DGAP-News: Colonia Real Estate AG aiming for moderate growth in the 2010 financial year

| Source: EQS Group AG EQS Group AG 

Colonia Real Estate AG / Final Results

30.03.2010 07:02 

Dissemination of a Corporate News, transmitted by
DGAP - a company of EquityStory AG.
The issuer / publisher is solely responsible for the content of this announcement.

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Colonia Real Estate AG Aiming for Moderate Growth in the 2010 Financial
Year 

  - Rental income (NOI) significantly up in 2009 to EUR 42.0 million
    (+35.2%)

  - EBIT well into the profit zone again at EUR 35.4 million

  - Consolidated income increased to EUR 9.1 million

  - Target for 2010 is stabilizing cash flow

Cologne (Germany), March 30, 2010 - Colonia Real Estate AG (ISIN:
DE0006338007; SIN: 633800) confirmed the preliminary figures released on
March 3, 2010 at its accounts press conference today. Its forecast of its
own earnings was convincingly shown with consolidated income after taxes of
EUR 9.1 million. Colonia Real Estate AG therefore clearly demonstrated that
it has successfully mastered the turnaround and restructuring of the
company.

The basis of the CRE business model is the management of its own
residential real estate portfolio. Net operating income (NOI) increased
significantly from EUR 31.1 million to EUR 42.0 million. The optimization
of property operating expenses and the development of rental income
contributed particularly to this year-on-year improvement of 35.2%. On a
like-for-like basis the vacancy rate improved by 0.1% to 13.6%.
EBITDA, one of the company's most important key figure, was increased by
over 150% and amounted to EUR 32.7 million (2008: EUR 12.7 million). It
must be borne in mind here that the previous year was burdened by
impairments on the real estate portfolio. In 2008 EUR 59.7 million on the
real estate portfolio or 7.2% of the real estate value was written off.
There was accordingly no further impairment requirement on the real estate
assets in the 2009 reporting period. The value of the real estate is
therefore stable. This was also confirmed by independent appraisers.

Another company's target for 2009 was to clearly reduce administrative
expenses. This target has been met impressively with administrative
expenses of EUR 11.7 million and hence a reduction of 44.2%.

The Asset Management division failed to make a positive contribution to
earnings in 2009 and closed with a loss of EUR 1.2 million. Costs incurred
through the restructuring of this division placed an additional burden on
earnings of EUR 0.7 million.

Due to the reduction in liabilities to banks of EUR 64.0 million, the
financial result developed positively from minus EUR 35.9 million to minus
EUR 26.5 million. The loan waiver of EUR 8.7 million resulting from
restructuring a loan had a positive impact on the financial results. By
contrast, the one-off payment of EUR 2.1 million for the redemption of a
debtor warrant agreed in this connection negatively impacted the financial
results.

The real estate assets of the CRE Group as of December 31, 2009 amounted to
EUR 820.5 million, of which EUR 814.2 million is comprised of investment
properties. The company's equity likewise increased to EUR 246.4 million
(2008: EUR 225.3 million) so that the equity ratio rose to 28.0%. Owing to
the partial sale of a portfolio in 2009 and the implementation of capital
measures, the net asset value per share fell to EUR 10.16 (2008: EUR
11.65).

Outlook:

The main task in the 2009 financial year was the restructuring and
stabilization of the company. This has been successfully accomplished.
Based on the positive operating performance of the real estate portfolio,
the cost cutting achieved and the stable financing structure, we expect
moderate growth in the current financial year. Furthermore, the company's
residential real estate portfolio should be strengthened. On the basis both
of additional purchases and value-enhancing measures, income from real
estate is to be increased and vacancy levels are to be reduced in order to
enhance the cash flow. We also expect CRE Asset Management to return to the
profit zone.

The focus of our work in the 2010 financial year therefore lies in
continuous improvement of the cash flow, further enhancing our financing
structure and expanding CRE Asset Management in the area of residential
real estate for third parties. If market conditions stay stable it is our
target to reach at least the same result as last year.

About Colonia Real Estate AG 

CRE AG is one of the leading listed real estate investment and management
groups in Germany with round about 19,000 residential units and EUR 2.1 bn
Assets under Management.

The CRE business model is based on two columns - the investment and service
segment. The investment segment concentrates on high-yield residential
property portfolios held for the company's account and opportunistic real
estate co- investments in commercial and residential properties together
with institutional partners. The service segment comprises our CRE Asset
Management and Residential Property Resale division. CRE Asset Management
is specialized in tailor-made solutions and the sustainable repositioning
of complex residential and commercial real estate portfolios. The focus is
on yield optimization and realizing long-term appreciation potential.

Managing Board

Cologne, March 30, 2010
Colonia Real Estate AG
Zeppelinstraße 4-8
D - 50677 Cologne

Listing: Frankfurt Official Market (Prime Standard)
ISIN:  DE0006338007
SIN:  633800

Contact
Claudia Kellert
Head of Investor Relations & Communication
Zeppelinstraße 4-8, 50667 Köln, Germany
phone: +49. (0)221. 71 60 71-0, fax +49. (0)221. 71 60 71-99
ir@cre.ag




Contact:
Claudia Kellert
Head of Investor Relations and Communication

Colonia Real Estate AG
Zeppelinstr. 4-8
50667 Cologne, Germany

Phone +49 (0)221 71 60 71 0
Fax +49 (0) 221 71 60 71 99
E-Mail: pr@cre.ag




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Language:     English
Company:      Colonia Real Estate AG
              Zeppelinstr. 4 - 8
              50667 Köln
              Deutschland
Phone:        +49 221-716071-0
Fax:          +49 221-716071-99
E-mail:       ir@cre.ag
Internet:     www.cre.ag
ISIN:         DE0006338007
WKN:          633800
Indices:      SDAX, GPR 250, MSCI Germany Small Cap Index, FTSE EPRA/
              NAREIT, E&G DIMAX
Listed:       Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr
              in Berlin, München, Hannover, Düsseldorf, Hamburg, Stuttgart
 
End of News                                     DGAP News-Service
 
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