with the previous year, take-up of space increased by more than 50% to around 376,000 sqm. In Prague, letting activity of about 92,000 sqm was recorded in the first quarter (a 39% decline on the previous year). The average vacancy rate was 13.9%. In Bucharest, a promising dynamic can already be seen in Q1 for the year as a whole. Letting activity of more than 100,000 sqm is an historic high for quarterly levels. The vacancy rate has fallen further and stands at 12.3% as compared to 13.3% in the previous year.

<sup>1) CBRE: European Investment Quarterly MarketView, Central Eastern Europe Property Investment Q1 2016, EMEA Rents and Yields MarketView Q1 2016; Jones Lang LaSalle: Investmentmarküberblick Deutschland, Q1 2016

$^{\rm 2)}$ Jones Lang LaSalle: Office Market Profile Q1 2016: Berlin, Frankfurt, Munich; CBRE: Vienna, Budapest, Bucharest, Warsaw Office MarketView O1 2016

PROPERTY ASSETS

As at key date 31 March 2016, CA Immo's total property assets stood at € 3.6 bn (31.12.2015: € 3.7 bn). The company's core business is commercial real estate, with a clear focus on office properties in Germany, Austria and Eastern Europe; it deals with both investment properties (85% of the total portfolio) and investment properties under development (12% of the total portfolio). Properties intended for trading (reported under short-term property assets) account for the remaining 3% of property assets.

As at 31 March 2016, the investment property portfolio had an approximate market value of $\epsilon$ 3.0 bn (of which fully consolidated: $\in$ 2.8 bn) and incorporated a total rentable effective area1 of 1.4 m sqm. Around 45% of the portfolio (on the basis of book value) is located in CEE and SEE nations, with 36% of the remaining investment properties in Germany and 19% in Austria. In the first three months of the year, the Group generated rental income of $\epsilon$ 44.5 m; the portfolio produced a yield of 6.4%2. The occupancy rate was $92.2\%$ 2 as at 31 March 2016 (against 92.7% on 31.12.2015). For details, please see the 'Changes to the Portfolio' section.

PORTFOLIO VALUE INVESTMENT PROPERTIES BY MAIN USAGE (Basis: € 3.0 bn)

Of investment properties under development with a total market value of around $\epsilon$ 419.5 m, development projects and land reserves in Germany account for 84%. while the Eastern Europe segment represents 12% and Austria 4%. Investment properties under development in Germany with a total market value of $\epsilon$ 352.6 m include projects under construction with a value of $\epsilon$ 75.6 m and land reserves with a book value of $\epsilon$ 277.0 m.

1) Including properties used for own purposes and superaedificates

2) Excl. the shortly completed office projects Kontorhaus (Munich), John F.

Kennedy Haus and Monnet 4 (Berlin). These project completions includ-

ed, the yield stands at 6.2% and the occupancy rate is 90.3%

in $\epsilon$ m Investment properties Investment properties
under development
Short-term property
assets
Property assets Property assets in %
full at Σ full at Σ full at Σ full at Σ full at Σ
equity equity equity equity equity
Austria 588 $\mathbf{0}$ 588 16 $\Omega$ 16 7 0 8 611 $\mathbf{0}$ 612 19 $\Omega$ 17
Germany 911 183 1,095 353 $\Omega$ 353 70 55 125 1,334 238 1,572 41 66 44
Czech Republic 228 29 257 13 $\Omega$ 13 0 0 $\Omega$ 240 29 269 7 8
Hungary 278 35 313 $\Omega$ $\Omega$ 0 280 35 315 9 10 9
Poland 292 14 306 $\Omega$ $\Omega$ $\Omega$ 0 0 292 14 306 9 4 8
Romania 258 $\mathbf{0}$ 258 17 9 26 $\Omega$ 0 $\Omega$ 275 9 284 9 $\overline{2}$ 8
Others 195 36 231 11 $\Omega$ 11 $\Omega$ 0 $\Omega$ 206 36 242 6 10
Total 2,750 297 3.047 411 9 420 77 56 133 3,238 361 3,600 100 100 100
Share of total
portfolio 85% 12% $3\%$ 100%

PROPERTY ASSETS OF THE CA IMMO GROUP AS AT 31 MARCH 2016

Full: Fully consolidated properties wholly owned by CA Immo. At equity: Includes all real estate partially owned by CA Immo accounted for using the equity method (appears under 'Income from joint ventures' in the income statement); pro-rata-share

1) Includes properties used for own purposes; incl. the shortly completed office projects Kontorhaus (Munich), John F. Kennedy Haus and Monnet 4 (Berlin) 2) Short-term property assets including properties intended for trading or sale

DISTRIBUTION OF BOOK VALUE INVESTMENT PROPERTIES BY COUNTRY (Basis: € 3.0 bn)

$\overbrace{ \text{DISTRIBUTION OF BOOK VALUE INVESTMENT} }^{\text{DISTRIBUTION OF BOOK VALUE INVESTMENT} }$ PROPERTIES BY SEGMENT (Basis: $\epsilon$ 3.0 bn)

DISTRIBUTION OF BOOK VALUE TOTAL PROPERTIES BY COUNTRY (Basis: € 3.6 bn)

DISTRIBUTION OF BOOK VALUE TOTAL PROPERTIES BY SEGMENT (Basis: $\epsilon$ 3.6 bn)

CHANGES TO THE PORTFOLIO IN THE FIRST QUARTER OF 2016

GERMANY

The investment property portfolio

In Germany, CA Immo held investment properties with an approximate value of $\epsilon$ 1,092.1 m1 on 31 March 2016 (thereof $\epsilon$ 908.9 m 100% owned by CA Immo). The occupancy rate for the german investment property assets on the key date was 94.0%2) (against 93.8% on 31.12.2015). Where the rent contributions of properties intended for trading and temporarily let property reserves in the development segment are taken into account, rental income of $\epsilon$ 13.8 m was generated in the first three months.

Approximately 2,500 sqm of rental space was newly let or extended in Germany between January and the end of March. The biggest single rental was the conclusion of a lease agreement for some 2,100 sqm in the LaVista office and commercial building in Düsseldorf's BelsenPark quarter. The tenant is a company in the personnel services industry. Taking this lease agreement into account, the building is now fully leased.

$^{\rm 1)}$ Includes fully consolidated real estate (wholly owned by CA Immo) and real estate in which CA Immo holds a proportionate share (at equity); excl. properties used for own purposes; incl. the recently completed office projects Kontorhaus (Munich), John F. Kennedy Haus and Monnet 4 (Berlin)
2) Excludes the recently completed office projects Kontorhaus (Munich), John F. Kennedy Haus and Monnet 4 (Berlin) which are still in a stabilisation phase. These project completions included, the occupancy rate in Germany is 87.1%.

Development projects

As at key date 31 March, CA Immo had invested $\epsilon$ 24.9 m in development projects in Germany for 2016. On the basis of total investment costs, the volume of investment properties under construction in Germany (excluding land reserves) is approximately $\epsilon$ 435.5 m. In total, CA Immo holds investment properties under development (including land reserves) with a book value of € 352.6 m.

In January, CA Immo decided to develop an office building spanning some 9,500 sqm of gross office space in Europacity, Berlin. A leasing contract with ABDA -Bundesvereinigung Deutscher Apothekerverbände (Federal Union of German Associations of Pharmacists) concerning some 70% of the office space is already concluded. CA Immo's investment volume for this property will be around $\epsilon$ 35 m; the construction of the building is scheduled to be completed at the beginning of 2019. The contract with ABDA provides that the association will initially occupy the part of the building developed specially for its requirements for two years under a lease and will then become the owner of the property. The remaining areas of the building will remain part of CA Immo's standing portfolio.

Sales

During the first three months, trading income from German real estate totalled $\epsilon$ 20.9 m.

Portfolio value investment Rentable area Occupancy rate Annualised rental Yield
properties income
in $\epsilon$ m in sqm in $\%$ in $\epsilon$ m in $%$
full at i Σ full at equity Σ full at Σ full at Σ full at Σ
equity equity equity equity
Austria 583.3 0.0 583.3 411.387 $\overline{0}$ 411,387 95.1 0.0 95.1 32.6 0.0 32.6 5.6 0.0 5.6
Germany 669.3 183.2 852.5 252,422 34,132 286,555 95.6 88.5 94.0 34.8 9.9 44.7 5.2 5.4 5.2
Czech Republic 227.5 29.4 256.9 111,799 10,905 122,704 94.4 93.8 94.3 17.7 1.9 19.5 7.8 6.4 7.6
Hungary 278.3 35.0 313.3 162,648 39,912 202,560 85.4 84.3 85.3 20.7 3.0 23.6 7.4 8.5 7.5
Poland 292.0 13.6 305.6 93,554 5,820 99,374 90.2 100.0 90.6 19.8 0.9 20.7 6.8 7.0 6.8
Romania 258.3 0.0 258.3 106,308 $\Omega$ 106.308 95.2 0.0 95.2 21.0 0.0 21.0 8.1 0.0 8.1
Others 195.0 36.1 231.1 114,634 23,591 138,226 88.5 90.0 88.8 14.8 3.0 17.8 7.6 8.3 7.7
Total 2,503.7 297.3 2,801.0 1,252,752 114,361 1,367,113 92.5 89.1 92.2 161.3 18.7 180.0 6.4 6.3 6.4

OVERVIEW INVESTMENT PROPERTIES KEY DATA AS AT 31 MARCH 20161)

Full: Includes all fully consolidated real estate, i.e. all properties wholly owned by CA Immo. At equity: Includes all real estate (pro-rata-share) partially The meand of CAL Immo accounted for using the equity method (appears under 'Income from joint ventures' in the income statement)
1) Excludes properties used for own purposes; excludes the recently completed office projec (Berlin) which are still in a stabilisation phase. These project completions included, the occupancy rate is 90.3% and the yield stands at 6.2%. 2) incl. superaedificates in Austria (approximately 176,000 sqm)

AUSTRIA

The investment property portfolio

As at 31 March 2016, CA Immo held investment properties in Austria with a value of $\epsilon$ 583.3 m and an occupancy rate of 95.1% (96.5% on 31.12.2015). The company's asset portfolio generated rental income of $\epsilon$ 8.2 m in the first three months.

