Eurocastle Investment Limited and Subsidiaries / Financial results for the nine months and quarter ended 30 september 2007

London (ots) -

- Cross-Reference: Financial results for the nine months and
quarter ended 30 september 2007 is available at:
http://www.presseportal.de/dokumente -

Eurocastle Investment Limited owns and invests primarily in German
commercial property. The Group is Euro denominated and currently
listed on Euronext Amsterdam, under the symbol "ECT" and on the
Frankfurt Stock Exchange, under the symbol "EUI1". Eurocastle's
objective is to build long-term value for its shareholders and to pay
out stable and growing dividends. Eurocastle is managed by an
affiliate of Fortress Investment Group LLC. For more information
regarding Eurocastle and to be added to our email distribution list,
please visit www.eurocastleinv.com .

Nine Month Highlights

- Dividend declared for the third quarter 2007 is E0.60 per
share. This compares to the third quarter 2006 dividend of
E0.43 per share and second quarter 2007 dividend of E0.60 per
share.
- Completed E2.3 billion of commercial property purchases,
including the acquisition of 56 German commercial property
assets ("the Mars portfolio") announced in December 2006 and
completed in first quarter 2007.
- Entered into an agreement to acquire 12 retail properties for
an aggregate all-in purchase price of approximately E49.6
million.
- Signed 508 leases for approximately 175,000 square meters,
including 238 new leases for approximately 64,000 square
meters.
- Completed the sale of 78 non-core assets, at a 9% premium to
the 2006 year end carrying value, resulting in a realised gain
on the book cost, net of associated sale costs, fees and taxes,
of E27.8 million or E0.43 per share.
- Entered into an agreement to sell a non-core asset for E155
million, which is expected to realise a gain on the book cost,
net of associated sale costs, fees and taxes, of E17.3 million
or E0.27 per share.

Key Performance Indicators

Third Quarter 2007

- Net profit after tax of E49.4 million for the third quarter
2007, increased from E27.5 million for the third quarter 2006.
- Earnings per ordinary share of E0.77 per ordinary share (30
September 2006: E0.60 per ordinary share) or E0.76 per diluted
share (30 September 2006: E0.58 per diluted share).
- Funds from Operations ("FFO", see Key Financial Information)
increased by 58% to E33.1 million for the third quarter 2007
from E20.9 million for the third quarter 2006.
- FFO of E0.52 per ordinary share (30 September 2006: E0.46 per
ordinary share) or E0.51 per diluted share (30 September 2006:
E0.44 per diluted share).
- FFO return on average invested capital* was 9.0% for the third
quarter 2007.
- NAV per share decreased to E27.95 at the end of the third
quarter 2007 from E29.07 at the end of the second quarter 2007,
a decrease of 3.9%. This decline primarily relates to
unrealised mark-to-market losses on the debt portfolio. Mark-to-
market changes do not impact earnings or FFO.

Nine Months 2007

- Net profit after tax of E340.0 million for the nine months to
30 September 2007, increased from E134.1 million for the nine
months to 30 September 2006.
- Earnings per ordinary share of E5.33 per ordinary share (30
September 2006: E3.12 per ordinary share) or E5.17 per diluted
share (30 September 2006: E3.00 per diluted share).
- FFO increased by 124% to E118.2 million for the nine months to
30 September 2007 from E52.8 million for the nine months to 30
September 2006.
- FFO of E1.85 per ordinary share (30 September 2006: E1.23 per
ordinary share) or E1.80 per diluted share (30 September 2006:
E1.18 per diluted share).
- FFO return on average invested capital* was 10.8% for the nine
months ended 30 September 2007.
- NAV per share increased to E27.95 at the end of the third
quarter 2007, from E24.73 at 31 December 2006, an increase of
13.0%.

* Invested capital represents capital and reserves less hedging
reserves, fair value of interest rate swaps and net unrealised
gains on available-for-sale securities, real estate fund units
and investment properties (net of attributable deferred
taxation).
** Earnings per share and FFO per share, are calculated on the
weighted average number of shares at 30 September 2007.

Key Financial Information

Segmental Information

The Group is now reporting financial information by business
segment on a quarterly basis. This is consistent with the way it
manages the business and provides insight into the capital
utilisation and performance of the individual business segments.

Segmental analysis prepared according to IFRS has been disclosed
in Note 28. The tables below show the summarised financial data of
the Group's business segments with the unallocated amounts per Note
28 allocated between the segments on the basis disclosed below each
table.

|Balance sheet data |Debt |Real |Investment|Total |
|As at 30 September 2007|investment|estate |properties|Eurocastl|
| |s |fund | |e |
| | |units | | |
|(Unaudited) |E'000 |E'000 |E'000 |E'000 |
|Investments |2,170,519 |164,475 |5,535,244 |7,870,238|
|Other assets1 |72,531 |4,535 |251,712 |328,778 |
|Total assets |2,243,050 |169,010 |5,786,956 |8,199,016|
|Interest-bearing debt |(2,076,871|(93,593) |(3,983,938|(6,154,40|
|financing |) | |) |2) |
|Other liabilities2 |(47,870) |(576) |(175,517) |(223,963)|
|Total liabilities |(2,124,741|(94,169) |(4,159,455|(6,378,36|
| |) | |) |5) |
| | | | | |
|Segment net assets |118,309 |74,841 |1,627,501 |1,820,651|
| | | | | |
|Tax liability |- |- |(36,619) |(36,619) |
|Minority interest |(2) |(4) |- |(6) |
| | | | | |
|Net assets |118,307 |74,837 |1,590,882 |1,784,026|
| | | | | |
|Net assets per share E|1.85 |1.17 |24.93 |27.95 |
| | | | | |

1 Unallocated other assets of E11.6 million have been allocated
between the segments based on each segment's share of net assets
before allocation. Amounts allocated were; debt investments: E1.7
million, real estate fund units: E0.4 million and investment
properties: E9.5 million.

