MAGNAT Real Estate AG: MAGNAT publishes results for financial year 2011/2012

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

24.08.2012 / 14:55


MAGNAT publishes results for financial year 2011/2012

- Change in the accounting for the integration of R-QUADRAT Immobilien GmbH
retrospectively for financial years 2009/2010 and 2010/2011 has a
significant impact on the valuation of assets and the financial results for
the subsequent financial years
- Based on the new accounting, group net income amounted to EUR 12.9
million in financial year 2011/2012 following a loss of EUR 10.3 million in
the prior year
- Extensive resale programme was carried out successfully in the reporting
year in order to secure liquidity
- Strategic focus on the emerging markets of the Black Sea region continues

Frankfurt am Main, August 24, 2012 - On August 23, 2012, the Supervisory
Board of MAGNAT Real Estate AG ('MAGNAT', ISIN DE000A0XFSF0) dealt
extensively with the financial statements and the consolidated financial
statements for financial year 2011/2012 (as per March 31), including the
management report for both the Company and the Group, which have been
audited and furnished with unqualified audit certificates. The Supervisory
Board adopted the financial statements and approved the consolidated
financial statements.

MAGNAT Real Estate AG's results for financial year 2011/2012 were largely
impacted by an accounting change concerning the integration of R-QUADRAT
Immobilien GmbH in 2009. Based on the examination of the accounting as per
March 31, 2010 by the German Financial Reporting Enforcement Panel
(Deutsche Prüfstelle für Rechnungslegung, DPR), the consolidated financial
statements for financial years 2009/2010 and 2010/2011 were adjusted
retrospectively with respect to the integration of the R-QUADRAT Group. In
accordance with international accounting standards (IFRS), the DPR came to
the conclusion that the transaction was a reverse acquisition and that
R-QUADRAT Immobilien GmbH must be identified as the acquiring company. The
corresponding adjustments carried out are described in detail in the notes
to the current annual report.

On this basis, MAGNAT reported a profit for the period of EUR 12.9 million
for financial year 2011/2012 (as per March 31, 2012) compared to a loss of
EUR 10.3 million in the previous year. Earnings per share amounted to EUR
0.93 following EUR -0.74 in the prior year. Group equity increased to EUR
20.2 million from EUR 12.6 million due to the positive profit for the
period. The equity ratio rose to 45.7 percent as per March 31, 2012 from
18.6 percent in the previous year.

In addition, financial year 2011/2012 was characterised by a number of
successful disposals of the real estate portfolio. This also led to a
reduction of risk positions. The resale of the residential portfolio in
Germany contributed a single-digit million amount to the annual result.

Due to the disposals, the profit on the sale of real estate soared to EUR
15.7 million following EUR 2.3 million in the previous year.

The Turkish Project YKB developed favourably and contributed EUR 6.0
million to earnings. In addition, MAGNAT realised a gain of EUR 2.7 million
from a settlement payment which resulted from the conclusion of a legal
dispute concerning the Schwarzenberg project.

Due to continued cost controlling efforts, general and administrative
expenses declined from EUR 7.4 million in the previous year to EUR 5.7
million in the reporting year.

Earnings before interest and taxes (EBIT) amounted to EUR 14.8 million
compared to EUR -9.4 million in the prior year. The financial result was
EUR -1.8 million following EUR -1.2 million and profit before taxes was EUR
13.0 million (previous year: EUR -10.6 million). After taxes, net income
for the period amounted to EUR 13.0 million compared to EUR -10.8 million.

After non-controlling interests of EUR 0.0 million (previous year: EUR -0.5
million), net income for the period attributable to parent company
shareholders amounted to EUR 12.9 million following EUR -10.3 million in
the prior year.

Total assets declined from EUR 67.6 million in the previous year to EUR
44.3 million primarily as a result of the disposals mentioned in the
reporting year. Correspondingly, liabilities declined EUR 31.0 million to
EUR 24.0 million as compared to the previous year.

As of the balance sheet date, the net asset value according to the
internationally accepted EPRA requirements amounted to EUR 1.44 per share
due to the acquisition of R-QUADRAT Immobilien GmbH. The calculation is
based on 13,894,651 shares outstanding.

In financial year 2011/2012, several measures were implemented in order to
sustainably improve the Group's earnings situation in the medium term.
These include the further reduction of the overall risk of the real estate
portfolio, extensive cost savings, as well as the consistent focussing of
the portfolio on the emerging markets of the Black Sea region. MAGNAT's key
markets are the Ukraine, Turkey, Georgia, and possibly Romania. Securing
the Group's liquidity remains the key focus of MAGNAT's financial planning.
The situation in the real estate markets in which MAGNAT is active, is
likely to remain challenging in the current financial year.

The annual financial report for financial year 2011/2012 will be available
from August 24, 2012 at the Company's website at
MAGNAT Real Estate AG is the first publicly traded real estate company in
Frankfurt that focuses on real estate development in Austria and selected
countries within the emerging economies of the Black Sea region.
MAGNAT is an integrated real estate group, addressing the entire value
chain and covering the acquisition, development, and disposal of projects
and construction land. The Group also offers real estate asset management.

MAGNAT Real Estate AG
Investor Relations
Lyoner Straße 32
D-60528 Frankfurt am Main
Phone: +49 (0) 69-719 189 79 0
Fax: +49 (0) 69-719 189 79 11

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

End of Corporate News


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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 News    DGAP News-Service  
182845 24.08.2012