Colonia Real Estate AG is a Germany-based Company engaged in the acquisition, sale and management of real estate and investment companies, as well as in real estate asset management. It operations are dividend into two segments: Investment unit and Asset Management. The investment unit focuses on three investment profiles: high-yield residential properties in growth regions, for the Company’s own portfolio, and opportunistic co-investments with partners in the commercial property segment, as well as in the residential property segment. The Company's Asset Management unit services real estate portfolios, mainly for international investors. As of December 31, 2009, the Company had 16, from which nine were wholly owned, subsidiaries in Germany, Switzerland and the Netherlands

http://www.cre.ag
Address
Zeppelinstr. 4-8
Cologne, 50667
Germany
+49-221-7160710 (Phone)
+49-221-71607199 (Fax)

DGAP-News: Colonia Real Estate AG / Key word(s): Quarter Results
Colonia Real Estate AG: Colonia Real Estate AG's first-quarter result
impacted by restructuring expenditure following takeover by TAG
Immobilien AG

23.05.2011 / 08:00

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* First-quarter rental income (NOI) down slightly YOY to EUR 9.0 million 
* Restructuring expenditure of EUR 4.6 million Euro pushes EBT for Q1 2011 down to EUR -5.4 million (Q1 2010: EUR 0.3 million)

Cologne, May 23, 2011 - For Colonia Real Estate AG (or 'Colonia' in the following), the first quarter was dominated by the acquisition of a
controlling majority by TAG Immobilien AG (or 'TAG' in the following).
After the controlling majority of voting rights had been achieved in mid- February, an integration and restructuring process was prepared and
initiated across Colonia group's operations. This initially led to significant changes in the composition of the management and supervisory
boards. TAG's CEO and CFO will assume these positions at Colonia in addition to their tasks on the TAG Management Board. At the operations
level, synergies in asset and property management are to be realised by the end of the year. During the restructuring process, the focus will be on accelerating vacancy reduction and pooling the companies' capacities in managing the various portfolios. The initiated processes are also expected to lead to cost savings on internal administration and central tasks, and not least to pave the way for Colonia's integration into the TAG Group.
Initially, the EUR 4.6 million in restructuring expenditure on these measures has impacted first-quarter results.
In the first three months of 2011, Colonia generated total revenues of EUR 29.3 million after EUR 23.4 million in the comparable period of 2010.
Revenues from rent increased slightly, and amounted to EUR 21.9 million in, the first three months of 2011 after EUR 21.0 million in Q1 2010. This led to net rental income of EUR 9.0 million for Q1 2011 (Q1 2010: EUR 10.4 ,million). This first-quarter result yielded EBIT of EUR 2.3 million,
significantly down from the previous year's EUR 8.2 million. The first-quarter financial result was EUR -7.6 million after EUR -7.9 million
in Q1 2010, and led to negative pre-tax earnings (EBT) of EUR -5.4 million (Q1 2010: EUR 0.3 million) and a period result of EUR -5.6 million after
EUR 0.1 million in Q1 2010.