AI Terminal

MODULE: AI_ANALYST
Interactive Q&A, Risk Assessment, Summarization
MODULE: DATA_EXTRACT
Excel Export, XBRL Parsing, Table Digitization
MODULE: PEER_COMP
Sector Benchmarking, Sentiment Analysis
SYSTEM ACCESS LOCKED
Authenticate / Register Log In

CA Immobilien Anlagen AG

Earnings Release May 27, 2014

738_rns_2014-05-27_8a47c6b0-8a2f-4aa5-8af8-08214fff462c.pdf

Earnings Release

Open in Viewer

Opens in native device viewer

FINANCIAL REPORT AS AT 31 MARCH 2014

FINANCIAL KEY FIGURES 1)

INCOME STATEMENT
01.01.-31.03.2014 01.01.-31.03.2013
Rental income € m 37.5 47.7
EBITDA € m 34.0 38.4
Operating result (EBIT) € m 38.3 38.3
Net result before taxes (EBT) € m 17.9 19.0
Consolidated net income € m 13.9 17.8
Operating cash flow € m 26.3 31.9
Capital expenditure € m 21.5 37.7
FFO I (excl. trading and pre taxes) € m 16.0 14.9
FFO II (incl. trading and after taxes) € m 29.7 15.6
BALANCE SHEET
31.03.2014 31.12.2013
Total assets € m 3,820.1 4,040.6
Shareholders' equity € m 1,811.5 1,794.3
Long and short term interest-bearing liabilities € m 1,455.6 1,710.9
Net debt € m 1,098.2 1,069.3
Net asset value (EPRA NAV) - diluted € m 2,158.9 2,144.4
Triple Net asset value (EPRA NNNAV) - diluted € m 1,997.2 1,981.0
Gearing % 60.6 59.6
Equity ratio % 47.4 44.4
Gross LTV % 55.7 63.2
Net LTV % 42.0 39.5
Total usable space (excl. parking, excl. projects)
Gross yield investment properties
Fair value of properties
sqm
%
€ m
1,744,176
6.9
3,534
1,785,845
7.0
3,468
SHARE RELATED KEY FIGURES
01.01.-31.03.2014 01.01.-31.03.2013
Rental income / share 0.43 0.54
Operating cash flow / share 0.30 0.36
Basic earnings per share 0.16 0.20
Diluted earnings per share 0.15 n.m.
31.03.2014 31.12.2013
NAV/share (diluted) 18.37 18.20
EPRA NAV/share (diluted) 21.90 21.75
EPRA NNNAV/share (diluted) 20.26 20.09
Price (key date)/NNNAV per share – 13) % – 35 – 36
Dividend distribution 0.40 0.38
Dividend yield % 3.0 3.0
SHARES
31.03.2014 31.12.2013
Number of shares (31.03.) pcs. 87,921,713 87,856,060
Ø Number of shares pcs. 87,892,943 87,856,060
Ø price/share 13.2 10.6

1) Key figures include all fully consolidatedproperties, i.e. all properties wholly owned by CA Immo

2) Includes fully consolidated real estate (wholly owned by CA Immo) and real estate in which CA Immo holds a proportionate share (at equity) 3) before deferred taxes

Closing price (31.03.) € 13.12 12.88 Highest price € 13.92 12.95 Lowest price € 11.80 8.63

DEAR SHAREHOLDERS AND READERS,

The Management Board (left to right): Dr. Bruno Ettenauer, Florian Nowotny

Following on from an extraordinarily successful 2013, the CA Immo Group has made a positive start to 2014. By rapidly utilising the funds generated from real estate sales transacted at the end of 2013 in particular, recurring earnings have been sustained at the previous year's level despite a substantial reduction in the size of the portfolio.

Soon after the successful completion of real estate sales last year and the repurchase of own liabilities (with an approximate nominal value of € 428 m) from Österreichische Volksbanken AG in January 2014, funds released by these transactions were deployed to the benefit of net earnings and NAV. The successful closing of the Lipowy sale in Warsaw at approximately 5% above book value was another highlight of the first quarter. Following on from the acquisition of AXA shares in the P1 Portfolio last year, this completes the balancing of the Warsaw asset portfolio.

RESULTS FOR THE FIRST THREE MONTHS OF 2014

Analysis of results for the first quarter of 2014 shows that because of changes to relevant IFRS provisions, a number of joint venture companies that were previously fully consolidated must now be stated at equity. This has led to a further balance sheet contraction. Figures from

last year used for comparative purposes have also been adapted to the new rules accordingly.

In content terms, the figures were influenced by the changes brought about by the extensive sales of 2013, and especially the sale of the Hesse portfolio and the partial sale of Tower 185 in Frankfurt. As a result of these sales, CA Immo's rental income fell by 21.5% to € 37,488 K in the first quarter of 2014. By contrast, the decline in relation to rental income was much lower for earnings before interest, taxes, depreciation and amortisation (EBITDA), which fell 11.8% to € 34,017 K.

The result from joint ventures (accounted for under the at equity method) rose by more than 100%, from € 3,654 K in 2013 to € 8,025 K. The revaluation result of -€ 2,645 K as at key date 31 March 2014 was marginally negative but a slight improvement on the 2013 figure of -€ 3.037 K. Thanks to the improved result from revaluations and joint ventures, the result from earnings before interest and taxes (EBIT) remained stable on last year (€ 38,275 K against € 38,250 K in 2013).

The financial result of -€ 20,354 K in the first quarter of 2014 was marginally below the prior year's value of -€ 19,262 K. The Group's financing costs, a key element

of recurring earnings, fell by a substantial -23.9% on the 2013 value to -€ 22,199 K. A positive development in the first quarter of the previous year (€ 5,444 K) was counteracted by a negative non-cash contribution from the valuation of interest-rate hedges which brought about a negative result of -€ 8,318 K. Adjusted to account for the effects of interest rate derivatives, the financial result has improved by a significant 50%-plus in yearly comparison.

Earnings before taxes (EBT) amounted to € 17,921 K, down 5.6% on last year's value of € 18,988 K. Where taxes on income are deducted (-€ 4,031 K), net operating income is down by 21.9% at € 13,890 K (€ 0.16 per share against € 0.20 in 2013).

Particularly satisfying is the sustained profitability in the rental business, which was slightly up on the first quarter of last year. Funds from operations (FFO I), a key indicator of the recurring earnings capacity, increased by 7.4% to € 15.984 K. The drop in rental income linked to last year's high volume of sales was largely compensated already during quarter one thanks to the optimisation of other components in long-term revenue (and particularly the financial result). The substantially stronger consolidated statement of financial position has given rise to a significant, risk-adjusted improvement in earnings quality. FFO II, which includes the result from

real estate sales and applicable taxes, increased significantly on last year at € 29,705 K (€ 15,552 K in 2013).

At 47.4% compared to 44.4% on 31 December 2013, the equity ratio has improved further since the start of the year.

The CA Immo Group's net asset value (NAV) maintained its strong development of last year into the first quarter of 2014. The EPRA NNNAV (diluted) stood at € 20.26 per share as at 31 March 2014, corresponding to an increase of 0.8% on the key date 31 December 2013.

OUTLOOK

Having achieved our balance sheet objectives in 2013 – the first major milestone in realising our strategy for 2012-2015 – the focus for 2014 lies in raising our longterm profitability and dividend-paying capacity. Reducing the proportion of non-strategic assets in the property portfolio and increasing the occupancy rate will be two key goals this year. The FFO I target is at least € 55 m for the business year 2014. Given the positive start to 2014, we are confident of a positive overall outcome for the year. The planned sales volume for 2014 is approximately € 200 m, which does not include sales of logistical sites in Eastern Europe.

The Management Board

Bruno Ettenauer (Chief Executive Officer)

Florian Nowotny (Chief Financial Officer)

Vienna, May 2014

SHARE

THE CA IMMO SHARE: RATE DEVELOPMENT, STOCK EXCHANGE SALES AND MARKET CAPITALISATION

The CA Immo share opened business year 2014 at a rate of € 12.95. The highest rate for the period under review was € 13.92 while the low was € 11.80. The share was trading at € 13.12 at the end of quarter one. With performance of +1.67% since the start of the year, it outpaced the ATX (– 0,39%) but fell short of the sector average. EPRA, the index for the sector in Europe, and the IATX in Austria rose by 6.69% and 2.36% respectively in the first three months of the year. The discount to NAV for the CA Immo share was – 28.62% on the final day (against – 29.22% on 31.12.2013). As at the key date 31 March 2014, market capitalisation for the CA Immo share was € 1,153.09 m (compared to € 1,131.59 m on 31.12.2013). The average liquidity of the CA Immo share in the first quarter was € 4.8 m per trading day, against approximately € 2.6 m in quarter one of the previous year; also by comparison, the average trading volume inreased by 56.8% from 233,200 to around 365,700 shares1). CA Immo is currently weighted at 2.56% on the ATX.

ONE YEAR PERFORMANCE (28.3.2013 to 31.3.2014)

CA Immo share 27.76%
ATX 7.30%
IATX 18.96%
EPRA Developed Europe 13.00%

Source: Bloomberg

Analyst coverage

CA Immo is currently assessed by nine investment companies. Regular analyses are produced by Baader Bank, Deutsche Bank, Erste Group, Goldman Sachs, HSBC, Kempen & Co, Kepler Cheuvreux, Raiffeisen Centrobank and SRC Research. Five analysts are currently recommendding the purchase of shares in CA Immo. The 12 month target rates most recently published fluctuate between € 14.10 and € 16.50. The valuation median of € 15.05 implies price potential of around 14.8% (based on the closing rate for 31 March 2014).

1 Source: Bloomberg (double-counting applied to all trading figures)

ANALYSTS-RECOMMENDATIONS

Raiffeisen Centrobank 28.3.2013 - Suspended
Baader Bank 16.4.2014 15.10 Buy
SRC Research 21.3.2014 15.00 Buy
Kepler Cheuvreux 9.4.2014 15.00 Buy
HSBC 16.1.2014 16.00 Overweight
Deutsche Bank 31.3.2014 16.50 Buy
Kempen 20.1.2014 14.50 Overweight
Erste Group 23.1.2014 14.10 Hold
Goldman Sachs 24.1.2014 15.80 Buy
Average 15.25
Median 15.05

RESOLUTIONS OF THE ORDINARY GENERAL MEETING

At the 27th Ordinary General Meeting, the decision was taken to raise the dividend to 40 cents per share. Alongside the usual items on the agenda (approval of the actions of Management and Supervisory Board members, Supervisory Board remuneration and confirmation of KPMG Wirtschaftsprüfungs- und Steuerberatungs AG of Vienna as the (Group) auditor for business year 2014), the Meeting considered the redrafting of the authorisation for the Management Board to acquire own shares, the associated usage approval and elections to the Supervisory Board. Wolfgang Ruttenstorfer and Helmut Bernkopf were re-elected to the Supervisory Board, while Maria Doralt has joined the Board. All candidates were elected until the end of the Ordinary General Meeting that rules on business year 2018. All items on the agenda were passed with clear majorities as proposed by the Management Board.

