EANS-Adhoc: Sparkassen Immobilien AG / record cash flows, portfolio valuation impacted by economic crisis

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9-month report

19.11.2009

Ad hoc information Vienna, 19 November 2009

Sparkassen Immobilien AG: record cash flows, portfolio valuation impacted by
economic crisis

- Non-cash valuation effects totalling EUR -96.5 million
- First ever accounting loss: EUR -71.6 million
- Record operating cash flows: up 17%
- Steady increase in revenues and rental income: up 6% and +4 %
respectively
- Occupancy rate stable at 90.2%
- 12 November 2009: EUR 110 million Gemini sale - one of biggest CEE
transactions in 2009

Stock exchange listed Sparkassen Immobilien AG (Bloomberg: SPI:AV,
Reuters: SIAG.VI) is reporting operating successes for the first nine
months of 2009, although the results of the property valuation were
massively impacted by the effects of the international economic and
financial crisis. "The continuing disappointing performance of our
markets - in particular the higher yields expected by investors from
property investments in Eastern Europe and the consequent decline in
property valuations - had no effect on cash flows but meant that
valuations had to be revised downwards, resulting in an accounting
loss," comments Holger Schmidtmayr, member of Sparkassen Immobilien
AG´s Management Board, on the Group´s performance for the first three
quarters of 2009.

Operating results: increases in revenues, rental income and cash
flows Revenues for the first three quarters of 2009 came to
EUR 86.0m, compared with EUR 81.5m for the same period last year. Of
this, EUR 66.62m was rental income. This represents an increase of 6%
and 4% respectively, as against the comparable period in 2008. Other
operating income in the same period also climbed, from EUR 4.3m to
EUR 11.0m. Operating cash flows for the first three quarters rose by
a satisfactory 17% to EUR 48.2m, compared with EUR 41.3m for the same
period last year.

Property valuations Valuation writedowns for the period amounted to
EUR -96.5m (Q3 2008: valuation losses of EUR -1.0m). Of this amount,
98% was attributable to Central and South Eastern Europe. "The
results of the revaluation in the main reflect the repeated increases
in property yields resulting from persisting effects of the economic
and financial crisis - the yield shift. This triggered a decline in
real estate values, necessitating the revision of book valuations
downwards, but these are non-cash effects," says Ernst Vejdovszky,
Sparkassen Immobilien AG Management Board member.

Earnings performance EBITDA for the first nine months of 2009 was
steady at EUR 49.4m (Q3 2008: EUR 49.6m), while EBIT dropped from
EUR 45.4m (Q3 2008) to EUR -54.1m. The overall results for the period
were a loss of EUR -71.6m, compared with a profit of EUR 11.7m for
the same period last year. Finance costs increased to EUR -30.8m from
EUR 22.4m in the same period last year, due to higher financing
volumes.

Net operating income (NOI) grew from EUR 52.2m to EUR 54.4m, and the
NOI margin (NOI / revenues) stood at 60%. Growth of property
portfolio All Sparkassen Immobilien AG´s development projects are
progressing to schedule, and in the first three quarters of 2009 the
Group´s property portfolio grew to EUR 1.839 billion. As at
30 September 2009, Sparkassen Immobilien AG´s property portfolio
comprised 260 properties with total lettable space of 1,515,100 m².
The occupancy rate was a steady 90.2%, and the gross rental yield was
around 6.7%.

The Group´s cash reserves stood at EUR 188m.

All development projects on schedule "The market environment
continues to be difficult, but on all our projects construction is
proceeding to plan, and some of them have recently been completed and
officially opened. In the first three quarters of 2009 Sparkassen
Immobilien AG has invested more than EUR 150m in its development
projects, which make up 20% of the property portfolio. When the
projects are completed our rental income will grow significantly, and
our cash flow will be doubled," explains Friedrich Wachernig,
Sparkassen Immobilien AG Management Board member.

