Bau-Verein zu Hamburg AG successfully reducing vacancies; operating business strengthened

(Hamburg, 12. November 2009)  Bau-Verein zu Hamburg Aktien-Gesellschaft ("Bau-Verein"for short) made intensive use of the third quarter to step up its operating business and reduce vacancies. In the metropolitan regions of Hamburg and Berlin vacancies dropped by one quarter or 162 residential units in the third quarter alone. At the same time, it was possible to substantially reduce vacancy costs and enhance the value of the portfolio. This success is also reflected in the Company´s financials:  in the third quarter, Bau-Verein achieved earnings before tax (EBT) of EUR 2.2 million.

Rental income rose by 16 percent from EUR 15.4 million to EUR 17.8 million in the entire period under review. At the same time, net rental income climbed slightly from EUR 7.1 million to EUR 7.2 million despite the sale of large parts of the portfolio in the first half of 2009.

Revenues doubled, rising from EUR 40.1 million in the first nine months of 2008 to EUR 80.9 million thanks to the aforementioned selling activity in the first half of 2009. At the EBT level, it recorded a cumulative loss before fair-value remeasurements and exceptionals of EUR 2.5 million in the first nine months of 2009, down from a loss of EUR 5.9 million in the same period of the previous year.

Bau-Verein zu Hamburg AG acquiring its own headquarters in Hamburg

With the purchase of its own headquarters in Steckelhörn in Hamburg, Bau-Verein is confirming its commitment to the Hamburg real estate market and demonstrating its belief in the strengthening recovery of real estate business. The seller is a joint venture established by Bau-Verein and conwert SE, Vienna, in which Bau-Verein holds 25 percent. As a result, the office building, which is located in the heart of the Hamburg CBD adjacent to St. Catherine's church and the historical warehouse district, is now fully owned by Bau-Verein. With a total floor area of 6,230 square metres, the building is currently leased in full.

Bau-Verein well positioned for further growth

What is most important for Bau-Verein, however, is the fact that it is able to finance its operations solely from its rental income in the future: The rental income is now sufficient to cover all costs and loan obligations without the need to sell even only a single apartment. This is decisive as it allows the Company to steer the portfolio safely and unscathed through the protracted crisis. In addition, the focus will be on future acquisitions fitting in with the Company's strategy and characterised by quality and good locations.

Press inquiries:

Bau-Verein zu Hamburg AG
Investor & Public Relations
Britta Lackenbauer / Dominique Mann
Tel. +49 (0) 40 380 32 300
Fax +49 (0) 40 380 32 390
info(at)bau-verein.de