Change to conversion price

As a consequence of the payment of a cash dividend to the shareholders of CA Immo, the conversion price of the 4.125% convertible bond for 2009-2014 was adjusted from € 10.6620 to € 10.3521 on 12 May 2014 in line with the issue conditions.

Increase in total number of voting rights

On account of the issue of shares in response to the exercising of conversion rights by holders of the 4.125% convertible bonds for 2009-2014, the company's capital stock had risen to € 646,599,819.56 by the end of May 2014. This is divided into four registered shares and 88,940,828 bearer shares each with a proportionate amount of the capital stock of € 7.27. The delivery shares, held under ISIN AT0000641352, have dividend entitlement from business year 2014.

31.3.2014 31.12.2013
EPRA NNNAV/Aktie (diluted) 20.26 20.09
NAV/share (diluted) 18.37 18.20
Price (key date)/NAV per share – 11) % – 28.62 – 29.22
Number of shares (key date) pcs. 87,921,713 87,856,060
Ø number of shares (key date) pcs. 87,892,743 87,856,060
Ø price/share 13.18 10.63
Market capitalisation (key date) € m 1,153.09 1,131.59
Highest price 13.92 12.95
Lowest price 11.80 8.63
Closing price 13.12 12.88
Dividend distribution 0.40 0.38
Dividend yield % 3.05 2.95

KEY FIGURES OF SHARE

1) before deferred taxes

BASIC INFORMATION ON THE CA IMMO SHARE

Type of shares: No-par value shares
Listing: Vienna Stock Exchange, Prime Market
Indices: ATX, ATX-Prime, IATX, FTSE EPRA/NAREIT Europe, WBI
Specialist: Baader Bank AG
Market Maker: Raiffeisen Centrobank AG, Erste Group Bank AG, Hudson River Trading Europe Ltd.,
Close Brothers Seydler Bank AG, Spire Europe Limited, Virtu Financial Ireland Limited
Stock exchange symbol / ISIN: CAI / AT0000641352
Reuters: CAIV.VI
Bloomberg: CAI:AV
E-Mail: [email protected]
Website: www.caimmo.com
Christoph Thurnberger
T: +43 1532 590 7-504
F: +43 1532 590 7-550
[email protected]

Claudia Hainz T: +43 1532 590 7-502 F: +43 1532 590 7-550 [email protected]

FINANCIAL CALENDAR 2014

19 MARCH

PUBLICATION OF ANNUAL RESULTS FOR 2013 PRESS CONFERENCE ON FINANCIAL STATEMENTS

8 MAY ORDINARY GENERAL MEETING

12 MAY/14 MAY

EX-DIVIDEND DATE / DIVIDEND PAYMENT DAY

28 MAY

INTERIM REPORT FOR THE FIRST QUARTER 2014

27 AUGUST INTERIM REPORT FOR THE FIRST HALF 2014

26 NOVEMBER INTERIM REPORT FOR THE THIRD QUARTER 2014

ECONOMIC ENVIRONMENT

General market environment 1)

The euro area saw its seasonally adjusted GDP up by 0.9% in the first quarter 2014 compared with the same quarter of the previous year. While Austria posted a growth rate of 1.0%, Germany showed the strongest performance among the euro zone members with 2.3%. The euro area annual inflation was 0.7% in April 2014, up from 0.5% in March. As regards CA Immo's core markets, negative annual rates were observed in Hungary (-0.2%). Austria and Romania posted the highest inflation rates in the euro zone with 1.6%, 1.1% was observed in Germany. The unemployment rate (seasonally adjusted) was 11.8% in March 2014 in the euro area, slightly down on the reference quarter 2013 with 12.0%. Austria and Germany continue to stand out with low rates of 4.9% and 5.1%, respectively. Hungary could manage to decrease its unemployment rate substantially from 11.2% to 7.9% (February 2013 compared to February 2014). Poland posted 9.6%, Romania 7.2% and the Czech Republic 6.7% for the first quarter 2014. The International Monetary Fund (IMF) expects the euro area recovery to continue in 2014 with a growth forecast of 1.2% and expects a growth rate of 1.5% in the medium term. Pockets of stronger GDP growth are expected in Eastern European countries compared to Austria and Germany. A key risk to activity is seen in low inflation in advanced economies as well as in economic disruptions from geopolitical events.

Interest rate environment2)

The European Central bank (ECB) decided at its last meeting on May 8, 2014 to keep the key interest rates stable stating that the moderate recovery of the euro area is proceeding in line with expectations and that inflation expectations remain below the 2% target. The interest rates on the main refinancing operations and on the marginal lending facility were left unchanged at 0.25% and 0.75%, respectively.

The 3-month-Euribor, the daily reference rate based on the average interest rates at which Eurozone banks offer to lend unsecured funds in the interbank market stood between 0.28% and 0.32% during the reporting period.

Central- and Eastern Europe3)

The macroeconomic recovery in all of CA Immo's Eastern European core markets continued in the first quarter, driven by a macroeconomic improvement in the euro area leading to better net exports and an improving domestic demand. Current growth rates in CEE3 have not been seen since 2008 (note that growth rates are according to flash estimates available until 21 May).

Poland's GDP showed a decent acceleration in the first three months to +3.3% yoy vs +2.7% yoy in 4Q13. Industrial production increased by 4.8% yoy in 1Q, while construction output increased by +10.6% yoy driven predominantly by the mild winter. Polish base rate remained flat at 2.50% throughout the quarter, the same level since July 2013, on the back of a gradual economic recovery and limited inflation pressures.

Hungary's economy grew +3.5% yoy in the first quarter compared to +2.7% yoy in 4Q13. Hungarian CPI fell into negative territory in April (-0.1% yoy), mainly due to cuts in household energy prices. On the back of a low inflation rate and relatively strong HUF, the rate cutting cycle continued, the base was cut 4 times from the start of the year to date from 3.00% to 2.50%. The centre-right party, Fidesz secured its second 2/3 victory in the national elections in April.

The economy of the Czech Republic grew by +2.0% yoy in 1Q versus +1.2% yoy in 4Q13, mainly supported by strong net exports to Germany and the rest of the euro area. Technical zero interest rates (0.05%) have been left unchanged, while the commitment to keep the EUR/CZK around 27 levels has been re-confirmed in order to help exports (peg expected to be kept until early 2015).

Romania's economy grew +3.8% yoy in 1Q vs +5.4% yoy in 4Q13, driven by exports and industry but also accelerating retail sales (+11.90% yoy in March) pointing to a revival in consumption. The base rate was cut by 25 bps to 3.5% on 4 February. Rating agencies like Moody's and S&P have been improving the outlook and rating of Romanian bonds due to the rapid progress in improving external balances.

1) Eurostat; Bloomberg; The Economist; International Monetary Fund (IMF), World Economic Outlook April 2014

2) Bloomberg; European Central Bank

3) Central Statistical Office of Poland (GUS); Hungarian Central Statistical Office (KSH); Czech Statistical Office (CZSO); Romanian National Institite of Statistics (NIS); Bloomberg

PROPERTY MARKETS

The real estate investment market1)

The European transaction market for commercial real estate began 2014 with a clear rise of around 1%. According to CBRE Research, approximately € 37.9 bn was committed by contracts in the first quarter of 2014. As the UK – the most important market for real estate investment in Europe – declined marginally to € 11.4 bn in year-onyear terms, Germany made an outstanding start with almost € 10 bn; the expansion of over 47% was partly the result of several large deals and block sales. International demand remains high, with the proportion of foreign investors standing at roughly 53%. As investment activity increased in the regions, the share of the top five locations fell from 54% to 35%. Office properties represented the asset class most in demand during the first three months, accounting for around 52% of the total transaction volume. Munich, Frankfurt and Berlin – CA Immo's core markets in Germany – produced a total investment volume of around € 2.2 bn during quarter one. Persistently strong demand for limited availability, core segment properties is still serving to suppress yields. CBRE estimates current peak yields in the German office segment as 4.45% for Munich, 4.65% for Berlin and 4.70% for Frankfurt. Compared to the previous year, the transaction volume in Austria has tripled to approximately € 650 m, with a strong focus on retail properties. The peak yield on office properties is quoted at 4.70%, some 20 base points below the value for the same quarter of last year. German investors made up the strongest group of foreign buyers, accounting for approximately 40% of the total volume.

Transaction activity in Eastern Europe declined by -35% in the first quarter against the comparable period of 2013; the investment volume of around € 2.1 bn was due to the sharp fall in Russia (-77%). Poland accounted for most transaction activity in the region with an approximate volume of € 900 m, equivalent to a rise of some 40% on the first quarter of 2013.

The office property markets2)

Office space take-up of around 131,000 sqm in Berlin represented a rise of over 40 % on quarter one of last year. Although JLL Research has identified rising demand for high quality premises, the current peak monthly rent of

around€ 22.0/sqm is rising only slowly. The average monthly rent on the office property market in Berlin stands at € 12.85/sqm. Vacancy has continued to fall and currently amounts to roughly 7.9%, the lowest level since 2002 according to JLL. An approximate completion volume of 130,000 sqm is expected in 2014 (30 % above the previous year's level). Floor space turnover in Frankfurt stood at around 91,400 sqm, 4% below the long-standing average. The peak monthly rent is unchanged at € 35/sqm, while the average rent rose by 4% in Q1 to € 19.80/sqm per month. The vacancy rate stands at 11.4%. The low completion volume (which is expected to be less than 40,000 sqm by year end) will be counterbalanced a trend towards portfolio reduction through changes in use. In the first quarter, Munich reported its highest floor space turnover since 2008 (170,000 sqm) thanks to a number of large-scale transactions. The peak monthly rent is currently stable at € 32.50/sqm. Persistently high demand has led to a further fall in the vacancy rate for the market as a whole to 7. % (approximately 1.4 million sqm). By the same token, a rising completion volume is apparent: JLL estimates this at 277,000 sqm for 2014. Lettings performance in Vienna was unchanged on the previous year at approximately 45,000 sqm; the vacancy rate was also stable at around 6.6% while the peak monthly rent is roughly € 25/sqm.

Demand remains strong on the office market in Warsaw, where floor space turnover is around 136,000 sqm. Floor space under construction remains high at over 600,000 sqm; around 84,000 sqm of modern office space was completed in quarter one. The vacancy rate is reported as 12.2%, while peak monthly rents in the central business district are stable at € 22-24/sqm. By contrast, the vacancy rate in Budapest is still high at 18.5%; average monthly rents here are in the range of € 11.0-13.0/sqm. Office space take-up in Q1 fell sharply to around 57,000 sqm, equivalent to 80% of the prior year's value. Turnover in Prague was also down 27% on last year. The vacancy rate stood at 13.7% while the peak monthly rent was € 19-20/sqm. Floor space turnover in Bucharest has expanded by 39% to approximately 66,000 sqm; the vacancy rate is 15% (with considerable location-specific variations) and the peak monthly rent is € 18/sqm.

