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CA Immobilien Anlagen AG

Quarterly Report Nov 25, 2015

738_rns_2015-11-25_b18b9c83-93d0-4fcc-a2d7-03701407f120.pdf

Quarterly Report

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URBAN BENCHMARKS.

FINANCIAL REPORT AS AT 30 SEPTEMBER 2015

FINANCIAL KEY FIGURES1)

INCOME STATEMENT

1.1.-30.09.2015 1.1.-30.09.2014
Rental income € m 111.7 109.4
EBITDA € m 80.5 96.3
Operating result (EBIT) € m 187.5 96.7
Net result before taxes (EBT) € m 134.5 35.0
Consolidated net income € m 88.7 25.3
Operating cash flow € m 73.9 81.7
Capital expenditure € m 69.0 127.3
FFO I (excl. Trading and pre taxes) € m 55.8 54.0
FFO II (incl. Trading and after taxes) € m 50.3 88.9

BALANCE SHEET

30.09.2015 31.12.2014
Total assets € m 3,932.9 3,670.9
Shareholders' equity € m 1,977.6 1,951.7
Long and short term interest-bearing liabilities € m 1,427.3 1,229.1
Net debt € m 1,254.1 1,061.3
Net asset value (EPRA NAV) € m 2,147.8 2,148.2
Triple Net asset value (EPRA NNNAV) € m 2,026.8 2,011.6
Gearing % 63.4 54.4
Equity ratio % 50.3 53.2
Gross LTV % 45.0 45.6
Net LTV % 39.5 39.4

PROPERTY PORTFOLIO2)

30.09.2015 31.12.2014
Total usable space (excl. parking, excl. projects)3) sqm 1,817,622 2,233,988
Gross yield investment properties4) % 6.7 6.6
Fair value of properties € m 3,624.9 3,583.4

SHARE RELATED KEY FIGURES

1.1.-30.09.2015 1.1.-30.09.2014
Rental income / share 1.14 1.20
Operating cash flow / share 0.75 0.90
Earnings per share 0.90 0.38
30.09.2015 31.12.2014
NAV/share 20.36 19.75
EPRA NAV/share 22.11 21.74
EPRA NNNAV/share 20.87 20.36
Price (key date)/NNNAV per share – 1 (before deferred taxes) % – 21 – 24
Dividend distribution 0.45 0.40
Dividend yield % 2.73 2.58

SHARES

30.09.2015 31.12.2014
Number of shares pcs. 98,808,336 98,808,336
Treasury shares pcs. 1,674,855 0
number of shares outstanding pcs. 97,133,481 98,808,336
Ø number of shares pcs. 98,808,336 92,907,093
Ø Treasury shares pcs. 514,936 0
Ø number of shares outstanding pcs. 98,293,400 92,907,093
Ø price/share 16.71 14.41
Closing price (30.09.) 16.47 15.50
Highest price 18.59 16.40
Lowest price 14.82 11.80

1) Key figures include all fully consolidated properties, 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) incl. Superaedificates

4) excl. the shortly completed office projects Kontorhaus (Munich), Monnet 4 (Berlin) and John F. Kennedy Haus (Berlin)

DEAR SHAREHOLDERS AND READERS,

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

CA Immo has built on a positive first half of the year by returning a strong result for quarter three on 30 September 2015. Consistent implementation of the corporate strategy for 2015-2017, the core aim of which is steadily to raise the company's recurring profitability, has prompted a positive trend in operative earnings. Earnings in the third quarter were influenced by successful takeover of the minority share (approximately 35%) of the European Bank for Reconstruction and Development (EBRD) in the E-portfolio, which was held as a shared joint venture.

RESULTS FOR THE FIRST THREE QUARTERS OF 2015

As regards the rental income of the CA Immo Group, the corner has been turned following the decreases of previous quarters caused by sales of non-strategic properties. The result from renting was € 98,120 K after the first nine months, an increase of almost 2% on the 2014 value of € 96,417 K. Earnings before interest, taxes, depreciation and amortisation (EBITDA) stood at € 80,473 K, -16.4% below the previous year's value. The main reasons for the decrease in earnings were the reductions in income from real estate sales and other operating income at the half year point.

While the result from joint ventures stood at € 30,659 K after the first three quarters of 2015 (including positive one-time effects related to the acquisition of EBRD's share in the E-portfolio) compared to € 1,061 K in 2014, the revaluation result for the Group also climbed significantly to € 78,464 K on 30 September 2015 (€ 2,495 K in 2014). The latter reflects not only another positive one-time EBRD effect of € 30,976 K but also the positive market environment (especially in Germany, CA Immo's most important core market). The positive development of values in the German portfolio was mainly driven by actual sales of individual properties, which will produce a strong sales result in the fourth quarter. Earnings before interest and taxes (EBIT) of € 187,524 K confirmed the positive trends with an increase of 93.9% (€ 96,732 K in 2014).

In yearly comparison, the financial result was broadly stable at €-52,992 K on the key date (€-52,075 K in 2014). Thanks to continual optimisation of the financing structure, the Group's financing costs – a key element in longterm earnings – fell by a substantial -26.1% on the previous year's value to stand at €-46,643 K (€-63,082 K in 2014). Earnings before taxes stood at € 134,531 K, up by a significant 201.3% on the 2014 value of € 44,657 K. Where taxes on earnings are deducted (€-45,837 K), net operating income was up 153.4% at € 88,694 K, equivalent to € 0.90 per share (€ 0.38 per share in 2014).

FFO I, a key indicator of the Group's long-term profitability and capacity to pay dividends, increased by 3.3% on the first three quarters of last year to € 55,816 K (€ 54,026 K in 2014).

The balance sheet profile of the CA Immo Group remained in robust shape as quarter three of 2015 came to a close. as a consequence of the full consolidation of the Eportfolio, the balance sheet expanded by around 7% to € 3.9 bn (31.12.2014: € 3.7 bn). Despite this expansion, the equity ratio on the key date remained stable within the strategic range at 50.3%. The loan-to-value (LTV) ratio was 39.5% at the end of June 2015 where the Group's cash and cash equivalents of € 163,491 K are taken into account; gearing stood at 63.4%. As at 30 September 2015, NAV (shareholders' equity) stood at € 20.36 per share (€ 19.75 per share on 31.12.2014).

IMPLEMENTATION OF STRATEGY FOR 2015-2017 BEARING FRUIT

During the first nine months of 2015, CA Immo took big strides towards boosting its long-term earning power and strengthening its capacity to pay a dividend. In line with strategy, the full takeover of the EBRD's minority share has reduced the number of joint ventures in the investment portfolio while making a critical contribution towards the expansion of core office property portfolios on the company's main Eastern European markets.

Development as a key organic growth strategy has also produced extremely encouraging results. Following on from development projects in Germany (the Kontorhaus in Munich and the John F. Kennedy Haus in Berlin), a third high grade development initiative – Monnet 4 in Berlin – was completed by the key date and transferred to the investment portfolio. Also in Berlin, KPMG has been confirmed as a tenant for the new 03 project site, while in Frankfurt a long-standing lease agreement with Steigenberger relating to the construction of a 400-room hotel adjacent to the central rail station has been signed. Intensive pre-lease negotiations are progressing on other office projects in Vienna and Bucharest.

The profitable sale of non-strategic properties was successfully sustained in the first three quarters of 2015. In addition to sales aimed at portfolio optimisation in Austria, a logistical property in Hamburg was sold alongside non-strategic plots in Berlin. As at 30 September 2015, the Group's average financing costs stood at 3.1%. The yearly target of 3.0% was therefore almost reached prematurely.

OUTLOOK

In our estimation, conditions on the core markets of CA Immo remain conducive to business. With the environment in Germany remaining fundamentally strong, core markets in Eastern Europe are increasingly reporting growth trends. Targets for this business year will be confirmed. Long-term earnings (FFO I) of € 80 m is expected (compared to € 70 m in 2014). We will aim to pay shareholders a dividend of € 0.50 per share (€ 0.45 per share in 2014). Given the positive market environment, the target sales volume for non-strategic properties of € 150-200 m will be exceeded.

The Management Board

Bruno Ettenauer (Chief Executive Officer)

Florian Nowotny

Vienna, November 2015

SHARE

RATE DEVELOPMENT, STOCK EXCHANGE TURNOVER AND MARKET CAPITALISATION

Even though the price fell sharply during the second quarter of the current business year, the CA Immo share rose in value by 5.2% in quarter three to close at € 16.47. As a result, the share price has increased by 6.5% since the start of the year, also developing more positively against the ATX (3.2%). EPRA, the European index for real estate, rose by 12.4% over the same period. As at 30 September 2015, market capitalisation for CA Immo stood at € 1,627.4 m (compared to € 1,531.5 m on 31.12.2014). Since the end of 2014, the average trading volume has risen by 17.3% to 439,100 shares (against 374,400 shares on 31 December 2014). In the first nine months, the average liquidity of the share was € 7,423.9 K (€ 5,417.1 K on 31.12.2014). CA Immo is currently weighted at 3.95% on the ATX.

ONE YEAR PERFORMANCE (30.9.2014 to 30.9.2015)

CA Immo-share 4.17%
ATX 1.16%
IATX 11.38%
EPRA Developed Europe 21.25%

Source: Vienna Stock Exchange

BONDS

At present, two CA Immo corporate bonds are registered for trading on the unlisted securities market of the Vienna Stock Exchange. The 5.125% CA Immo bond 06-16 (ISIN: AT0000A026P5) with a nominal value of € 200 m has a residual term of 0.94 years; it will be 100% redeemed on 22 September 2016. The closing rate was 103.03 (compared to 104.55 on 31.12.2014). The 2.75% CA Immo bond 15-22 (ISIN: AT0000A1CB33) with a nominal value of € 175 m was issued in February 2015. Unless fully or partially repaid beforehand, the bond will be redeemed at the nominal amount on 17 February 2022 (residual term: 6.34 years). The closing rate for the bond was 101.96.

CAPITAL STOCK AND SHAREHOLDER STRUCTURE

The company's capital stock amounted to € 718,336,602.72 on the balance sheet date. This was divided into four registered shares and 98,808,332 bearer shares each with a proportionate amount of the capital stock of € 7.27. The bearer shares trade on the prime market segment of the Vienna Stock Exchange (ISIN: AT0000641352). The registered shares are held by O1 Group Limited ('O1 Group'), a private holding company based in Cyprus. With a shareholding of 26% held indirectly via EG Real Estate Fund I Limited, O1 Group is the largest shareholder in CA Immo, constituting approximately 49.7% of the capital represented at the 28th Ordinary General Meeting. The remaining shares of CA Immo (approximately 74% of the capital stock) are in free float with both institutional and private investors. Value investors make up the greater proportion of institutional investors (32.7%), followed by index investors (22.4%) and growth investors (17.9%)1 . The second largest shareholder is AXA S.A. with a holding of 4.04%, held in turn via various mutual funds. The company is not aware of any other shareholders with a stake of more than 4% or 5%.