Development projects

At the Lände 3 project site on Erdberger Lände, the construction of 220 rental apartments and around 140 parking spaces has started (also see supplementary report). The completion of the residential complex, which is being constructed for an investor under the terms of a forward sale, is is planned for the first quarter of 2018.

Also in the Lände 3 city district, CA Immo and JP Immobilien develop, under a joint venture, around 270

apartments and 170 parking spaces. The investment required for the new project comprising both rental apartments and condominiums totals around $\epsilon$ 60 m. Construction is scheduled to start in fall 2016; completion is expected by the beginning of 2018.

Preparation works are ongoing for the construction of a new office building in the Lände 3 urban district development. The office building ViE, covering around 13,800 sqm, is located right next to the Donaukanal and opposite the Prater recreation area. The overall investment amounts to approx. $\epsilon$ 38 m. Construction is scheduled to start in the fall of 2016 and should be completed in 2018.

Sales

Trading income for Austria amounted to $\epsilon$ 1.0 m in the first three months.

Bird's-eye view and visualisation of the Vienna city quarter Lände 3

EASTERN EUROPE

The investment property portfolio

The value of the CA Immo investment properties is $$1,365.1$ m as at 31 March 2016 (thereof fully consolidated: $\epsilon$ 1,251.1 m). In the first three months, property assets let with a total effective area of around 670,000 sqm generated rental income of 22.5 m. The occupancy rate on the key date was 90.6% (31 December 2015: 91.1%).

New lease agreements relating to around 20,900 sqm effective area were concluded in the first three months, as well as contract extensions for some 6,500 sqm.

Development projects

In mid-March CA Immo rented 8,000 sqm of office space in the Orhideea Towers office project in Bucharest to the software company Misys, specialising in financial services. The project – developed by CA Immo and comprising 37,000 sqm of gross rentable floor space – will be completed by the end of 2017. With conclusion of this leasing contract, the pre-leasing rate stands at 22%. The total investment volume is $\epsilon$ 75 m.

Sales

In mid-September, CA Immo sold its 50%-share in Poleczki Business Park located at Warsaw airport to its long-term joint venture partner UBM Development AG. The purchase contract was signed; the closing of the transaction is subject to diverse closing conditions. The transaction volume of the sale is more than $\epsilon$ 80 m. With this transaction, CA Immo further reduces the share of minority interests in the portfolio.

SUPPLEMENTARY REPORT

The following activities after key date 31 March 2016 are reported:

Project development

In the beginning of May, CA Immo commenced building work on its Wohnbau Süd residential complex and also initiated development of two neighbouring construction sites in the framework of the urban city quarter Lände 3, Vienna. By 2018, a total of 490 rented and owneroccupied flats will be built on the three remaining construction sites alongside the ViE office building (for details please see the "Changes to the Portfolio" chapter).

Ground breaking ceremony Lände 3, Vienna: District leader Erich Hohenberger, CA Immo CEO Frank Nickel, Porr CEO Karl-Heinz Strauss

Recurring income

In the first three months of 2016, rental income for CA Immo rose by a significant 15.7% to $\epsilon$ 40,193 K. This positive trend was essentially made possible by the acquisition of the minority share of the EBRD early in quarter three 2015 and the increase in rent this entailed.

In year-on-year comparison, property expenses directly attributable to the asset portfolio, including own operating expenses, rose to $\epsilon$ -4,940 K ( $\epsilon$ -3,547 in 2015). The result from renting stood at $\epsilon$ 35,253 K after the first three months ( $\epsilon$ 31,179 K in 2015). The efficiency of letting activity, measured as the operating margin in routine business (net rental income in relation to rental income). was 87.7%, just below the previous year's value of 89.8%.

Other expenditure directly attributable to project development stood at $\epsilon$ –960 K after the first three months, against $\epsilon$ -345 K in 2015. Gross revenue from services stood at $\epsilon$ 3,077 K, below the previous year's level of $\epsilon$ 4,531 K. Alongside development revenue for third parties via the subsidiary omniCon, this item contains revenue from asset management and other services to joint venture partners.

Sales result

After the first quarter, the sales result from property assets held as current assets was $\epsilon$ –584 K ( $\epsilon$ 44 K in 2015). The result from the sale of investment properties stood at € 1,202 K on 31 March 2016 (€ 1,100 K in 2015).

Indirect expenditures

After the first three months, indirect expenditures stood at € -9,474 K, slightly above the 2015 level of $\epsilon$ -9,157 K. This item also contains expenditure counterbalancing the aforementioned gross revenue from services. Other operating income stood at $\epsilon$ 285 K compared to the 2015 value of $\epsilon$ 485 K.

Earnings before interest, taxes, depreciation and amortisation (EBITDA)

Earnings before interest, taxes, depreciation and amortisation (EBITDA) rose by 3.5% to €28,799 K (compared to $\epsilon$ 27,832 K in 2015). This figure, which exceeds that of the previous year, is essentially based on the higher rental income of the Group.

Revaluation result

After the first three months, the total revaluation gain of $\epsilon$ 20.493 K was counterbalanced by a revaluation loss of $\epsilon$ -3,750 K. The cumulative revaluation result of $\epsilon$ 16,743 K as at key date 31 March 2016 was much more positive than last year's reference value of $\epsilon$ -4,968 K. The positive value development was mainly driven by actual sales negotiations of individual properties.

Result from joint ventures

Current results of joint ventures consolidated at equity are reported under 'Result from joint ventures' in the consolidated income statement. The result of $\epsilon$ 1,796 K (down on the 2015 value of $\epsilon$ 3,014 K) was mainly due to the full takeover of shares in joint ventures and the subsequent full consolidation and sale of such shares.

Earnings before interest and taxes (EBIT)

Earnings before interest and taxes (EBIT) reflected the positive operational developments with an 84.4% increase to $\epsilon$ 46,543 K (2015: $\epsilon$ 25,238 K).

Financial result

The financial result stood at $\epsilon$ -27,405 K after the first three months ( $\epsilon$ –6,918 K in 2015). The Group's financing costs, a key element in long-term revenue, fell sharply (–24.7% down on the 2015 value to $\mathfrak{\epsilon}\text{--}11,!182$ K). After a positive value of $\epsilon$ 1,705 K last year, the result from interest rate derivative transactions was $\epsilon$ -1,557 K in the first quarter of 2016.

The result from financial investments stood at $\epsilon$ 858 K, significantly lower than the figure for the reference period of 2015 ( $\epsilon$ 6,171 K). The value for last year primarily includes accrued interest on loans to joint venture companies repurchased below par by the financing bank.

Other items in the financial result (other financial income/expense, result from other financial assets and result from associated companies and exchange rate differences) totalled € -15,525 K (€ -0,056 K in 2015). The result from other financial assets includes depreciation linked to the subsequent valuation of securities available for sale of $\epsilon$ – 14,946 K.

. . . . . . . . . . . . . . . . . . . .

Taxes on income

Earnings before taxes (EBT) stood at $\epsilon$ 19,139 K, up 4.5% on the previous year's value of $\epsilon$ 18,320 K. After the first three months, taxes on earnings stood at $\epsilon$ -5,926 K $({\epsilon\ 1.015\ K\ in\ 2015}).$

Result for the period

The result for the period was -31.6% down on last year's value, mainly due to a positive effect of taxes on earnings in the amount of $\epsilon$ 13,217 K in the reference quarter. Earnings per share amounted to $\epsilon$ 0.14 on the balance sheet date ( $\epsilon$ 0.20 per share in 2015).

Funds from operations (FFO)

An FFO I of $\epsilon$ 20,892 K was generated in the first three months of 2016, 4.1% below the previous year's value of € 21,796 K. FFO I, a key indicator of the Group's longterm earning power, is reported before taxes and adjusted for the sales result and other non-permanent effects. As at the key date, FFO I per share stood at $\epsilon$ 0.22 ( $\epsilon$ 0.22 per share in 2015). FFO II, which includes the sales result and applicable taxes, was $\epsilon$ 14,897 K on the key date (€ 19,526 K in 2015). FFO II per share was € 0.15 per share ( $\epsilon$ 0.20 per share in 2015).

