MAGNAT Real Estate AG: MAGNAT records positive result in the 2nd quarter of the fiscal year

MAGNAT Real Estate AG  / Key word(s): Half Year Results/Half Year Results

30.11.2010 11:29

MAGNAT records positive result in the 2nd quarter of the fiscal year

Half-yearly financial report for Fiscal Year 2010/2011
(Fiscal year: 1 April 2010 to 31 March 2011)

  - Positive net result in the 2nd quarter follows EUR -3.4 million in the
    previous year

  - Gains/losses relating to letting more than quadrupled during the

  - Newly integrated asset management records positive result during both
    the quarter and the half-year

  - Co-proprietor's building scheme's in Austria contribute EUR 1.4 million
    to earnings

  - Cash and cash equivalents well above previous year

  - Balancing of business model is taking effect

Frankfurt am Main, 30 November 2010 - During the 2nd quarter of Fiscal Year
2010/2011 (1 April 2010 to 31 March 2011), MAGNAT Real Estate AG's
('MAGNAT', ISIN DE000A0XFSF0) net result after taxes and minority interests
was just positive at approximately EUR 60,000. The comparative figures for
the corresponding quarter last year stand at EUR -3.4 million. At EUR 1.0
million, MAGNAT succeeded in more than quadrupling gains/losses relating to
letting in the 2nd quarter as compared to last year (EUR 0.2 million).
Moreover, the newly integrated asset management, with a result of EUR 0.1
million, and the co-proprietor's building schemes in Austria, which
generated a result of EUR 1.4 million and following the integration are now
on MAGNAT's books, have, based on the consolidated statements of income,
contributed significantly to MAGNAT closing the quarter in the black.

Overall, MAGNAT was able to significantly reduce the net loss of EUR -4.2
million recorded in the previous year to EUR -1.0 million during the first
half of the current fiscal year. Income before taxes and minority interests
(EBT) amounted to EUR -0.7 million after EUR -4.5 million in the same
period last year. In particular, gains/losses relating to letting, which
climbed by 51 per cent from EUR 1.1 million in the previous year to EUR 1.6
million developed positively in the first half. The newly integrated asset
management, which is included in the half-yearly financial statements for
the first time, also contributed significantly to the improvement in
earnings with profit of EUR 0.2 million during the half-year. Furthermore,
the co-proprietor's building schemes in Austria generated profit of EUR 1.4
million in the 2nd quarter alone. To present the income from the
co-proprietor's building schemes transparently, MAGNAT has extended its
consolidated statements of income by the item 'Gains/losses relating to the
sale of real estate'.

Also due to internalisation of the asset management, cash and cash
equivalents rose significantly from EUR 3.9 million at 30 September 2009 to
EUR 7.1 million at 30 September 2010. The equity ratio at that date stood
at a solid 62.9 per cent after 63.3 per cent at the same time last year.

Due to a conservative calculation, which no longer includes 'Non-recognised
items', net asset value of EUR 7.63 at 31 March 2010 dropped to EUR 7.25 at
30 September 2010. Net asset value is calculated according to EPRA's
international recommendations.

Jürgen Georg Faè, member of MAGNAT's Board of Management, comments: 'We
made progress in terms of balancing our business model during the first
half. Hence, our new business segment, Asset Management, which we will
expand, made a positive contribution to earnings. Developments in Germany,
Austria and Turkey are also positive. Furthermore, the gradual recovery in
Eastern Europe re-opens opportunities for the development of our


MAGNAT Real Estate AG is the first publicly traded real estate company in
Frankfurt to focus on real estate development in east European, Austrian
and German metropolitan areas.

MAGNAT has evolved into an integrated real estate group. The company covers
the entire value chain - from acquisition across development through to the
sale of projects and land. In addition, the Group provides real estate
asset management for third parties in particular via its subsidiaries
MAGNAT Asset Management GmbH and MAGNAT Asset Management Deutschland GmbH.

The strategy of MAGNAT is designed to exploit inefficiencies in real estate
markets. Unlike the traditional 'Buy & Hold' approach, MAGNAT takes a
'Develop & Sell' or 'Buy & Sell' approach, which focuses on real estate
development supplemented by portfolio trading.

MAGNAT investors participate in development returns in eastern Europe,
south-eastern Europe, the Commonwealth of Independent States (CIS) as well
as in Germany and Austria.

Key data
Key data in EUR '000                  Q1-Q2       Q1-Q2      Q2      Q2    
                                     2010/11     2009/10   2010/11  2009/10

Gains/losses relating to
letting                              1,640.7    1,086.0    951.3    218.1
Gains/losses relating to the
sale of real estate companies            0.0        0.0      0.0      0.0
Gains/losses relating to the
sale of real estate                  1,356.1        0.0   1,356.1     0.0
Gains/losses relating to asset
management                             212.0        0.0    127.2      0.0
Gains/losses relating to                                       
companies valued at equity          -5,029.7   -1,311.8   -3,841.7  -914.8
Income before interest and                                            
taxes (EBIT)                        -2,753.0   -2,692.1   -2,077.4 -1,884.4
Income before taxes (EBT)             -730.8   -4,454.7    291.5   -3,593.0
Net result after taxes and                                             
minority interests                  -1,042.7   -4,220.1     59.6   -3,376.2

Key figures                            30/09/2010   31/03/2010
Balance sheet total in EUR
million                                     176.8        176.7
Shareholders' equity in EUR
million                                     111.2        111.6
Equity ratio in per cent                    62.9%        63.1%
Net asset value per share in EUR             7.25         7.63

Contact MAGNAT Real Estate AG Investor Relations Dr Joachim Fleing/Charlotte Frenzel Lyoner Strasse 32 D-60528 Frankfurt/Main Telephone: +49 (0) 69-719 189 79 36 Fax: +49 (0) 69-719 189 79 11 Email: Web: Press Relations edicto GmbH Axel Mühlhaus/Werner Rüppel Telephone: +49 (0) 69-905 50 55 2 Email: 30.11.2010 Dissemination of a Corporate News, transmitted by DGAP - a company of EquityStory AG. The issuer is solely responsible for the content of this announcement. DGAP's Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Media archive at and --------------------------------------------------------------------------- Language: English Company: MAGNAT Real Estate AG Lyoner Straße 32 60528 Frankfurt am Main Deutschland Phone: +49 (0)69 / 719 189 79 0 Fax: +49 (0)69 / 719 189 79 11 E-mail: Internet: ISIN: DE000A0XFSF0 WKN: A0XFSF Listed: Regulierter Markt in Frankfurt (General Standard); Freiverkehr in Berlin, Stuttgart End of Announcement DGAP News-Service ---------------------------------------------------------------------------