1) CBRE: European Investment Quarterly MarketView, Q3 2013; German Investment Quarterly MarketView, Q1 2014; Austria Investment Market-View Q1 2014

2) Jones Lang LaSalle: Office Market Profile Berlin/Frankfurt/Munich, Q1 2014; Warsaw/Budapest/Prague City Report Q1 2014, CBRE: Bucharest/Vienna Office MarketView Q1 2014

PROPERTY ASSETS

Application of new IFRS standards and impact on the representation of property assets

All financial reporting standards that must be applied as at 31 March 2014 and changes thereto have been observed in the compilation of the consolidated interim financial statements (for details, see the 'General notes' section of the notes). The main impact of the standards, some of which are new, lies in the fact that many companies (e.g. joint ventures) that were previously consolidated as joint ventures with a quota or fully consolidated taking minority interests into consideration, are now consolidated using the equity method (at equity).

As a result, the share held by these companies in the various items in the consolidated income statement and consolidated statement of financial position is disregarded. Instead, all assets and debts are summarised as net assets of the companies (pro rata) in the balance sheet item 'Investments in joint ventures'. Current annual results of joint ventures are reported under 'Earnings of joint ventures' in the consolidated income statement.

This change is reflected in the representation of property assets in that fully consolidated properties wholly owned by CA Immo are reported separately from partially owned real estate (companies) consolidated at equity. The table below shows the property portfolio divided into fully consolidated properties wholly owned by CA Immo ("full") and properties partially owned by CA Immo (prorata share) which are consolidated at equity ("at equity").

As at key date 31 March 2014, CA Immo's entire property assets stood at € 3.5 bn (fully consolidated: € 2.6 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 property assets under development (14% of the total portfolio). Properties intended for trading (reported under current assets) account for the remaining 1% or so of property assets.

As at 31 March 2014, the asset portfolio had an approximate market value of € 3.0 bn (of which fully consolidated: € 2.2 bn) and incorporated a total rentable effective area of 1.7 million sqm. Around 49% of the portfolio (on the basis of market value) is located in CEE and SEE nations, with 27% of the remaining investment properties in Germany and 24% in Austria

Investment Investment properties Short-term property
Total
Total property
in € m properties 1) under development assets 2) property assets assets in %
at at at at at
full equity full equity full equity full equity full equity
Austria 708 0 708 0 0 0 0 0 0 708 0 708 27 0 20
Germany 643 161 804 404 13 417 23 36 60 1,071 210 1,280 41 23 36
Czech Republic 82 162 244 3 3 6 0 0 0 85 165 250 3 18 7
Hungary 190 117 306 1 0 1 0 0 0 191 117 307 7 13 9
Poland 295 123 418 0 20 20 0 0 0 295 144 438 11 16 12
Romania 98 185 283 1 22 24 0 0 0 100 207 307 4 23 9
Others 158 67 225 7 10 17 0 0 0 165 77 242 6 8 7
Total 2,174 815 2,989 417 68 485 23 36 60 2,614 919 3,534 100 100 100

PROPERTY ASSETS OF THE CA IMMO GROUP AS AT 31 MARCH 2014 (PROPERTY VALUES)

Full: Fully consolidated properties wholly owned by CA Immo

At equity: Properties partially owned by CA Immo (pro-rata share), consolidated at equity

1) Includes properties used for own purposes and self-administrated properties

2) Short-term property assets including properties intended for trading or sale

In the first three months of the year, the Group generated rental income of € 50.7 m; the portfolio produced a yield of 6.9%. The occupancy rate was 89.5% as at 31 March 2014 (against 88.8% on 31.12.2013). For details, refer to the table in the 'Portfolio development' section.

Of property assets under development with a total market value of around € 484.7 m (of which fully consolidated: € 416.6 m), development projects and land reserves in Germany account for 86% while the CEE, SEE and CIS nations represent 14%. Property assets under development in Germany with a total market value of € 416.7 m include projects under construction with a value of € 71.9 m and land reserves with a market value of € 344.7 m.

FAIR VALUE INVESTMENT PROPERTIES

FAIR VALUE INVESTMENT PROPERTIES BY COUNTRY (Basis: 2.96 bn €)

FAIR VALUE INVESTMENT PROPERTIES BY SEGMENT (Basis: 2.96 bn €)

FAIR VALUE PROPERTY ASSETS BY SEGMENT (Basis: 3.5 bn €)

CHANGES TO THE PORTFOLIO IN THE FIRST QUARTER OF 2014

GERMANY

The asset portfolio

In Germany, CA Immo held investment properties and properties intended for trading with an approximate value of € 860.9 m1) on 31 March 2014 (of which € 663.9 m were wholly owned by CA Immo). The occupancy rate for all investment property assets on the key date was 91.3% (against 92.5% on 31.12.2013). 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 € 12.7 m was generated in the first three months.

Development projects

As at key date 31 March, CA Immo had invested € 18.4 m in development projects in Germany for 2014. On the basis of total investment costs, the volume of investment properties under construction in Germany (excluding land reserves) is approximately € 304.0 m. In total, CA Immo holds investment properties under development with a market value of € 416.7 m (of which fully consolidated: € 404.1 m).

1) Includes fully consolidated real estate (wholly owned by CA Immo) and real estate in which CA Immo holds a proportionate share (at equity)

The land use plan to develop the new Baumkirchen Mitte district in Munich was approved in January. Key data for the new urban area has thus been finalised. Around 560 apartments will be built on the site spanning approximately 130,000 sqm in the Munich district of Berg am Laim, while roughly 650 jobs will be created. CA Immo and PATRIZIA also began marketing apartments in the first building section in January. Planning permission was granted in May and the foundation stone will be laid in July.

Baumkirchen Mitte: Visualisation of the first building section

Fair value property Rentable area Occupancy rate Annualised rental Yield
assets income
in € m in sqm in % in € m in %
at at at at at
full equity Total full equity Total full equity Total full equity Total full equity Total
Austria 703 0 703 318,173 0 318,173 96.7 0.0 96.7 42.8 0.0 42.8 6.1 0.0 6.1
Germany 641 161 801 327,878 33,466 361,344 94.9 77.7 91.4 40.1 8.4 48.5 6.3 5.2 6.1
Czech
Republic 58 162 220 41,979 69,821 111,800 89.6 86.2 87.3 6.0 11.7 17.8 10.5 7.2 8.1
Hungary 190 117 306 108,144 107,784 215,928 83.3 79.4 81.8 14.8 8.6 23.4 7.8 7.4 7.6
Poland 295 123 418 93,189 202,816 296,005 88.9 80.3 86.0 20.9 9.8 30.7 7.1 7.9 7.3
Romania 98 185 283 42,103 189,772 231,875 96.6 94.7 95.3 9.1 16.0 25.1 9.2 8.7 8.9
Others 158 67 225 95,258 37,687 132,945 83.9 71.2 80.4 12.3 4.0 16.3 7.8 6.0 7.2
Total 2,142 815 2,957 1,026,724 641,346 1,668,070 92.1 83.6% 89.5% 146 59 205 6.8 7.2 6.9

OVERVIEW INVESTMENT PROPERTIES 1)

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 owned by CA Immo accounted for using the equity method (appears under 'Income from joint ventures' in the income statement)

1) Excludes properties used for own purposes and self-administrated properties, excl. properties intended for trading

Early in March CA Immo acquired two construction sites in the Zollhafen district of Mainz which CA Immo Deutschland GmbH is developing in partnership with Stadtwerke Mainz AG. The purpose of acquiring the Hafenspitze and Rheinallee III sites is to realise one office project and one mixed use property. A distinctive office structure around 42 metres in height may be built on the Hafenspitze construction site, which offers floor area of 12,000 sqm in an attractive waterside location on the northern edge of the harbour basin. The 23,000 sqm of the Rheinallee III site, meanwhile, is suitable for mixed utilisation, with harbour-facing apartments and largescale retail premises among the possibilities.

Sales

During the first three months, trading income from German real estate totalled € 10.8 m, with the profit from these transactions amounting to € 4.5 m.

AUSTRIA

The asset portfolio

As at 31 March 2014, CA Immo held investment properties in Austria with a value of € 708.4 m and an occupancy rate of 96.7% (94.2% on 31.12.2013). The company's asset portfolio generated rental income of € 10.7 m in the first three months. Approximately 1,600 sqm of rental space was newly let in Austria between January and the end of March.

Sales

Trading income for Austria amounted to € 0.1 m in the first three months.

EASTERN EUROPE

The asset portfolio

CA Immo held investment properties with an approximate value of € 1,476.7 m in Eastern Europe as at 31 March 2014 (of which fully consolidated: € 822.6 m). In the first three months, property assets let with a total effective area of around 1.0 million sqm (404,419 sqm fully consolidated) generated rental income of € 27.2 m. The occupancy rate on the key date was 86.3% (against 85.7% on 31.12.2013). Lease agreements relating to around 106,900 sqm were concluded in the first three

months; of that total, logistical premises accounted for 71,900 sqm and office space represented roughly 34,400 sqm.

Sales

The sale of the Lipowy Office Park office building in Warsaw to Kimberley sp. z o.o., a company owned by a US-listed REIT, was agreed in December and concluded in the first quarter. The purchase price is approximately € 108 m. The structure, which offers around 40,000 sqm of gross floor space above ground, has been let in its entirety to Bank Pekao S.A. for the long term.

In February ZAO AVIELEN A.G. – a joint venture between Austrian property developer Warimpex (55%), CA Immo (35%) and UBM (10%) – agreed a term sheet for the sale of two office towers at Airport City St. Petersburg with a Russian pension fund. The two buildings – Jupiter 1 and Jupiter 2 – have total floor space of around 16,800 sqm and have been let to companies belonging to a major Russian energy group for around a year. The parties are expecting to close the transaction in mid-2014.

SUPPLEMENTARY REPORT

The following activities after key date 31 March 2014 are reported:

Increase in total number of voting rights

As a result of the issue of shares prompted by the exercising of conversion rights by owners of the 4.125% convertible bonds for 2009-2014, the company's capital stock at the end of May 2014 stood at € 641,508,347.76, divided into four registered shares and 88,240,484 bearer shares each with a proportionate amount of the capital stock of € 7.27. The delivery shares, held under ISIN AT0000641352, have dividend entitlement from their business year of issue.

ZAO AVIELEN A.G. and a leading international group have signed a preliminary agreement regarding the longterm letting of the whole third office tower at Airport City St. Petersburg. The Zeppelin office building has around 16,000 sqm of rentable effective area on 13 floors.

Sustainable portfolio performance

Analysis of results for the first quarter of 2014 shows that because of changes to relevant IFRS provisions, a number of joint venture companies that were previously fully consolidated must now be stated at equity. This has led to a further balance sheet contraction. Figures from last year used for comparative purposes have also been adapted to the new rules accordingly.

During the first quarter of 2014, CA Immo's rental income fell by 21.5% to € 37,488 K. This significant change compared to the previous year was caused by real estate sales in 2013 (and in particular the sale of the Hesse portfolio and the partial sale of Tower 185 in Frankfurt).

Property expenses directly attributable to the asset portfolio, including own operating expenses, were largely unchanged in year-on-year comparison at -€ 4,318 K (-0.4%). The result from renting stood at € 33,170 K after the first three quarters. The efficiency of letting activity, measured as the operating margin in rental business (net result from renting in relation to rental income), stood at 88.5% , somewhat below the previous year's value of 90.9% after the first three months.