The topping out ceremony for the Neutor 1010 office and residential
project took place at the start of October 2009. The students´ hall
of residence and senior citizens´ day care centre in the
Sechshauserstrasse in Vienna´s Fifteenth District was completed in
September 2009 and opened in November. It is 100% let on a long-term
basis. In addition to the Galvaniho 4 office building, the Austria
Trend Vysoka Hotel is Sparkassen Immobilien AG´s second development
project in Bratislava. This 4-star hotel in the centre of the old
city, began operations in October 2009. The formal opening ceremony
takes place on 19 November. The two shopping centres - Serdika Center
in Sofia and Sun Plaza in Bucharest - will be opening in early 2010,
and both have pre-letting ratios of roughly 90%.

s IMMO Aktie: year-to-date gain of 163.6% Sparkassen Immobilien AG´s
stock market performance this year has also been a positive factor:
the improvement in the stock market price of s IMMO Share continued
unabated in the third quarter of 2009. The closing price of the share
at the end of the quarter was EUR 5.22, making the year-to-date gain
163.6%. This was in itself a successful achievement for the nine
months, but the stock also outstripped the ATX index, which put on
only 50.6% over the period. Sparkassen Immobilien AG numbers two of
the Region´s largest financial service providers - Erste Group and
Vienna Insurance Group - among its core shareholders. There is also a
strong revival of interest among other institutional investors.

12 November 2009 - Most successful project in the Group´s history
With the successful sale of the Gemini office development project in
Prague to Deka Immobilien GmbH, Sparkassen Immobilien AG has realised
impressive cash gains. With a total value of around EUR 110m, this
reference deal is not only the biggest sale in the history of
Sparkassen Immobilien AG, but also its most successful development
project ever. With it, the Group has more than doubled the value of
its transactions in the Czech Republic to date. This is one of the
biggest transactions in Central and Eastern Europe in 2009 so far.

Outlook Sparkassen Immobilien AG will continue to pursue its proven
strategy - a solid, well balanced portfolio, reliable business
partners and stable core shareholders - with the overriding goal of
creating enduring value for its shareholders. Completion of the
development projects will in future years lead to significant
increases in rental income and a doubling of cash flows.

Consolidated income statement for the nine months ended 30 September
2009

EUR m / fair value basis

| | | |
| |01.01. - 30.09.|01.01.- 30.09.|
| |2009 |2008 |
| | | |
| | | |
|Revenues |86.0 |81.5 |
| whereof rental income |66.6 |63.9 |
|Revaluation of properties |-96.5 |-1.0 |
|Other operating income |11.0 |4.3 |
|Gains on property disposals |0.8 |7.7 |
|Operating revenue (EBIT) |1.3 |92.5 |
|Depreciation and amortisation |-7.0 |-3.2 |
|Other operating expenses |-48.4 |-43.9 |
|Operating profit (EBIT) |-54.1 |45.4 |
|Finance costs |-30.8 |-22.4 |
|Participating certificates results |11.4 |-8.8 |
|Profit before tax (EBT) |-73.5 |14.2 |
|Taxes on income |1.9 |-2.6 |
|Consolidated net loss / profit |-71.6 |11.5 |

Property information as at 30 November 2009

|Number of properties |260 |
|Total lettable space in m2 |1,515,100 |
|- Austria |324.600 |
|- Germany |602.700 |
|- Eastern Europe / South Eastern Europe |587.800 |
|Property portfolio at fair value (EUR mn) |1,839 |
|Occupancy rate |90.2% |
|Average rental yield |6.7% |

Sparkassen Immobilien AG
Sparkassen Immobilien AG (Bloomberg: SPI.AV, Reuters: SIAG.VI) has been listed
on the Vienna Stock Exchange for 22 years, making it Austria´s oldest real
estate investment company. It is a long-term value investor in residential,
office, hotel and retail property in Austria, Germany, the Czech Republic,

Slovakia, Croatia, Hungary, Romania and Bulgaria. As at 30 September
2009 the total value of the portfolio was EUR 1.839 billion and
total lettable space was 1,515,100 m2.

end of announcement euro adhoc
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ots Originaltext: Sparkassen Immobilien AG
Im Internet recherchierbar: http://www.presseportal.de

Further inquiry note:

Investor Relations:

Rebecca Reichmann

Tel.: +43(0)50100-27402

Fax: +43(0)05100-927402

mailto:rebecca.reichmann@s-immoag.at

wwww.sparkassenimmobilienag.at

Corporate Communications:

Bosko Skoko

Tel.: +43(0)50100-27522

Fax: +43(0)05100-927522

mailto:bosko.skoko@s-immoag.at

wwww.sparkassenimmobilienag.at

Branche: Real Estate
ISIN: AT0000652250
WKN: 065225
Index: ATX Prime, Immobilien-ATX
Börsen: Wien / official market