Share buyback programme 2015

On 12 May 2015, CA Immo commenced a programme of repurchasing its own shares on the basis of the enabling resolution passed at the 27th Ordinary General Meeting on 8 May 2014 in accordance with article 65 subsection 1 line 8 of the Stock Corporation Act. CA Immo had acquired 1,674,855 treasurey shares (approximately 1.7% of the capital stock) via the share market by 30 September 2015. The equivalent value was approximately € 16.04 per share. Up to two million shares (equivalent to approximately 2% of the company's capital stock) will be repurchased in total. The upper limit is € 17.00 per share. Details of transactions completed as part of the buyback programme, along with any changes to the programme, will be published at http://www.caimmo.com/en/investor-relations/share-buyback-ca-immo/.

ANALYST COVERAGE

With Goldman Sachs resuming coverage ('neutral'), CA Immo is now assessed by seven investment companies. Analysts from Erste Group have confirmed their recommendation to purchase the share, raising the price target from € 19.70 to € 19.80. Baader Bank and Kepler Cheuvreux repeated their recommendation to 'hold' and confirmed the target price of € 16.00 and € 18.00. By contrast, SRC Research analysts raised their target price from € 20.30 to € 21.00. In overall terms, the 12-month target rates most recently published fluctuated between € 16.00 and € 22.00. The valuation median of € 19.50 implies price potential of 18.4% (based on the closing rate for 30.9.2015).

ANALYST RECOMMENDATIONS

Helvea Baader Bank 24.9.2015 16.00 Hold
Deutsche Bank 17.9.2015 22.00 Buy
Erste Group 1.10.2015 19.80 Buy
Goldman Sachs 13.10.2015 19.00 Neutral
HSBC 13.4.2015 19.50 Hold
Kepler Cheuvreux 26.8.2015 18.00 Hold
SRC Research 26.8.2015 21.00 Buy
Average 19.33
Median 19.50

1 Source: CA Immo Global Shareholder Identification Analysis, March 2015

KEY FIGURES OF SHARE

30.9.2015 31.12.2014
EPRA NNNAV/share 20.87 20.36
NAV/share 20.36 19.75
Price (key date)/NAV per share –11) % –19.10 –21.53
Price (key date)/NNNAV per share –11) % –21.07 –23.86
Number of shares pcs. 98,808,336 98,808,336
Treasury shares pcs. 1,674,855 0
number of shares outstanding pcs. 97,133,481 98,808,336
Ø number of shares pcs. 98,808,336 92,907,093
Ø Treasury shares pcs. 514,936 0
Ø number of shares outstanding pcs. 98,293,400 92,907,093
Ø price/share 16.71 14.41
Market capitalisation (key date) € m 1,599.79 1,531.53
Highest price 18.59 16.40
Lowest price 14.82 11.80
Closing price 16.47 15.50
Dividend distribution 0.45 0.40
Dividend yield % 2.73 2.58

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, GPR 250, WBI
Specialist: Spire Europe Limited
Market Maker: Baader Bank AG, Erste Group Bank AG, Flow Traders B.V., Hudson River Trading Europe
Ltd., ODDO SEYDLER BANK AG, Raiffeisen Centrobank AG, Socíété Générale S.A., Virtu
Financial Ireland Limited, WOOD & Company Financial Services, a.s.
Stock exchange symbol / ISIN: CAI / AT0000641352
Reuters: CAIV.VI
Bloomberg: CAI:AV
E-Mail: [email protected]
Website: www.caimmo.com

Investor Relations contacts:

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

FINANCIAL CALENDAR 2016

23 MARCH

PUBLICATION OF ANNUAL RESULTS FOR 2015 PRESS CONFERENCE ON FINANCIAL STATEMENTS

23 APRIL RECORD DATE FOR THE 29TH ORDINARY GENERAL MEETING

3 MAY

29TH ORDINARY GENERAL MEETING

6 MAY / 9 MAY / 10 MAY

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

25 MAY

INTERIM REPORT FOR THE FIRST QUARTER 2016

25 AUGUST HALF-YEAR FINANCIAL REPORT 2016

24 NOVEMBER INTERIM REPORT FOR THE THIRD QUARTER 2016

22 MARCH PUBLICATION OF ANNUAL RESULTS FOR 2016 PRESS CONFERENCE ON FINANCIAL STATEMENTS

ECONOMIC ENVIRONMENT

General market climate1)

Economic development on CA Immo's core markets was largely positive in the first three quarters of 2015.

Global economic growth slowed in quarter three of 2015, mainly reflecting the poorer performance of the economy in the USA and the continued slowdown in economic activity on emerging markets. Seasonally adjusted GDP in the eurozone rose by 0.3% in the third quarter of 2015 compared to the second quarter; against Q3 2014, growth was 1.6%. This increase fell short of the expectations of stronger growth, underlining the impact of a China-led slowdown in emerging markets. The positive growth trend has continued in Germany, but decreased from 0.4% in quarter two to 0.3% in the third quarter, mainly due to weaker foreign trade. Compared to the figure for last year, economic growth expanded by 1.7%. GDP for the third quarter of 2015 rose by 0.3% on the second quarter of the year. The European Central Bank (ECB) left interest rates unchanged after its meeting in September, but is expected to expand its quantitative easing programme in early December and cut its deposit rate if the economic recovery of the eurozone comes under further threat.

Prices have remained unchanged during the first three quarters of the year. Core inflation levels improved slightly at 1%, up from 0.9% the previous month. The ECB is targeting headline inflation below (but close to) 2%. Due to weakening demand in China and other emerging markets, exports have also reportedly declined in the third quarter. Despite stability in the second quarter, oil prices fell in quarter three. The European labour market is reported to be easing with the unemployment rate falling to 10.8%, down from 10.9% in August and the lowest rate recorded since January 2012. The lowest unemployment rates are in Germany (4.5%) and the Czech Republic (4.8%), while Austria (6%) and Poland (7.1%) remained stable. The sharpest decrease was reported in Hungary (-2.5%), while Romania registered an increase from 6.7% to 6.8%.

The interest environment2)

The European Central Bank (ECB) held its deposit rate at minus 0.2%, with the refinancing rate, charged on bank's borrowings, at 0.05%; both rates were at record low levels. These measures are designed to encourage lending and thereby counter unwelcome low inflation

rates. The 3 month Euribor rate fluctuated between -0.04% and -0.014% in the reporting period, and is currently in negative territory. Long-term interest rates have displayed greater volatility over recent months. The 10 year euro swap rate fluctuated in the range of 0.82% to 1.28% in the period under review. Government bond yields recorded significant decreases, with the short-term two-year borrowing rate in Germany reaching a record low of minus 0.32%.

Central and Eastern Europe3)

CA Immo's core CEE markets maintained their growth trends of the previous quarter.

In the third quarter, GDP in Poland increased by 3.6% on the same period of last year, and by 0.9% against the second quarter of 2015. General elections were held in Poland on 25 October, bringing a change of government. The winner of the elections, Poland's right wing Law and Justice party (PiS), campaigned for nationalist eurosceptic policies, which might have an impact on investor sentiment in the future.

The economy of Hungary remained stable with quarterly growth of 0.5%. Compared to the same period last year, seasonally adjusted GDP in the third quarter fell below the consensus of 2.3%, signalling the poor performance of all sectors of the economy except the manufacturing and service sector branches.

The economy of the Czech Republic also expanded in the third quarter. GDP increased by 4.3% in quarter three of 2015 compared to the same period last year, and increased slightly against the previous quarter (+0.5%).

Real GDP in Romania increased in quarter three of 2015 by 1.4% compared to previous quarter and by 3.6% on the comparable period of last year.

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

3) Central Statistical Offices of Poland (GUS), Hungary (KSH), Czech Republic (CZSO); National Institute of Statistics in Romania (NIS); Eurostat

PROPERTY MARKETS

The real estate investment market1)

The transaction volume on the European investment market for commercial real estate rose to € 66.1 bn, up 25% compared to Q3 2014. Germany reported a particularly significant increase in investment activity. High liquidity and a rising proportion of foreign capital are conspicuous on the German market, a development driven by capital inflows from the dollar zone and the commitment of Asian investors. Investment volume in Germany rose to € 14.1 bn in the third quarter, up € 2.1 bn on Q2 2015 and € 5.6 bn on Q3 2014 (+65%). The investment focus remains on the BIG 7 cities of Berlin, Düsseldorf, Frankfurt, Hamburg, Cologne, Munich and Stuttgart. In the first three quarters of 2015, office properties were not the strongest asset class for the first time (accounting for just 27% of transactions, with the retail sector reaching 61%). Peak yields for offices have fallen further and now stand at 4% in Berlin, 3.8% in Munich and 4.4% in Frankfurt.

In the third quarter of 2015, the transaction volume in Austria stood at € 557 m, 18% down on the second quarter figure. The transaction volume has reached € 1.6 bn since the beginning of 2015. This value is expected to carry on rising in 2015, with the total investment volume exceeding the previous year's level. In the third quarter, the focus was clearly on offices (35%). The peak yield for the office sector stood at 4.3%. Relatively subdued transaction activity in the CEE region in the first half of the year picked up in Q3, driven by increased activity in the Czech Republic and Poland. During quarter three, investment activity in Poland increased 65% to € 801 m (against € 485 m in Q3 2014); the Czech Republic reported an increase of 203% to € 1.1 bn (against € 326 m in Q3 2014). Investment activity in the other countries of Eastern Europe fell 55% to approximately € 542 m (€ 1.1 bn in Q2 2014).

The office property markets2)

The majority of European office markets recorded a decline in vacancy rates in the third quarter of 2015. Most

of the largest German markets reported an increase in take-up against the figures for the same period last year. In quarter three of 2015, transactions covered 775,000 sqm of floor space across Germany, the highest figure since 2006. Lettings performance in Berlin improved to 583,500 sqm in the third quarter, while the vacancy rate declined to 6.6% and is expected to fall further. The peak monthly rent in Berlin was € 23.00/sqm, while the weighted average rent was € 14.71/sqm per month. Office space take-up in Frankfurt stood at 105,000 sqm in the third quarter (up 12% on Q2 2014). A small number of projects are in the completion pipeline (110,200 sqm, down 43% on the average for the last ten years). The peak monthly rent stood at € 39.50/sqm in Q3, up 4% on Q3 2014. The vacancy rate was 11.5%, similar to last year, while the peak yield stood at 4.4%. Office space take-up improved on the first half of the year in Munich, amounting to more than 200,000 sqm in quarter three (an increase of 22% on Q2 2014), while the peak monthly rent remained stable at € 33.50/sqm. The vacancy rate is unchanged at 6.4%, the lowest level since 2003. Lettings performance in Vienna totalled 138,000 sqm for the first three quarters, slightly below last year's value. The vacancy rate fell from 6.5% in the previous quarter to 6.4%, while the peak monthly rent remained stable at € 25.75/sqm.