Other expenditure directly attributable to development projects amounted to -€ 1,272 K in the first quarter (-€ 534 K in 2013).

Hotel operations contributed a total of € 185 K to the result over the first three months, down 23.6% on the prior year's figure.

By contrast, gross revenue from services rose by a significant 51.3% in yearly comparison to stand at € 3,455 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

The sales result from property assets held as current assets delivered a contribution of € 198 K (against – 28 in 2013). The result from the sale of investment properties increased by 77.4% on the comparable value for last year to stand at € 4,301 K. Almost all sales revenue was generated within the German segment.

Indirect expenditures

After the first three months, indirect expenditures stood at € – 10,137, slightly above the 2013 level of€ – 9,865.

Unlike in previous periods, this item also contains expenditure counterbalancing the aforementioned gross revenue from services.

Other operating income stood at € 4,117 K, a clear rise on the 2013 reference value of € 574 K.

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

Earnings before interest, taxes, depreciation and amortisation (EBITDA) declined by 11.8% to stand at € 34,017 K. The lower result was mainly due to the drop in rent linked to last year's real estate sales. In comparison with reporting carried out in the previous period under IAS 27 and 28, the absence of a contribution from joint ventures produced a significant decrease that impacts on EBITDA, while it contributes to EBIT.

Revaluation result

The total revaluation gain of € 1,893 K in Q1 2014 was counterbalanced by a revaluation loss of -€ 4,593 K. The cumulative revaluation result of € – 2,645 K as at key date 31 March 2014 was marginally negative but an improvement on the 2013 figure of € – 3,037 K.

Result from joint ventures

Current results of joint ventures consolidated at equity are reported under 'Earnings of joint ventures' in the consolidated income statement. After the first three months this contribution amounted to € 8,025 K, reflecting a significant 120% upturn in earnings on the comparable value of last year (€ 3,654 K). The share of earnings meeting the EBITDA definition of the Group stood at € 11,640 K after three months, up 3.2% on the first quarter of 2013.

Earnings before interest and taxes (EBIT)

Earnings before interest and taxes (EBIT) remained stable in yearly comparison (€ 38,275 K against € 38,250 K in 2013). As a consequence, the decline in Group EBITDA was counterbalanced by an improved result from revaluation and joint ventures.

Financial result

The financial result of € – 20,354 K in the first quarter of 2014 was marginally below the prior year's value of € – 19,262 K. However, adjusting to account for the valuation result from interest rate derivative transactions reveals a significant improvement of more than 50% in year-on-year comparison.

The Group's financing costs, a key element in long-term revenue, fell by – 23.9% on the 2013 value to € – 22,199 K. Aside from loan repayments linked to sales, the repurchase of own liabilities in the first quarter had a particularly positive impact. The item 'Other financial income/expense' of € 2,408 K was another positive onetime effect of the transaction.

A positive development in the first quarter of the previous year (€ 5,444 K) was counteracted by a negative contribution from the valuation of interest-rate hedges which brought about a negative result of € – 8,318 K. Of this, reclassifications of valuations recognised in equity last year in connection with rescheduling from variable to fixed-interest loans accounted for -€ 4,108 K.

The result from financial investments of € 5,931 K was higher than the value for the reference period (€ 1,905 K in 2013). Changes in consolidation based on IFRS 10 and 11 led to higher financial revenues from loans granted to joint ventures.

The result from associated companies (€ 1,406 K compared to € 1,948 K in 2013) contains the proportionate result from the investment in UBM.

Taxes on income

Earnings before taxes (EBT) amounted to € 17,921 K, down 5.6% on last year's value of € 18,988 K. After the first three months, the result from taxes on earnings was - € – 4,031 K (-€ – 1,195 K in 2013). The Germany segment produced most actual taxes on earnings. The positive effect of taxes on earnings was essentially linked to the assertion of income tax incentives in tax returns for previous years, which in turn led to an increase in deferred taxes of the same amount.

Result for the period

The somewhat lower financial result, combined with the increase in deferred taxes in quarter one, served to reduce the contribution to earnings by 21.9% to € 13,890 K.

Funds from operations (FFO)

An FFO I of € 15,984 K was generated in the first quarter of 2014, 7% above the previous year's value of € 14,877 K. FFO I, a key indicator of the Group's recurring earnings power, is reported before taxes and adjusted for the sales result and other non-permanent effects. FFO II, which includes the sales result and applicable taxes,

increased significantly on last year at € 29,705 K (€ 15,552 K in 2013).

FUNDS FROM OPERATIONS (FFO)
€ m 1st 1st
Quarter Quarter
2014 2013
Net rental income (NRI) 33.2 43.4
Result from hotel operations 0.2 0.2
income from services 3.5 2.3
Other expenses directly related to
properties under development – 1.3 – 0.5
Other operating income 4.1 0.6
Other operating income/expenses 6.5 2.6
Indirect expenses – 10.1 – 9.9
Result from investments in joint ventures 1) 6.3 6.0
Finance costs – 22.2 – 29.2
Result from financial investments 5.9 1.9
Other adjustments – 3.6 0.0
FFO I (excl. trading and pre taxes) 16.0 14.9
Trading result 0.2 0.0
Result from the sale of investment
properties 4.3 2.4
Result from sale of joint ventures 0.5 0.0
Result from property sales 5.0 2.4
Other financial result 2.4 0.0
Current income tax 2.9 – 1.2
current income tax of joint ventures – 0.2 – 0.5
Other adjustments 3.6 0.0
FFO II 29.7 15.6

1) Adjustments for property trading and non recurring items

Balance sheet: assets

The real estate sales of 2013 and the first-time application of IFRS 10 and 11 produced a balance sheet contraction on the key date when compared to reporting under IAS 27 and 28 in previous periods. As at the balance sheet date, long-term assets amounted to € 3,324,801 K (87% of total assets).

The balance sheet item 'Property assets under development' rose by 4.12% on the value as at 31 December 2013 to € 416,575 K. Total property assets (investment properties, hotels and other properties used for own purposes, property assets under development and property assets held as current assets) amounted to € 2,614,300 K on the key date, 3.4% below the level at year end (€ 2,707,505 K).

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 € 229,870 K on the key date (€ 219,224 K in 2013).

Cash and cash equivalents had declined substantially to € 334,588 K on the balance sheet date compared to the value for 31 December 2013 (€ 613,426 K); the key factor in this was the repurchase of own liabilities from Österreichische Volksbanken AG in January 2014.

Balance sheet: liabilities Equity

During the first quarter, shareholders' equity increased by 1.0%, from € 1,794,266 K to € 1,811,496 K. The equity ratio for the Group was 47.4% on the key date, compared to 44.4% at year end.

Interest-bearing liabilities

During quarter one, the Group's financial liabilities continued to fall (to € 1,455,565 K on the key date against € 1,710,942 K on 31.12.2013). Net debt rose marginally from € 1,097,516 K at the start of the year to € 1,120,977 K. The loan-to-value ratio as at 31 March 2014 was at 42% (net, taking account of Group cash and cash equivalents). On the key date, gearing was 61% (60% on 31.12.2013).

Net asset value

As at 31 March 2014, diluted NAV (shareholders' equity excluding minority interests) stood at € 1,811.5 m (€ 18.37 per share), equivalent to a rise of 1.0% on the value at the start of the year. Aside from the result for the period, the change reflects the other changes to equity outlined above. 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).

Given that the rate of the CA Immo share was above the conversion price of the convertible bond on the balance sheet date, a dilution effect from a hypothetical exertion of the conversion option was taken into consideration in the calculation of the EPRA NAV. The diluted EPRA NNNAV as at 31 March 2014 was € 20.26 per share, equivalent to an increase of 0.8% on the value at the end of last year (€ 20.09 per share). The number of shares outstanding stood at 87.921.713.

€ m 31.03.2014 31.03.2014 31.12.2013 31.12.2013
diluted undiluted diluted undiluted
Equity (NAV) 1,811.5 1,811.5 1,794.3 1,794.3
NAV/share in € 18.4 20.6 18.2 20.4
Computation of NNNAV
Exercise of options 114.0 0.0 114.5 0.0
NAV after exercise of options 1,925.5 1,811.5 1,908.8 1,794.3
Value adjustment for
- own use properties 4.8 4.8 4.2 4.2
- short-term property assets 15.5 15.5 10.9 10.9
- Financial instruments 32.5 32.5 34.9 34.9
Deferred taxes 180.5 180.5 185.7 185.7
EPRA NAV after adjustments 2,158.9 2,044.8 2,144.4 2,029.9
EPRA NAV per share in € 21.9 20.7 21.7 20.6
Value adj. for financial instruments – 32.5 – 32.5 – 34.9 – 34.9
Value adjustment for liabilities – 12.4 – 12.4 – 8.6 – 8.6
Deferred taxes – 116.7 – 116.7 – 119.9 – 119.9
EPRA NNNAV 1,997.2 1,883.2 1,981.0 1,866.5
EPRA NNNAV per share in € 20.26 21.42 20.09 21.24
Change of NNNAV against previous year 0.8% 0.8%
Price (31.03.) / NNNAV per share – 1 – 35.3 – 38.8 – 35.9 – 39.4
Number of shares 98,595,132 87,921,713 98,595,133 87,856,060

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

CONSOLIDATED INCOME STATEMENT

€ 1.000 1st Quarter 2014 1st Quarter 2013
Rental income
Operating costs charged to tenants
37,488
8,572
47,735
10,099
Operating expenses – 10,259 – 11,546
Other expenses directly related to properties rented – 2,631 – 2,888
Net rental income 33,170 43,400
Gross revenues hotel operations 1,385 1,452
Expenses related to hotel operations – 1,200 – 1,210
Result from hotel operations
Other expenses directly related to properties under development
185
– 1,272
242
– 534
Income from the sale of properties held for trading 339 3,907
Book value of sold properties held for trading – 141 – 3,935
Trading result 198 – 28
Result from the sale of investment properties 4,301 2,361
income from services 3,455 2,283
Indirect expenses – 10,137 – 9,865
Other operating income 4,117 574
EBITDA 34,017 38,433
Depreciation and impairment of long-term assets – 1,121 – 793
Changes in value of properties held for trading – 1 2
Depreciation and impairment/reversal – 1,122 – 791
Revaluation gain 1,893 5,271
Revaluation loss – 4,538 – 8,308
Result from revaluation – 2,645 – 3,037
result from joint ventures 8,025 3,645
Operating result (EBIT) 38,275 38,250
Finance costs – 22,199 – 29,161
Other financial result 2,408 0
Foreign currency gains/losses 418 602
Result from interest rate derivative transactions – 8,318 5,444
Result from financial investments
Result from associated companies
5,931
1,406
1,905
1,948
Financial result – 20,354 – 19,262
Net result before taxes (EBT) 17,921 18,988
Current income tax 2,933 – 1,198
Deferred taxes – 6,964 3
Income tax – 4,031 – 1,195
Consolidated net income 13,890 17,793
thereof attributable to non-controlling interests 0 – 35
thereof attributable to the owners of the parent 13,890 17,828
Earning per share in € (basic) € 0.16 € 0.20
Earnings per share in € (diluted) € 0.15 € 0.20

