PATRIZIA Immobilien AG / Final Results 25.03.2009 Release of a Corporate News, transmitted by DGAP - a company of EquityStory AG. The issuer is solely responsible for the content of this announcement. --------------------------------------------------------------------------- PATRIZIA - Bank loans extended and real estate portfolio value retention confirmed - Upcoming bank loans of EUR 530 million due for refinancing end of March 2009 have been extended by further 24 months - No value adjustments to the market value of our real estate portfolio - Real estate sales increased by 146% to 1,198 units - Positive operating EBT (adjusted for effects not impacting liquidity) of EUR 0.8 million - an increase of EUR 13.3 million compared to previous year - Improvement in available liquidity by EUR 13.9 million to EUR 67.9 million - Earnings before tax in accordance with IFRS amounted to EUR -32.4 million, impacted by the fair value measurement of interest rate hedging transactions of EUR -32.8 million Augsburg (Germany) - March 25, 2009. Despite the market environment becoming more difficult in the course of the year, PATRIZIA Immobilien AG (ISIN DE000PAT1AG) sold a total of 1,198 residential and commercial units in fiscal year 2008 (2007: 487 units). The growth in sales and the higher level of rental income led to an increase in revenues of 14.5% to EUR 221.3 million. Operating earnings before tax (EBT adjusted) amounted to EUR 0.8 million. As a result, the Group's operating earnings power was raised by EUR 13.3 million in comparison to the previous year. Of the 1,198 units, 476 units were sold in individual privatization and 722 units were sold in block sales. Revenues from the sale of real estate held in inventories amounted to EUR 114.5 million. Sales of investment property are posted as pure income of EUR 21.7 million (difference between purchase price and decrease in book value) in the profit and loss account. Rental revenues, at EUR 73.0 million, contributed 33% to consolidated revenues of EUR 221.3 million - an increase of 16.8% compared to the previous year. Rental income exceeds the interest balance of EUR 63.7 million by 14.6%, meaning that the cost of financing is fully covered by rental income. The cost of materials of EUR 66.0 million contains items such as non-capitalizable maintenance expenses of EUR 17.3 million (2007: EUR 7.7 million) which we used to further heighten the appeal and the quality of our real estate. After deduction of all expense items, EBIT in accordance with IFRSs dropped from EUR 111.0 in the previous year to EUR 64.1 million and EBT from EUR 63.2 million to EUR -32.4 million. It must be borne in mind that results from adjustments (not impacting liquidity) of investment property of EUR 69.5 million had a positive effect on the key earnings figures in 2007. The market valuations of our interest rate hedging transactions had a particular impact on earnings before taxes in accordance with IFRSs. While these had a positive effect of EUR 6.1 million in 2007, results from the market valuation of interest rate hedging transactions had a negative impact on EBT (in accordance with IFRSs) for 2008 of EUR 32.8 million. To present the PATRIZIA operating profits in a more easily understood manner, we adjusted the key earnings figures for one-time effects not affecting liquidity. This chiefly concerns the effects of the market valuation of our interest rate hedging transactions as well as the positive effects of the adjustments to investment property from the previous year. Thus, PATRIZIA generated operating EBIT (adjusted) of EUR 64.5 million (previous year: EUR 41.6 million), representing an increase of 55.3%. Operating earnings before tax (EBT adjusted) climbed by EUR 13.3 million to EUR 0.8 million (2007: EUR -12.4 million). To strengthen the Company's equity in a market environment that continues to be unpredictable, the Managing Board and the Supervisory Board will propose to the Annual General Meeting on June 23, 2009 that the net profit of PATRIZIA Immobilien AG for 2008 be entirely carried forward. Cash and cash equivalents available to the Group rose over the course of the year by EUR 13.9 million (25.7%) to EUR 67.9 million. At the same time, we reduced our bank loans by EUR 100.3 million to EUR 1,161.7 million. The upcoming bank loans of EUR 530 million due for refinancing on March 31, 2009 have been extended until March 31, 2011. Expected financing costs for fiscal year 2009 will be on the same level than 2008. In the current market environment, many factors support the acquisition of quality real estate in attractive locations in Germany: increasing demand for residential space in main economic centers, low interest rates, high volatility on the capital markets and the value stability of real estate of our quality. The value retention of our real estate has affirmed our view that we are providing high quality products to the market. For this reason, we will continue focusing on the sale of real estate in fiscal year 2009. Despite the confirmed quality of our real estate, we are unable to provide a detailed, quantitative forecast for the current fiscal year due to the current market conditions, the temporary restraint of private and institutional investors and the unfavorable economic developments. However, we anticipate a positive operating result for fiscal year 2009. The complete Annual Report for the 2008 fiscal year can be found at www.patrizia.ag. Augsburg (Germany), March 25, 2009 PATRIZIA Immobilien AG PATRIZIA Bürohaus Fuggerstrasse 26 D - 86150 Augsburg Listing: Frankfurt Official Market (Prime Standard) ISIN: DE000PAT1AG3 SIN: PAT1AG Contact: Investor Relations Claudia Kellert Tel.: +49 (0) 821 5 09 10-360 Fax: +49 (0) 821 5 09 10-399 investor.relations@patrizia.ag Press Andreas Menke Tel.: +49 (0)821 5 09 10-655 Fax: +49 (0) 821 5 09 10-695 presse@patrizia.ag DGAP 25.03.2009 --------------------------------------------------------------------------- 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: SDAX Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin, Hannover, Stuttgart, München, Hamburg, Düsseldorf End of News DGAP News-Service ---------------------------------------------------------------------------
DGAP-News: PATRIZIA Immobilien AG: Bank loans extended and real estate portfolio value retention confirmed
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