In Warsaw, office space take-up reached a high of 222,600 sqm in Q3. The office project pipeline in the city is unusually large, with 612,600 sqm under construction at present. There was a slight drop in the vacancy rate to 12.9%, although given new office completions in 2016 the rate is predicted to grow. In Budapest, the current vacancy rate continued to decline to 13.5%, 3.4% below the comparable value for last year. Demand and thus take-up fell back slightly. The peak monthly rent remained stable at € 20/sqm. In Prague, 55,225 sqm of rentable effective area was completed in Q3. The average vacancy rate during the third quarter was 16.4%, with the peak monthly rent stable at € 18.5-19.5/sqm. Lettings performance in Bucharest reached 72,000 sqm in Q3, with around 47% of lettings involving take-up and 30% new demand. The current vacancy rate is reported at 13%. The peak monthly rent is unchanged on the prior quarter at € 18.5/sqm, with the peak yield at 7.5%.

1) CBRE: European Investment Quarterly MarketView, Austria Investment Q3 2015; Jones Lang LaSalle: Investmentmarküberblick Deutschland, Q3 2015

2) Jones Lang LaSalle: Pulse Prague, Office Market Profile: Berlin, Frankfurt, Munich; CBRE: Vienna, Budapest, Bucharest, Warsaw Office Marketview Q3 2015

PROPERTY ASSETS

As at key date 30 September 2015, CA Immo's total property assets stood at € 3.6 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 (83% of the total portfolio) and investment properties under development (11% of the total portfolio). Properties intended for trading (reported under short-term property assets) account for the remaining 6% or so of property assets.

As at 30 September 2015, the investment property portfolio had an approximate market value of € 3.0 bn (of which fully consolidated: € 2.6 bn) and incorporated a total rentable effective area1) of 1.4 m sqm. Around 47% of the portfolio (on the basis of book value) is located in CEE and SEE nations, with 33% of the remaining investment properties in Germany and 20% in Austria.

In the first nine months of the year, the Group generated rental income of € 139.1 m; the portfolio produced a yield of 6.7%2) . The occupancy rate was 92.1%2) as at 30 Sep-

1) Including properties used for own purposes and superaedificates 2) Excl. the shortly completed office projects Kontorhaus (Munich), John F. Kennedy Haus and Monnet 4 (Berlin). These project completions included, the portfolio produced a yield of 6.4%; the occupancy rate is 89.5%

tember 2015 (against 90.7% on 31.12.2014). For details, please see the 'Changes to the Portfolio' section.

DISTRIBUTION OF BOOK VALUE PORTFOLIO PROPERTIES BY MAIN USAGE (Basis: 3.0 bn €)

Of investment properties under development with a total market value of around € 409.0 m (of which fully consolidated: € 375.6 m), development projects and land reserves in Germany account for 82%, while the Eastern Europe segment represents 14% and Austria 4%. Investment properties under development in Germany with a total market value of € 334.5 m include projects under construction with a value of € 25.9 m and land reserves with a book value of € 308.6 m.

PROPERTY ASSETS OF THE CA IMMO GROUP AS AT 30 SEPTEMBER 2015

in € m Income producing Investment properties Short-term property Total assets Total assets
investment properties1) under development assets 2) in %
full at full at full at full at full at
equity equity equity equity equity
Austria 588 0 588 16 0 16 22 0 22 626 0 626 20% 0% 17%
Germany 818 182 1,000 326 8 335 143 63 205 1,287 253 1,540 41% 56% 42%
Czech Republic 214 28 241 7 0 7 0 0 0 221 28 249 7% 6% 7%
Hungary 280 35 315 1 0 1 0 0 0 281 35 316 9% 7% 9%
Poland 287 82 368 0 16 16 0 0 0 287 98 385 9% 22% 11%
Romania 251 0 251 11 9 20 0 0 0 262 9 271 8% 2% 7%
Others 193 32 225 14 0 14 0 0 0 207 32 239 6% 7% 7%
Total 2,631 358 2,988 376 33 409 165 63 227 3,171 454 3,625 100% 100% 100%
Share on total
portfolio
83% 11% 6% 100%

Full: Fully consolidated properties wholly owned by CA Immo

At equity: Includes all real estate partially owned by CA Immo accounted for using the equity method (appears under 'Income from joint ventures' in the

income statement); pro-rata-share 1) Includes properties used for own purposes; incl. the shortly completed office projects Kontorhaus (Munich), John F. Kennedy Haus and Monnet 4 (Berlin)

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

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

DISTRIBUTION OF BOOK VALUE PORTFOLIO PROPERTIES BY SEGEMENT (Basis: 3.0 bn €)

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

CHANGES TO THE PORTFOLIO IN THE THIRD QUARTER OF 2015

GERMANY

The investment property portfolio

In Germany, CA Immo held investment properties with an approximate value of € 997.3 m1) on 30 September 2015. The occupancy rate for all investment property assets on the key date was 93.2%2) (against 90.1% on 31.12.2014). 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 € 42.8 m was generated in the first nine months. Approximately 14,000 sqm of rental space was newly let or extended in Germany between January and the end of September; in addition, some 27,600 sqm of effective area was pre-let as part of ongoing development projects.

In September, CA Immo has finalised a lease of more than 6,000 sqm with an international software company

2) Excludes the recently completed office projects Kontorhaus (Munich), John F. Kennedy Haus and Monnet 4 (Berlin) which are still in a stabilisation phase. These project completions included, the occupancy rate in Germany is 83.6%.

for the Kontorhaus in Munich's Arnulfpark. This addition increases the occupancy of the recently completed office project to around 92%.

Development projects

As at key date 30 September, CA Immo had invested € 68.5 m € in development projects in Germany for 2015. On the basis of total investment costs, the volume of investment properties under construction in Germany (excluding land reserves) is approximately € 392.1 m. In total, CA Immo holds investment properties under development (including land reserves) with a book value of € 334.5 m (of which fully consolidated: € 326.2 m).

Shortly after work started on a multi-storey new car park and mainline station to augment Frankfurt's main station, construction of a hotel was confirmed for the site. Directly adjacent to the southern exit of the mainline station and very close to the inner city, CA Immo is developing a new eight-level hotel with some 400 rooms along with 82 underground parking spaces for the Steigenberger Hotel Group in Frankfurt. Construction is scheduled to start in the second half of 2016, with the hotel's opening planned for the end of 2018.

Sales

During the first nine months, trading income from German real estate totalled € 49.1 m.

Fair value property Rentable area 2) Occupancy rate Annualised rental Yield
assets income
in € m in sqm in % in € m in %
full at full at equity full at full at full at
equity equity equity equity
Austria 583.4 0.0 583.4 422,487 0 422,487 96.3% 0.0% 96.3% 32.9 0.0 32.9 5.6% 0.0% 5.6%
Germany 613.2 181.7 795.0 223,288 34,132 257,420 95.5% 85.2% 93.2% 34.8 9.3 44.1 5.7% 5.1% 5.5%
Czech Republic 213.6 27.8 241.4 111,799 10,905 122,704 92.5% 95.0% 92.7% 17.6 1.9 19.5 8.2% 6.8% 8.1%
Hungary 279.8 34.8 314.5 157,900 39,912 197,812 84.4% 70.1% 82.5% 20.3 2.6 22.9 7.3% 7.4% 7.3%
Poland 286.5 81.7 368.2 93,428 38,902 132,331 93.8% 91.5% 93.3% 20.7 6.4 27.1 7.2% 7.8% 7.4%
Romania 251.3 0.0 251.3 106,308 0 106,308 94.8% 0.0% 94.8% 21.1 0.0 21.1 8.4% 0.0% 8.4%
Others 193.3 31.6 224.9 114,495 20,841 135,336 89.9% 91.1% 90.1% 14.8 2.7 17.5 7.7% 8.6% 7.8%
Total 2,421.2 357.7 2,778.9 1,229,705 144,693 1,374,398 93.0% 86.2% 92.1% 162 23 185.0 6.7% 6.4% 6.7%

OVERVIEW INVESTMENT PROPERTIES KEY DATA AS AT 30 SEPTEMBER 2015 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; excludes the recently completed office projects Kontorhaus (Munich), John F. Kennedy Haus and Monnet 4 (Berlin) which are still in a stabilisation phase. These project completions included, the occupancy rate is 89.5%.

2) incl. superaedificates in Austria (approximately 181,000 sqm)

1) Includes fully consolidated real estate (wholly owned by CA Immo) and real estate in which CA Immo holds a proportionate share (at equity); excl. properties used for own purposes; incl. the recently completed office projects Kontorhaus (Munich), John F. Kennedy Haus and Monnet 4 (Berlin)

In the end of September, CA Immo sold a planned residential and commercial building in Mainz's Zollhafen in a Forward Sale. The turnkey property measuring around 18.500 sqm will be constructed for a special property funds managed by Aberdeen. Completion of the building is scheduled for mid-2018. The purchase price for the building is around € 66 m.

The sale of H&M logistics centre spanning a total usable area of around 114,500 sqm in Hamburg-Allermöhe, which was signed in mid-September, was closed in the end of November. With this sale, CA Immo continued the strategic withdrawal from the logistics segment. The purchase price of more than € 100 m is well above book value.

AUSTRIA

The investment property portfolio

As at 30 September 2015, CA Immo held investment properties in Austria with a value of € 583.4 m and an occupancy rate of 96.3% (96.6% on 31.12.2014). The company's asset portfolio generated rental income of € 26.3 m in the first nine months. Approximately 5,200 sqm of rental space was newly let in Austria between January and the end of September; contracts for further 4,600 sqm were extended.

Development projects

At the Lände 3 project site on Erdberger Lände, the construction of 220 rental apartments and around 140 parking spaces for an investor under the terms of a forward sale is in preparation; the building permit is expected to be obtained by the end of the year.

Also in the Lände 3 city district, CA Immo and JP Immobilien develop, under a joint venture, around 250 apartments and 170 parking spaces. The investment required for the new project comprising both rental apartments and condominiums totals around € 60 m. Construction is scheduled to start in summer 2016; completion is expected by the end of 2017.

