Warimpex Finanz- und Beteiligungs AG: Growth in hotel sales revenues continues

Vienna/Warsaw (pta006/30.08.2011/08:05 UTC+2) * Hotel revenues up by 14 per cent
* EBITDA increased to EUR 9.4 million, EBITDA rose by 43 per cent in the second quarter
* Consolidated sales rose by around 9 per cent to to EUR 51.2 million.
* Result for the period minus EUR 3.2 million due to scheduled write-downs and lower earnings from property sales
* Sale of 12.5 per cent of Sobieski Hotel
* Completion of Airport City, St. Petersburg, in Q4 2011

Vienna, 30 August 2011 - The first half of 2011 saw clear stabilization in the hotel industry, a trend from which Warimpex Finanz- und Beteiligungs AG was also able to profit. Revenues continued to grow in the second quarter. Consolidated revenues rose by a substantial 9 per cent from EUR 47.1 million to EUR 51.2 million. Revenues from hotel operations improved by 14 per cent from EUR 42.6 million in the first six months of 2010 to EUR 48.4 million. This change was primarily the result of significantly higher revenues from the recently opened hotels in Ekaterinburg, ód, Katowice and Berlin, which have established themselves on the market and are now enjoying stable revenues.

This positive trend was especially evident in the cash flow from operating activities, which rose by 72 per cent to EUR 7.9 million thanks to the improved performance of the hotels. EBITDA, the most important indicator for real estate companies and a metric that is not distorted by the industry-specific valuation methods, are also solidly positive and improved further in annual comparison.

Successful hotel sale and bond issue
Warimpex sold a 12.5 per cent share in Sobieski Hotel in Warsaw in the first half of 2011. The profit from this transaction was EUR 1.5 million. Warimpex still held 12.5 per cent of the hotel as of 30 June 2011, and sold this share after the reporting date.
Warimpex was also able to successfully tap the financial markets during the last quarter. Between the end of April and end of May 2011, Warimpex successfully placed a convertible bond with a total nominal value of PLN 66.25 million (roughly EUR 16.8 million) on the Warsaw stock exchange.

Hotels show good results
Warimpex's Central and Eastern European core markets continued to develop differently in the second quarter of 2011, but occupancy rates and room rates were raised across the portfolio. The markets in Poland, Germany and France continued to develop satisfactorily.

Development
Our budget hotel project with Starwood Capital and Louvre Hotels is on schedule. Two Campanile and Première Classe budget hotels are currently under construction in the centre of the Polish city of Wrocaw and should be completed in the first quarter of 2012. Our Airport City development project in St. Petersburg is also proceeding smoothly. The first stage of the project, a four-star Crowne Plaza hotel (InterContinental Group) and the adjacent office building with 21,000 square metres of space, is to open in the fourth quarter of 2011, and the remaining 18,000 square metres will be completed as early as 2012 depending on rental demand.

Financial result
Consolidated revenues rose by a substantial 9 per cent from EUR 47.1 million to EUR 51.2 million. Revenues from hotel operations improved by 14 per cent from EUR 42.6 million in the first six months of 2010 to EUR 48.4 million. Revenues from the rental of offices and the provision of development services fell from EUR 4.5 million to EUR 2.7 million. The profit for the first half came in at minus EUR 3.2 million (H1 2010: EUR 3.7 million).

Earnings before interest, taxes, depreciation and amortization (EBITDA) increased from EUR 9.2 million in the first two quarters of 2010 to EUR 9.4 million in the reporting period, while the operating result (EBIT) decreased from EUR 13.4 million to EUR 7.6 million.

The Warimpex property portfolio was valuated by the independent international appraiser CB Richard Ellis (CBRE) as of 30 June 2011. Impairment losses that were recognized in 2009 could be reversed in the amount of EUR 7.9 million (H1 2010: EUR 14.5 million), at a level lower than expected because of the recent noticeable increase of tension on the financial markets. This had a significant impact on the operating result, which failed to improve as desired yet despite the higher EBITDA and the positive trend seen over the past months. However, the triple net asset value (NNNAV) increased by 6 per cent in annual comparison.

Outlook
Warimpex took key steps in the first half of 2011. Now, it will be especially important to utilize the new momentum on the transaction market to sell additional properties. Despite the fact that developments on the international financial markets in the past weeks need to be watched closely and have made the conditions under which Warimpex is operating considerably more difficult again, the Company looks to the future with optimism. Warimpex has many promising projects in the pipeline and is confident that it will benefit optimally from the traditionally stronger operational business in the second half of the year.

The numbers for the first half of 2011 at a glance

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Emitter:	Warimpex Finanz- und Beteiligungs AG Floridsdorfer Hauptstrasse 1 1210 Wien Austria
Contact Person:	Daniel Folian
Phone:	+43 1 310 55 00
E-Mail:	investor.relations@warimpex.com
Website:	www.warimpex.com
ISIN(s):	AT0000827209 (Share)
Stock Exchange(s):	Vienna Stock Exchange (Official Trade)
Other Stock Exchanges:	Warsaw