DGAP-Adhoc: Colonia Real Estate AG: Second quarter 2010 focus on reduction of vacancy rate

| Source: EQS Group AG EQS Group AG 

Colonia Real Estate AG / Half Year Results

12.08.2010 07:08 

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

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Colonia Real Estate AG: Second quarter 2010 focus on reduction of vacancy
rate

  - 13.6% vacancy rate at beginning of the year reduced to 12.4% end of
    June 2010

  - EBIT falls slightly to EUR 15.8 million due to increased portfolio
    investments (HY1 2009: EUR 16.6 million)

  - Consolidated result of HY1 2010 with EUR 0.2 million slightly negative

  - Cash flow from business operations at end of June 2010 continues
    positive trend at EUR 0.7 million

Cologne, August 12, 2010 - Colonia Real Estate AG (ISIN: DE0006338007; WKN:
633800) ended the first half of 2010 with slightly negative result of minus
EUR 0.2 million. The second quarter of 2010 focused in particular on
value-enhancing investments in the company's residential real estate
portfolio and increasing the rental levels.

At EUR 14.1 million, net rental income (NRI) remained stable in the second
quarter 2010. To improve the rentability of vacant residential properties,
investments in the portfolio were significantly increased. In the second
quarter of 2010 alone, Colonia Real Estate AG spent roughly EUR 4.0 million
for maintenance and renovation of the residences.  This resulted in a 0.6%
reduction in vacancy rate to 12.4%, but also a reduction in EBITDA from EUR
8.4 million in the previous quarter to EUR 3.7 million in Q2 2010. EBITDA
for the first six months of 2010 totaled EUR 12.1 million, a decline of EUR
3.2 million from the first six months of 2009. However, it should be noted
that the company invested significantly less in the properties during the
first six months of 2009.

As part of the regular market appraisements of our residential real estate
as of June 30 and December 31 for each fiscal year, the value of the
properties has continued to improve. Due to the previously mentioned
value-enhancing measures that were implemented, the value of our
residential real estate increased by EUR 4.0 million compared to the end of
fiscal year 2009. This means the value of the entire residential real
estate portfolio increased by 0.5 %. Net asset value (NAV) per share was
virtually unchanged at EUR 10.10.

The value-enhancing measures also had a positive impact on the EBIT figure
for the second quarter of 2010 which was EUR 7.6 million, a decrease of EUR
0.6 million compared to the prior quarter. For the first six months of
2010, EBIT also fell slightly year-on-year from EUR 16.6 million to EUR
15.8 million.

After reporting a loss of EUR 1.1 million in the first six months of 2009,
the Asset Management division showed a positive trend and closed the first
half of 2010 with a result of EUR -0.05 million.  After two positive
quarters, the second quarter of 2010 ended with a loss of EUR 0.2 million,
which can be traced primarily to one-off effects related to changes in the
management team at the CRE Asset Management division.  Revenues rose to EUR
3.4 million in the first half of 2010, a 17.6% increase over the previous
year.  As a result, we retain the target of returning the Asset Management
division to profitability this fiscal year.

At EUR -8.0 million, the financial result for the second quarter was
virtually unchanged (Q1 2010: EUR -7.9 million). When comparing the first
six months of 2010 and 2009, it should be noted that in the first six
months of 2009, the results (EUR -9.8 million) were positively impacted by
a loan waiver of EUR 8.7 million. At EUR -15.9 million, the financial
result for the first six months of 2010 do not include any one-off effects.

In commenting on the results, Colonia Real Estate AG CEO Stephan Rind said:
'Although the extensive investments to improve our sustainable rental
income and reduce vacancies had a negative impact on results in the short
term, the cash flow and value of our real estate will improve over the long
run.  The positive impact of our measures can already be seen in the
significant reduction of the vacancy rates in the first six months of 2010,
a trend we expect will continue in the second half of the year.'

The complete quarterly report will be available for downloading at 8:00 am
by using this link:
http://www.cre.ag/121/Investor_Relations/Reports_Presentations/Financial_R
eports.htm

Management Borad

Cologne, August 12, 2010

Colonia Real Estate AG
Zeppelinstraße 4-8
D - 50677 Cologne

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

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.

Contakt
Claudia Kellert
Head of Investor Relations & Kommunikation
Zeppelinstraße 4-8, 50667 Cologne, Germany
Tel +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: ir@cre.ag

edicto GmbH
Axel Mühlhaus
Phone +49 (0)69 90 55 05 52
E-Mail: amuehlhaus@edicto.de





12.08.2010 07:08 Ad hoc announcement, Financial News and Press Release distributed by DGAP. Medienarchiv at |[![CDATA[|[a href="http://www.dgap-medientreff.de"|]www.dgap-medientreff.de|[/a|]]]|] and |[![CDATA[|[a href="http://www.dgap.de"|]www.dgap.de|[/a|]]]|]

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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 Hamburg, München, Düsseldorf, Berlin, Hannover, Stuttgart
 
End of News                                     DGAP News-Service
 
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