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

€ 1.000 1st Quarter 2014 1st Quarter 2013
Consolidated net income 13,890 17,793
Other comprehensive income
Valuation cash flow hedges – 989 12,154
Reclassification cash flow hedges 4,108 154
Exchange rate differences 241 – 385
Income tax related to other comprehensive income – 715 – 2,311
Other comprehensive income for the period (realised through profit or
loss) 2,645 9,612
Actuarial gains/losses IAS 19 – 8 0
Other comprehensive income for the period (not realised through profit or
loss) – 8 0
Other comprehensive income for the period 2,637 9,612
Comprehensive income for the period 16,527 27,405
thereof attributable to non-controlling interests 0 34
thereof attributable to the owners of the parent 16,527 27,371

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

€ 1.000 31.3.2014 31.12.2013 1.1.2013
ASSETS
Investment properties 2,142,100 2,139,564 3,139,372
Investment properties under development 416,575 400,095 535,333
Hotel and other own used properties 32,162 32,813 36,253
Office furniture and other equipment 1,650 1,700 2,166
Intangible assets 19,807 20,054 21,705
investments in joint ventures 229,870 219,224 242,818
Investments in associated companies 40,485 38,744 36,233
Financial assets 436,865 299,652 213,294
Deferred tax assets 5,287 4,300 7,525
Long-term assets 3,324,801 3,156,146 4,234,699
Long-term assets as a % of total assets 87.0% 78.1% 90.4%
Assets held for sale 2,920 114,467 53,794
Properties held for trading 20,543 20,566 22,258
Receivables and other assets 137,283 136,006 178,700
Cash and cash equivalents 334,588 613,426 193,228
Short-term assets 495,334 884,465 447,980
Total assets 3,820,135 4,040,611 4,682,679
LIABILITIES AND SHAREHOLDERS' EQUITY
Share capital 639,191 638,714 638,714
Capital reserves 1,000,762 1,000,536 1,030,410
Other reserves – 34,786 – 37,423 – 109,829
Retained earnings 206,329 192,439 116,700
Attributable to the owners of the parent 1,811,496 1,794,266 1,675,995
Non-controlling interests 0 0 12,622
Shareholders' equity 1,811,496 1,794,266 1,688,617
Shareholders' equity as a % of total assets 47.4% 44.4% 36.1%
Provisions 7,054 8,116 3,910
Interest-bearing liabilities 1,004,755 1,102,119 2,004,712
Other liabilities 202,560 203,739 262,960
Deferred tax liabilities 149,972 140,304 134,569
Long-term liabilities 1,364,341 1,454,278 2,406,151
Current income tax liabilities 13,013 12,480 14,622
Provisions 54,067 61,074 69,394
Interest-bearing liabilities 450,810 608,823 412,820
Other liabilities 126,408 109,690 91,075
Short-term liabilities 644,298 792,067 587,911
Total liabilities and shareholders' equity 3,820,135 4,040,611 4,682,679

CONDENSED STATEMENT OF CASH FLOWS

€ 1.000 1st Quarter 2014 1st Quarter 2013
Cash flow from operations 26,280 31,912
Cash flow from changes in net working capital 7,456 – 1,315
Cash flow from operating activities 33,736 30,597
Cash flow from investing activities – 179,098 – 26,200
Cash flow from financing activities – 133,145 – 17,771
Net change in cash and cash equivalents – 278,507 – 13,374
Cash and cash equivalents as at 1.1. 613,426 193,228
Exchange rate differences – 331 – 586
Net change in cash and cash equivalents – 278,507 – 13,374
Cash and cash equivalents as at 31.3. 334,588 179,268

STATEMENT OF CHANGES IN EQUITY

€ 1.000 Share capital Capital reserves Retained
earnings
As at 1.1.2013 638,714 1,030,410 116,700
Valuation cash flow hedge 0 0 0
Currency translation reserve 0 0 0
Consolidated net income 0 0 17,828
Comprehensive income for 2013 0 0 17,828
As at 31.3.2013 638,714 1,030,410 134,528
As at 1.1.2014 638,714 1,000,536 192,439
Valuation cash flow hedge 0 0 0
Currency translation reserve 0 0 0
Actuarial gains/losses IAS 19 0 0 0
Consolidated net income 0 0 13,890
Comprehensive income for 2014 0 0 13,890
conversion of bonds 477 226 0
As at 31.3.2014 639,191 1,000,762 206,329
Valuation result other reserves Attributable to Non-controlling Shareholders'
(hedging) shareholders of the interests equity (total)
parent company
– 107,429 – 2,400 1,675,995 12,622 1,688,617
9,928 0 9,928 69 9,997
0 – 385 – 385 0 – 385
0 0 17,828 – 35 17,793
9,928 – 385 27,371 34 27,405
– 97,501 – 2,785 1,703,366 12,656 1,716,022
– 34,907 – 2,516 1,794,266 0 1,794,266
2,404 0 2,404 0 2,404
0 241 241 0 241
0 – 8 – 8 0 – 8
0 0 13,890 0 13,890
2,404 233 16,527 0 16,527
0 0 703 0 703
– 32,503 – 2,283 1,811,496 0 1,811,496

SEGMENT REPORTING

€ 1.000 Austria Germany
1. Quartal 2014 Income Development Total Income Development Total Income
producing producing producing
Rental income 10,721 72 10,793 13,724 2,705 16,429 29,749
Rental income with other
operating segments 129 0 129 77 0 77 0
Operating costs charged to tenants 2,299 0 2,299 2,439 156 2,595 10,574
Operating expenses – 2,464 0 – 2,464 – 3,079 – 356 – 3,435 – 11,965
Other expenses directly related to
properties rented – 1,221 0 – 1,221 – 1,413 261 – 1,152 – 1,273
Net rental income 9,464 72 9,536 11,748 2,766 14,514 27,085
Result from hotel operations 0 0 0 0 0 0 185
Other expenses directly related to
properties under development 0 0 0 0 – 1,651 – 1,651 0
Trading result 0 0 0 0 562 562 0
Result from the sale of investment
properties – 18 – 8 – 26 531 3,591 4,122 306
income from services 0 0 0 0 2,367 2,367 208
Indirect expenses – 237 – 51 – 288 – 1,199 – 5,107 – 6,306 – 4,247
Other operating income 120 0 120 347 559 906 3,736
EBITDA 9,329 13 9,342 11,427 3,087 14,514 27,273
Depreciation and
impairment/reversal – 278 0 – 278 – 75 – 91 – 166 – 676
Result from revaluation 209 0 209 2,136 – 823 1,313 2,252
result from joint ventures 0 0 0 0 0 0 0
Operating result (EBIT) 9,260 13 9,273 13,488 2,173 15,661 28,849
31.3.2014
Property assets1) 708,356 0 708,356 1,007,027 644,331 1,651,358 1,678,893
Other assets 153,844 209 154,053 346,586 410,968 757,554 358,885
Deferred tax assets 0 0 0 1,264 3,636 4,900 1,434
Segment assets 862,200 209 862,409 1,354,877 1,058,935 2,413,812 2,039,212
Interest-bearing liabilities 344,444 4,141 348,585 623,260 375,544 998,804 1,386,563
Other liabilities 31,936 0 31,936 79,689 55,624 135,313 139,188
Deferred tax liabilities incl.
current income tax liabilities 56,655 0 56,655 78,474 50,058 128,532 75,751
Liabilities 433,035 4,141 437,176 781,423 481,226 1,262,649 1,601,502
Shareholders' equity 429,165 – 3,932 425,233 573,454 577,709 1,151,163 437,710
Capital expenditures2) – 6,457 9,555 3,098 92 22,196 22,288 – 122

1) Property assets include rental investment properties, investment properties under development, hotels and other own used properties,

properties held for trading and properties available for sale. 2) Capital expenditures include all acquisitions of properties (long-term and short-term) including additions from initial consolidation, office furniture and other equipment and intangible assets; thereof € 88 K (31.12.2013: € 8,608 K) in properties held for trading.

Eastern Europe Eastern Total Holding Consolidation Total
core regions Europe other segments
regions
Development Total Income Development Total
producing
939 30,688 4,150 0 4,150 62,060 0 – 24,572 37,488
0 0 0 0 0 206 0 – 206 0
227 10,801 1,296 0 1,296 16,991 0 – 8,419 8,572
– 342 – 12,307 – 1,612 0 – 1,612 – 19,818 0 9,559 – 10,259
– 715 – 1,988 – 81 0 – 81 – 4,442 0 1,811 – 2,631
109 27,194 3,753 0 3,753 54,997 0 – 21,827 33,170
0 185 0 0 0 185 0 0 185
– 29 – 29 0 – 5 – 5 – 1,685 0 413 – 1,272
0 0 0 0 0 562 0 – 364 198
0 306 0 0 0 4,402 0 – 101 4,301
0
– 376
208
– 4,623
55
– 279
0
– 141
55
– 420
2,630
– 11,637
1,044
– 2,541
– 219
4,040
3,455
– 10,138
85 3,821 12 1 13 4,860 21 – 764 4,117
– 211 27,062 3,541 – 145 3,396 54,314 – 1,476 – 18,822 34,016
– 4 – 680 – 1 – 1 – 2 – 1,126 – 126 130 – 1,122
138 2,390 – 516 0 – 516 3,396 0 – 6,041 – 2,645
0 0 0 0 0 0 0 8,025 8,025
– 77 28,772 3,024 – 146 2,878 56,584 – 1,602 – 16,708 38,274
75,187 1,754,080 242,483 8,900 251,383 4,365,177 0 – 1,750,877 2,614,300
69,766 428,651 16,486 3,485 19,971 1,360,229 758,372 – 918,053 1,200,548
0 1,434 0 0 0 6,334 44,018 – 45,065 5,287
144,953 2,184,165 258,969 12,385 271,354 5,731,740 802,390 – 2,713,995 3,820,135
90,818 1,477,381 169,669 25,390 195,059 3,019,829 772,504 – 2,336,768 1,455,565
2,879 142,067 8,253 91 8,344 317,660 82,437 – 10,008 390,089
2,076 77,827 10,242 0 10,242 273,256 1,365 – 111,636 162,985
95,773 1,697,275 188,164 25,481 213,645 3,610,745 856,306 – 2,458,412 2,008,639
49,180 486,890 70,805 – 13,096 57,709 2,120,995 – 53,916 – 255,583 1,811,496
1,893 1,771 375 0 375 27,532 78 – 6,061 21,549
€ 1.000 Austria Germany
1st Quarter 2013 Income Development Total Income Development Total Income
producing producing producing
Rental income 9,887 73 9,960 18,950 7,591 26,541 30,379
Rental income with other
operating segments 128 0 128 82 0 82 0
Operating costs charged to tenants 2,499 6 2,505 2,433 1,375 3,808 11,920
Operating expenses – 2,740 – 6 – 2,746 – 2,634 – 1,930 – 4,564 – 13,233
Other expenses directly related to
properties rented – 536 – 5 – 541 – 1,119 – 1,039 – 2,158 – 2,153
Net rental income 9,238 68 9,306 17,712 5,997 23,709 26,913
Result from hotel operations 0 0 0 0 0 0 255
Other expenses directly related to
properties under development 0 – 109 – 109 0 – 671 – 671 0
Trading result 0 0 0 0 276 276 0
Result from the sale of investment
properties 5 0 5 337 1,683 2,020 0
income from services 0 0 0 0 1,529 1,529 598
Indirect expenses – 263 – 54 – 317 – 1,398 – 5,129 – 6,527 – 3,781
Other operating income 152 0 152 478 1,791 2,269 787
EBITDA 9,132 – 95 9,037 17,129 5,476 22,605 24,772
Depreciation and
impairment/reversal – 290 0 – 290 – 39 – 234 – 273 – 408
Result from revaluation – 512 – 42 – 554 928 940 1,868 – 4,805
result from joint ventures 0 0 0 0 0 0 0
Operating result (EBIT) 8,330 – 137 8,193 18,018 6,182 24,200 19,559
31.12.2013
Property assets1) 650,019 54,700 704,719 525,880 1,108,730 1,634,610 1,732,161
Other assets 154,318 11,661 165,979 149,878 607,337 757,215 197,146
Deferred tax assets 0 0 0 813 3,381 4,194 954
Segment assets 804,337 66,361 870,698 676,571 1,719,448 2,396,019 1,930,261
Interest-bearing liabilities 320,608 20,820 341,428 323,903 618,977 942,880 1,325,867
Other liabilities 38,147 3,116 41,263 77,122 44,059 121,181 110,926
Deferred tax liabilities incl.
current income tax liabilities 52,595 173 52,768 59,966 76,601 136,567 106,355
Liabilities 411,350 24,109 435,459 460,991 739,637 1,200,628 1,543,148
Shareholders' equity 392,987 42,252 435,239 215,580 979,811 1,195,391 387,113
Capital expenditures2) 3,010 9,640 12,650 5,216 113,123 118,339 260,519

