HAHN-Immobilien-Beteiligungs AG: H1 2011: Fund Placements Perform Well, Recurring Management Income Rises

PRESS RELEASE

H1 2011: Fund Placements Perform Well, Recurring Management Income Rises

- Equity placements with private clients grow to EUR 12.9 million (prior year: EUR 8.8 million)

- Recurring management income rises 2.4 percent

- Gross profit declines due to the fact that revenue and earnings effects of the completed placements pertain to other periods, leading to a scheduled consolidated loss of EUR -2.74 million (prior year: EUR 1.57 million profit)

- Full-year outlook: consolidated profit expected

Bergisch Gladbach, August 12, 2011 - In its private client business the HAHN-Immobilien-Beteiligungs AG placed EUR 12.9 million in equity with private investors and wealth managers. This represented a substantial rise from the same period last year (EUR 8.8 million).

- The Pluswertfonds (PWF) 154 fund, designed as a private placement, was fully placed during the period, and invested some EUR 4.5 million in a retail warehouse center in Schwerte.

- The partial placement of the PWF 151 fund, which is investing in two retail warehouse centers in Nordhorn and Offenbach, marketed a further equity volume of EUR 8.4 million.

Said Board of Management member Thomas Kuhlmann: 'Demand for high-quality real estate investments remains stable. We are very satisfied with our success in placing our closed-end real estate funds.'

In the institutional fund business two properties were acquired. The acquisition of the Ulm and Würzburg hypermarkets increased the real estate assets of the HAHN FCP-FIS-German Retail Fund (HAHN FCP) to more than EUR 300 million. The fund's subscribed equity at the end of the first half came to EUR 180 million.

As a consequence, properties under management increased to EUR 2.13 billion (prior year: EUR 2.02 billion). Recurring income from fund and real estate management grew by 2.4 percent, to EUR 3.83 million. The letting rate remained unchanged at 97.6 percent at the end of June. Given the good retail environment, the Hahn Group has more than doubled its take-up, from 26,200 m² a year ago to about 56,100 m².

Approx. EUR 18.9 million of revenue from the partial PWF 151 fund placement already had to be generated in fiscal 2010, due to its deconsolidation. Settlement for the placement of PWF 154 (Schwerte) will take place in the second half, and will not yield revenue and income until then.

Because of these revenue and earnings effects, revenues stood at EUR 8.36 million (prior year: EUR 29.31 million). If the completed placements, with revenues and earnings effects pertaining to other periods, were added, the Hahn Group would have achieved revenues at roughly the same amount as last year.

- Gross profit (revenue less cost of sales) came to EUR 3.25 million, accordingly, compared to EUR 8.53 million for the same period last year. The above factors lowered the operating profit (EBIT) from EUR 2.96 million to EUR -2.55 million. The consolidated after-tax loss was EUR -2.74 million, compared to a profit of EUR 1.57 million last year, yielding earnings per share of EUR -0.23 (prior year: EUR +0.13).

- As a part of the income statement the personnel expenses have decreased by 6.5 percent, to EUR 3.31 million, despite non-recurring effects. The net finance expense improved to EUR -0.24 million (prior year: EUR -1.46 million), combined with a reduction in consolidated real estate assets.

The balance sheet total decreased from the end of 2010, because of the partial placement of real estate funds. As debt was retired at the same time, the equity ratio remained unchanged at 20.7 percent.

Outlook
We expect the positive environment for the real estate investment markets to continue. Demand for indirect real estate investments in particular should remain stable.

On July 26, the Hahn Group carried out the capital increase approved by the shareholders' meeting. The registration of 1,001,430 new shares increased the share capital from EUR 12 million to about EUR 13 million. The gross proceeds of EUR 5.51 million from the issue will support the company in its growth plans and increase the equity ratio to about 25 percent.

More Pluswertfonds funds will be marketed in the second half of 2011. The upcoming PWF 155 public fund will begin distribution at the beginning of September, and will invest some EUR 9 million in a superstore in Sigmaringen, with an environmentally friendly photovoltaic system. In the institutional business, the Hahn Group is aiming for another substantial increase in the investment volume of the HAHN FCP before the year is out.

Business is developing according to plan. We confirm our outlook, as stated in the annual report 2010. We remain confident that we will show a pre-tax profit (EBT) in the range of EUR 1 to 2 million.

You can find the German version of the semiannual report on the Web at: www.hahnag.de

Hahn Group
The Hahn Group has been a leading asset manager in retail real estate since 1982. It develops fund products for private and institutional investors and manages external real estate portfolios. The Hahn Group manages assets in excess of Euro 2 billion. With the experience gained from the issue of more than 160 closed-end real estate funds and institutional fund products, the Hahn Group aims for a high degree of investment security and strong returns on investment. Its comprehensive management services develop the full return potential of real estate and thus maximize value-added for its investors. The Hahn Group is listed on all German stock exchanges. Further information is available at: www.hahnag.de.

Contact information
Hahn Group
Marc Weisener
Investor and Press Relations
Buddestrasse 14
51429 Bergisch Gladbach
Phone: 02204-94 90-118
Fax: 02204-94 90-139
Email: mweisener@hahnag.de