FUNDS FROM OPERATIONS (FFO)

€m 1st Quarter
2016
1st
Quarter
2015
Net rental income (NRI) 35.3 31.2
Result from hotel operations 0.0 0.0
Income from services rendered 3.1 4.5
Other expenses directly related to
properties under development $-1.0$ $-0.3$
Other operating income 0.3 0.5
Other operating income/expenses 2.4 4.7
Indirect expenses $-9.5$ $-9.2$
Result from investments in joint
ventures 1) 2.3 3.8
Finance costs $-11.2$ $-14.9$
Result from financial investments 0.9 6.2
Other adjustment 2) 0.8 0.0
FFO I (excl. Trading and pre taxes) 20.9 21.8
Trading result $-0.6$ 0.0
Result from the sale of investment
properties 1.2 1.1
Result from sale of joint ventures 0.6 0.0
At-Equity result property sales $-1.5$ 0.1
Result from property sales $-0.3$ 1.2
Other financial results 0.0 0.0
Current income tax $-3.8$ $-3.2$
current income tax of joint ventures $-1.0$ $-0.3$
Other adjustments $-0.9$ 0.0
Other adjustments FFO II 0.0 0.0
FFO II 14.9 19.5

1) Adjustment for real estate sales and non-sustainable results

2) Adjustment for other non-sustainable results

Balance sheet: assets

As at the balance sheet date, long-term assets amounted to $\epsilon$ 3,443,730 K (85% of total assets). Investment property assets on balance sheet amounted to $\epsilon$ 2,743,275 K on the key date ( $\epsilon$ 2,714,305 K in 2015).

The balance sheet item 'Property assets under development' was € 411,042 K on 31 March 2016 (€ 408,979 K in 2015). Total property assets (investment properties, other properties used for own purposes, property assets under development and property assets held as current assets) amounted to $\epsilon$ 3,238,398 K on the key date.

Assets and debts of joint ventures are no longer reported individually in the consolidated balance sheet; instead, the net assets of these companies are shown in the balance sheet item 'Investments in joint ventures', which stood at $\epsilon$ 167,770 K on the key date ( $\epsilon$ 172,286 K in $2015$ ).

Cash and cash equivalents stood at $\epsilon$ 279,056 K on the balance sheet date, up on the level for 31 December 2015 $(\text{\textsterling} 207, 112 \text{ K}).$

Balance sheet: liabilities Equity

As at the key date, shareholders' equity on the Group balance sheet stood at $\epsilon$ 2,119,722 K ( $\epsilon$ 2,120,450 K on 31.12.2015). The equity ratio of 52.1% remained stable and within the strategic target range (the comparative value for the end of 2015 was 53.2%).

Interest-bearing liabilities

The Group's financial liabilities stood at $\epsilon$ 1,486,099 K on the key date against $\epsilon$ 1,403,989 K on 31.12.2015). Net debt (interest-bearing liabilities less cash and cash equivalents) increased by a marginal 0.8% on the value for the start of the year ( $\epsilon$ 1,201,038 K), amounting to € 1,201,038 K at end of March 2016.

After being granted an investment grade rating by the rating agency Moody's in December 2015, CA Immo issued a corporate bond in February 2016 with a volume of $\epsilon$ 150 m, a term of seven years and an interest rate of 2.75%. The issue was assessed at Baa2 by the rating agency Moody's, in line with the issuer rating. Proceeds from the issue will mainly serve to refinance the bond 2006-2016 due in September 2016 (€ 186 m).

The loan-to-value ratio based on market values as at 31 March 2016 was 37.1% (net, taking account of Group cash and cash equivalents) compared to 37.2% at the start of the year. Gearing was 56.7% on the key date (56.2% on 31.12.2015).

Net asset value

NAV (shareholders' equity) was $\epsilon$ 2,119,686 K on 31 March 2016 ( $\epsilon$ 22.12 per share), compared to the figure for the end of 2015 ( $\epsilon$ 2,120,410 K, $\epsilon$ 21.90 per share).

The table below shows the conversion of NAV to NNNAV in compliance with the best practice policy recommendations of the European Public Real Estate Association (EPRA). The EPRA NAV was $\epsilon$ 24.61 per share as at the key date ( $\epsilon$ 24.32 per share on 31.12.2015). The EPRA NNNAV per share after adjustments for financial instruments, liabilities and deferred taxes, stood at € 22.87 per share as at 31 March 2016 (€ 22.69 per share on 31.12.2015). The share buyback programme initiated in the first quarter of 2016 has further reduced the number of shares outstanding to 95,808,336 on the key date (96,808,336 on 31.12.2015).

NET ASSET VALUE (NAV AND NNNAV AS DEFINED BY EPRA)

$\epsilon$ m 31.3.2016 31.12.2015
Equity (NAV) 2,119.7 2,120.5
Exercise of options 0.0 0.0
NAV after exercise of options 2,119.7 2,120.5
NAV/share in $\epsilon$ 22.12 21.90
Value adjustment for 1)
- own use properties 5.2 5.1
- short-term property assets 28.1 24.3
- Financial instruments 4.7 5.1
Deferred taxes 200.0 199.4
EPRA NAV after adjustments 2,357.6 2,354.4
EPRA NAV per share in $\epsilon$ 24.61 24.32
Value adj. for financial instruments $-4.7$ $-5.1$
Value adjustment for liabilities $-18.0$ $-8.9$
Deferred taxes $-143.6$ $-144.1$
EPRA NNNAV 2,191.4 2,196.3
EPRA NNNAV per share in $\epsilon$ 22.87 22.69
Change of NNNAV against previous year $0.8\%$
Price (31.03.) / NNNAV per share $-1$ $-24.5$ $-25.8$
Number of shares excl. treasury shares 95,808,336 96,808,336

$^{\rm 1)}$ Includes proportionate values from joint ventures

CONSOLIDATED INCOME STATEMENT

$\epsilon$ 1,000 1st Quarter 2016 1st Quarter 2015
Rental income 40,193 34,726
Operating costs charged to tenants 13,821 9,105
Operating expenses $-16,496$ $-10,936$
Other expenses directly related to properties rented $-2,265$ $-1,716$
Net rental income 35,253 31,179
Revenues hotel operations 0 1,036
Expenses related to hotel operations 0 $-1,041$
Result from hotel operations $\bf{0}$ -5
Other expenses directly related to properties under development -960 -345
Income from the sale of properties and construction works 168 817
Book value of sold properties incl. ancillary and construction costs $-752$ $-773$
Result from trading and construction works $-584$ 44
Result from the sale of investment properties 1,202 1,100
Income from services rendered 3,077 4,531
Indirect expenses $-9,474$ $-9,157$
Other operating income 285 485
EBITDA 28,799 27,832
Depreciation and impairment of long-term assets $-823$ $-640$
Changes in value of properties held for trading 29 0
Depreciation and impairment/reversal $-794$ -640
Revaluation gain 20,493 2,306
Revaluation loss $-3,750$ $-7,274$
Result from revaluation 16,743 $-4,968$
Result from joint ventures 1,796 3,014
Result of operations (EBIT) 46,543 25,238
Finance costs $-11,182$ $-14,850$
Foreign currency gains/losses $-143$ 742
Result from interest rate derivative transactions $-1,557$ 1,705
Result from financial investments 858 6,171
Result from other financial assets $-14,946$ $-12$
Result from associated companies $-435$ -674
Financial result $^{-27,405}$ $-6,918$
Net result before taxes (EBT) 19,139 18,320
Current income tax $-3,786$ $-3,175$
Deferred taxes $-2,140$ 4,190
Income tax expense $-5,926$ 1,015
Consolidated net income 13,213 19,335
thereof attributable to non-controlling interests $-5$ 0
thereof attributable to the owners of the parent 13,217 19,335
Earnings per share in $\epsilon$ (basic) $\epsilon$ 0.14 $\epsilon$ 0.20
Earnings per share in $\epsilon$ (diluted) $\epsilon$ 0.14 € 0.20

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME


€ 1,000 1st Quarter 2016 1st Quarter 2015
Consolidated net income 13,213 19,335
Other comprehensive income
Cash flow hedges - changes in fair value 419 1,773
Reclassification cash flow hedges 177 0
Foreign currency gains/losses 571 $-2,841$
Assets available for sale - changes in fair value 571 18,948
Income tax related to other comprehensive income $-286$ $-4,947$
Other comprehensive income for the period (realised through profit or loss) 1,452 12,933
Other comprehensive income for the period 1,452 12,933
Comprehensive income for the period 14,665 32,268
thereof attributable to non-controlling interests $-5$ О
thereof attributable to the owners of the parent 14,669 32,268