Preparation works are ongoing for the construction of a new office building in the Lände 3 urban district development. The building covering around 13,000 sqm is located right next to the Donaukanal and opposite the Prater recreation area. The overall investment amounts to approx. € 38 m. Construction is scheduled to start in the spring of 2016 and should be completed in 2018.

Sales

Trading income for Austria amounted to € 67.5 m in the first nine months. Assets sold were mostly apartment houses and smaller mixed use properties.

Start of construction for the ViE office building in the Lände 3 urban city district is scheduled for spring 2016

EASTERN EUROPE

The investment property portfolio

The acquisition of the minority stake in the Eastern European "E-Portfolio" from former Joint Venture Partner EBRD (see below) was closed in mid-July. This transaction had an increasing effect on nearly all key figures of the CEE portfolio.

The value of the CA Immo investment properties increased from € 1,235.0 m as at 30 June 2015 (thereof fully consolidated: € 738.3 m) to € 1,400.5 m in as at 30 September 2015 (of which fully consolidated: € 1,224.5 m). In the first nine months, property assets let with a total effective area of around 0.7 m sqm (thereof some 583,931 sqm fully consolidated) generated rental income of € 69 m. The occupancy rate on the key date improved from 88.9% as at 30 June 2015 to 90.4% (30 September 2015).

New lease agreements relating to around 55,600 sqm rentable area were concluded in the first nine months, as well as contract extensions for some 48,700 sqm.

Acquisitions

In early July, CA Immo has successfully concluded negotiations with the European Bank for Reconstruction and Development (EBRD) concerning the acquisition of its minority stake in the Eastern European "E Portfolio". With this acquisition, CA Immo's share in eight office assets (book value approx. 486 € m) as well as four land plots (book value approx. 25 € m) increases from previously between 65% (respectively 75%) to 100%. The portfolio comprises high-quality office buildings in Prague (Amazon Court, Nile House, Kavci Hory), Bucharest (Europe House, River Place), Budapest (City Gate, Infopark West) and Zagreb (Zagrebtower). All properties are well let above 90%, the average occupancy stood at 94.5% as at March 31, 2015. The gross yield of the portfolio amounted to 7.9% as at the last reporting date (March 31, 2015). The gross purchase price for the EBRD stake amounts to around EUR 60 m and reflects a discount to the NAV of the portfolio. The loan-to-value ratio of the portfolio stands at around 50%.

Sales

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

SUPPLEMENTARY REPORT

The following activities after key date 30 September 2015 are reported:

In the beginning of October, CA Immo has concluded two additional lease agreements for a total of approx. 1,500 sq m of office space in John F. Kennedy Haus, next to Berlin's Main Central Station. With the conclusion of these lease agreements, the letting ratio of the office space in the recently completed building increases to around 82%.

In October, Joint-Venture-partner CA Immo and Hamburg Team have sold four residential plots in the urban district development Europacity near the Berlin main railway station. Around 550 apartments will be developed on these construction sites; the building rights have already been granted.

In October, CA Immo started the new office development Orhideea Towers in Bucharest with a total gross leasable area of 37,000 sqm and total investment volume of € 75 m. The construction has started in October 2015 with special foundation works, the entire project will be delivered in 2017.

Future addition to the almost fully let Bucharest investment portfolio : Orhideea Towers

Sustainable portfolio performance

Despite the property sales of last year, CA Immo's rental income rose 2.1% to € 111,687 K in the first nine months of 2015. This positive trend was essentially made possible by the acquisition of the minority share of the EBRD early in quarter three 2015 and the increase in rent this entailed.

In year-on-year comparison, property expenses directly attributable to the asset portfolio, including own operating expenses, rose by €-13,568 K (up 4.8%). The net result from renting stood at € 98,120 K after the first nine months (€ 96,417 K in 2014). The efficiency of letting activity, measured as the operating margin in rental business (net rental income in relation to rental income), was 87.9%, on a par with the previous year's value of 88.2%.

Other expenditure directly attributable to project development stood at €-1,501 K after the first three quarters, against €-2,872 K in 2014. Following the sale of two independently operated hotels in the Czech Republic, earnings from hotel operations declined to € 252 K in the first nine months of 2015 (€ 1,295 K in 2014). Gross revenue from services rose by 14.2% in yearly comparison to stand at € 12,884 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.

Property sales result

After the first nine months, the sales result from property assets held as current assets was €-41 K (€-1,434 K in 2014). The result from the sale of investment properties stood at € 727 K on 30 September 2015 (€ 9,748 K in 2014). This result does not yet include the main sales of 2015, and in particular the sale of a logistical property in Hamburg. This will contribute to the sales result with closing in the final quarter of 2015.

Indirect expenditures

After the first nine months, indirect expenditures stood at €-30,763 K, slightly above the 2014 level of €-29,388 K. This item also contains expenditure counterbalancing the aforementioned increased gross revenue from services. Other operating income stood at € 795 K compared to the substantially higher 2014 reference value of € 11,266 K.

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

Earnings before interest, taxes, depreciation and amortisation (EBITDA) declined by -16.4% to stand at € 80,473 K. The main reason for the decrease on last year was the aforementioned decline in other operating income and real estate sales, which are relatively volatile income components.

Revaluation result

After the first nine months, the total revaluation gain of € 103,342 K was counterbalanced by a revaluation loss of €-24,878 K. The cumulative revaluation result of € 78,464 K as at key date 30 September 2015 was significantly higher than last year's reference value of € 2,495 K. The result reflects the positive market environment (especially in Germany, the most important market for CA Immo). The positive development of values in the German portfolio was mainly driven by actual sales of individual properties, some of which will be reclassified to the sales result on closing of the transactions in the fourth quarter and thus impact on EBITDA.

The result also includes a one-time effect posted in quarter three linked to the takeover of EBRD's minority share and subsequent full consolidation of the E-portfolio in the amount of € 30,976 K. This revaluation effect results from the difference between the acquisition costs based on the purchase price as entered in the balance sheet and the attributable fair value of properties acquired.

Result from joint ventures

Current results of joint ventures consolidated at equity are reported under 'Earnings of joint ventures' in the consolidated income statement. The result of € 30,659 K (€ 1,061 K in 2014) contains another one-time effect connected to full consolidation of the E-portfolio in the amount of € 14,865 K.

Earnings before interest and taxes (EBIT)

Earnings before interest and taxes (EBIT) reflected the positive operational development with a 93.9% increase to € 187,524 K (2014: € 96,732 K).

Financial result

Over the first nine months of the year, the financial result of €-52,992 K was essentially unchanged on last year's figure of €-52,075 K. Despite portfolio expansion, the Group's financing costs, a key element in long-term earnings, fell by a substantial -26.1% on the 2014 value to €-46,643 K. This item contains one-time expenses of € 1,574 K connected with the optimisation of the financing structure. Aside from loan repayments linked to sales and repayment of the corporate bond for 2009-2014, continual optimisation of the financing structure is having a positive impact.

The result from interest rate derivative transactions of €-15,288 K mainly contains reclassifications of negative book values of interest rate swaps previously recognised in equity which were realised in the period under review owing to the settlement of contracts.

The result from financial investments stood at € 10,507 K, also lower than the figure for the reference period of 2014 (€ 34,453 K). The value for last year primarily included accrued interest on loans to joint venture companies repurchased below par by the financing bank.

Other items in the financial result (other financial income/expense, result from other financial assets and result from associated companies and exchange rate differences) totalled €-3,458 1,568 K (€-3,45810,965 K in 2014).

Taxes on income

Earnings before taxes stood at € 134,531 K, up 201.3% on the previous year's value of € 44,657 K. After the first nine months, the taxes on earnings stood at €-45,837 K (€-9,660 K in 2014). This amount contains a non-periodic expense of € 15 m linked to a disputed demand for back taxes in Germany, for which financial provision was made in the third quarter of 2015.

Result for the period

The result for the period was € 88,694 K, a significant 153.4% improvement on last year's figure. Earnings per share amounted to € 0.90 on 30 September 2015 (€ 0.38 per share in 2014).

Funds from operations (FFO)

An FFO I of € 55,816 K was generated in the first nine months of 2015, 3.3% above the previous year's value of € 54,026 K. FFO I, a key indicator of the Group's longterm earning power, is reported before taxes and adjusted for the sales result and other non-permanent effects. FFO II, which includes the sales result and applicable taxes, stood at € 50,299 K on the key date (€ 88,921 K in 2014).

FUNDS FROM OPERATIONS (FFO)

€ m 1st –3rd
Quarter
2015
1st–3rd
Quarter
2014
Net rental income (NRI) 98.1 96.4
Result from hotel operations 0.3 1.3
Income from services 12.9 11.3
Other expenses directly related to
properties under development –1.5 –2.9
Other operating income 0.8 11.3
Other operating income/expenses 12.4 21.0
Indirect expenses –30.8 –29.4
Result from investments in joint
ventures 1) 10.6 16.0
Finance costs –46.6 –63.1
Result from financial investments 10.5 34.5
Other adjustment 2) 1.6 –21.4
FFO I (excl. Trading and pre taxes) 55.8 54.0
Trading result 0.0 –1.4
Result from the sale of investment
properties 0.7 9.7
Result from sale of joint ventures 0.8 0.0
At-Equity result property sales –0.8 4.3
Result from property sales 0.7 12.6
Other financial result 0.2 2.4
Current income tax –38.3 –0.8
current income tax of joint ventures –0.3 –0.7
Other adjustments 32.2 21.4
FFO II 50.3 88.9

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

2) Adjustment for other non-sustainable results

Balance sheet: assets

As at the balance sheet date, long-term assets amounted to € 3,348,681 K (85% of total assets). The growth of investment property assets on balance sheet to € 2,623,485 K (€ 2,092,917 K in 2014) was mainly the result of full consolidation of the E-portfolio, which was stated at equity before the EBRD buy-out.

The balance sheet item 'Property assets under development' fell -24.3% to € 375,621 K compared to 31 December 2014. 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 € 3,178,882 K on the key date.

Assets and debts of joint ventures are no longer reported individually in the consolidated balance sheet; instead, the net assets of these companies are shown in the balance sheet item 'Investments in joint ventures', which stood at € 187,736 K on the key date (€ 206,136 K in 2014).

Cash and cash equivalents increased to € 163,491 K on the balance sheet date, almost unchanged on the value for 31 December 2014 (€ 163,638 K). The decline in this value compared to key date 30 June 2015 (€ 244,601 K) was mainly the result of the acquisition of the EBRD minority share in the E-portfolio and the utilisation of cash and cash equivalents for the early repayment of liabilities and closing out interest rate derivatives.

