DGAP-Adhoc: Prime Office REIT-AG: Business development in H1/2013 influenced by effects from the valuation of the property portfolio and expenses for the due diligence carried out in connection with t

Prime Office REIT-AG / Key word(s): Half Year Results

07.08.2013 22:28

Dissemination of an Ad hoc announcement according to § 15 WpHG, transmitted
by DGAP - a company of EQS Group AG.
The issuer is solely responsible for the content of this announcement.

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Business development in H1/2013 influenced by effects from the valuation of
the property portfolio and expenses for the due diligence carried out in
connection with the merger talks with OCM

Prime Office REIT-AG's business development in the first half of 2013 was
influenced by special and one-off effects. The adjustment of the property
portfolio's value after the scheduled valuation as at 30 June 2013 had a
major impact, not cash-relevant affecting profits by about -60.9 million
Euro. The downward adjustment of the property portfolio's fair value by
-6.7 per cent to about 848 (31 December 2012: 909) million Euro is mainly a
reflection of the changes in the market environment, since subdued demand
for office space in the locations requiring re-letting (Frankfurt,
Dusseldorf and Stuttgart) has so far led to delays in re-letting and, as a
consequence, to prolonged vacancies. Furthermore, the cautious outlook on
the future development of the letting market leads to a more guarded
assessment of individual portfolio properties' potential.

The increase in vacancies to about 22 (31 December 2012: 16) per cent as
well as the sale of a property in Hamburg at year-end 2012 led to an about
28 per cent decline in revenues to 26.5 (H1/2012: 36.6) million Euro. In
addition to the effects from the revaluation of the property portfolio,
additional one-off and special effects in connection with the merger
negotiations with OCM German Real Estate Holding AG (German Acorn) and the
by now completed due diligence process took their toll on the Company's
business development in the first half of 2013. As per the preliminary
numbers, Prime Office REIT-AG will report a loss of -59.8 (H1/2012: 2.4)
million Euro for the first half of 2013 as at 30 June 2013. The REIT equity
ratio as at the reporting date on 30 June 2013 amounted to 40.6 (30 June
2012: 42.9) per cent.

After the balance sheet date 30 June 2013 and consequently after the
adjustment of the property portfolio's value, Prime Office was already able
to partially offset a re-letting requirement for the property in
Stuttgart/Moehringen. Prime Office concluded a long-term lease for about
11,300 sqm with Daimler AG, Stuttgart. This increases occupancy in the
property from approximately 39 per cent on 30 June 2013 to about 85 per
cent on 01 January
2014.

Prime Office REIT-AG's half-yearly report as at 30 June 2013 will be
published on 8 August 2013.

Contact

Prime Office REIT-AG
Richard Berg
Director Investor Relations / Corporate Communications
Hopfenstrasse 4
80335 Munich

Telephone +49. 89. 710 40 90 40
Facsimile +49. 89. 710 40 90 99
Email richard.berg@prime-office.de

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Language: English
Company: Prime Office REIT-AG
Hopfenstraße 4
80335 München
Germany
Phone: +49 (0)89 7104090 40
Fax: +49 (0)89 7104090 99
E-mail: richard.berg@prime-office.ag
Internet: www.prime-office.ag
ISIN: DE000PRME012
WKN: PRME01
Indices: SDAX
Listed: Regulierter Markt in Frankfurt (Prime Standard), München,
Stuttgart; Freiverkehr in Berlin, Düsseldorf

End of Announcement DGAP News-Service

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