MAGNAT closes business year 2009/2010 with a loss due to non-cash fair value adjustments – Optimism for the new fiscal year

MAGNAT Real Estate Opportunities GmbH & Co. KGaA / Final Results

30.07.2010 15:43

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MAGNAT closes business year 2009/2010 with a loss due to non-cash fair
value adjustments - Optimism for the new fiscal year

  - Net result of EUR -11.2 million includes EUR -9.5 million from
    unrealised fair value losses

  - Active asset management significantly increases revenue from the
    letting of properties

  - Integration of the asset manager leads to a gratifying return on

  - Net asset value per share is EUR 7.63 at the year-end 31 March 2010

  - Cash and cash equivalents and equity ratio increased

Frankfurt am Main, 30 July 2010 - MAGNAT Real Estate Opportunities GmbH &
Co. KGaA (ISIN: DE000A0XFSF0) has achieved a net result (under IFRS) of EUR
-11.2 million after tax and minority interests in an environment which was
again difficult in fiscal year 2009/2010 (1 April 2009 - 31 March 2010).
This is due to unrealised fair value adjustments amounting to approximately
EUR -9.5 million. The comparative figures for the previous year for the net
result amount to EUR -6.2 million. Earnings per share in fiscal year
2009/2010 amount to EUR -1.35 after EUR -0.12 in the previous year. On the
reporting date, the MAGNAT Group's consolidated equity is considerably
higher at EUR 111.5 million and after 63.1 percent on the same date of the
previous year, its equity ratio of 62.9 percent continues to remain very
solid. Cash and cash equivalents increased from EUR 7.6 million in the
previous year to EUR 8.8 million.

In a difficult market environment heavily influenced by the economic
crisis, integration of the asset manager in fiscal year 2009/2010 proved to
be a correct and important strategic decision. The integration has made it
possible to expand the business model of the MAGNAT Group by the business
segment real estate asset management, which leads to the opening of new
sources of revenue. Profitable sales from the Turkish YKB portfolio
resulted in a cash inflow of EUR 9.5 million and the improvement in income
from letting to approximately EUR 2.4 million were particularly positive.
The development of business has also been encouraging in terms of the tax
relief models in Vienna, where it has been possible to position a model
with a positive return on investment within a very short period.

The net asset value (NAV), which is calculated according to international
standards, stood at EUR 7.63 per share on the reporting date. In the change
of the NAV are included EUR 0.85 per share in unrealised fair value

Revenue from letting increased for the third year in succession from EUR
6.5 million to EUR 6.6 million. In the process, it was possible to increase
income from letting considerably to EUR 2.4 million (previous year: EUR 1.5
million). This significant increase in earnings is primarily due to the
reduction of expenses associated with generating rental income.

Following the integration of asset management, the Group also reports the
result from asset management. This stands at around EUR 0.2 million for
fiscal year 2009/2010 since completion of the integration in September

Income from companies valued at equity amounts to EUR -5.8 million after
EUR 2.7 million in the previous year. Of the fair value changes contained
in this result, EUR -5.9 million stems from the Ukraine portfolio alone.

Overall, the MAGNAT Group generated net operating income (EBIT) of EUR -9.9
million in fiscal year 2009/2010 after EUR 2.7 million in the previous
year. The financial result amounts to EUR -3.6 million after EUR -9.2
million in the previous year. This equates to a net result before income
taxes (EBT) amounting to EUR -13.5 million compared to EUR -6.5 million in
the previous year.


Aside from intensification of the re-marketing efforts MAGNAT continues to
give absolute priority to securing liquidity. With the new strategic
positioning around the real estate asset management segment, MAGNAT aims to
broaden the revenue side sustainably. Business Segment Asset Management
plans to implement two tax relief models per year in order to balance the
business model. The business model 'Entrepreneurial Asset Management for
Third Parties' is to be expanded more intensively as well. In the
Development segment, significant inflows are anticipated from the YKB
portfolio. Overall, re-marketing efforts in the CEE/SEE region will be
further strengthened and investment opportunities explored in the German
speaking countries.

Another important strategic step in the current fiscal year will be the
conversion of the Group into a joint stock corporation, which is scheduled
for the third quarter of 2010.

Jan Oliver Rüster, CEO of MAGNAT, comments: 'Not only have we succeeded in
navigating the MAGNAT Group through an extremely difficult environment, we
have also put enormous effort into resolutely using last year to realign
the Group strategically and make it fit for the future. Unfortunately, at
EUR -11.2 million our annual result after minorities is still clearly
unsatisfactory at first glance. However, at second glance - excluding the
unrealised market value changes - the key operating figures show that we
are on the right track and have chosen the right strategy. Assuming a
normal economic environment I believe that MAGNAT can and will generate
operating profits again in the future.'


MAGNAT Real Estate Opportunities GmbH & Co. KGaA is the first real estate
company with a focus on property development in Eastern European, Austrian
and German metropolitan areas to be listed in Frankfurt.

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 property
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.

It is planned to convert MAGNAT into a joint stock corporation (AG) by the
third quarter of 2010.


MAGNAT Real Estate Opportunities GmbH & Co. KGaA

Lyoner Strasse 32

D-60528 Frankfurt am Main

Tel.: +49 (0) 69 719 189 79 36


Press Relations

edicto GmbH

Axel Mühlhaus/Werner Rüppel

Tel.: +49 (0) 69 905 50 55 2


30.07.2010 Ad hoc announcement, Financial News and Press Release distributed by DGAP.
Media archive at and

Language:     English
Company:      MAGNAT Real Estate Opportunities GmbH & Co. KGaA
              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 News                                     DGAP News-Service