Report first haft of 2006

(Hamburg, August 30, 2006). In the first half of the 2006 fiscal year, Bau-Verein zu Hamburg increased its earnings before taxes (EBT) to EUR 4.3 m from EUR -1.9 m in the same period of the previous year. Consolidated net income rose from EUR -1.4 m to EUR 2.4 m. Revenues increased 4.4 percent from EUR 24.8 m to EUR 25.9 m. An active asset management and the expansion of its own long-term return real estate led to the significant earnings improvement.

After the successful conclusion of the capital increase amounting to EUR 19 m, which was registered in the commercial register in the second quarter 2006, the equity ratio increased to 33.4 percent as of 30 June 2006 after 22.2 percent as of 30 June 2005. The free float of the Bau-Verein shares rose to 30 percent in the first half of 2006.

The capital increase serves to finance growth. Against this background, the Bau-Verein announced the purchase of a real estate package with a volume of EUR 105 m in June 2006. This refers to a mixed residential and commercial real estate portfolio, though the purchase thereof has not yet had an impact on the balance sheet in the second quarter 2006.

In the first half of 2006, the company thus successfully continued its strategy aimed at retaining its real estate portfolio as a long-term investment. Together with the considerably improved equity ratio, this also serves as a preparation for the introduction of tax-advantage REITs in Germany.
Bau-Verein zu Hamburg is optimistic that it will also continue its sound performance of the first six months in the second half of the year. The growth strategy initiated should be continued by way of the agreed purchase of a large real estate portfolio and additional portfolios with present negotiations underway.

Press inquiries:
Bau-Verein zu Hamburg
Aktien-Gesellschaft
Public Relations
Kirsten Schleicher
Fon +49 (0)40 380 32 140
Fax +49 (0)40 380 32 388
>> k.schleicher(at)bau-verein.de