1) Property assets include rental investment properties, investment properties under development, hotels and other own used properties, properties held for trading and properties available for sale.

2) Capital expenditures include all acquisitions of properties (long-term and short-term) including additions from initial consolidation, office furniture and other equipment and intangible assets; thereof € 88 K (31.12.2013: € 8,608 K) in properties held for trading.

Eastern Europe Eastern Total Holding Consolidation Total
core regions Europe other segments
regions
Development Total Income Development Total
producing
471 30,850 3,997 0 3,997 71,348 0 – 23,613 47,735
0 0 0 0 0 210 0 – 210 0
154 12,074 1,192 0 1,192 19,579 0 – 9,480 10,099
– 178 – 13,411 – 1,568 0 – 1,568 – 22,289 0 10,743 – 11,546
– 160 – 2,313 – 387 0 – 387 – 5,399 0 2,511 – 2,888
287 27,200 3,234 0 3,234 63,449 0 – 20,049 43,400
0 255 0 0 0 255 0 – 13 242
– 104 – 104 0 – 24 – 24 – 908 0 374 – 534
0 0 0 0 0 276 0 – 304 – 28
0 0 0 0 0 2,025 0 336 2,361
0 598 0 0 0 2,127 858 – 702 2,283
– 458 – 4,239 – 378 – 227 – 605 – 11,688 – 2,393 4,216 – 9,865
190 977 185 243 428 3,826 60 – 3,312 574
– 85 24,687 3,041 – 8 3,033 59,362 – 1,475 – 19,454 38,433
0 – 408 – 1 – 2 – 3 – 974 – 80 263 – 791
27 – 4,778 – 718 0 – 718 – 4,182 0 1,145 – 3,037
0 0 0 0 0 0 0 3,645 3,645
– 58 19,501 2,322 – 10 2,312 54,206 – 1,555 – 14,401 38,250
120,263 1,852,424 242,500 8,900 251,400 4,443,153 0 – 1,735,648 2,707,505
204,033 401,179 13,355 3,479 16,834 1,341,207 442,814 – 455,215 1,328,806
75 1,029 0 0 0 5,223 44,199 – 45,122 4,300
324,371 2,254,632 255,855 12,379 268,234 5,789,583 487,013 – 2,235,985 4,040,611
235,716 1,561,583 187,518 25,137 212,655 3,058,546 533,041 – 1,880,645 1,710,942
8,633 119,559 8,274 72 8,346 290,349 45,728 46,542 382,619
2,073 108,428 9,886 0 9,886 307,649 48 – 154,913 152,784
246,422 1,789,570 205,678 25,209 230,887 3,656,544 578,817 – 1,989,016 2,246,345
77,949 465,062 50,177 – 12,830 37,347 2,133,039 – 91,804 – 246,969 1,794,266
4,968 265,487 2,181 11 2,192 398,668 483 – 30,500 368,651

NOTES

GENERAL NOTES

The condensed consolidated interim financial statements as at 31.3.2014 were prepared in accordance to 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 2013, except of new or amended standards.

The condensed consolidated interim financial statements of CA Immobilien Anlagen Aktiengesellschaft ("CA Immo AG"), Vienna, for the reporting period from 1.1. to 31.3.2014 have been neither fully audited nor examined by an auditor.

The use of automatic data processing equipment may lead to rounding differences when adding rounded amounts and percentages.

CHANGES IN PRESENTATION AND ACCOUNTING POLICIES

The condensed consolidated interim financial statements 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 1.1.2014. The following amended and new standards are applicable for the first time in the business year 2014:

standard / interpretation Content entry into force1)
IAS 27 Revised IAS 27: Separate Financial Statements 1.1.2014
IAS 28 Revised IAS 28: Investments in Associates and Joint Ventures 1.1.2014
IAS 32 Amended IAS 32: Offsetting Financial Assets and Financial Liabilities 1.1.2014
IFRS 10 New Standard: Consolidated Financial Statements 1.1.2014
IFRS 11 New Standard: Joint Arrangements 1.1.2014
IFRS 12 New Standard: Disclosures of Interests in Other Entities 1.1.2014
changes in IAS 39: Novation of derivatives and continuation of Hedge
IAS 39 Accounting 1.1.2014
changes in IAS 36: Notes: recoverable amount disclosures for non-financial
IAS 36 assets 1.1.2014

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

Segment Reporting

According to the companies' strategy an the internal reporting the presentation of the segment Eastern Europe was divided into two segments, Eastern Europe core regions and Eastern Europe other regions. The segment Eastern Europe core regions is based on the contries Czech, Slowakia, Hungary, Poland and Romania. The segment Eastern Europe other regions consists of the countries Bulgaria, Croatia, Serbia as well as Ukraine.Furhtermore the presentation of the segment reporting was changed in the way that 100% of the assets and liabilities as well as income and expenses of the entities are shown in the segments, independent from the way of consolidation into the financial statements.

Adjustments due to the the inclusion in CA Immo Group are shown in column Consolidation.

The new and amended standards which are applicable for the first time in the business year 2014 have no material influence on the financial statements, apart from the following standards IFRS 10, 11 and 12.

General influence of the new IFRS Standards IFRS 10,11 and 12 on the financial statements

Due to the modified control concept the inclusion of some entites into CA Immo Group changed. Following tables show how the group income statement, the comprehensive income as well as the cashflow for the 1st quarter 2013 as well as the balance sheet as at 31.12.2013 respectively as at 1.1.2013 changes under retrospective application of IRFS 10,11 and 12.

The new standards affect primarily that henceforth plenty of companies, which had been consolidated proportionally as joint ventures or as companies, which had been fully consolidated with non-controlling interests, are consolidated with the equity method. This causes that the

interests of the companies are no longer part of the miscellaneous items in the consolidated income statement respectively balance sheet. All assets and liabilities are presented set off as a net asset in the posion "investments in joint ventures" instead. The current results of the joint ventures are shown as "result from joint ventures" in the consolidated income statement.

Influence of the new IFRS Standards IFRS 10, 11 and 12 on the consolidated income statement and other comprehensive income

Basically the consoloidated net income attributable to the owners of the parent is nearly unchanged, no matter if consolidation is done according to IAS 27 and 28 or according to IFRS 10, 11 and 12. The difference in the comprehensive income for the 1st quarter arises mainly from a purchase of a loan under nominal value for a property company from the fincancing bank, which is shown in the other financial result

€ 1.000 1st quarter 2013 changes due to 1st quarter 2013
according to IAS IFRS 10 + 11 according to IFRS
27 + 28 10 + 11
Rental income 69,034 – 21,299 47,735
Operating costs charged to tenants 18,472 – 8,373 10,099
Operating expenses – 20,567 9,021 – 11,546
Other expenses directly related to properties rented – 5,182 2,294 – 2,888
Net rental income 61,757 – 18,357 43,400
Gross revenues hotel operations 1,452 0 1,452
Expenses from hotel operations – 1,210 0 – 1,210
Result from hotel operations 242 0 242
Other expenses directly related to properties under
development – 677 179 – 498
Income from the sale of properties held for trading 3,915 – 8 3,907
Book value of sold properties held for trading – 3,945 – 26 – 3,971
Trading result – 30 – 34 – 64
Result from the sale of investment properties 2,329 32 2,361
income from services 1,075 1,208 2,283
Expenses related to development services – 558 558 0
Indirect expenses – 9,293 – 572 – 9,865
Other operating income 2,196 – 1,622 574
EBITDA 57,041 – 18,608 38,433
Depreciation and impairment of long-term assets – 946 153 – 793
Changes in value of properties held for trading – 108 110 2
Depreciation and impairment/reversal – 1,054 263 – 791
Revaluation gain 6,081 – 810 5,271
Revaluation loss – 10,463 2,155 – 8,308
Result from revaluation – 4,382 1,345 – 3,037
result from joint ventures 0 3,645 3,645
Operating result (EBIT) 51,605 – 13,355 38,250
Finance costs – 36,192 7,031 – 29,161
Other financial result 3,000 – 3,000 0
Foreign currency gains/losses 421 181 602
Result from interest rate derivative transactions 5,840 – 396 5,444
Result from financial investments 1,144 761 1,905
Result from other financial assets – 85 85 0
Result from associated companies 2,026 – 78 1,948
Financial result – 23,846 4,584 – 19,262
Net result before taxes (EBT) 27,759 – 8,771 18,988
Current income tax – 2,019 821 – 1,198
Deferred taxes – 3,078 3,081 3
Income tax – 5,097 3,902 – 1,195
Consolidated net income 22,662 – 4,869 17,793
thereof attributable to non-controlling interests 2,396 – 2,431 – 35
thereof attributable to the owners of the parent 20,266 – 2,438 17,828

Influence of the new IFRS Standards IFRS 10, 11 and 12 on the consolidated balance sheet

The assets and liabilities of the joint ventures are no more presented as single items in the consolidated balance sheet. Net assets of these companies are shown in the posion "investments in joint ventures" instead. Receivables and liabilities against joint ventures, which were eliminated in the past, are now shown and measured in the balance sheet. Thus the balance sheet total decreases and the equity ratio increases.