Balance sheet: liabilities Equity

After the first nine months, the Group's equity stood at € 1,977,586 K, compared to € 1,951,7071,815,742 K on 31.12.2014. As a consequence of full consolation of the E-portfolio, total assets have risen by around 7% since the start of the year to € 3,932,897 K (€ 3,670,941 K on 31.12.2014). Despite the increase in assets, the equity ratio of 50.3% as at the key date remained stable and within the strategic target range (the comparative value for the end of 2014 was 53.2%).

Interest-bearing liabilities

The Group's financial liabilities stood at € 1,427,334 K on the key date against € 1,229,150 K on 31.12.2014). Net debt was up 18.6% on the value for the start of the year (€ 1,065,512 K), amounting to € 1,263,843 K at end of September 2015. The loan-to-value ratio (LTV) on the basis of market values as at 30 September 2015 was around 39.5% (net, taking account of Group cash and cash equivalents). Gearing was approximately 63.4% on the key date (54.4% on 31.12.2014).

Net asset value

The NAV (shareholders' equity) stood at € 1,977.6 K on 30 September 2015 (€ 20.36 per share), up 1.3% on the value at the end of 2014. Aside from the result for the period, the increase also reflects the payment of dividends (€ – 44,464 K) and the acquisition of own shares (€ – 26,899 K). Adjusted to take account of the dividend, growth in NAV per share for the first three quarters of 2015 stood at 5.4%.

The table below shows the conversion of NAV to NNNAV in compliance with the best practice policy recommendations of the European Public Real Estate Association (EPRA). The EPRA NNNAV as at 30 September 2015 was € 20.87 per share, equivalent to a slight increase of 2.5% on the value at the end of last year (€ 20.36 per share). The share buyback programme initiated in the second quarter of 2015 has steadily reduced the number of shares outstanding to 97,133,481 on the key date (98,808,336 on 31.12.2014).

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

€ m 30.9.2015 31.12.2014
Equity (NAV) 1,977.6 1,951.7
Exercise of options 0.0 0.0
NAV after exercise of options 1,977.6 1,951.7
NAV/share in € 20.36 19.75
Value adjustment for 1)
- own use properties 4.7 4.2
- short-term property assets 10.3 12.3
- Financial instruments 5.8 27.5
Deferred taxes 149.5 152.5
EPRA NAV after adjustments 2,147.8 2,148.2
EPRA NAV per share in € 22.11 21.74
Value adj. for financial instruments –5.8 –27.5
Value adjustment for liabilities –9.1 –10.7
Deferred taxes –106.2 –98.5
EPRA NNNAV 2,026.8 2,011.6
EPRA NNNAV per share in € 20.87 20.36
Change of NNNAV against previous year 2.5%
Price (30.09.) / NNNAV per share –1 –21.1 –23.9
Number of shares excl. treasury shares 97,133,481 98,808,336

1) Includes proportionate values from joint ventures

CONSOLIDATED INCOME STATEMENT

€ 1,000 1st – 3rd Quarter 1st– 3rd Quarter 3rd Quarter 3rd Quarter
2015 2014 2015 2014
Rental income 111,687 109,364 42,907 35,616
Operating costs charged to tenants 28,674 25,131 9,597 8,160
Operating expenses – 33,924 – 30,111 – 11,014 – 9,572
Other expenses directly related to properties rented – 8,317 – 7,967 – 3,860 – 3,082
Net rental income 98,120 96,417 37,630 31,122
Gross revenues hotel operations 1,681 5,540 0 2,139
Expenses related to hotel operations – 1,429 – 4,245 0 – 1,599
Result from hotel operations 252 1,295 0 540
Other expenses directly related to properties under
development – 1,501 – 2,872 – 788 – 865
Income from the sale of properties held for trading 1,510 2,005 411 1,943
Book value of sold properties held for trading – 1,551 – 3,439 – 406 – 1,522
Trading result – 41 – 1,434 4 421
Result from the sale of investment properties 727 9,748 – 126 – 613
Income from services 12,884 11,279 4,011 3,538
Indirect expenses – 30,763 – 29,388 – 10,231 – 9,339
Other operating income 795 11,266 – 275 174
EBITDA 80,473 96,311 30,225 24,978
Depreciation and impairment of long-term assets – 2,072 – 3,339 – 722 – 1,128
Changes in value of properties held for trading 0 204 0 0
Depreciation and impairment/reversal – 2,072 – 3,135 – 722 – 1,128
Revaluation gain 103,342 19,279 36,599 7,334
Revaluation loss – 24,878 – 16,784 – 4,546 – 5,402
Result from revaluation 78,464 2,495 32,052 1,932
Result from joint ventures 30,659 1,061 24,704 – 9,574
Operating result (EBIT) 187,524 96,732 86,260 16,208
Finance costs – 46,643 – 63,082 – 15,330 – 19,947
Other financial result 178 2,408 178 0
Foreign currency gains/losses – 1,746 – 440 – 2,364 – 800
Result from interest rate derivative transactions – 15,288 – 12,481 – 7,676 – 697
Result from financial investments 10,507 34,453 792 20,217
Result from other financial assets 0 – 9,475 0 – 9,424
Result from associated companies 0 – 3,458 – 436 – 1,200
Financial result – 52,992 – 52,075 – 24,836 – 11,851
Net result before taxes (EBT) 134,531 44,657 61,424 4,357
Current income tax – 38,257 – 789 – 36,614 – 1,458
Deferred taxes – 7,580 – 8,871 8,888 – 757
Income tax – 45,837 – 9,660 – 27,726 – 2,215
Consolidated net income 88,694 34,997 33,698 2,142
thereof attributable to the owners of the parent 88,694 34,997 33,698 2,142
Earning per share in € (basic) € 0.90 € 0.38 € 0.34 € 0.02
Earnings per share in € (diluted) € 0.90 € 0.38 € 0.34 € 0.03

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

€ 1,000 1st – 3rd
Quarter 2015
1st– 3rd Quarter
2014
3rd Quarter
2015
3rd Quarter
2014
Consolidated net income 88,694 34,997 33,698 2,142
Other comprehensive income
Valuation cash flow hedges 1,129 – 637 823 592
Reclassification cash flow hedges 25,725 4,108 6,746 0
Exchange rate differences – 1,493 252 2,165 50
Revaluation of assets available for sale – 10,185 0 – 2,049 0
Income tax related to other comprehensive income – 6,642 1,467 – 2,522 1,990
Other comprehensive income for the period (realised through
profit or loss) 8,535 5,190 5,162 2,632
Actuarial gains/losses IAS 19 21 – 20 0 0
Income tax related to other comprehensive income – 7 4 0 0
Other comprehensive income for the period (not realised through
profit or loss) 14 – 16 0 0
Other comprehensive income for the period 8,549 5,174 5,162 2,632
Comprehensive income for the period 97,243 40,171 38,859 4,774
thereof attributable to the owners of the parent 97,243 40,171 38,859 4,774

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

€ 1,000 30.9.2015 31.12.2014
ASSETS
Investment properties 2,623,485 2,092,917
Investment properties under development 375,621 496,252
Hotels and other own used properties 7,145 7,533
Office furniture and other equipment 5,880 1,399
Intangible assets 12,368 15,845
Investments in joint ventures 187,736 206,136
Investments in associated companies 18 18
Financial assets 133,151 385,410
Deferred tax assets 3,277 4,301
Long-term assets 3,348,681 3,209,811
Long-term assets as a % of total assets 85.1% 87.4%
Assets held for sale 150,852 91,481
Properties held for trading 21,779 18,445
Receivables and other assets 248,094 187,566
Cash and cash equivalents 163,491 163,638
Short-term assets 584,216 461,130
Total assets 3,932,897 3,670,941
LIABILITIES AND SHAREHOLDERS' EQUITY
Share capital 718,337 718,337
Capital reserves 927,477 998,839
Other reserves – 20,156 – 28,704
Retained earnings 351,928 263,235
Shareholders' equity 1,977,586 1,951,707
Shareholders' equity as a % of total assets 50.3% 53.2%
Provisions 14,104 7,726
Interest-bearing liabilities 933,007 1,026,620
Other liabilities 106,232 162,352
Deferred tax liabilities 149,800 145,991
Long-term liabilities 1,203,142 1,342,689
Current income tax liabilities 45,439 11,372
Provisions 58,168 51,259
Interest-bearing liabilities 494,327 202,530
Other liabilities 69,807 84,841
Liabilities relating to disposal groups 84,427 26,543
Short-term liabilities 752,169 376,545
Total liabilities and shareholders' equity 3,932,897 3,670,941

CONSOLIDATED STATEMENT OF CASH FLOWS

€ 1,000 1st – 3rd Quarter 2015 1st– 3rd Quarter 2014
Operating activities
Net result before taxes 134,531 44,656
Revaluation result incl. change in accrual and deferral of rental income – 81,407 – 2,250
Depreciation and impairment/reversal 2,072 3,147
Result from the sale of long-term properties and office furniture and other equipment – 730 – 9,755
Taxes paid excl. taxes for the sale of properties – 2,925 1,694
Finance costs, result from financial investments and other financial result 35,958 26,221
Foreign currency gains/losses 1,746 440
Result from interest rate derivative transactions 15,288 12,481
Result from other financial assets and from investments in associated companies – 30,659 11,872
Other non-cash income 0 – 6,767
Cash flow from operations 73,874 81,739
Properties held for trading – 3,334 1,366
Receivables and other assets 8,418 3,466
Provisions – 1,449 – 4,721
Other liabilities 633 – 1,987
Cash flow from change in net current assets 4,268 – 1,876
Cash flow from operating activities 78,142 79,863
Investing activities
Acquisition of and investment in properties incl. prepayments – 68,270 – 55,059
Acquisition of property companies, less cash and cash equivalents of € 26,080 K (2014: € 3,864 K) 18,549 – 150,556
Acquisition of office equipment and intangible assets – 1,118 – 843
Acquisition of financial assets – 36,798 0
Acquisition of assets available for sale – 94,093 0
Investments in joint ventures – 3,023 – 6,909
Disposal of long-term properties and other assets 132,205 147,217
Disposal of investment property companies, less cash and cash equivalents of € 799 K (2014: € 0 K) 11,312 2,741
Disposal of joint ventures and associated companies 24,092 0
Financing of joint ventures – 2,790 – 144,019
Repayment of joint ventures 119,564 12,000
Taxes repaid/paid relating to the sale of long-term properties 5,053 – 1,973
Dividend distribution/capital repayment from associated companies and securities 2,701 11,171
Interest paid for investment in properties 0 – 618
Interest received from financial investments 13,486 8,125
Cash flow from investing activities 120,870 – 178,723
Financing activities
Cash inflow from loans 42,398 149,923
Cash inflow from the issuance of bonds 174,387 0
cash flow from joint ventures 0 14,286
Acquisition of own shares – 26,899 0
Dividend payments to shareholders – 44,464 – 35,142
Repayment of loans incl. Interest derivative – 299,719 – 234,891
Other interest paid – 40,250 – 57,169
Cash flow from financing activities – 194,547 – 162,993
Net change in cash and cash equivalents 4,465 – 261,853
Cash and cash equivalents as at 1.1. 163,638 613,426
Changes in the value of foreign currency 265 – 459
Changes due to classification of disposal group acc. – 4,877 0
Cash and cash equivalents as at 30.9. 163,491 351,114