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

€ 1,000 31.3.2016 31.12.2015
ASSETS
Investment properties 2,743,275 2,714,305
Investment properties under development 411,042 408,979
Own used properties 6,909 7,016
Office furniture and other equipment 5,665 5,710
Intangible assets 11,076 11,567
Investments in joint ventures 167,770 172,286
Financial assets 95,667 134,824
Deferred tax assets 2,325 2,376
Long-term assets 3,443,730 3,457,063
Long-term assets as a % of total assets 84.7% 86.8%
Assets held for sale and relating to disposal groups 52,585 54,048
Properties held for trading 24,587 22,069
Receivables and other assets 266,526 243,691
Cash and cash equivalents 279,056 207,112
Short-term assets 622,754 526,920
Total assets 4,066,484 3,983,983
LIABILITIES AND SHAREHOLDERS' EQUITY
Share capital 718,337 718,337
Capital reserves 906,353 921,746
Other reserves $-2,294$ $-3,746$
Retained earnings 497,291 484,074
Attributable to the owners of the parent 2,119,686 2,120,410
Non-controlling interests 35 40
Shareholders' equity 2,119,722 2,120,450
Shareholders' equity as a % of total assets 52.1% 53.2%
Provisions 15,064 15,980
Interest-bearing liabilities 981,664 858,776
Other liabilities 83,656 84,911
Deferred tax liabilities 199,741 197,365
Long-term liabilities 1,280,125 1,157,032
Current income tax liabilities 16,897 16,382
Provisions 68,680 69,177
Interest-bearing liabilities 504,434 545,214
Other liabilities 76,625 75,728
Short-term liabilities 666,637 706,501
Total liabilities and shareholders' equity 4,066,484 3.983.983

. . . . . . . . . . . . . . . . . . . .

$\overline{\text{CONSOLIDATED STATEMENT OF CASH FLOWS}}$


€ 1,000 1st Quarter 2016 1st Quarter 2015
Operating activities
Net result before taxes 19,139 18,320
Revaluation result incl. change in accrual and deferral of rental income $-17,055$ 4,093
Depreciation and impairment/reversal 794 640
Result from the sale of long-term properties and office furniture and other equipment $-1,206$ $-4,116$
Taxes paid/refunded excl. taxes for the sale of long-term properties 6,115 1,737
Finance costs, result from financial investments and other financial result 10,324 8,679
Foreign currency gains/losses 143 $-743$
Result from interest rate derivative transactions 1,557 $-1.694$
Result from other financial assets and non-cash income from investments in associated companies 13,585 674
Cash flow from operations 33,396 27,590
Properties held for trading $-2,489$ $-671$
Receivables and other assets $-133$ 7,636
Provisions 1,797 $-170$
Other liabilities 1,792 $-3,301$
Cash flow from change in net current assets 967 2,488
Cash flow from operating activities 34,363 30,078
Investing activities
Acquisition of and investment in properties incl. prepayments $-23,434$ $-27,703$
Acquisition of office equipment and intangible assets $-179$ $-178$
Acquisition of financial assets $\overline{0}$ $-36,300$
Acquisition of assets available for sale $-9,073$ $-46,659$
Investments in joint ventures $-1,250$ $-773$
Disposal of long-term properties and other assets 12,708 66,678
Disposal of investment property companies, less cash and cash equivalents of $\epsilon$ 0 K (Q1 2015: $\epsilon$ 619 K) $-52$ $-619$
Disposal of joint ventures and associated companies 1,900 23,602
Loans made to joint ventures $-412$ $-1,606$
Loan repayments made by joint ventures $\mathbf{0}$ 118,654
Taxes paid/refunded relating to the sale of long-term properties and loans granted 815 5,654
Dividend distribution/capital repayment from associated companies and securities 408 367
Interest paid for investment in properties $\Omega$ $-20$
Interest received from financial investments 166 11,878
Cash flow from investing activities $-18,403$ 117,975
Financing activities
Cash inflow from loans received $\mathbf{0}$ 18,734
Cash inflow from the issuance of bonds 149,318 174,387
Acquisition of treasury shares $-15,393$ 0
Payment related to the acquisition of shares of non-controlling interests $-1,394$ 0
Repayment of loans incl. interest rate derivatives $-65,640$ $-22,621$
Other interest paid $-10,899$ $-12,118$
Cash flow from financing activities 55,992 158,382
Net change in cash and cash equivalents 71,952 306,435
Cash and cash equivalents as at 1.1. 207,112 163,638
Changes in the value of foreign currency $-8$ 1,082
Cash and cash equivalents as at 31.3 279,056 471,155

STATEMENT OF CHANGES IN EQUITY

€ 1,000 Share capital Capital reserves - Others Capital reserves -
Treasury share
reserve
As at 1.1.2015 718,337 998,839 $\bf{0}$
Valuation / reclassification cash flow hedges 0 C $\Omega$
Revaluation of assets available for sale 0 C 0
Foreign currency gains/losses 0 $\Omega$
Consolidated net income 0 $\Omega$ $\Omega$
Comprehensive income for 2015 0 $\bf{0}$ $\bf{0}$
As at 31.03.2015 718,337 998,839 $\bf{0}$
As at 1.1.2016 718,337 954,052 $-32,306$
Valuation / reclassification cash flow hedges $\mathbf{0}$ C 0
Foreign currency gains/losses 0 $\overline{0}$ $\overline{0}$
Revaluation of assets available for sale 0 $\Omega$ $\Omega$
Consolidated net income $\overline{0}$ 0
Comprehensive income for 2016 $\mathbf{0}$ $\bf{0}$ $\mathbf{0}$
Acquisition of treasury shares 0 ſ $-15,393$
As at 31.3.2016 718,337 954,052 $-47,699$

.......................................

Ť

Retained
earnings
Valuation
result
(hedging-
reserve)
Other reserves Attributable to
shareholders of
the parent
company
Non-controlling
interests
Shareholders'
equity (total)
263,235 $-27,503$ $-1,201$ 1,951,707 $\bf{0}$ 1,951,707
1,563 0 1,563 $\overline{0}$ 1,563
$\Omega$ $\Omega$ 14,211 14,211 $\overline{0}$ 14,211
$\Omega$ $\mathbf{0}$ $-2,841$ $-2,841$ $\bf{0}$ $-2,841$
19,335 $\Omega$ $\overline{0}$ 19,335 $\mathbf 0$ 19,335
19,335 1,563 11,370 32,268 $\bf{0}$ 32,268
282,570 $-25,940$ 10,169 1,983,975 $\bf{0}$ 1,983,975
484,074 $-5,131$ 1,385 2,120,410 40 2,120,450
$\Omega$ 470 0 470 $\mathbf{0}$ 470
$\Omega$ $\Omega$ 571 571 $\mathbf 0$ 571
$\overline{0}$ $\Omega$ 412 412 $\overline{0}$ 412
13,217 0 0 13,217 $-5$ 13,213
13,217 470 982 14,669 $-5$ 14,665
0 0 $-15,393$ $\overline{0}$ $-15,393$
497,291 $-4,661$ 2,367 2,119,686 35 2,119,722

SEGMENT REPORTING

€ 1,000 Austria Germany
1st Quarter 2016 producing Income Development Total Income
producing
Development Total Income
producing
Rental income 8,209 $\boldsymbol{0}$ 8,209 15,037 3,568 18,605 20,299
Rental income with other operating
segments 130 $\overline{0}$ 130 154 $\overline{0}$ 154 $\overline{0}$
Operating costs charged to tenants 2,461 0 2,461 4,723 985 5,708 7,541
Operating expenses $-2,648$ $\boldsymbol{0}$ $-2,648$ $-5,677$ $-1,449$ $-7,125$ $-8,623$
Other expenses directly related to
properties rented $-572$ $\overline{0}$ $-572$ $-861$ $-338$ $-1,200$ $-1,172$
Net rental income 7,581 $\bf{0}$ 7,581 13,376 2,766 16,142 18,045
Result from hotel operations $\boldsymbol{0}$ $\boldsymbol{0}$ $\overline{0}$ $\overline{0}$ $\boldsymbol{0}$ $\overline{0}$ $\mathbf 0$
Other expenses directly related to
properties under development $\bf{0}$ $-89$ $-89$ $-35$ $-727$ $-762$ $\overline{0}$
Trading result $\boldsymbol{0}$ 39 39 $\overline{0}$ $-553$ $-553$ $\overline{0}$
Result from the sale of investment
properties $\boldsymbol{0}$ $-71$ $-71$ 1,510 $-3,235$ $-1,725$ 574
Income from services rendered 19 $\overline{0}$ 19 64 2,661 2,725 93
Indirect expenses $-339$ $-113$ $-452$ $-1,225$ $-3,241$ $-4,466$ $-2,235$
Other operating income 8 $\overline{0}$ 8 160 $-215$ $-55$ 78
EBITDA 7,269 $-234$ 7,035 13,850 $-2,544$ 11,306 16,554
Depreciation and impairment/reversal $-445$ $\overline{0}$ $-445$ $-19$ $-123$ $-142$ $-84$
Result from revaluation 2,961 67 3,028 15,852 1,520 17,373 $-2,926$
Result from joint ventures $\bf{0}$ 0 $\overline{0}$ $\mathbf{0}$ 0 $\overline{0}$ $\mathbf 0$
Result of operations (EBIT) 9,785 $-166$ 9,619 29,683 $-1,146$ 28,537 13,544
31.3.2016
Property assets 1) 595,101 17,140 612,241 1,216,497 777,442 1,993,939 1,224,170
Other assets 38,568 5,960 44,528 186,219 423,061 609,280 230,933
Deferred tax assets $\overline{0}$ 0 $\mathbf{0}$ 1,014 435 1,449 1,227
Segment assets 633,670 23,100 656,769 1,403,731 1,200,937 2,604,668 1,456,330
Interest-bearing liabilities 259,914 5,538 265,452 667,171 291,955 959,125 801,502
Other liabilities 15,853 1,555 17,408 28,551 260,913 289,464 35,047
Deferred tax liabilities incl. current
income tax liabilities 50,885 3,753 54,638 108,137 66,977 175,114 46,234
Liabilities 326,653 10,845 337,498 803,859 619,844 1,423,703 882,782
Shareholders' equity 307,017 12,254 319,271 599,872 581,093 1,180,965 573,548

