MAGNAT achieves Group net income of EUR 12.9 million in financial year 2011/12

Frankfurt am Main, August 23, 2012 – MAGNAT Real Estate AG’s („MAGNAT“, ISIN DE000A0XFSF0) results for financial year 2011/12 were largely impacted by an accounting change. 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 concerning the integration of the R-QUADRAT Group. The 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 2011/12 (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 from 18.6 percent in the previous year. The Net Asset Value as of March 31, 2012 amounted to EUR 1.44 per share.

In addition, financial year 2011/2012 was characterised by a number of successful disposals of the real estate portfolio, especially the resale of the residential portfolio in Germany. As a result, the profit on sales of real estate soared to EUR 15.7 million following EUR 2.3 million in the previous year. Earnings before interest and taxes (EBIT) amounted to EUR 14.8 million compared to EUR -9.4 million in the prior year. Overall, we were successful in reducing risk positions. As a result of the disposals mentioned, total assets declined from EUR 67.6 million in the previous year to EUR 44.3 million. Correspondingly, liabilities declined EUR 31.0 million to EUR 24.0 million as compared to the previous year.

In financial year 2011/2012, several measures were initiated and carried out in order to sustainably improve the Group’s earnings situation in the medium term. At the same time, securing the Group’s liquidity remains the key focus of MAGNAT’s financial planning. The measures include cost savings as well as the consistent focusing of the portfolio on the emerging markets of the Black Sea region.

The annual report for 2011/2012 will be available shortly on the Company’s website www.magnat.ag.

End of the announcement

MAGNAT Real Estate AG is the first publicly traded real estate company in Frankfurt to focus on real estate development in Eastern Europe. MAGNAT ist an integrated real estate group and covers the entire value chain - from acquisition across development through to the sale of projects and land. In addition, the Group provides real estate management services for third parties.MAGNAT investors participate in development returns in Eastern Europe.
The strategy of MAGNAT is aimed at taking advantage of opportunistic inefficiencies in property markets. Unlike the traditional "Buy & Hold approach, MAGNAT takes a "Develop & Sell" or "Buy & Sell" approach, which focuses on property development.

The management focuses on property markets which demonstrate interesting development cycles: undervalued markets ("anti-cyclical investing") and markets with high macroeconomic growth ("growth markets").
In terms of development, the core markets of MAGNAT are Ukraine, Turkey, Georgia and Romania. In addition, asset management services will be provided to third parties in those countries as well as in Germany and Austria.

Contact
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
Email: ir@magnat.ag
Web: www.magnat.ag

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

This release was published on openPR.