€ 1.000 31.12.2013 changes due to 31.12.2013
according to IAS IFRS 10 + 11 according to IFRS
27+28 10+11
ASSETS
Investment properties 3,108,487 – 968,923 2,139,564
Investment properties under development 486,355 – 86,260 400,095
Hotel and other own used properties 32,813 0 32,813
Office furniture and other equipment 9,069 – 7,369 1,700
Intangible assets 35,056 – 15,002 20,054
investments in joint ventures 0 219,224 219,224
Investments in associated companies 106,088 – 67,344 38,744
Financial assets 125,214 174,438 299,652
Deferred tax assets 5,079 – 779 4,300
Long-term assets 3,908,161 – 752,015 3,156,146
Long-term assets as a % of total assets 79.6% 86.4% 78.1%
Assets held for sale 118,190 – 3,723 114,467
Properties held for trading 59,169 – 38,603 20,566
Receivables and other assets 149,955 – 13,949 136,006
Cash and cash equivalents 675,413 – 61,987 613,426
Short-term assets 1,002,727 – 118,262 884,465
Total assets 4,910,888 – 870,277 4,040,611
€ 1.000 31.12.2013 changes due to 31.12.2013
according to IAS IFRS 10 + 11 according to IFRS
27+28 10+11
LIABILITIES AND SHAREHOLDERS' EQUITY
Share capital 638,714 0 638,714
Capital reserves 1,015,007 – 14,471 1,000,536
Other reserves – 37,422 – 1 – 37,423
Retained earnings 181,900 10,539 192,439
Attributable to the owners of the parent 1,798,199 – 3,933 1,794,266
Non-controlling interests 66,983 – 66,983 0
Shareholders' equity 1,865,182 – 70,916 1,794,266
Shareholders' equity as a % of total assets 38.0% 8.1% 44.4%
Provisions 8,370 – 254 8,116
Interest-bearing liabilities 1,555,032 – 452,913 1,102,119
Other liabilities 194,343 9,396 203,739
Deferred tax liabilities 216,418 – 76,114 140,304
Long-term liabilities 1,974,163 – 519,885 1,454,278
Current income tax liabilities 14,131 – 1,651 12,480
Provisions 73,457 – 12,383 61,074
Interest-bearing liabilities 872,045 – 263,222 608,823
Other liabilities 111,910 – 2,220 109,690
Short-term liabilities 1,071,543 – 279,476 792,067
€ 1.000 1.1.2013 changes due to 1.1.2013
according to IAS IFRS 10 + 11 according to IFRS
27+28 10+11
ASSETS
Investment properties 4,391,378 – 1,252,006 3,139,372
Investment properties under development 726,988 – 191,655 535,333
Hotel and other own used properties 36,253 0 36,253
Office furniture and other equipment 9,972 – 7,806 2,166
Intangible assets 37,122 – 15,417 21,705
investments in joint ventures 0 242,818 242,818
Investments in associated companies 36,233 0 36,233
Financial assets 93,587 119,707 213,294
Deferred tax assets 9,812 – 2,287 7,525
Long-term assets 5,341,345 – 1,106,646 4,234,699
Long-term assets as a % of total assets 90.7% 91.8% 90.4%
Assets held for sale 53,794 0 53,794
Properties held for trading 52,693 – 30,435 22,258
Receivables and other assets 182,866 – 4,166 178,700
Cash and cash equivalents 257,744 – 64,516 193,228
Short-term assets 547,097 – 99,117 447,980
Total assets 5,888,442 – 1,205,763 4,682,679
€ 1.000 1.1.2013 changes due to 1.1.2013
according to IAS IFRS 10 + 11 according to IFRS
27+28 10+11
LIABILITIES AND SHAREHOLDERS' EQUITY
Share capital 638,714 0 638,714
Capital reserves 1,030,410 0 1,030,410
Other reserves – 107,659 – 2,170 – 109,829
Retained earnings 131,393 – 14,693 116,700
Attributable to the owners of the parent 1,692,858 – 16,863 1,675,995
Non-controlling interests 122,884 – 110,262 12,622
Shareholders' equity 1,815,742 – 127,125 1,688,617
Shareholders' equity as a % of total assets 30.8% 10.5% 36.1%
Provisions 4,163 – 253 3,910
Interest-bearing liabilities 2,454,856 – 450,144 2,004,712
Other liabilities 271,435 – 8,475 262,960
Deferred tax liabilities 215,863 – 81,294 134,569
Long-term liabilities 2,946,317 – 540,166 2,406,151
Current income tax liabilities 15,448 – 826 14,622
Provisions 78,931 – 9,537 69,394
Interest-bearing liabilities 924,676 – 511,856 412,820
Other liabilities 107,328 – 16,253 91,075
Short-term liabilities 1,126,383 – 538,472 587,911
€ 1.000 1st quarter 2013 changes due to 1st quarter 2013
according to IAS IFRS 10 + 11 according to IFRS
27 + 28 10 + 11
Cash flow from operations 49,483 – 17,571 31,912
Cash flow from changes in net working capital – 4,898 3,583 – 1,315
Cash flow from operating activities 44,585 – 13,988 30,597
Cash flow from investing activities – 37,273 11,073 – 26,200
Cash flow from financing activities – 15,682 – 2,089 – 17,771
Net change in cash and cash equivalents – 8,370 – 5,004 – 13,374
Cash and cash equivalents as at 1.1. 257,744 – 64,516 193,228
Exchange rate differences – 1,702 1,116 – 586
Net change in cash and cash equivalents – 8,370 – 5,004 – 13,374
Cash and cash equivalents as at 31.12.2013 247,672 – 68,404 179,268

Influence of the new IFRS Standards IFRS 10, 11 and 12 on the consolidated cash flow

SCOPE OF CONSOLIDATION

Due to the modified control concept of IFRS 10 the inclusion of some entites into CA Immo Group changed. Additionally theapplication to the quotal consolidation of companies under joint control is not permitted any more according to IFRS 10. These companies are considered according to the at equity method in the financial statements. Furthermore, there were no material changes in the scope of consolidation in CA Immo Group in 2014.

NOTES TO THE CONSOLIDATED INTERIM FINANCIAL STATEMENTS

Statement of financial positions

As at 31.3.2014, one rental investment property under development in Germany int the amount of EUR 2,820 K is presented as held for sale. As at 31.3.2014, a sale within one year from the date of reclassification was regarded as highly probable.

As at 31.3.2014, CA Immo Group held cash and cash equivalents amounting to € 334,588 K. Cash and cash equivalents contain bank balances of € 12,556 K (31.12.2013: € 7,763 K) to which CA Immo Group only has restricted access. These balances serve the purpose of securing current loan repayments (repayment and interest). In addition, cash and cash equivalents with restriced disposition is shown under long-term financial assets and short-term receivables and other assets:

€ 1.000 31.3.2014 31.12.2013
Maturity > 1 year 14,219 14,470
Maturity from 3 to 12 months 8,548 13,736
Cash and cash equivalents with drawing restrictions 22,767 28,206

Interest-bearing liabilitiesas at 31.3.2014 comprise 99.7% EUR loans and bonds and 0.3% CZK loans. Thereof, 34.3% were fixed-interest, 29.0% were fixed-interest by way of swaps, 4.2% were hedged by caps and 32.5% (with a principal of € 601,985 K) were subject to floating interest rates. The floating interest rate liabilities are matched by swaps with a nominal amount of € 359,558 K, for which no cash-flow hedge relationship exists. Due to the changes of IFRS 10 and 11 there are no subordinated liabilities in the group's financial statements.

Income Statement

In 2014 CA Immo Group repurchased loans for property companies. The differences, between the purchase price and the outstanding loan, in the amount of € 2,408 K (2013; EUR 0 K) is presented as separate line item in the consolidated income statement. EUR 3.5 Mio. from guarantees and purchase price reductions are shown as other income.

The result from derivative interest rate transactions comprises the following:

€ 1.000 1st Quarter 2014 1st Quarter 2013
Valuation interest rate derivative transactions (not realised) – 4,194 6,737
Reclassification of valuation results recognised in equity in prior years – 4,108 – 154
Ineffectiveness of interest rate swaps – 16 – 1,139
Result from interest rate derivative transactions – 8,318 5,444

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 in the current period arise mainly from the scheduled sale of the "Hesse-Portfolio" and the reclassification caused thereby.

Tax expenses comprise the following:

€ 1.000 1st Quarter 2014 1st Quarter 2013
Current income tax (current year) – 5,474 – 2,506
Current income tax (previous years) 8,407 1,307
Current income tax 2,933 – 1,199
Change in deferred taxes – 8,048 4
Tax benefit on valuation of derivative transactions 1,084 0
Income tax – 4,031 – 1,195
Effective tax rate (total) 22.5% 6.3%

Current income tax arises mainly in the segment Germany. The change in current income tax (previous years) is essentially due to a tax benefit claimed in tax returns for previous years, which in turn resulted in an increase in deferred taxes in the same amount.

Earnings per share

A convertible bond was issued in November 2009. Generally, this bond has an effect on earnings per share.

1st Quarter 2014 1st Quarter 2013
Weighted average number of shares outstanding pcs. 87,892,944 87,856,060
Consolidated net income € 1.000 13,890 17,828
basic earnings per share 0.16 0.20
1st Quarter 2014
Weighted average number of shares outstanding pcs. 87,892,944
Dilution effect:
Convertible bond pcs. 10,673,419
Weighted average number of shares pcs. 98,566,363
Consolidated net income attributable to the owners of the parent € 1.000 13,890
Dilution effect:
Effective interest rate on convertible bond € 1.000 1,181
less taxes € 1.000 – 295
Consolidated net income attributable to the owners of the parent adjusted
by dilution effect € 1.000 14,776
Diluted earnings per share 0.15

FINANCIAL INSTRUMENTS

Financial assets
Category Book value Fair value Book value Fair value
€ 1.000 31.3.2014 31.3.2014 31.12.2013 31.12.2013
Cash and cash equivalents with drawing
restrictions 14,219 14,219 14,470 14,470
Derivative financial instruments 1,128 1,128 2,108 2,108
Primary financial instruments 421,518 421,518 283,074 283,074
Financial assets 436,865 436,865 299,652 299,652
Cash and cash equivalents with drawing
restrictions 8,548 8,548 13,736 13,736
Other receivables and assets 128,735 128,735 122,270 122,270
Receivables and other assets 137,283 137,283 136,006 136,006
Cash and cash equivalents 334,588 334,588 613,426 613,426
908,736 908,736 1,049,084 1,049,084

The fair value of receivables and other assets essentially equals the book value due to daily and/or short-term maturities. Financial assets are partially given in mortgage as security for financial liabilities.

