EANS-Adhoc: S IMMO AG / profit for the first half year up by nearly 50%

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6-month report

22.08.2012

S IMMO AG: profit for the first half year up by nearly 50%

- EBITDA increased to EUR 50.9m
- FFO rose to EUR 16.2m
- Income from property disposals totalling EUR 97.4m
- Dividend payment as part of new long-term strategy

For stock exchange listed S IMMO AG (Bloomberg: SPI:AV, Reuters:
SIAG.VI) the first half of 2012 was highly satisfactory.

Gross profit Despite the property portfolio reduction as a result of
profitable property sales, rental income performed very
satisfactorily; amounting to EUR 60.6m, compared to EUR 61.7m for the
first half of 2011. Gross profit from hotel operations was EUR 3.3m
(first half of 2011: EUR 4.2m). S IMMO's gross profit totalled
EUR 53.2m (first half of 2011: EUR 54.5m).

EBITDA up by 2.8% In the first half of 2012 S IMMO successfully sold
16 properties, with the income from property disposals amounting to
EUR 97.4m, compared to EUR 18.4m in the same period last year. The
gains on disposals totalled EUR 5.8m. Compared with the fair values
as at 30 September 2011, the gains equalled EUR 10.8m. Following a
considerable reduction in administration costs in 2011, S IMMO AG
achieved further savings in the first half of 2012. This pushed
EBITDA up to EUR 50.9m (first half of 2011: EUR 49.5m). Gains from
property valuation in the first half of 2012 came to EUR 4.7m,
compared to EUR 6.6m for the same period last year, and were entirely
attributable to the German property portfolio. EBIT was EUR 51.0m,
compared to EUR 51.3m in the first half of 2011.

Significant increase in net profit for period For the six months
ended 30 June 2012 net financing costs totalled EUR 28.6m (first half
of 2011: EUR 32.0m), including a non-cash foreign exchange loss of
EUR 1.8m. In total, the Group's consolidated net income for the
period amounted to EUR 15.1m, as against EUR 10.1m for the first half
of 2011, resulting in an impressive 49.3% increase.

Key indicators at very satisfactory levels Funds from operations
(FFO) climbed 46.9% in the first half of 2012 to EUR 16.2m. The
corresponding figure last year was EUR 11.0m. This gives a very
respectable FFO yield of 11.1%. The profit on property sales combined
with the lower gross profit from hotel operations resulted in a
slight reduction in net operating income (NOI) to EUR 49.4m for the
first half of 2012 (first half of 2011: EUR 50.2m). Following the
dividend distribution, balance sheet NAV stood at EUR 7.00 per share
at the end of the half year (31 December 2011: EUR 6.96 per share).
EPRA NAV, the inner value of the share calculated in accordance with
the guidelines of the European Public Real Estate Association, was
EUR 8.88 per share (31 December 2011: EUR 8.70 per share).

Successful asset management S IMMO had additional satisfactory
renewals of rental agreements with major tenants in Hungary to
report, with new rental successes in Southeastern Europe. The
Eurocenter in Zagreb is now fully occupied, following the signing up
of another international tenant. Additionally, S IMMO's asset
management team has accomplished some impressive achievements in
Austria, including the signature of a 10-year rental agreement with
the City of Vienna for nearly 4,000 m² of office and warehouse space
in Arcade Meidling. Serdika Center, the shopping centre in Sofia, was
awarded a further prize - "SEE Green Building of the Year".

Capital markets In recent weeks an upwards trend has been observed in
the capital markets in spite of generally high levels of volatility
and reduced liquidity on the Vienna Stock Exchange. The S IMMO Share
closed at EUR 4,64 on 22 August 2012. Towards the end of July the
Group was informed that Erste Group Bank AG had increased its holding
in S IMMO AG to more than 10%.

For the remainder of 2012 S IMMO will be concentrating primarily on
the share repurchase programme and the S IMMO INVEST participating
certificate repurchase programme, which will run until the end of
June 2013. S IMMO's first ever distribution of a dividend in June
2012 represents a shift in the company's long-term strategy, and the
intention is to continue to pay dividends in the years to come.

Outlook Optimisation of the earnings potential of the portfolio
continues to be on the agenda for the next months, with a clear focus
on sustainable and stable value growth. Over the coming years
S IMMO's loan to value ratio will be reduced to under 55%. S IMMO
will also take advantage of the current excellent climate in the
German and Austrian property market to dispose of approximately 5% of
the portfolio annually for a total of at least EUR 100m. With the
sales carried out in the first half of 2012, this goal has already
almost been reached for the current year. Letting activities will
remain focused on the office buildings in Sofia and Bucharest. In the
medium term the Group will concentrate on the Quartier Belvedere
Central development project in Vienna, where, together with its
partners, it will develop - in successive phases - a mixture of
office, hotel and retail properties with gross floor space of
around 130,000 m².

Consolidated income statement for the six months ended 30 June 2012
EUR m / fair value basis

| |01 - 06/2012 |01 - 06/2011 |
|Revenues |98.6 |102.3 |
| Rental income |60.6 |61.7 |
| Revenues from operating costs |19.4 |21.0 |
| Revenues from hotel operations |18.6 |19.6 |
|Other operating income |3.7 |4.3 |
|Expenses directly attributable to properties |-33.9 |-36.7 |
|Hotel operating expenses |-15.3 |-15.4 |
|Gross profit |53.2 |54.5 |
|Income from property disposals |97.4 |18.4 |
|Carrying value of property disposals |-91.5 |-14.4 |
|Gains on property disposals |5.8 |3.9 |
|Management expenses |-8.1 |-8.9 |
|Earnings before interest, tax, depreciation and |50.9 |49.5 |
|amortisation (EBITDA) | | |
|Depreciation and amortisation |-4.5 |-4.8 |
|Gains on property valuation |4.7 |6.6 |
|Operating result (EBIT) |51.0 |51.3 |
|Financing costs |-28.6 |-32.0 |
|Participating certificates result |-6.5 |-6.8 |
|Net income before tax (EBT) |15.9 |12.5 |
|Taxes on income |-0.8 |-2.4 |
|Consolidated net income |15.1 |10.1 |
| of which attributable to shareholders in parent |14.3 |7.3 |
|company | | |
|of which attributable to non-controlling interests|0.8 |2.8 |
| | | |
|Earnings per share (EUR) |0.21 |0.11 |

|Property information | |30 June 2012 |
|Standing properties |units |221 |
|Total rented floor space |m² |1,320,513 |
|Gross rental yield |% |6.9 |
|Occupancy rate |% |93.4 |

Further inquiry note:
Investor Relations:
Andreas J. Feuerstein
Phone: +43(0)50100-27556
Fax: +43(0)05100-927556
E-mail: andreas.feuerstein@simmoag.at
www.simmoag.at

Corporate Communications:
Bosko Skoko
Phone: +43(0)50100-27522
Fax: +43(0)05100-927522
E-mail: bosko.skoko@simmoag.at
www.simmoag.at

end of announcement euro adhoc
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issuer: S IMMO AG
Friedrichstraße 10
A-1010 Wien
phone: +43(0)50100-27550
FAX: +43(0)050100-927559
mail: office@simmoag.at
WWW: www.simmoag.at
sector: Real Estate
ISIN: AT0000652250
indexes: ATX Prime, IATX
stockmarkets: official market: Wien
language: English