PATRIZIA AG

Earnings Release • Nov 10, 2010

News Details

Corporate | 10 November 2010 07:33

PATRIZIA Immobilien AG: PATRIZIA raises forecast for 2010 after strong third quarter

PATRIZIA Immobilien AG / Key word(s): Quarter Results/Change in Forecast

10.11.2010 07:33

PATRIZIA raises forecast for 2010 after strong third quarter

• Third quarter of 2010 closes with operating earnings of EUR 3.1
  million; EUR 8.2 million after nine months of 2010

• Upturn in Residential Property Resale continues apace

• Equity ratio rises to 22 %

• Revised forecast: operating earnings of EUR 12-13 million

Augsburg, November 10, 2010. In the third quarter of 2010, PATRIZIA
Immobilien AG (ISIN DE000PAT1AG3) continued the strong development it
enjoyed in the first half of the year, closing the period with operating
earnings (EBT adjusted) of EUR 3.1 million (previous year: EUR 4.4 million)
for cumulative EBT adjusted of EUR 8.2 million in the first nine months
(previous year: EUR -2.8 million). This was primarily attributable to the
positive business performance in the Residential Property Resale segment:
sales figures increased to 245 units in the third quarter of 2010 (+13.4 %;
third quarter of 2009: 216 units). With 605 units sold in the first three
quarters, the segment has already achieved 92 % of the sales recorded in
2009 as a whole (657 units). Block sales exceeded the prior-year figure by
31 %, with a total of 380 units sold in the first nine months (2009: 289
units). All in all, 985 units were sold by way of residential property
resale and block sale in the first three quarters of 2010, 4 % more than in
the whole of 2009 (946 units).

Cumulative revenues for 2010 to date increased by 43.0 % year-on-year to
EUR 221.2 million (previous year: EUR 154.7 million). Residential real
estate accounted for the greatest share, with revenues rising by EUR 29.2
million or 41.8 % to EUR 99.1 million (previous year: EUR 69.8 million).
The average sale price achieved in the third quarter remained essentially
unchanged at EUR 2,348/sqm (previous year: EUR 2,341/sqm). At EUR
1,801/sqm, block sales also generated a similar sale price per square meter
as in the previous year (third quarter of 2009: EUR 1,803/sqm). Rental
income declined to EUR 48.5 million due to the reduction in the portfolio.
Rents in the remaining portfolio continued to develop with slight positive
growth of 1.7 % to EUR 7.86/sqm (June 30, 2010: EUR 7.73/sqm).

The majority of the sales proceeds were used for debt repayment, with the
result that bank loans declined to EUR 931.9 million (December 31, 2009:
EUR 1,070.2 million). The financial result (IFRS) for the third quarter was
positively impacted by the market valuation of interest rate hedges to the
tune of EUR 3.6 million. Adjusted for this effect, the cash portion of
financing costs was only slightly lower than in the previous year at EUR
-12.3 million (third quarter of 2009: EUR -13.0 million). However, the
cumulative figure for the first nine months improved by 9.3 % to EUR -36.5
million (previous year: EUR -40.3 million). The equity ratio increased to
22.0 % as of the reporting date (December 31, 2009: 20.0 %).

The Management Board is taking this positive development as an opportunity
to adjust its forecast for 2010. It now expects the fourth quarter to also
make a strong contribution to earnings and is forecasting operating
earnings (EBT adjusted) for fiscal 2010 of between EUR 12 million and EUR
13 million (previously EUR 10 million).

This increase is due to the notarized transactions that will be recognized
in income in the fourth quarter. As previously announced, three development
projects will be handed over to their new owners by the end of the year. In
addition to the 185 units already announced, a further 96 units have been
notarized as part of block sales (making a total of 281 units), the sales
proceeds from which will also be recognized in the fourth quarter. In the
Residential Property Resale segment, we will be unable to maintain the
level recorded in the third quarter, but sales figures in the region of
those generated in both the first and second quarters of 2010 - i.e. around
180 units - should be achievable.

The complete interim report for the third quarter of 2010 can be found at
http://www.patrizia.ag/en/investor_relations/reports/quarterly_reports.htm
l.

The Managing Board

Augsburg, November 10, 2010

PATRIZIA Immobilien AG
PATRIZIA Bürohaus
Fuggerstrasse 26
86150 Augsburg
Germany

Listing: Frankfurt Official Market (Prime Standard)
ISIN: DE000PAT1AG3
SIN: PAT1AG

Contact
Investor Relations
Margit Miller
Tel.: +49 (0) 821 5 09 10-369
Fax: +49 (0) 821 5 09 10-399
investor.relations@patrizia.ag

Press
Andreas Menke
Tel: +49 (0) 821 5 09 10-655
Fax: +49 (0) 821 5 09 10-695
presse@patrizia.ag

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Language: English
Company: PATRIZIA Immobilien AG
Fuggerstraße 26
86150 Augsburg
Deutschland
Phone: +49 (0)821 - 509 10-000
Fax: +49 (0)821 - 509 10-999
E-mail: investor.relations@patrizia.ag
Internet: www.patrizia.ag
ISIN: DE000PAT1AG3
WKN: PAT1AG
Indices: SDAX
Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr
in Hamburg, München, Düsseldorf, Berlin, Stuttgart, Hannover

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