$\begin{tabular}{|c|c|c|c|c|} \hline \textbf{Capital expenditures}^2 & \textbf{78} & \textbf{115} & \textbf{193} & \textbf{3,828} & \textbf{24,057} & \textbf{27,885} & \textbf{2,893} \ \hline 124,057 & \textbf{27,885} & \textbf{22,893} & \textbf{22,893} & \textbf{23,893} \ \hline 25,000000000000000000000000000000000000$

Eastern Europe Eastern Europe Total segments Transition Total
core regions other regions Consolidation
Development Total Income
producing
Development Total Holding
425 20,724 3,769 $\overline{0}$ 3,769 51,308 $\mathbf 0$ $-11,115$ 40,193
$\mathbf{0}$ $\mathbf{0}$ $\mathbf{0}$ $\mathbf{0}$ $\mathbf{0}$ 284 0 $-284$ $\mathbf{0}$
245 7,787 1,889 $\vert 0 \vert$ 1,889 17,845 $\boldsymbol{0}$ $-4,024$ 13,821
$-205$ $-8,828$ $-2,051$ $\overline{0}$ $-2,051$ $-20,652$ $\mathbf{0}$ 4,156 $-16,496$
$-13$ $-1,185$ $-59$ $\overline{0}$ $-59$ $-3,016$ $\boldsymbol{0}$ 751 $-2,265$
452 18,497 3,547 $\bf{0}$ 3,547 45,768 $\bf{0}$ $-10,515$ 35,253
$\overline{0}$ $\mathbf{0}$ $\vert 0 \vert$ $\overline{0}$ $\mathbf{0}$ $\mathbf{0}$ $\boldsymbol{0}$ $\bf{0}$ $\mathbf{0}$
$-71$ $-71$ $\mathbf{0}$ $-12$ $-12$ $-935$ $\boldsymbol{0}$ $-25$ $-960$
$\mathbf{0}$ $\mathbf{0}$ $\mathbf{0}$ $\mathbf{0}$ $\mathbf{0}$ $-514$ $\mathbf{0}$ $-70$ $-584$
$\overline{0}$ 574 $\mathbf{0}$ $\mathbf{0}$ $\overline{0}$ $-1,222$ $\bf{0}$ 2,424 1,202
$\overline{0}$ 93 $\overline{0}$ $\mathbf{0}$ $\overline{0}$ 2,837 1,522 $-1,282$ 3,077
$-215$ $-2,450$ $-323$ $-23$ $-346$ $-7,713$ $-3,527$ 1,767 $-9,474$
$\mathbf{1}$ 78 $\overline{0}$ $\mathbf{0}$ $\overline{0}$ 32 64 189 285
167 16,722 3,225 $-35$ 3,190 38,253 $-1,942$ $-7,512$ 28,799
$\mathbf{0}$ $-84$ $\mathbf{0}$ $\boldsymbol{0}$ $\boldsymbol{0}$ $-671$ $-125$ $\overline{c}$ $-794$
$\mathbf{1}$ $-2,925$ $-648$ $\vert 0 \vert$ $-648$ 16,828 $\mathbf{O}$ $-86$ 16,743
$\overline{0}$ $\mathbf{0}$ $\mathbf{0}$ $\mathbf{0}$ $\mathbf{0}$ $\mathbf{0}$ $\mathbf{0}$ 1,796 1,796
168 13,713 2,577 $-35$ 2,542 54,410 $-2,067$ $-5,800$ 46,543

......................................

75,539 1,299,709 226,390 3,400 229,790 4,135,680 $\overline{0}$ $-897.281$ 3,238,398
10.949 241.882 10.162 8,639 18,801 914.491 782,163 $-870.894$ 825,760
126 1,353 $\mathbf{0}$ $\Omega$ $\overline{0}$ 2.802 43,765 $-44.242$ 2.325
86.614 1.542.944 236.552 12,039 248.591 5,052,973 825,928 $-1,812,417$ 4,066,484
82,383 883.885 153.912 12.171 166,082 2,274,544 571,505 $-1.359.950$ 1,486,099
3,068 38,115 7,432 3 7,435 352.422 9,887 $-118.284$ 244,025
2,363 48,597 7.673 7.673 286,022 4,432 $-73,816$ 216,638
87.815 970.597 169.017 12,174 181.190 2,912,988 585.824 $-1,552,050$ 1,946,762
$-1,201$ 572,348 67,536 $-135$ 67,401 2,139,985 240,104 $-260,367$ 2,119,722
4,600 7,493 1,826 $\Omega$ 1,826 37,396 72 $-15,319$ 22,149

Ξ

€ 1,000 Austria Germany
1st Quarter 2015 Income
producing
Development Total Income
producing
Development Total Income
producing
Rental income 9,226 $\mathbf{0}$ 9,226 14,080 3,549 17,629 25,742
Rental income with other operating
segments 131 $\mathbf{0}$ 131 77 $\overline{0}$ 77 $\mathbf{0}$
Operating costs charged to tenants 2,914 $\mathbf 0$ 2,914 3,478 340 3,818 8,902
Operating expenses $-3,138$ $\mathbf{0}$ $-3,138$ $-4,520$ $-685$ $-5,205$ $-10,007$
Other expenses directly related to
properties rented $-554$ $\boldsymbol{0}$ $-554$ $-918$ $-175$ $-1,093$ $-1,657$
Net rental income 8,579 $\bf{0}$ 8,579 12,197 3,029 15,226 22,980
Result from hotel operations $\mathbf 0$ $\overline{0}$ $\overline{0}$ $\overline{0}$ $\overline{0}$ $\overline{0}$ $-5$
Other expenses directly related to
properties under development $\boldsymbol{0}$ $-5$ $-5$ $\overline{0}$ $-185$ $-185$ $\mathbf 0$
Trading result $\overline{0}$ $\mathbf 0$ $\overline{0}$ $\overline{0}$ $-719$ $-719$ $\mathbf{0}$
Result from the sale of investment
properties $-356$ $\bf{0}$ $-356$ 1,384 $-695$ 689 $-1,613$
Income from services rendered 21 $\mathbf{0}$ 21 $\mathbf 0$ 3,081 3,081 26
Indirect expenses $-257$ $-91$ $-348$ $-1,258$ $-5,432$ $-6,690$ $-3,158$
Other operating income $\overline{2}$ $\mathbf{0}$ $\overline{2}$ 154 155 309 346
EBITDA 7,989 $-96$ 7,893 12,477 $-766$ 11,711 18,576
Depreciation and impairment/reversal $-293$ $\overline{0}$ $-293$ $-36$ $-143$ $-179$ $-53$
Result from revaluation $-2,650$ $-783$ $-3,433$ 1,566 $-110$ 1,456 $-3,079$
Result from joint ventures $\mathbf{0}$ $\mathbf{0}$ $\overline{0}$ $\overline{0}$ $\overline{0}$ $\overline{0}$ $\overline{0}$
Result of operations (EBIT) 5.046 $-879$ 4,167 14,007 $-1,019$ 12,988 15,444
31.12.2015
Property assets 1) 593,142 16,958 610,100 1,090,654 891,437 1,982,090 1,361,708
Other assets 50,266 2,528 52,795 185,431 400,617 586,048 215,034
Deferred tax assets $\overline{0}$ $\overline{0}$ $\boldsymbol{0}$ 1,165 433 1,598 1,223
Segment assets 643,408 19,486 662,894 1,277,250 1,292,487 2,569,736 1,577,966
Interest-bearing liabilities 264,694 1,214 265,908 623,127 336,002 959,129 925,850
Other liabilities 14,520 2,548 17,068 26,374 245,628 272,001 35,797
Deferred tax liabilities incl. current
income tax liabilities 50,030 3,724 53,754 102,089 79,128 181,218 46,961