2 Unallocated other liabilities of E13.9 million have been
allocated between segments based on each segment's share of net
assets before allocation. Amounts allocated were; debt
investments: E2.1 million, real estate fund units: E0.5 million
and investment properties: E11.3 million.

|Income statement data |Debt |Real |Investment|Total |
|Three months ended 30 |investment|estate |properties|Eurocastle|
|September 2007 |s |fund | | |
| | |units | | |
|(Unaudited) |E'000 |E'000 |E'000 |E'000 |
|Operating income 1 |36,348 |20,878 |71,873 |129,099 |
| | | | | |
|Interest expense 2 |(28,130) |(1,404) |(46,477) |(76,011) |
|Service charge and |- |- |(21,154) |(21,154) |
|property operating | | | | |
|expenses | | | | |
|Other operating |(1,914) |(1,084) |(7,818) |(10,816) |
|expense (including | | | | |
|foreign currency | | | | |
|(losses) 3 | | | | |
|Segment result |6,304 |18,390 |(3,576) |21,118 |
| | | | | |
|Taxation expense |- |- |28,312 |28,312 |
|Net profit |6,304 |18,390 |24,736 |49,430 |
| | | | | |
|Decrease / (increase) |- |(12,140) |22,519 |10,379 |
|in fair value | | | | |
|Realised gains on sale|- |- |1,157 |1,157 |
|of investment | | | | |
|properties | | | | |
|Deferred tax |- |- |(27,915) |(27,915) |
|Funds from operations4|6,304 |6,250 |20,497 |33,051 |
| | | | | |
|Funds from operations |0.10 |0.10 |0.32 |0.52 |
|per share E | | | | |

1 Unallocated operating income of E0.07 million has been
allocated between the segments based on each segment's share of
net assets before allocation. Amounts allocated were; debt
investments: E0.01 million, real estate fund units: E0.003 million
and investment properties: E0.06 million.

2 The revolving credit facility expense of E2.5 million has been
allocated between the segments based on each segment's share of
the drawn facility at 30 September 2007. Amounts allocated were;
debt investments: E0.4 million, real estate fund units: E0.1 and
investment properties: E2.0 million.

3 Unallocated other operating expenses of E7.7 million have been
allocated between the segments based on each segment's share of
net assets before allocation. Amounts allocated were; debt
investments: E1.1 million, real estate fund units: E0.3 million
and investment properties: E6.3 million.

4 Refer to page 15 for a funds from operations reconciliation.

Overview

Real Estate

The Group's core business is the ownership and management of high
quality German commercial real estate. As of 30 September 2007, our
E5.5 billion commercial property portfolio consists of 580 properties
with 2.2 million square meters of lettable space. These assets are
primarily financed with long-term fixed rate non-recourse debt of
E3.9 billion (weighted average maturity of 5.4 years, and weighted
average funding cost of 4.6%).

- Portfolio occupancy is 88.9%, increased from 87.3% at the half
year end.
- Leases signed year to date (30 September 2007), total 175,000
sqm, including new leases of 64,000 sqm.
- Leases under negotiation at 30 September 2007, total 24,000
sqm.

Debt Investments

Eurocastle also owns a E2.1 billion European real estate debt
portfolio with a weighted average credit rating of BBB-. The debt
portfolio is primarily term financed to maturity with long-term, non-
recourse debt that is not callable as a result of changes in value.

- Credit quality of the portfolio remains strong; ratings
upgrades versus downgrades for the quarter was 9:2 and there
has been no material deterioration in the quality of the
underlying assets.

Dividends

Eurocastle aims to pay out substantially all of its funds from
operations over time in the form of quarterly dividends to
shareholders. A dividend of E0.60 per share has been maintained for
the third quarter ended 30 September 2007. The dividend is payable
on 30 November 2007 to holders on record of Eurocastle's shares on 20
November 2007.

Conference Call

Management will conduct a conference call today, 15 November 2007,
to review the Group's financial results for the quarter ended 30
September 2007. The conference call is scheduled for 3:00 P.M. London
time (10:00 A.M. New York time). All interested parties are welcome
to participate on the live call. You can access the conference call
by dialing +1-877-717-3044 (from within the U.S.) or +1-706-679-1521
(from outside of the U.S.) ten minutes prior to the scheduled start
of the call; please reference "Eurocastle Third Quarter Earnings
Call".

A webcast of the conference call will be available to the public
on a listen-only basis at www.eurocastleinv.com. Please allow extra
time prior to the call to visit the site and download the necessary
software required to listen to the internet broadcast. A replay of
the webcast will be available for three months following the call.

For those who are not available to listen to the live call, a
replay will be available until 11:59 P.M. New York time on Thursday,
22 November 2007 by dialing +1-800-642-1687 (from within the U.S.) or
+1-706-645-9291 (from outside of the U.S.); please reference access
code "22874526".

Originaltext: Eurocastle Investment Limited
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Contact:
International Administration (Guernsey) Limited
Company Administrator
Attn: Mark Woodall
Tel: +44 1481 723450