• Value created from project development, substantial new lettings achieved in 2010

• Markets on recovery course, especially in Central and Eastern Europe

The portfolio of the CA Immo Group has expanded rapidly over recent years. Taking account of properties acquired through the takeover of Europolis AG, CA Immo's property assets at the start of 2011 stand at above € 5 bn; the average annual growth rate has thus exceeded 30 % over the last five years. Having come through this period of expansion, the clear priority for CA Immo now is to optimise the existing portfolio rather than aim for further acquisitions.
According to Dr. Bruno Ettenauer, Chief Executive Officer of CA Immo, “The last few years have been characterised by growth and integration, which we now expect to be reflected in our earnings and profitability figures. Over the next few years, CA Immo intends to justify its position as a profitable real estate company for the long term to our investors and shareholders.”

The CA Immo position following the Europolis takeover
The acquisition of Europolis has raised the CA Immo Group's property assets at € 1.5 bn to approximately € 5 bn. In regional terms, the proportion of the Eastern and South Eastern European segment in the portfolio as a whole has expanded from around 19 % to over 40 %, bringing it onto a par with the German segment. The relative weighting of property assets under development will fall from roughly 30 % at this time to 20 % as the share of property assets let expands. At present, the annualised rental revenue of Europolis is around € 100 m. According to Ettenauer, “The acquisition of Europolis, with a portfolio that rates highly in terms of both quality and cash flow, will show up in the interim financial statements for 31 March 2011. We expect the takeover to bring about big improvements to the value and revenue of the CA Immo Group over the long term.”

Mid-term portfolio strategy of focus and quality optimisation
Now that Europolis has been acquired, the CA Immo portfolio is in need of careful adjustment to sharpen the focus on regions and usage types. As regards the regions, this will mean concentrating on Central Europe and thus withdrawing in stages from markets that are not part of the CA Immo Group's long-term core region (including the Ukraine, Russia and the South Eastern European markets). At the same time, the CA Immo Group must consolidate its position as a specialist in office properties; over the medium term, the proportion of non-office usage types should be confined at a level below 30 %. Ensuring the best possible quality of real estate will be another element in the focus of the portfolio. In particular, given the high priority accorded to sustainability by the CA Immo Group, the company will seek to enhance the average quality of the portfolio. Over the medium term there will be a distinct emphasis on investment properties, which will account for a minimum of 80 % of the portfolio. The Development division will concentrate on projects with implementation plans that are clearly defined and achievable in the short term; long-term land reserves will not make up more than 5 % of the total portfolio. As Ettenauer says, “We expect the additional revenue from development projects and sales above book value to produce a healthy result for business year 2010 and another rise in earnings in 2011.”

Operating targets achieved in 2010
The main priorities for CA Immo in 2010 were the amalgamation of CA Immo International, the acquisition of Europolis and the generation of value from extensive real estate reserves and large-scale development projects in Germany. Significant successes were achieved in these areas, as Bruno Ettenauer confirms: “In 2010, we sold undeveloped sites with a total area of 530,000 sqm well above book value. Altogether, we concluded sales of around € 300 m at a profit.” Development projects are proceeding according to plan as regards both technical realisation and planning permission. Lettings performance, which stood at about 120,000 sqm in 2010, was mainly stimulated by significant new lettings and pre-letting in Germany (totalling some 57,000 sqm in 2010) as well as a large-scale letting agreement (for approximately 32,500 sqm) to Post AG at the Lände 3 site in Vienna.

Market outlook: upturn in Central and Eastern Europe, robust economy in Germany 
The takeover of Europolis AG reflects the positive view of the Central and Eastern European markets held by CA Immo. As Dr. Ettenauer puts it, “We think there is still massive growth potential across large parts of the region.” The trend is being driven by the strong upturn in Germany during 2010, which is likely to be maintained in 2011 (albeit at a slower pace), leading to good absorption levels for modern premises. “We realise that despite the positive signs, there is still uncertainty on our markets, and we will have to take appropriate precautions,” concludes Ettenauer.

About CA Immo
CA Immo was founded in 1987. The company develops and invests in commercial real estate (and in particular offices) in Austria, Germany and Eastern Europe. CA Immo has consolidated its foothold on the German market in the past two years. On 1 January 2011, CA Immo took over Europolis AG, acquiring properties in Central and Eastern Europe with an approximate value of € 1.5 bn and substantially raising the company's profile on the core markets of Eastern Europe. CA Immo has been listed on the Vienna Stock Exchange since 1988, with free float of around 90 % at the present time.

Please address any questions to:
CA Immobilien Anlagen AG
Susanne Steinböck
Tel.: +43 1532 590 7533
Email: steinboeck@caimmoag.com
www.caimmoag.com


Link: <link fileadmin pdf pressegespraech_11.1_final_website_on.pdf _blank>Download the presentation of the press conference (.pdf, 1.4 MB, only in German)