329,244

$314, 164$

3,181

7,486

$12,000$

2,489

336,731

326,164

5,670

751,590

525,660

72,237

660,759

631,728

113,458

1,412,348

1,157,388

185,695

$1,008,608$

569,357 16,376

$\label{thm:liability} \textbf{Liabilities}$

${\bf Shareholders}\label{def:1}$

Capital expenditures2)

Total Transition Eastern Total segments Eastern Europe
Europe other core regions
Holding Consolidation regions
Total
Income Development Total
producing Development
34,726 $-22,589$ $\boldsymbol{0}$ 57,315 4,322 $\boldsymbol{0}$ 4,322 26,138 396
$\mathbf{0}$ $-208$ $\boldsymbol{0}$ 208 $\mathbf{0}$ $\boldsymbol{0}$ $\bf{0}$ $\mathbf{0}$ $\mathbf 0$
9,105 $-8,183$ $\boldsymbol{0}$ 17,288 1,407 $\boldsymbol{0}$ 1,407 9,149 247
$-10,936$ 9,225 $\overline{0}$ $-20,161$ $-1,529$ $\overline{0}$ $-1,529$ $-10,289$ $-282$
$-1,716$ 1,812 0 $-3,528$ $-124$ 0 $-124$ $-1,757$ $-100$
31,179 $-19,943$ $\pmb{0}$ 51,122 4,076 $\bf{0}$ 4,076 23,241 261
$-5$ $\bf{0}$ $\boldsymbol{0}$ $-5$ $\mathbf{0}$ $\overline{0}$ $\boldsymbol{0}$ $-5$ $\mathbf{0}$
$-345$ $-111$ 0 $-234$ $-6$ $-6$ $\overline{0}$ $-38$ $-38$
44 763 $\boldsymbol{0}$ $-719$ $\mathbf{0}$ $\boldsymbol{0}$ $\boldsymbol{0}$ $\mathbf{0}$ $\mathbf 0$
1,100 2,216 $\mathbf{0}$ $-1,116$ 116 116 $\boldsymbol{0}$ $-1,565$ 48
4,531 550 853 3,128 $\theta$ $\mathbf 0$ $\mathbf{0}$ 26 $\overline{0}$
$-9,157$ 4,331 $-2,673$ $-10,815$ $-399$ $-21$ $-378$ $-3,378$ $-220$
485 $-302$ 97 690 $\sqrt{2}$ $\,1\,$ $\mathbf{1}$ 377 31
27,832 $-12,496$ $-1,723$ 42,051 3,789 90 3,699 18,658 82
$-640$ 31 $-146$ $-525$ $\overline{0}$ $\mathbf 0$ $\mathbf 0$ $-53$ $\overline{0}$
$-4,968$ $-29$ $\mathbf 0$ $-4,939$ $-627$ $\boldsymbol{0}$ $-627$ $-2,335$ 744
3,014 3,014 $\mathbf 0$ $\boldsymbol{0}$ $\mathbf{0}$ $\boldsymbol{0}$ $\boldsymbol{0}$ $\mathbf{0}$ $\mathbf{0}$
25,238 $-9,480$ $-1,869$ 36,587 3,162 90 3,072 16,270 826

.......................................

106,967 1,468,675 225,340 3,400 228,740 4,289,605 $-1,086,172$ 3,203,434
12,841 227,876 10.000 9,055 19.054 885.773 689.650 $-797.249$ 778,173
128 1,351 31 31 2.980 50,900 $-51.504$ 2,376
119,937 1,697,903 235,340 12,485 247,825 5,178,358 740,550 $-1,934,925$ 3,983,983
107.774 1.033.623 180.880 13,136 194.015 2,452,676 449,022 $-1,497,708$ 1,403,989
5,428 41,225 6,561 6 6,567 336,862 9,847 $-100.912$ 245,796
3,294 50,256 7,348 7,349 292,577 12,648 $-91,478$ 213,747
116,496 1,125,104 194,789 13,142 207,932 3,082,115 471,517 $-1,690,099$ 1,863,533
3,441 572.799 40,550 $-657$ 39,893 2.096.243 269,033 $-244.826$ 2,120,450
19,224 35,600 2,825 $\overline{0}$ 2,825 229,790 590 $-137,871$ 92,508

ī

NOTES

GENERAL NOTES

The condensed consolidated interim financial statements of CA Immobilien Anlagen Aktiengesellschaft ("CA Immo AG"), Vienna as at 31.3.2016 were prepared in accordance with the rules of IAS 34 (Interim Financial Reporting) and are based on the accounting policies and measurement basis described in the annual consolidated financial statements of CA Immobilien Anlagen Aktiengesellschaft for the year 2015, except of new or amended standards.

The condensed consolidated interim financial statements, for the reporting period from 1.1. to 31.3.2016, have been neither fully audited nor reviewed by an auditor. The use of automatic data processing equipment may lead to rounding differences in the addition of rounded amounts and percentage rates.

CHANGES IN PRESENTATION AND ACCOUNTING POLICIES

The condensed consolidated interim financial statements by 31.3.2016 were prepared in accordance with all IASs, IFRSs and IFRIC and SIC interpretations (existing standards as amended and new standards) as adopted by the EU and applicable for the financial year beginning 1.1.2016. The following amended and new standards are applicable for the first time in the business year 2016:

Standard / Interpretation :ontent entry into force"
Changes in IAS 19 Defined benefit plans: employees contributions
Annual improvement (cycle 2010-
2012) Miscellaneous 1.2.2015

$1$ The standards and interpretations are to be applied to business years commencing on or after the effective date.

The first time application of these new or amended standards and interpretations have no essential impact on the consolidated financial statement.

SCOPE OF CONSOLIDATION

In the first quarter of 2016, the shares in the following joint ventures were sold: PBP IT-Services Sp.z.o.o., Poleczki Amsterdam Office Sp.z.o.o., Poleczki Berlin Office Sp.z.o.o., Poleczki Development Sp.z.o.o., Poleczki Lisbon Office Sp.z.o.o., Poleczki Warsaw Office Sp.z.o.o. und Poleczki Vienna Office Sp.z.o.o.

NOTES TO THE CONSOLIDATED INTERIM FINANCIAL STATEMENTS

Statement of financial position

The financial assets (long term assets) consist of the following items:

31.3.2016 31.12.2015
Loans to joint ventures 6.549 6.162
Loans to associated companies 12.393 12.827
Other investments 59.233 58,660
Other financial assets 17.493 57.174
Financial assets 95.667 134.824

As at 31.3.2016, one property in Austria and two in Germany, in the amount of $\epsilon$ 52,585 K are presented as held for sale. A sale within one year from the date of reclassification was regarded as highly probable.

As at 31.3.2016, CA Immo Group held cash and cash equivalents amounting to $\epsilon$ 279,056 K, cash and cash equivalents contain bank balances of $\epsilon$ 3,200 K (31.12.2015: $\epsilon$ 8,178 K) to which CA Immo Group only has restricted access for a period of at most three months.

These balances serve the purpose of securing current loan repayments (principal and interest), current investments in projects under development and cash deposits as guarantees. In addition, cash and cash equivalents subject to drawing restrictions from 3 up to 12 months are presented in caption 'receivables and other assets'. Restriced cash with a longer lock-up period (over 12 months) is presented under 'financial assets'.

€ 1,000 31.3.2016 31.12.2015
Maturity $> 1$ year
---------------------------------------
Maturity from 3 to 12 months
12.684
Cash at banks with drawing restrictions

Income Statement

The result from revaluation in the fist quarter of 2016 results from revaluation gain of $\epsilon$ 20,493 K and revaluation loss of $\epsilon$ 3,750 K, which mainly result from segment Germany.

CA Immo Group presented in the result from other financial assets in the first quarter 2016 the impairment of available for sale securities amount in to $\epsilon$ - 14,946 K.

The result from derivative interest rate transactions comprises the following:

€ 1,000 1st Quarter 2016 1st Quarter 2015
Valuation interest rate derivative transactions $-1.380$ 1.755
Ineffectiveness of interest rate swaps
Reclassification of valuation results recognised in equity $-177$
Result from interest rate derivative transactions $-1,557$

The result from the measurement of interest rate derivatives is attributable to the change in fair values of the interest rate swaps for which no cash flow hedge relationship exists or, in the case of "reclassification", no longer exists. Reclassifications mainly arise from the refinancing of variable interest bearing loans (into fixed interest bearing loans) or their early repayment.

Tax expenses comprise the following:

€ 1.000 1st Quarter 2016 1st Quarter 2015
Current income tax (current year) $-3.276$ $-3.049$
Current income tax (previous years) $-510$ $-126$
Current income tax $-3.786$ $-3.175$
Change in deferred taxes $-2.171$ 4.190
Tax benefit on valuation of derivative transactions and assets available for sale in
equity 31
Income tax expense $-5.926$ 1.015
Effective tax rate (total) $-31.0\%$ $5.5\%$

Current income tax arises mainly in the segment Germany ( $\epsilon$ 2,231 K). The change in current income tax (previous years) results from a a sale in 2016 which is treated for tax purposes in previous years and in contrast, leads to a partial change in deferred tax.