STATEMENT OF CHANGES IN EQUITY

€ 1,000 Share capital Capital reserves - Others Capital reserves -
Reserves for own
shares
As at 1.1.2014 638,714 1,000,536 0
Valuation / reclassification 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 0
Comprehensive income for 2014 0 0 0
Dividend payments to shareholders 0 – 35,142 0
conversion of bonds 70,704 29,625 0
As at 30.9.2014 709,418 995,019 0
As at 1.1.2015 718,337 998,839 0
Valuation / reclassification cash flow hedge 0 0 0
Currency translation reserve 0 0 0
Actuarial gains/losses IAS 19 0 0 0
Revaluation of assets available for sale 0 0 0
Consolidated net income 0 0 0
Comprehensive income for 2015 0 0 0
Dividend payments to shareholders 0 – 44,464 0
Acquisition of own shares 0 0 – 26,899
As at 30.9.2015 718,337 954,376 – 26,899
Attributable to
shareholders of the
parent company
Other reserves Valuation result
(hedging - reserve)
Retained earnings
1,794,266 – 2,516 – 34,907 192,439
4,938 0 4,938 0
252 252 0 0
– 16 – 16 0 0
34,997 0 0 34,997
40,171 236 4,938 34,997
– 35,142 0 0 0
100,329 0 0 0
1,899,624 – 2,280 – 29,969 227,436
1,951,707 – 1,202 – 27,503 263,235
21,728 0 21,728 0
– 1,493 – 1,493 0 0
14 14 0 0
– 11,701 – 11,701 0 0
88,694 0 0 88,694
97,243 – 13,179 21,728 88,694
– 44,464 0 0 0
– 26,899 0 0 0
1,977,586 – 14,382 – 5,774 351,928

SEGMENT REPORTING

€ 1,000 Austria Germany
1st – 3rd Quarter 2015 Income Development Total Income Development Total Income
producing producing producing
Rental income 27,030 0 27,030 42,579 12,462 55,041 71,242
Rental income with other operating
segments 392 0 392 462 0 462 0
Operating costs charged to tenants 7,311 0 7,311 9,619 1,632 11,252 24,306
Operating expenses – 7,990 0 – 7,990 – 11,345 – 2,192 – 13,537 – 27,427
Other expenses directly related to
properties rented – 2,185 0 – 2,185 – 2,603 – 2,406 – 5,009 – 4,905
Net rental income 24,557 0 24,557 38,713 9,496 48,209 63,216
Result from hotel operations 0 0 0 0 0 0 252
Other expenses directly related to
properties under development 0 – 10 – 10 0 – 1,658 – 1,658 0
Trading result 0 0 0 0 – 4,216 – 4,216 0
Result from the sale of investment
properties 2,007 0 2,007 2,641 – 3,292 – 652 941
Income from services 63 0 63 449 9,821 10,271 411
Indirect expenses – 681 – 419 – 1,100 – 4,519 – 12,002 – 16,521 – 7,562
Other operating income 8 0 8 417 157 573 392
EBITDA 25,954 – 429 25,524 37,701 – 1,694 36,007 57,650
Depreciation and impairment/reversal – 835 0 – 835 – 102 – 399 – 501 – 295
Result from revaluation – 3,934 4,263 330 47,270 35,794 83,064 – 11,038
Result from joint ventures 0 0 0 0 0 0 0
Operating result (EBIT) 21,185 3,834 25,019 84,869 33,702 118,571 46,317

30.9.2015

Property assets1) 600,604 25,550 626,154 1,103,709 870,666 1,974,376 1,335,094
Other assets 43,057 1,354 44,411 129,758 365,116 494,874 223,582
Deferred tax assets 0 0 0 1,884 118 2,002 1,528
Segment assets 643,662 26,904 670,565 1,235,351 1,235,900 2,471,252 1,560,204
Interest-bearing liabilities 271,481 851 272,331 603,292 382,535 985,828 933,436
Other liabilities 15,300 515 15,816 40,977 226,492 267,469 34,658
Deferred tax liabilities incl. current
income tax liabilities 50,035 11,944 61,979 114,391 56,485 170,876 44,761
Liabilities 336,816 13,311 350,126 758,660 665,513 1,424,173 1,012,855
Shareholders' equity 306,846 13,593 320,439 476,691 570,387 1,047,078 547,350
Capital expenditures2) 2,864 1,287 4,150 9,245 79,066 88,311 10,961

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 €3,335 K (31.12.2014: € 2,078 K) in properties held for trading.

Total Transition Total Eastern Eastern
segments Europe other Europe core
regions regions
Consolidation Holding Total Development Income Total Development
producing
111,687 – 55,594 0 167,281 12,775 0 12,775 72,434 1,192
0 – 854 0 854 0 0 0 0 0
28,674 – 19,604 0 48,277 4,290 0 4,290 25,425 1,119
– 33,924 20,747 0 – 54,671 – 4,617 0 – 4,617 – 28,526 – 1,099
– 8,317 4,693 0 – 13,011 – 522 0 – 522 – 5,295 – 390
98,120 – 50,611 0 148,730 11,926 0 11,926 64,038 822
252 0 0 252 0 0 0 252 0
– 1,501 280 0 – 1,781 – 22 – 22 0 – 91 – 90
– 41 4,174 0 – 4,216 0 0 0 0 0
727 – 2,667 0 3,394 139 148 – 9 1,900 959
12,884 – 671 2,810 10,745 0 0 0 411 0
– 30,763 5,372 – 9,182 – 26,953 – 1,094 – 70 – 1,024 – 8,238 – 676
795 – 746 220 1,321 254 3 251 486 95
80,473 – 44,869 – 6,152 131,494 11,203 58 11,145 58,759 1,109
– 2,072 – 53 – 485 – 1,535 – 1 0 – 1 – 198 97
78,464 10,702 0 67,763 – 1,854 0 – 1,854 – 13,777 – 2,739
30,659 30,659 0 0 0 0 0 0 0
187,524 – 3,562 – 6,637 197,722 9,348 58 9,290 44,784 – 1,533
– 1,089,020 0 4,260,039 227,410 4,600 222,810 1,432,099 97,005
– 687,634 649,651 796,584 21,823 11,783 10,040 235,475 11,893
– 52,505 52,252 3,530 0 0 0 1,528 0
– 1,829,158 701,902 5,060,153 249,233 16,383 232,850 1,669,103 108,898
– 1,464,953 407,004 2,485,283 192,969 12,155 180,814 1,034,155 100,720
– 6,878 8,013 331,604 6,801 2 6,799 41,518 6,860
– 98,287 5,254 288,271 6,743 1 6,742 48,672 3,912
– 1,570,118 420,271 3,105,158 206,513 12,158 194,354 1,124,346 111,491
– 259,040 281,631 1,954,995 42,721 4,225 38,496 544,757 – 2,593
– 50,386 502 118,914 1,244 0 1,244 25,209 14,248
€ 1,000 Austria Germany
1st– 3rd Quarter 2014 Income
producing
Development Total Income
producing
Development Total Income
producing
Rental income 32,006 72 32,078 40,779 8,317 49,096 87,177
Rental income with other operating
segments 386 0 386 230 0 230 0
Operating costs charged to tenants 7,293 0 7,293 7,840 777 8,617 29,878
Operating expenses – 7,699 0 – 7,699 – 10,965 – 1,215 – 12,180 – 33,954
Other expenses directly related to
properties rented – 2,927 0 – 2,927 – 4,797 13 – 4,784 – 5,719
Net rental income 29,059 72 29,131 33,087 7,892 40,979 77,382
Result from hotel operations 0 0 0 0 0 0 1,327
Other expenses directly related to
properties under development 0 – 52 – 52 0 – 5,209 – 5,209 0
Trading result 0 0 0 0 – 3,103 – 3,103 0
Result from the sale of investment
properties 237 – 8 229 1,177 12,342 13,519 – 782
Income from services 79 0 79 0 7,216 7,216 609
Indirect expenses – 698 – 120 – 818 – 3,469 – 15,039 – 18,508 – 12,191
Other operating income 44 0 44 918 2,987 3,905 4,198
EBITDA 28,721 – 108 28,613 31,713 7,086 38,799 70,543
Depreciation and impairment/reversal – 637 0 – 637 – 96 – 317 – 413 – 2,005
Result from revaluation 2,295 0 2,295 11,470 10,332 21,802 – 46,221
Result from joint ventures 0 0 0 0 0 0 0
Operating result (EBIT) 30,379 – 108 30,271 43,087 17,101 60,188 22,317
31.12.2014
Property assets1) 684,678 0 684,678 1,054,585 778,026 1,832,611 1,574,364
Property assets1) 684,678 0 684,678 1,054,585 778,026 1,832,611 1,574,364
Other assets 80,234 6 80,240 198,028 292,798 490,826 236,698
Deferred tax assets 0 0 0 965 2,534 3,499 3,156
0 0 0 965 2,534 3,499 3,156
764,912 6 764,918 1,253,578 1,073,358 2,326,936 1,814,218
328,951 0 328,951 628,549 411,816 1,040,365 1,092,001
34,179 5 34,184 90,021 67,434 157,455 183,896
59,580 0 59,580 77,387 48,529 125,916 65,228
422,710 5 422,715 795,957 527,779 1,323,736 1,341,125
342,202 1 342,203 457,621 545,579 1,003,200 473,093
6,323 0 6,323 9,504 147,746 157,250 14,360
Eastern Europe Eastern Europe Total Transition Total
core regions other regions segments
Development Total Income Development Total Holding Consolidation
producing
4,550 91,727 12,668 0 12,668 185,569 0 – 76,205 109,364
0 0 0 0 0 616 0 – 616 0
492 30,370 3,844 0 3,844 50,124 0 – 24,993 25,131
– 671 – 34,625 – 4,534 0 – 4,534 – 59,038 0 28,927 – 30,111
– 799 – 6,518 – 830 0 – 830 – 15,059 0 7,092 – 7,967
3,572 80,954 11,148 0 11,148 162,212 0 – 65,795 96,417
0 1,327 0 0 0 1,327 0 – 32 1,295
– 157 – 157 0 – 23 – 23 – 5,441 0 2,569 – 2,872
0 0 0 0 0 – 3,103 0 1,669 – 1,434
669 – 113 0 0 0 13,635 0 – 3,887 9,748
0 609 0 0 0 7,904 2,667 708 11,279
– 1,142 – 13,333 – 944 – 266 – 1,210 – 33,869 – 9,395 13,876 – 29,388
601 4,799 7 5,185 5,192 13,940 191 – 2,865 11,266
3,543 74,086 10,211 4,896 15,107 156,605 – 6,537 – 53,757 96,311
– 11 – 2,016 – 2 0 – 2 – 3,068 – 431 364 – 3,135
884 – 45,337 – 2,493 – 3,041 – 5,534 – 26,774 0 29,269 2,495
0 0 0 0 0 0 0 1,061 1,061
4,416 26,733 7,716 1,855 9,571 126,763 – 6,968 – 23,063 96,732
101,154 1,675,518 223,739 5,802 229,541 4,422,348 0 – 1,715,720 2,706,628
11,108 247,806 5,556 3,319 8,875 827,747 691,122 – 558,857 960,012
0 3,156 0 0 0 6,655 51,498 – 53,852 4,301
112,262 1,926,480 229,295 9,121 238,416 5,256,750 742,620 – 2,328,429 3,670,941
96,570 1,188,571 164,789 28,461 193,250 2,751,137 311,812 – 1,833,799 1,229,150
6,867 190,763 8,098 36 8,134 390,536 48,486 – 106,301 332,721

