POLIS Immobilien erlöst in den ersten neun Monaten rund 6,6 Millionen Euro: Corporate News

POLIS Immobilien reports leap in profits

- Rental income climbs 3.5% to EUR 9.5 million in H1
- Funds from operations rise 4% to EUR 3.6 million
- Earnings before taxes up by an impressive 136%
- Forecast for 2015 upgraded

Berlin, 6 August 2015 - POLIS Immobilien AG [ISIN: DE0006913304] continues to grow dynamically. Thanks to the good letting results of the previous years, rental income rose by 3.5% to EUR 9.5 million in the first six months of 2015. Funds from operations were up by 4% on the prior year period to EUR 3.6 million. Group earnings before taxes (EBT) increased by an impressive 136% to EUR 10.4 million, primarily because of positive changes in the market values of investment properties and interest rate hedges.

The Berlin-based company, which specialises in the modernisation and management of office properties in established locations in Germany's leading office cities, expects the good performance to continue in the coming months. 'We are confident that we will be able to increase the occupancy rate to 95% again as of the end of the year,' said POLIS
CEO Dr. Alan Cadmus. At 93%, the occupancy rate was on a par with the previous year at the six-month stage on 30 June 2015.
Between January and the end of June, net rental income rose by 5% to EUR 7.6 million. This amount includes EUR 1.5 million (PY: EUR 1.6 million) in maintenance expenses. Increased investments in the maintenance of investment properties are planned for the second half of the year in order to secure the high occupancy rate.
The valuation of the investment properties as of 30 June 2015 vindicates the investments made and additionally led to a positive change in the market value by EUR 6.3 (PY: 1.2) million. The biggest changes were recorded for the properties at 'Rankestrasse
21/Lietzenburger Strasse 44 - 46' in Berlin, 'Altmarkt 10/Kramergasse 2,4' in Dresden
and 'Quartier Buechsenstrasse' in Stuttgart. The negative change in the market value of

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the modernisation project at 'Gutleutstrasse 26' in Frankfurt am Main is primarily due to the non-deductibility of input tax on construction costs, now that the building is let to a municipal tenant for 15 years. POLIS assumes that this negative change can be reversed once the property is completed and handed over to the tenants and leases are signed for the two remaining floors.
Interest expenses showed a very positive trend in the reporting period. Compared to the previous year, they declined by 10% to EUR 2.7 million as the company reduced its use of loans. The non-cash valuation of interest rate derivatives rose to a positive EUR 531,000, up from a negative EUR 306,000 in the prior year period.
At the bottom line, POLIS' consolidated net income surged by 136% to close to EUR 8.8 million. Earnings per share stood at EUR 0.79 (0.34).

High capitalisation

The Berlin-based real estate company increased its equity ratio by two percentage points to 51% in the first six months of the year. 'This excellent capitalisation offers sufficient potential for new acquisitions,' said CFO Dr. Michael Piontek. As of the end of the first half- year, cash in the amount of EUR 3.3 million as well as unencumbered properties worth EUR 37 million were available to finance the company's future growth.

Outlook on 2015

Thanks to the good valuation results of investment properties and interest rate derivatives, the company upgraded its forecast for the full year. The Board of Management now expects earnings before taxes to come in at between EUR 15 million and EUR 17 million (PY: EUR 10.3 million), compared to the original forecast of only EUR 7 million. The unpredictable, non-cash changes in the fair values of investment properties and interest rate derivatives as well as the current dynamic market developments make a more precise estimate impossible. Funds from operations are expected to amount to EUR 4.3 (PY: 6.7)
million, as they are adversely impacted by high construction costs and the temporary loss

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of rental income resulting from the modernisation of the property at 'Gutleutstrasse 26' in
Frankfurt.
Moreover, POLIS intends to maintain the occupancy rate at the previous year's 95% at the end of 2015. The utilisation achieved to date has a stabilising effect on the key performance indicators.
POLIS expects the acquisition of additional properties and the expansion of the 'Third- party Asset Management' segment to lead to additional growth.
The quarterly report is available for downloading at the company's website at http://polis.de/IR/zwischenberichte.php.

POLIS Immobilien AG, which was founded in Berlin in 1998, is a listed real estate company that buys, refurbishes/revitalises, and manages office properties for its own portfolio. The company focuses on one market segment: office properties in inner-city locations at the most important German office centres. The company acquires both fully leased properties with modern facilities, which generate a secure cash flow, as well as properties that are vacant or require modernisation, and which offer specific value appreciation potential. The company pursues a moderate buy-and-sell strategy. As of 30

June 2015, POLIS Immobilien's real estate portfolio comprised a total of 23 properties with a market value of around EUR 323 million. POLIS Immobilien shares are currently listed on the regulated market (Prime Standard, ISIN: DE0006913304) of the Frankfurt Securities Exchange. Further information can be found at www.polis.de.

Investor Relations: Press Contact:

Dr. Alan Cadmus POLIS Immobilien AG Tel: +49 30 225 00 250

E-Mail: ir@polis.de

URL: www.polis.de

Britta Cirkel und Christina Siebels

HOSCHKE & CONSORTEN Public Relations GmbH Tel: +49 40 36 90 50-56/58

E-Mail: b.cirkel@hoschke.de;c.siebels@hoschke.de

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