Earnings per share

1st Quarter 2016 1st Quarter 2015
Weighted average number of shares outstanding DCS. 96.144.993 98,808,336
Consolidated net income € 1.000 13.217
basic earnings per share 0.14

2016 SHARES BUY - BACK PROGRAM

On the basis of the authorizing resolution of the 27th Annual General Meeting on 8.5.2014 in accordance with Article 65 para 1 no. 8 of the Austrian Corporation Act (AktG) a total of 1,000,000 bearer shares (ISIN AT0000641352) in the company was acquired in the period between 13.1.2016 and 19.2.2016 at a total purchase price of $\epsilon$ 15,392,916.72. The weighted average price per share is thus $\epsilon$ 15.3929. The highest consideration per share paid within the framework of the buyback program was $\epsilon$ 16.38 and the lowest was $\epsilon$ 14.385.

A further buyback program for up to two million shares (approx. 2% of the share capital) has been started on 25.3.2016 and will end no later than 7.10.2016. The maximum limit is 17.50 € per share.

As at 31.3.2016, CA Immobilien Anlagen AG held a total of 3,000,000 treasury shares. This corresponds to 3.0362% of the total number of 98,808,336 voting shares issued.

FINANCIAL INSTRUMENTS

Category Book value Fair value Book value Fair value
€ 1,000 31.3.2016 31.3.2016 31.12.2015 31.12.2015
Cash at banks with drawing
restrictions 6,289 6,289 9,026 9,026
Derivative financial instruments 75 75 238 238
Primary financial instruments 89,303 125,560
Financial assets 95,667 134,824
Cash at banks with drawing
restrictions 12,684 12,684 9,322 9,322
Other receivables and other financial
assets 105,730 79,097
Non financial assets 45,735 50,022
Securities 102,377 102,377 105,250 105,250
Receivables and other assets 266,526 243,691
Cash and cash equivalents 279,056 207,112
641,249 585,627

.......................................

The fair value of the other receivables and financial assets as well as the primary financial instruments in the category of loans and amounts receivable essentially equals the book value due to short-term maturities. Financial assets are partially mortgaged as security for financial liabilities.

Category Book value Fair value Book value Fair value
€ 1,000 31.3.2016 31.3.2016 31.12.2015 31.12.2015
Bonds 515,316 535,077 366.506 369.876
Other interest-bearing liabilities 970.782 973.695 1.037.483 1.037.658
Interest-bearing liabilities 1,486,099 1,403,989
Derivative financial instruments 13,551 13,551 12,743 12,743
Other financial liabilities 51,159 51,341
Other non financial liabilities 95.572 96,555
Total other liabilities 160.282 160.639
1,646,381 1,564,628

The fair value of other primary liabilities essentially equals the book value due to daily and/or short-term maturities.

31.3.2016
€ 1.000 Nominal Fair value Book value Nominal Fair value Book value
value value
Interest rate swaps 241.751 $-13.551$ $-13.551$ 243.227 $-12.743$ $-12.743$
Swaption 139,600 53 53 139.600 189 189
Interest rate caps 45,008 22 22 45.277 48 48
Total 426.359 $-13.476$ $-13.476$ 428.104 $-12.506$ $-12,506$
- thereof hedging (cash flow hedges) 94,756 $-6.525$ $-6.525$ 95,555 $-6.942$ $-6,942$
- thereof stand alone (fair value derivatives) 331,603 $-6.951$ $-6,951$ 332.549 $-5,563$ $-5,563$

Derivative financial instruments and hedging transactions

Interest rate swaps

Interest rate swaps are concluded for the purpose of hedging future cash flows. The effectiveness of the hedge relationship between hedging instruments and hedged items is assessed on a regular basis by measuring effectiveness.

€ 1.000 Nominal value Fair value 31.3.2016
Book value
Nominal
value
Fair value 31.12.2015
Book value
- Cash flow hedges (effective) 93.618 $-6.409$ $-6.409$ 94.484 $-6.846$ $-6.846$
- Cash flow hedges (ineffective)
- Fair value derivatives (HFT)
1.138
146.995
$-92$
$-7.050$
$-92$
$-7.050$
1.071
147.672
$-96$
$-5.801$
$-96$
$-5.801$
Interest rate swaps 241.751 $-13.551$ $-13,551$ 243.227 $-12.743$ $-12,743$
Currency Nominal value in Start End Fixed Reference Fair value
€ 1.000 interest rate as at interest rate
31.3.2016 31.3.2016
in $\epsilon$ 1,000
EUR (nominal value each below
100 m EUR) - CFH 94.756 11/2007 9/2018 $2.253\% - 4.789\%$ 3M-Euribor $-6.501$
EUR (nominal value each below
100 m EUR) - stand alone 146.995 9/2013 12/2023 $0.460\% - 2.279\%$ 3M-Euribor $-7.050$
Total = variable in fixed 241.751 $-13.551$
Currency Nominal value in Start End Fixed Reference Fair value
€ 1,000 interest rate interest rate
as at
31.12.2015 31.12.2015
in $\epsilon$ 1,000
EUR (nominal value each below
100 m EUR) - CFH 95.555 11/2007 9/2018 $2.253\% - 4.789\%$ 3M-Euribor $-6.942$
EUR (nominal value each below
100 m EUR) - stand alone 147.672 9/2013 12/2023 $0.460\% - 2.279\%$ 3M-Euribor $-5,801$
Total = variable in fixed 243,227 $-12,743$

Swaption

Currency Nominal value in Start End ! Fixed Reference Fair value
€ 1,000 interest rate interest rate
as at
31.3.2016 31.3.2016
in $\epsilon$ 1,000
$6/2013 -$ $6/2016 -$ 3M-Euribor /
Swaption 139,600 11/2015 11/2017 $1.250\% - 2.500\%$ 6M-Euribor 53
Total 139,600 53
Currency Nominal value in Start End Fixed Reference Fair value
€ 1.000 interest rate as at interest rate
31.12.2015 31.12.2015
in €1,000
$6/2013 -$ $6/2016 -$ 3M-Euribor /
Swaption 139.600 11/2015 11/2017 $1.250\% - 2.500\%$ 6M-Euribor 189
Total 139,600 189

Interest rate caps

interest rate caps
Currency Nominal value in Start End Fixed Reference Fair value
$\epsilon$ 1.000 interest rate as at i interest rate
31.3.2016 31.3.2016
in $\epsilon$ 1,000
Interest rate caps 45,008 03/2014 09/2019 $1.500\% - 2.000\%$ 3M-Euribor 22
Total 45.008 22
Currency Nominal value in Start End Fixed Reference Fair value
$\epsilon$ 1.000 interest rate as at interest rate
31.12.2015 31.12.2015
in $\epsilon$ 1,000
Interest rate caps 45.277 28.3.2014 3/2019 $1.500\% - 2.000\%$ 3M-Euribor 48
Total 45,277 48

Gains and losses in other comprehensive income of cash-flow hedges

€ 1.000 2016 2015
As at 1.1. $-5.131$ $-27.502$
Change in valuation of cash flow hedges 419 1.785
Change of ineffectiveness cash flow hedges
Reclassification cash flow hedges 177
Income tax cash flow hedges $-126$ $-210$
As at 31.3. $-4.661$ $-25.939$
thereof: attributable to the owners of the parent $-4.661$ $-25.939$

Hierarchy of fair values

Financial instruments measured at fair value relate to derivative financial instruments as well as available for sale securities and other investments (AFS). As in prior year, the valuation of derivative financial instruments is based on inputs which can be observed either directly or indirectly (e.g. interest rate curves or foreign exchange forward rates). This represents level 2 of the fair value hierarchy in accordance with IFRS 13.81. The valuation of available for sale securities is based on stock market prices and therefore represents level 1 of the fair value hierarchy. The fair value of other not listed investments is internally assessed and so represents level 3 of the fair value hierarchy. There were no reclassifications between the levels.

Capital structure

Net debt and gearing ratio:

€ 1.000 31.3.2016 31.12.2015
Interest-bearing liabilities
Long-term interest-bearing liabilities 981.664 858,776
Short-term interest-bearing liabilities 504.434 545.214
Interest-bearing assets
Cash and cash equivalents $-279.056$ $-207.112$
Cash at banks with drawing restrictions $-6.004$ $-5,432$
Net debt 1,201,038 1,191,446
Shareholders' equity 2,119,722 2,120,450
Gearing ratio (Net debt/equity) 56.7% 56.2%

Cash at banks with drawing restrictions were considered in the calculation of net debt, as long as they are mainly used to secure the repayments of financial liabilities

......................................

BUSINESS RELATIONSHIPS WITH RELATED PARTIES

Balances/transactions with Joint Ventures

€ 1.000 31.3.2016 31,12,2015
Investments in joint ventures 167,770
Investments in joint ventures held for sale
Loans
.
6.549
Rec
653
Liabilities
,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,
34.520
Provisions
1st Quarter 2016 1st Quarter 2015
Joint ventures result
,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,
1.227 3.610
Result from sale of joint ventures 569 $-596$
Result from joint ventures 1,796 3,014
Other income 558 1.865
Other expenses $-282$ $-193$
Interest income 194 2.409
Interest expense $-179$
Interest income present value financial investments
2.492
Impairment of loans

The loans to and a large portion of the receivables from joint ventures existing at the reporting date, serve to finance properties. The interest rates are at arm's length. Partial securities exist in connection with these loans.