Financial liabilities
Category Book value Fair value Book value Fair value
€ 1.000 31.3.2014 31.3.2014 31.12.2013 31.12.2013
Convertible bond 115,640 137,300 115,189 139,740
Other bonds 343,302 348,350 338,379 347,426
Other interest-bearing liabilities 996,623 996,623 1,257,374 1,258,257
Interest-bearing liabilities 1,455,565 1,482,273 1,710,942 1,745,423
Derivative financial instruments 109,381 109,381 105,162 105,162
Other primary liabilities 219,587 219,587 208,268 208,268
Other liabilities 328,968 328,968 313,429 313,429
1,784,533 1,811,241 2,024,371 2,058,852

Derivative financial instruments and hedging transactions

31.3.2014 31.12.2013
€ 1.000 Nominal Fair value Book value Nominal Fair value Book value
value value
Interest rate swaps 857,456 – 109,380 – 109,380 861,764 – 105,161 – 105,161
Swaption 100,000 949 949 100,000 2,109 2,109
Interest rate caps 21,585 179 179 36,800 0 0
Total 979,041 – 108,252 – 108,252 998,564 – 103,052 – 103,052
- thereof hedging (cash flow hedges) 497,898 – 59,514 – 59,514 500,709 – 57,762 – 57,762
- thereof stand alone (fair value
derivatives) 481,143 – 48,738 – 48,738 497,855 – 45,290 – 45,290

Interest rate swaps

Interest rate swaps are concluded for the purpose of hedging future cash flows. For as hedging transaction designated instruments 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 31.3.2014
Book value
Nominal value Fair value 31.12.2013
Book value
- Cash flow hedges
(effective) 489,521 – 60,534 – 60,534 489,106 – 57,415 – 57,415
- Cash flow hedges
(ineffective) 8,377 1,021 1,021 11,603 – 348 – 348
- Fair value derivatives
(HFT) 359,558 – 49,866 – 49,866 361,055 – 47,399 – 47,399
Interest rate swaps 857,456 – 109,380 – 109,380 861,764 – 105,161 – 105,161
Currency Nominal Start End Fixed Reference Fair value
value in interest rate interest rate
€ 1,000 as at
31.3.2014 31.3.2014
in € 1,000
EUR 111,250 01/2008 12/2017 4.41% 3M-Euribor – 15,387
EUR (nominal value each below 1,295%– 3M-Euribor /
100 m EUR) - CFH 386,648 05/2006 12/2022 4,789% 6M-Euribor – 44,127
EUR (nominal value each below 2,279%–
100 m EUR) - stand alone 359,558 07/2007 12/2023 4,820% 6M-Euribor – 49,866
Total = variable in fixed 1,244,105 – 109,380
Currency Nominal Start End Fixed Reference Fair value
value in interest rate interest rate
€ 1,000 as at
31.12.2013 31.12.2013
in € 1,000
EUR 111,875 01/2008 12/2017 4.41% 3M-Euribor – 15,321
EUR (nominal value each below 03/2006 – 11/2013 – 1.30% – 3M-Euribor /
100 m EUR) - CFH 388,834 12/2011 12/2022 4.79% 6M-Euribor – 42,441
EUR (nominal value each below 07/2007 – 12/2015 – 4.01% –
100 m EUR) - stand alone 361,055 12/2008 12/2022 4.82% 3M-Euribor – 47,399
Total = variable in fixed 973,639 – 105,161
Swaption
Currency Nominal value in € 1,000 Start End Fixed Reference Fair value
interest rate interest rate
as at
31.3.2014 31.3.2014
in € 1,000
Swaption EUR 100,000 06/2013 06/2016 2.50% 6M-Euribor 949
Total 100,000 949
Interest rate caps
Currency Nominal Start End Fixed Reference Fair value
value in interest rate interest rate
€ 1,000 as at
31.3.2014 31.3.2014
in € 1,000
Interest rate caps EUR 21,585 03/2014 03/2019 2.000% 3M-Euribor 179
Total 21,585 179
Currency Nominal Start End Fixed Reference Fair value
value in interest rate interest rate
€ 1,000 as at
31.12.2013 31.12.2013
in € 1,000
Interest rate caps EUR 36,800 03/2011 03/2014 5.000% 3M-Euribor 0
Total 36,800 0

Gains and losses in other comprehensive income

€ 1.000 2014 2013
As at 1.1. – 34,907 – 108,306
Change in valuation of cash flow hedges – 1,005 11,015
Change of ineffectiveness cash flow hedges 16 1,139
Reclassification cash flow hedges 4,108 154
Income tax cash flow hedges – 715 – 2,311
As at 31.3. – 32,503 – 98,309
thereof: attributable to the owners of the parent – 32,503 – 97,501
thereof: attributable to non-controlling interests 0 – 808

Hierarchy of fair values

Financial instruments measured at fair value relate only to derivative financial instruments. As in prior year the valuation is based on inputs which can be observed either directly or indirectly (eg. Interest rate curves or foreign exchange forward rates). This represents level 2 of the fair value hierarchy in accordance with IFRS 13.81. There were no reclassifications between the levels.

Capital structure

Net debt and gearing ratio:

€ 1.000 31.3.2014 31.12.2013
Interest-bearing liabilities
Long-term interest-bearing liabilities 1,004,755 1,102,119
Short-term interest-bearing liabilities 450,810 608,823
Interest-bearing assets
Cash and cash equivalents – 334,588 – 613,426
Cash and cash equivalents with drawing restrictions – 22,767 – 28,206
Net debt 1,098,210 1,069,310
Shareholders' equity 1,811,496 1,794,266
Gearing ratio (Net debt/equity) 60.6% 59.6%

Cash and cash equivalents with drawing restrictions were considered in the calculation of net debt, as they are used to secure the repayments of financial liabilities.

BUSINESS RELATIONSHIPS WITH RELATED PARTIES

Joint Ventures
€ 1.000 31.3.2014 31.12.2013
investments in joint ventures 229,860 219,224
Loans 338,141 184,577
Receivables 12,601 8,835
Liabilities 32,744 36,168
1st Quarter 2014 1st Quarter 2013
Income from joint ventures 9,537 4,429
Expense from joint venutres – 1,512 – 784
result from joint ventures 8,025 3,645
Other income 1,352 989
Other expenses – 1,062 – 292
Interest income 2,646 879

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. Partly guarantees or other forms of security exist in connection with these loans.

Associated companies

€ 1.000 31.3.2014 31.12.2013
Investments in associated companies 40,485 38,744
Loans 20,919 21,394
1st Quarter 2014 1st Quarter 2013
Income from associated companies 1,881 2,026
Expenses due to associated companies – 475 – 78

The loans to associated companies existing as of the reporting date serve to finance properties. All loans have interest rates at arm's length. Guarantees or other forms of security partially exist in connection with these loans.

UniCredit Bank Austria AG/UniCredit Group

UniCredit Bank Austria AG, Vienna, is the principal bank of the CA Immo Group and the largest individual shareholder of CA Immo AG, with an interest of around 18% (as at 31.3.2014). CA Immo Group carries out a large portion of its payment transactions and financing transactions with this bank and places a large part of its financial investments with the bank as well, with details given in below schedule:

Consolidated statement of financial position:

€ 1.000 31.3.2014 31.12.2013
Share of financial liabilities recognised in the
consolidated statement of financial position 32.3% 17.5%
Outstanding receivables 158,704 332,690
Outstanding liabilities – 470,563 – 505,240
Fair value of interest rate swaps – 66,264 – 105,565
Fair value of swaptions 979 2,109
Consolidated income statement:
€ 1.000 1st Quarter 2014 1st Quarter 2013
Finance costs – 8,461 – 11,840
Result from interest rate derivative transactions incl. Reclassification – 6,742 2,098
Result from financial investments 42 118
Transaction fees – 93 – 144
Statement of other comprehensive income (equity):
€ 1.000 1st Quarter 2014 1st Quarter 2013
Valuation result of period (Hedging) 2,905 2,098

Consolidated statement of cash flows:

€ 1.000 1st Quarter 2014 1st Quarter 2013
Repayment of bank loans – 34,888 – 8,809
Realisation and acquisition of interest rate derivative transactions 0 0
Interest paid – 8,109 – 11,000
Interest received 41 253

The terms and conditions of the business relationship with the UniCredit Group are are at arm's length.

OTHER LIABILITIES AND CONTINGENT LIABILITIES

As at 31.3.2014, contingent liabilities of CA Immo Germany Group resulting from urban development contracts amounted to € 65 K (31.12.2013: € 65 K) and from concluded purchase agreements for cost assumptions in connection with contaminated sites or war damage to € 99 K (31.12.2013: € 572 K). In addition, letters of support exist for four proportionately consolidated companies in Germany, amounting to € 6,100 K (31.12.2013: € 8,666 K for three joint ventures).

CA Immo Group has agreed to adopt a back to back gauarantee in connection with the refunding of the project "Airport City St. Petersburg" in the extend of € 6,237 K at the most in favour of the Joint Venture Partner. In 2011, the joint venture partner from "Project Maslov" has filed an arbitration action, which has been increased in 2012 to approx € 110 m plus interest. CA Immo Group considers the changes of this action succeeding as minimal. The expected cash outflows in this resprect have been recognised in the statements of financial position. The arbitral court has already ruled in favour of CA Immo Group, but objections against the arbitral award have to be awaited until legal valibility arises.

Other financial obligations arising from service commitments in connection with the development of properties also exist for properties in Austria amounting to € 0 K (31.12.2013: € 1,588 K), in Germany amounting to € 54,423 K (31.12.2013: € 48,846 K) and in Eastern Europe amounting to € 12,471 K (31.12.2013: € 12,085 K). Moreover as at 31.3.2014, 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 € 39,847 K (31.12.2013: € 47,807 K).

As at 31.3.2014, the total obligation of CA Immo Group to contribute equity to joint ventures was € 13,046 K (31.12.2013: € 13,046 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. CA Immo Group recognises appropriate provisions for known and probable charges arising from ongoing tax audits.

Borrowings, for which the financial covenants have not been met as at 31.3.2014, thus enabling the lender in principle to prematurely terminate the loan agreement, are 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 31.3.2014, this situation applied to two loans in Eastern Europe in the total amount of € 28,269 K (31.12.2013: three loans in Eastern Europe in the total amount of € 60,838 K). CA Immo Group takes appropriate action (e.g. partial repayment of loans, increase in equity of the companies concerned) to remedy the breach of the covenants.

SIGNIFICANT EVENTS AFTER THE END OF THE INTERIM REPORTING PERIOD

On 8.5.2014 the 27th ordinary general shareholders' meeting of CA Immobilien Anlagen Aktiengesellschaft decided the distribution of a dividend payment of 0.40 € per each share entitled to dividend.

As a consequence of the payment of the cash dividend to the shareholders of CA Immo, the convertion price of the 4.125% convertible bond 2009-2014was as at 12.05.2014 adjusted from 10.6220 € to € 10.3521 according to the terms of issue.

Due tot the issue of shares because of excersied conversion rights from owners of the 4.125% convertivle bond 2009-2014 the share capital of the company at the end of May 204 amount to € 646,599,819.56. It is divided into 4 registered shares and 88,940,828 bearer shares with a pro rata interest of € 7.27 on the share capital. The shares to be delivered are registered under the ISIN AT0000641352 and are entitled to participate in dividends from the business year 2014.

Vienna, 27.5.2014

Bruno Ettenauer (Chief Executive Officer)

The Management Board

Florian Nowotny (Member of the Management Board)

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 Hainz 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 Hainz Graphic design: Marion Naderer, WIEN NORD Werbeagentur, Photographs: CA Immo, Production: 08/16; this report is set inhouse with FIRE.sys

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. This Interim Report is printed on environmentally friendly and chlorine-free bleached paper.

CONTACT 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.

Talk to a Data Expert

Have a question? We'll get back to you promptly.