2,683 67,911 9,690 2 9,692 263,099 1,375 – 107,111 157,363 106,120 1,447,245 182,577 28,499 211,076 3,404,772 361,673 – 2,047,211 1,719,234 6,142 479,235 46,718 – 19,378 27,340 1,851,978 380,947 – 281,218 1,951,707 14,490 28,850 2,924 32 2,956 195,379 528 – 11,904 184,003

NOTES

GENERAL NOTES

The condensed consolidated interim financial statements of CA Immobilien Anlagen Aktiengesellschaft ("CA Immo AG"), Vienna, as at 30.9.2015 were prepared in accordance with the rules of IAS 34 (Interim Financial Reporting) and are based on the accounting policies and measurement basis described in the annual consolidated financial statements of CA Immobilien Anlagen Aktiengesellschaft for the year 2014, except of new or amended standards.

The condensed consolidated interim financial statements, for the reporting period from 1.1. to 30.9.2015 have been neither fully audited nor reviewed by an auditor.

The use of automatic data processing equipment may lead to rounding differences in the addition of rounded amounts and percentage rates.

CHANGES IN PRESENTATION AND ACCOUNTING POLICIES

The condensed consolidated interim financial statements by 30.9.2015 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 1.1.2015. The following amended and new standards are applicable for the first time in the business year 2015:

standard / interpretation Content entry into force1)
IFRIC 21 Levies 1.7.2014
Annual improvement (cycle 2011– 2013) Miscellaneous 1.1.2015

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

The first time application of IFRIC 21 "levies" led to additionally recognized land taxes and related property levies in operating service expenses amounting to € 1,895 K as at 30.9.2015 as well as as accrued work in progress in amount of € 1,295 K from these taxes and levies.

SCOPE OF CONSOLIDATION

In the first three Quarters 2015, two hotels in Czech Republic (2P s.r.o and Europort Airport Center a.s.) and their related management and operating companies (Hotel Operation Plzen Holding s.r.o. and Hotel Operations Europort s.r.o.) were sold. Also, the Hungarian joint venture, Eurpolis M1 Kft., which owned a logistics property, was sold.

In July 2015, CA Immo Group bought the remaining stake of the "E-Portfolio" from its joint venture partner EBRD. Following the purchase of the stake from EBRD, mainly consisting of eight high yielding investment properties (book value of approximately € 486 m) as well as four land banks (book value of approximately € 23 m), these entities are fully consolidated. Given the acquisions, the stake of CA Immo Group increased from 65% (respectively 75%) to 100%, the signing and closing of the transaction took place in July 2015.

NOTES TO THE CONSOLIDATED INTERIM FINANCIAL STATEMENTS

Statement of financial position

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

€ 1,000 30.9.2015 31.12.2014
Loans to joint ventures 5,899 305,452
Loans to associated companies 20,263 20,524
Other investments 62,617 56,654
Other financial assets 44,372 2,780
Financial assets 133,151 385,410

As at 30.9.2015, three properties in Austria and two in Germany, in the amount of € 142,989 K as well as investments into joint ventures amounting to € 2,982 K and other assets in disposal groups are presented as held for sale. Liabilities in disposal groups include interest bearing liabilities amount to € 68,744 K, derivative financial instruments amounting to € 6,680 K, deferred tax liabiliites in the amount of € 8,420 K as well as other liabilities. A sale within one year from the date of reclassification was regarded as highly probable.

As at 30.9.2015, CA Immo Group held cash and cash equivalents amounting to € 163,491 K, cash and cash equivalents contain bank balances of € 12,280 K (31.12.2014: € 14,857 K) to which CA Immo Group only has restricted access. These balances serve the purpose of securing current loan repayments (principal and interest) as well as current investments in projects under development. In addition, cash and cash equivalents subject to drawing restrictions up to 12 months are presented in caption 'receivables and other assets'. Restriced cash with a longer lock-up period (over 12 months) is presented under 'financial assets'.

€ 1,000 30.9.2015 31.12.2014
Maturity > 1 year 7,739 2,709
Maturity from 3 to 12 months 1,987 1,512
Cash at banks with drawing restrictions 9,726 4,221

Income Statement

The result from revaluation amounting to € 78,464 K was mainly driven by positive changes in the market environment and revaluation due to ongoing sales processes in Germany as well as by the actual acquisition of the remaining stake of the "E-Portfolio" in Eastern Europe.

In 2014 the other operating income was mainly based on € 3,500 K from guarantees and purchase price reductions as well as on € 5,200 K from the derminated arbitration claim in connection with the Russian project Maslov.

In 2015, CA Immo Group repurchased three own loans. The difference between the purchase price and the outstanding loan amount for consolidated subsidiaries amounting to € 178 K (1st-3rd Quarter 2014: EUR 2,408 K) is presented as a separate line item in the consolidated income statement, in the financial result.

The result from financial investments mainly consists of the accumulation of interest on loans to joint ventures.

The result from derivative interest rate transactions comprises the following:

€ 1,000 1st – 3rd Quarter 1st– 3rd Quarter
2015 2014
Valuation interest rate derivative transactions 10,432 – 8,365
Ineffectiveness of interest rate swaps 4 – 8
Reclassification of valuation results recognised in equity – 25,725 – 4,108
Result from interest rate derivative transactions – 15,288 – 12,481

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 arise from the refinancing of variable interest bearing loans (into fixed interest bearing loans) or their early repayment.

Tax expenses comprise the following:

€ 1,000 1st – 3rd Quarter 1st– 3rd Quarter
2015 2014
Current income tax (current year) – 4,989 – 8,150
Current income tax (previous years) – 33,268 7,361
Current income tax – 38,257 – 789
Change in deferred taxes – 7,735 – 11,171
Tax benefit on valuation of derivative transactions and assets available for sale in
equity 155 2,300
Income tax – 45,837 – 9,660
Effective tax rate (total) 34.1% 21.6%

Current income tax arises mainly in the segments Eastern Europe core regions (€ 2,260 K). The change in current income tax (previous years) results from a provision in course of a tax audit for the period 2008 – 2010 and a provision for follow-up effects until 2013 in relation to the tax deductibility of interest expenses in Germany. CA Immo group actually evaluates further legal steps in this respect. This current income tax in turn resulted in a partial decrease in deferred taxes.

Earnings per share

1st – 3rd Quarter 1st– 3rd Quarter
2015 2014
Weighted average number of shares outstanding pcs. 98,293,400 91,008,782
Consolidated net income € 1,000 88,694 34,997
basic earnings per share 0.90 0.38

In 2014 the convertible bond 2009 had an effect on the diluted earnings per share.

1st– 3rd Quarter
2014
Weighted average number of shares outstanding pcs. 91,008,782
Dilution effect:
Convertible bond pcs. 1,333,063
Weighted average number of shares pcs. 92,341,845
Consolidated net income attributable to the owners of the parent € 1,000 34,997
Dilution effect:
Effective interest on convertible bond € 1,000 427
less taxes € 1,000 – 107
Consolidated net income attributable to the owners of the parent adjusted by
dilution effect € 1,000 35,317
Diluted earnings per share 0.38

DIVIDEND

In 2015, a dividend of € 0.45 (€ 0.40 in 2014) per eligible share, hence in total € 44,463.75 K (2014: € 35,142.00K) has been distributed to the shareholders.

SHARE BUYBACK PROGRAMME 2015

On 12.5.2015, CA Immo commenced a programme of repurchasing its own shares on the basis of the enabling resolution passed at the 27th Ordinary General Meeting on 8.5.2014 in accordance with article 65 subsection 1 line 8 of the Stock Corporation Act. CA Immo had acquired 1,674,855 treasury shares (approx. 1.7% of the capital stock) via the stock market by 30.9.2015. The equivalent value was approximately € 16.04 per share. Up to two million shares (equivalent to approximately 2% of the company's current capital stock) will be repurchased in total. The upper limit is € 17.00 per share.

