PATRIZIA AG

Earnings Release • Aug 9, 2007

News Details

Corporate | 9 August 2007 07:33

PATRIZIA Immobilien AG: PATRIZIA Immobilien AG confirms positive forecast for the whole of 2007

PATRIZIA Immobilien AG / Interim Report

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PATRIZIA Immobilien AG confirms positive forecast for the whole of 2007

Augsburg, August 9, 2007. PATRIZIA Immobilien AG (ISIN DE000PAT1AG3)
continued to realise its growth strategy in the second quarter of 2007. A
further 1,602 residential and 74 commercial units were notarised in this
period, bringing the Group's total portfolio at June 30, 2007 to around
12,000 high-quality apartments and 500 commercial units. Without exception,
all of PATRIZIA's real estate is excellently located in highly attractive
conurbations in Germany. About 50% of the portfolio is located in Munich.
PATRIZIA Immobilien AG is extremely upbeat about growth prospects for the
German property market, especially in the major conurbations. Moreover,
construction activity continues to lag behind demand in regions such as
Munich. 14.8% of the units available for resale at January 1, 2007 were
sold in the first half of 2007, a figure which puts PATRIZIA right on
schedule to meet its sales target. There are no indications that the
reselling business might be cooling off.

PATRIZIA's activities at every link in the real estate value chain
generated sales of EUR 58.4 million in the first half of 2007. In the same
period, EBIT totalled EUR 23.1 million while net income came to EUR 9.8
million. In the quarter just ended, earnings ratios improved sequentially
but were below the figures recorded a year ago. This year-on-year
discrepancy is largely due to a block sale that was recognised in earnings
in the second quarter of 2006. Large-scale property purchases in the first
half of 2007 and the associated need for financing drove the cost of
finance up to EUR 24.4 million. In the months ahead, however, the cost of
finance will remain virtually stable, as interest rates have been hedged
for more than 80% of the Group's current liabilities to banks. Over 90% of
these interest rate hedges have maturities in excess of five years.

The first half of 2007 thus unfolded in accordance with PATRIZIA's
expectations. In line with the Group's sales planning, the resale of
properties in the portfolios acquired from MEAG and HDI Gerling will only
lead to revenue recognition as of the 3rd and 4th quarters of 2007.
Vertical integration was deepened further in the first half of the year,
due in part to the first round of co-investments in commercial property and
to the launch of PATRIZIA's first open ended fund. 'I know of no other real
estate company that occupies such a substantial and stable position at
every link in the value chain, from research through asset management to
residential property resale,' says Wolfgang Egger, Chief Executive Officer
of PATRIZIA Immobilien AG.

The Group's very high quality portfolios, the excellent location of its
properties and developments on the market in general all substantiate
PATRIZIA Immobilien AG's growth targets. Accordingly, PATRIZIA has
confirmed its forecast and expects to earn net income of around EUR 45
million in current fiscal year.

To read the full report for the first half of 2007, please visit
www.investor.patrizia.ag.

The Managing Board

Augsburg, August 9, 2007

PATRIZIA Immobilien AG
PATRIZIA Bürohaus
Fuggerstrasse 26
86150 Augsburg
Germany

Admitted to trading on the Official Market (Prime Standard) of the
Frankfurt Stock Exchange.
ISIN: DE000PAT1AG3
SIN: PAT1AG

Contact:
Investor Relations
Claudia Kellert
Phone +49 (0)821 50910-360
Fax:+49 (0)821 50910-399
investor.relations@patrizia.ag

Press
Astrid Schüler
Phone +49 (0)821 50910-623
Fax +49 (0)821 50910-695
presse@patrizia.ag
DGAP 09.08.2007

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

End of News DGAP News-Service

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