Press Releases

ECM H1 2009 Results /26. 08. 2009/

Luxembourg, 26th August 2009 – ECM Real Estate Investments A.G. (“ECM” or the “Company”) announces its consolidated and reviewed financial results for the first half 2009, in accordance with IFRS.

Administrative Expenses Under Control

Financial Highlights

•  Net rental and related income increased by 56.5 % to EUR 7.2 million (H1 2008 restated: EUR 4.6 million )
• NAV decreased by 19% Y-t-D to EUR 112 million (12/31/2008: EUR 139 million); undiluted NAV per share stood at EUR 16.36 (12/31/2008: EUR 20.28)
• Net operating loss before net financing results of EUR -8.1 million (H1 2008: EUR -3.9 million loss)
• Reported net loss of EUR 18.56 million (H1 2008: EUR 19.9 million loss)
• Total assets decreased by 23% to EUR 518.9 million (12/31/2008: EUR 677.9 million)
• Total equity decreased by 21.5% to EUR 74.8 million (12/31/2008: EUR 95.3 million)

Operational Highlights

• Both Chinese projects’ construction phase nearing completion, with scheduled grand opening in November 2009
• Disposal of the project  “Palisades”
• 59% of stage 1 of the Terasy Unhost project now sold and more under negotiation
• Significant progress in the Ryazan project  with valid construction permit issued in August
• Construction permit received for  the City Court building
• Noticeable decrease in administrative and personnel expenses 

Financial Results

ECM‘s total assets decreased by 23% Year-to-Date to EUR 519 million, mainly due to the change of consolidation methods on both of the Chinese projects; the shopping center ECMall and the administrative building Metropolis Tower. At the beginning of this year the company sold a 23% stake in both projects to its local JV partner, decreasing ECM´s stake to 37%; the consolidation method has now changed from full consolidation to equity consolidation.

ECM performed the regular semi-annual revaluation of its investment portfolio, using an external independent appraisal as support. On a net basis, ECM reported a valuation loss of EUR 0.9 million.

The company has also reported a significant increase in net rental and related income by 56.5% year-on-year to EUR 7.2 million. This can mainly be attributed to the increased occupancy of the CITY Tower building.

ECM´s administrative expenses have decreased by 21% on a year-on-year basis, as a result of the cost saving measures adopted in the second half of 2008 and again at the beginning of 2009. However, some of these measures have a delayed effect so the full impact can only be expected in the second half of 2009.

The company´s reported net financial expenses in H1 2009 amounted to EUR 11.8 million compared to EUR 20.9 million last year. This year-on-year decrease can mostly be attributed to the positive impact of FX translation differences.

Financial Summary:

Balance sheet	30th June 2009 (EUR thousand)	31st December 2008 (EUR thousand)	Y-t-D CHange
Total non-current assets	441 786	605 751	-27,1%
Total current assets	77 138	72 173	+6,9%
Total assets	518 924	677 924	-23,4%
Total equity	74 836	95 346	-21,5%
Total non-current liabilities	351 202	403 115	-12,9%
Total current liabilities	92 886	179 463	-48,2%
Total liabilities	444 088	677 924	-34,5%

Income Statement	30th June 2009 (EUR thousand)	30th June2008 (EUR thousand)	Y-o-Y Change
Net rental and related income	7 199	4 596	+56,6%
Gain/loss on disposal of investment property	(934)	18
Net valuation gains on investment property	(976)	3 660
Administrative expenses	(6034)	(7,667)	-21,2%
Net operating profit  before financial income / expense	(8 131)	(3 965)
Net financial result	(11 892)	(20 974)	-79,2%
Profit before tax	(22 571)	(24 913)
Profit for the period	(18 566)	(19 925)

For further information please contact:

Jiri Tosek
Director of IR
ECM Real Estate Investments
Tel:        +420 224 174 791
Email:    jtosek@ecm.cz