FINANCIAL INSTRUMENTS

Category Book value Fair value Book value Fair value
€ 1,000 30.9.2015 30.9.2015 31.12.2014 31.12.2014
Cash at banks with drawing restrictions 7,739 2,709
Derivative financial instruments 68 68 64 64
Primary financial instruments 125,344 382,637
Financial assets 133,151 385,410
Cash at banks with drawing restrictions 1,987 1,512
Derivative financial instruments 4 4 0 0
Other receivables and other financial assets 96,997 106,597
Non financial assets 45,909 54,910
Securities 103,196 103,196 24,547 24,547
Receivables and other assets 248,094 187,566
Cash and cash equivalents 163,491 163,638
544,736 736,614

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

Category Book value Fair value Book value Fair value
€ 1,000 30.9.2015 30.9.2015 31.12.2014 31.12.2014
Bonds 362,717 377,502 187,376 195,291
Other interest-bearing liabilities 1,064,617 1,064,058 1,041,774 1,042,353
Interest-bearing liabilities 1,427,334 1,229,151
Derivative financial instruments 13,447 13,447 77,611 77,611
Other financial liabilities 63,711 75,766
Other non financial liabilities 98,881 93,816
Total other liabilities 176,039 247,193
1,603,373 1,476,344

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

Derivative financial instruments and hedging transactions

30.9.2015 31.12.2014
€ 1,000 Nominal Fair value Book value Nominal Fair value Book value
value value
Interest rate swaps 270,180 – 13,447 – 13,447 637,687 – 77,611 – 77,611
Swaption 100,000 4 4 100,000 54 54
Interest rate caps 45,542 68 68 21,585 10 10
Total 415,722 – 13,375 – 13,375 759,272 – 77,547 – 77,547
- thereof hedging (cash flow hedges) 121,539 – 7,605 – 7,605 251,723 – 33,689 – 33,689
- thereof stand alone (fair value derivatives) 294,183 – 5,770 – 5,770 507,549 – 43,858 – 43,858

Interest rate swaps

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

€ 1,000 Nominal value Fair value 30.9.2015
Book value
Nominal value Fair value 31.12.2014
Book value
- Cash flow hedges (effective) 120,516 – 7,506 – 7,506 247,568 – 33,180 – 33,180
- Cash flow hedges
(ineffective) 1,023 – 99 – 99 4,155 – 510 – 510
- Fair value derivatives (HFT) 148,641 – 5,842 – 5,842 385,964 – 43,922 – 43,922
Interest rate swaps 270,180 – 13,447 – 13,447 637,687 – 77,611 – 77,611
Currency Nominal value Start End Fixed Reference Fair value
in € 1,000 interest rate as interest rate
at
30.9.2015 30.9.2015
in € 1,000
EUR (nominal value each below 2,253%– 3M-Euribor /
100 m EUR) - CFH 121,539 11/2007 9/2018 4,789% 6M-Euribor – 7,605
EUR (nominal value each below 0,505%–
100 m EUR) - stand alone 148,641 7/2007 12/2023 4,613% 6M-Euribor – 5,842
Total = variable in fixed 270,180 – 13,447
Currency Nominal value Start End Fixed Reference Fair value
in € 1,000 interest rate as interest rate
at
31.12.2014 31.12.2014
in € 1,000
EUR (nominal value each above
100 m EUR) - CFH 109,375 1/2008 12/2017 4,405% 3M-Euribor – 13,809
EUR (nominal value each below 1,295%– 3M-Euribor /
100 m EUR) - CFH 309,844 6/2008 12/2022 4,789% 6M-Euribor – 43,122
EUR (nominal value each below 2,279%–
100 m EUR) - stand alone 218,468 7/2007 12/2023 4,820% 6M-Euribor – 20,679
Total = variable in fixed 637,687 – 77,611
Swaption
Currency Nominal value in € 1,000 Start End Fixed Reference Fair value
interest rate as interest rate
at
30.9.2015 30.9.2015
in € 1,000
Swaption EUR 100,000 6/2013 6/2016 2,500% 6M-Euribor 4
Total 100,000 4
Currency Nominal value in € 1,000 Start End Fixed Reference Fair value
interest rate as interest rate
at
31.12.2014 31.12.2014
in € 1,000
Swaption EUR 100,000 6/2013 6/2016 2,500% 6M-Euribor 54
Total 100,000 54
Interest rate caps
Currency Nominal value Start End Fixed Reference Fair value
in € 1,000 interest rate as interest rate
at
30.9.2015 30.9.2015
in € 1,000
Interest rate caps EUR 45,542 3/2014 3/2019 2,000% 3M-Euribor 68
Total 45,542 68
Currency Nominal value Start End Fixed Reference Fair value
in € 1,000 interest rate as interest rate
at
31.12.2014 31.12.2014
in € 1,000
Interest rate caps EUR 21,585 3/2014 3/2019 2,000% 3M-Euribor 10
Total 21,585 10

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

€ 1,000 2015 2014
As at 1.1. – 27,503 – 34,907
Change in valuation of cash flow hedges 1,134 – 645
Change of ineffectiveness cash flow hedges – 4 8
Reclassification cash flow hedges 25,725 4,108
Income tax cash flow hedges – 5,126 1,467
As at 30.9. – 5,774 – 29,969
thereof: attributable to the owners of the parent – 5,774 – 29,969

Hierarchy of fair values

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

Capital structure

Net debt and gearing ratio:

€ 1,000 30.9.2015 31.12.2014
Interest-bearing liabilities
Long-term interest-bearing liabilities 933,007 1,026,620
Short-term interest-bearing liabilities 494,327 202,530
Interest-bearing assets
Cash and cash equivalents – 163,491 – 163,638
Cash at banks with drawing restrictions – 9,726 – 4,221
Net debt 1,254,117 1,061,291
Shareholders' equity 1,977,586 1,951,707
Gearing ratio (Net debt/equity) 63.4% 54.4%

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

BUSINESS RELATIONSHIPS WITH RELATED PARTIES

Balances/ transactions with Joint Ventures

€ 1,000 30.9.2015 31.12.2014
Investments in joint ventures 187,736 206,136
Investments in subsidiaries IFRS 5 2,982 7,414
Loans 5,899 305,452
Receivables 42,878 17,004
Liabilities 57,701 39,973
Provisions 12,446 6,703
1st – 3rd Quarter 1st– 3rd Quarter
2015 2014
Joint ventures result 29,908 1,680
Result from sale of joint ventures 751 – 619
Result from joint ventures 30,659 1,061
Other income 4,386 5,077
Other expenses – 963 – 1,386
Interest income 4,962 8,601
Interest expense – 539 – 136
Interest income present value financial investments 2,772 23,744

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

Balances/ transactions with associated companies

€ 1,000 30.9.2015 31.12.2014
Investments in associated companies 18 18
Loans 20,263 20,524
1st – 3rd Quarter 1st– 3rd Quarter
2015 2014
Expenses due to associated companies 0 – 3,458
Result from associated companies 0 – 3,458
Interest income from associated companies 789 0

The loans to associated companies existing as of the reporting date serve to finance properties. All loans have interest rates at arm's length. No guarantees or other forms of security partially exist in connection with these loans. In the book value of loans to associated companies, a cumulated impairment amounting to € 9,447 K (31.12.2014: € 9,447 K) is included.

UniCredit Bank Austria AG/UniCredit Gruppe

UniCredit Bank Austria AG is the principal bank of the CA Immo Group and was the largest single shareholder in the company with a stake of about 16% including four registered shares, which entitle to nominate one Supervisory Board member for each share, until 28.10.2014. CA Immo Group processes most of its payment transactions and arranges much of its credit financing and financial investment through the bank.

- Consolidated income statement:

€ 1,000 1st– 3rd Quarter
2014
Finance costs – 24,286
Result from interest rate derivative transactions incl. Reclassification – 9,700
Result from financial investments 191
Transaction fees – 256
- Statement of other comprehensive income (equity):
€ 1,000 1st– 3rd Quarter
2014
Valuation result of period (Hedging) 5,015

- Consolidated statement of cash flows:

€ 1,000 1st– 3rd Quarter
2014
Raising of new bank loans 0
Repayment of bank loans – 40,800
Realisation and acquisition of interest rate derivative transactions – 36
Interest paid – 23,592
Interest received 190

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

O1 Group Limited, Cyprus

Starting 20.2.2015, following the conclusion of a voluntary public take-over offer, O1 Group is,the largest single shareholder of CA Immobilien Anlagen AG. O1 Group holds 25,690,163 bearer shares (indirectly via EG Real Estate Fund I Limited) and four registered shares (O1 Group Limited). This corresponds to about 26.45% of the voting rights, as at 30.9.2015.

During the second quarter of 2015, following a competitive process, a sales contract regarding a plot in Berlin suitable for residential construction was signed with a company under the indirect influence of Mr. Boris Mints (owner and chairman of O1 Group). The agreed purchase price was € 7,000 K, the sale is subject to customary closing conditions. The transaction, which will result in a significantly positive profit contribution for CA Immo, was done at arms' length which was also confirmed by an external fairness opinion.

OTHER LIABILITIES AND CONTINGENT LIABILITIES

As at 30.9.2015, contingent liabilities of CA Immo Germany Group resulting from urban development contracts amounted to € 120 K (31.12.2014: € 120 K) and from concluded purchase agreements for cost assumptions in connection with contaminated sites or war damage to € 1,491 K (31.12.2014: € 1,461 K). In addition, letters of support exist for two joint ventures in Germany, amounting to € 2,000 K (31.12.2014: € 5,500 K for three joint ventures). A securities for liabilities from loans guarantees, letters of comfort and declarations for joint liabilities were issued for three joint ventures in an extent of € 14.900 K. Furthermore, a guarantee was issued in an amount of € 6,066 K (31.12.2014: € 6,066 K) as a security for warranty risks of a german joint venture.

CA Immo Group has agreed to adopt a guarantee in connection with the refunding of the project "Airport City St. Petersburg" in the extent of € 15,461 K (31.12.2014 restated: € 6,237 K).

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

Due to the disposal of Tower 185 GmbH & Co. KG, Frankfurt, CA Immo Group granted a guarantee for compensation of rent-free periods as well as rent guarantees in the amount of € 36,785 K, for which adequate provisions have been recognised in the balance sheet. The shares in two joint ventures, analogous to the previous year as part of the financing, were pledged as security for loans.

Other financial obligations arising from service commitments in connection with the development of properties also exist for properties in Austria amounting to € 3,562 K (31.12.2014: € 1,223 K) and in Germany amounting to € 33,225 K (31.12.2014: € 26,520 K) and none in Eastern Europe (31.12.2014: € 1,237 K). Moreover as at 30.9.2015, 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 € 55,941 K (31.12.2014: € 34,974 K).

As at 30.9.2015, the total obligation of CA Immo Group to contribute equity to joint ventures was € 7,834 K (31.12.2014: € 6,271 K).

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

Borrowings, for which the financial covenants have not been met as at 30.9.2015, thus enabling the lender in principle to prematurely terminate the loan agreement, have to be recognised in short-term financial liabilities irrespective of the remaining term under the contract. This classification applies notwithstanding the status of negotiations with the banks concerning the continuation or amendment of the loan agreements.

SIGNIFICANT EVENTS AFTER THE END OF THE INTERIM REPORTING PERIOD

After 30.9.2015, CA Immo bought further 210,551 treasury shares with an equivalent value of € 3,480 K via the stock market.

Vienna, 25.11.2015

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 Höbart Phone +43 1 532 59 07-0 Fax +43 1 532 59 07-595 [email protected]

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

IMPRINT

Published by: CA Immobilien Anlagen AG, 1030 Vienna, Mechelgasse 1 Text: Susanne Steinböck, Christoph Thurnberger, Claudia Höbart Graphic design: Marion Naderer, 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.

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.

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