MAGNAT Real Estate AG: Revaluation of real estate portfolio and solution of tax problem in Turkey portfolio affect 2010/2011 financial result for the year

MAGNAT Real Estate AG  / Key word(s): Profit Warning

09.06.2011 20:36

Dissemination of an Ad hoc announcement according to § 15 WpHG, transmitted
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Frankfurt am Main, June 9, 2011 - In the fourth quarter of its financial
year, MAGNAT Real Estate AG ('MAGNAT', ISIN DE000A0XFSF0) will apply around
EUR 6.7 million of impairment charges to its investment portfolio on the
basis of updated valuation surveys and their resultant valuations. Subject
to the audit of the annual financial statements by the company's auditor,
this will exert a correspondingly negative earnings impact on the 2010/2011
result for the year (April 1, 2010 to March 31, 2011). That impact does not
affect the liquidity of MAGNAT.

The surveys that MAGNAT mandates every year determined impairment
requirements particularly for the company's Ukrainian investments. This
particularly reflects the fact that the real estate sector in the Ukraine
is still in crisis, and no realistic market value is currently being paid
for properties due to the general economic situation, and to the fact that
the fluctuations and bandwidths of achievable sales prices are currently
disproportionately great. The Ukrainian investments alone generated a
negative valuation effect of around EUR 4.1 million.

A solution has meanwhile been developed for the EUR 27 million tax
receivable that the Turkish tax authorities notified on September 14, 2010.
This tax receivable has been reduced to approximately EUR 6 million. A
corresponding provision will be formed in the fourth quarter in the
financial result for the Turkish portfolio in which MAGNAT holds a 33.3
percent interest. The tax payment will be made from the portfolio's
liquidity, and will consequently impose no burden on MAGNAT.

End of the announcement

MAGNAT Real Estate AG
Investor Relations
Dr. Joachim Fleing / Charlotte Frenzel
Lyoner Straße 32
D-60528 Frankfurt/Main
Phone: +49 (0) 69-719 189 79 36
Fax: +49 (0) 69-719 189 79 11

Press Relations
edicto GmbH
Axel Mühlhaus / Werner Rüppel
Phone:  +49 (0) 69-905 50 55 2

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Language:     English
Company:      MAGNAT Real Estate AG
              Lyoner Straße 32
              60528 Frankfurt am Main
Phone:        +49 (0)69  / 719 189 79 0
Fax:          +49 (0)69  / 719 189 79 11
ISIN:         DE000A0XFSF0
WKN:          A0XFSF
Listed:       Regulierter Markt in Frankfurt (General Standard);
              Freiverkehr in Berlin, Stuttgart
End of Announcement                             DGAP News-Service