Balances / transactions with associated companies

€ 1,000 31.3.2016 31.12.2015
Loans 12,393 12.827
1st Quarter 2016 1st Quarter 2015
Expenses due to associated companies $-435$ $-674$

The loans to associated companies existing as of the reporting date serve to finance properties. All loans have interest rates at arm's length. No guarantees or other forms of security partially exist in connection with these loans. In the book value of loans to associated companies, a cumulated impairment amounting to $\epsilon$ 10,009 K (31.12.2015: $\epsilon$ 9,575 K) is included.

O1 Group Limited, Cyprus

Starting 20 February 2015, O1 Group, following the conclusion of a voluntary public take-over offer, is the largest single shareholder of CA Immobilien Anlagen AG. O1 Group holds 25,690,163 bearer shares (indirectly via Terim Limited) and four registered shares (O1 Group Limited). This corresponds to about 26.81% of the voting rights, as at 31.3.2016.

As the result of a competitive process, a purchase agreement for a site earmarked for residential construction in Berlin (Kunstkubus, Europacity) was concluded in Q2 2015 with Vesper Real Estate (Cyprus) Limited, a company indirectly controlled by Boris Mints (beneficial owner of O1). The agreed purchase price of $\epsilon$ 7,000 K was paid in the first quarter of 2016 and the customary arm's length nature of the transaction was confirmed by an external fairness opinion.

OTHER LIABILITIES AND CONTINGENT LIABILITIES

As at 31.3.2016, contingent liabilities of CA Immo Germany Group resulting from urban development contracts amounted to $\epsilon$ 120 K (31.12.2015: $\epsilon$ 120 K) and from concluded purchase agreements for cost assumptions in connection with contaminated sites or war damage to $\epsilon$ 566 K (31.12.2015: $\epsilon$ 491 K). In addition, letters of support exist for a joint venture in Germany, amounting to $\epsilon$ 2,000 K (31.12.2015: $\epsilon$ 2,000 K for a joint ventures). As security for liabilities from loans guarantees, letters of comfort and declarations for joint liabilities were issued for three joint ventures in an extent of $\epsilon$ 12,150 K. Furthermore as security for warranty risks of a german joint venture a guarantee was issued in an amount of €6,066 K (31.12.2015: €6,066 K).

CA Immo Group has agreed to adopt a gauarantee in connection with the refunding of the project "Airport City St. Petersburg" in the extent of €13,483 K (31.12.2015 : €13,483 K).

Related to the sales, marketable guarantees exist between CA Immo Group and the buyer for coverage of possible warranty- and liability claim for which in the expected extent financial dispositions were made. The actual claims may exceed the expected extent.

Following the disposal of Tower 185, Frankfurt, as at 31.12.2013 CA Immo Group granted a guarantee for compensation of rent-free periods as well as rent guarantees for which adequate provisions have been recognised in the balance sheet. The shares in CA Immo Frankfurt Tower 185 GmbH & Co KG as well as the shares in CA Immo Frankfurt 185 Betriebs GmbH were pledged as security for loans of two joint ventures.

Other financial obligations arising from service commitments in connection with the development of properties also exist for properties in Austria amounting to $\epsilon$ 2,194 K (31.12.2015: $\epsilon$ 2,103 K), in Germany amounting to $\epsilon$ 38,140 K $(31.12.2015: \text{€ } 32,922 \text{ K})$ and in Eastern Europe amounting to € 37,767 K (31.12.2015: € 10,381 K). Moreover as at 31.3.2016, CA Immo Group is subject to other financial obligations resulting from construction costs from urban development contracts in Germany, which can be capitalised in the future with an amount of $\epsilon$ 52,919 K (31.12.2014: € 52,943 K).

As at 31.3.2016, the total obligation of CA Immo Group to contribute equity to joint ventures was $\epsilon$ 5,021 K $(31.12.2015; \text{€}5.021K)$ . The contingent liability as at 31.3.2016 in connection with the equity contribution in case of one joint venture in Bulgaria amounts to $\epsilon$ 450 K (31.12.2015: $\epsilon$ 450 K).

For the purpose of recognising tax provisions, estimates have to be made. Uncertainties exist concerning the interpretation of complex tax regulations and as regards the amount and timing of taxable income. Due to these uncertainties and the grade of complexity estimates may vary from the real tax expense also in a material amount. CA Immo Group recognises appropriate provisions for known and probable charges arising from ongoing tax audits. Concerning a tax audit in Eastern Europe uncertainties about the possible prescription of default interest exist. CA Immo Group estimates the possibility of actual expenses due to these default interests as low.

Borrowings, for which the financial covenants have not been met as at 31.3.2016, thus enabling the lender in principle to prematurely terminate the loan agreement, have to be recognised in short-term financial liabilities irrespective of the remaining term under the contract. This classification applies notwithstanding the status of negotiations with the banks concerning the continuation or amendment of the loan agreements. As at 31.3.2016, this applied to no loan (31.12.2015: no loan).

SIGNIFICANT EVENTS AFTER THE END OF THE INTERIM REPORTING PERIOD

CA Immo Group was informed by O1 Group Limited ("O1") that following the shares purchase agreement dated 17.4.2016, IMMOFINANZ AG acquired 25,690,163 bearer shares (approximately 26% of the whole share capital) from Terim Ltd and the four registered shares from O1 Group Limited. According to the notice, the purchase price amounts to $\epsilon$ 23.50 per share and total value of the transaction is approximately $\epsilon$ 604 m. The transaction is subject to conditions precedent, in particular merger control clearance in Austria, Germany and other jurisdictions as well as approval by the supervisory board of IMMOFINANZ AG and approval of the management board of CA Immo for the transfer of the registered shares. O1 Group Limited ("O1") has exercised its delegation rights pursuant to the registered shares in 29th annual general meeting. Dr. Wolfgang Renner, Marina Rudneva and Timothy Fenwick have been delegated to the Supervisory Board with immediate effect. In addition, Torsten Hollstein and Dr. Florian Koschat were elected on the proposal of the core shareholder Terim Limited for the maximum term possible until the end of the Shareholders Meeting, which resolves on the exoneration for the business year 2020. As a consequence the maximum number of 12 members elected by the shareholders has been reached.

In the constituent assembly of the Supervisory Board of CA Immobilien Anlagen AG, which took place immediately after the 29th annual general meeting, the following changes to the Supervisory Board had been resolved on: Torsten Hollstein was elected new Chairman of the Board with Dr. Florian Koschat as new second Deputy Chairman; Dmitry Mints was confirmed as Deputy Chairman. Futhermore, the works council has exercised its right to delegate 4 members to the Supervisory Board.

In the 29th ordinary shareholders' meeting of CA Immobilien Anlagen Aktiengesellschaft, held on 3.5.2016 a dividend distribution for the 2015 financial year of € 0.50 per no-par share entitled to a dividend was resolved upon.

Vienna, 24.05.2016

The Management Board

Frank Nickel (Chief Executive Officer)

Florian Nowotny (Member of the Management Board)

CONTACT

CA Immobilien Anlagen AG Mechelgasse 1, 1030 Vienna Phone +43 1 532 59 07-0 Fax +43 1 532 59 07-510 [email protected] www.caimmo.com

Investor Relations Free info hotline in Austria: 0800 01 01 50 $\,$ Christoph Thunberger Claudia Höbart Phone +43 1 532 59 07-0 Fax +43 1 532 59 07-595 [email protected]

Corporate Communications Susanne Steinböck Marion Naderer Phone +43 1 532 59 07-0 Fax +43 1 532 59 07-595 [email protected]

IMPRINT

Published by: CA Immobilien Anlagen AG, 1030 Vienna, Mechelgasse 1 Text: Susanne Steinböck, Christoph Thurnberger, Claudia Höbart
Text: Susanne Steinböck, Christoph Thurnberger, Claudia Höbart
Graphic design: Marion Naderer, Photographs: CA Immo, Production: 08/16; this report is set inho

We ask for your understanding that gender-conscious notation in the texts of this Interim Report largely had to be abandoned for the sake of undisturbed readability of complex economic matters.

GENERAL INFORMATION ON CA IMMO SHARE

Listed on Vienna Stock Exchange ISIN: AT0000641352 Reuters: CAIV.VI Bloomberg: CAI: AV

DISCLAIMER

This Interim Report contains statements and forecasts which refer to the future development of CA Immobilien Anlagen AG and their companies. The forecasts represent assessments and targets which the Company has formulated on the basis of any and all information available to the Company at present. Should the assumptions on which the forecasts have been based fail to occur, the targets not be
met, then the actual results may deviate from the results currently anticipated. This Interim Report does not constitute an invitation to buy or sell the shares of CA Immobilien Anlagen AG.

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