Full year 2011 unaudited estimated financial results

2011 financial highlights:

• Gross Asset Value (GAV) amounts to EUR 1,606 Million as at December 2011, a 8% yearly decrease due to assets sale and exchange rates, or a 5.4% yearly increase like-for like1.
• NAV per share is down to EUR 22.6 from EUR 28.6 as a result of the dilution resulting from the capital increase subscribed by MSREI, the net loss of the year and the foreign exchange result, partially compensated by the increased shareholding of the Group in Orco Germany.
• Revenues are at EUR 158 Million in 2011, to be compared to EUR 295 Million in December 2010 (pro forma). Property Investments demonstrate stable revenues at a level of EUR 110 Million despite disposals. Development activity strongly decreases to EUR 47 Million (compared to EUR 183 Million in 2010) due to the absence of sale of commercial properties.
• Operating result is stable at EUR 40 Million with decrease in operating expenses, cost of goods sold and net increase of impairment valuation changes on real estate assets compensating the decrease in revenues.
• Interest expenses are reduced from EUR 96 Million down to EUR 83 Million following some asset disposals and better liability management.
• Key sale transactions on Leipziger Platz and Russian business (except hospitality) generate long term receivables of EUR 65 Million.
• Loan To Value (LTV) excluding bonds stands at 52% compared to 54% in December 2010. While management prepares an equitization proposal to bondholders, LTV with bonds increases to 70%.
• Sharp currency movements in H2 mainly with decreases by 13% year on year of both the Polish Zloty and the Hungarian Forint contributing to more than 70% to the foreign exchange non cash loss amounting to EUR 12 Million in 2011. The GAV also decreases by EUR 38 Million as a result of Central European currencies weakening towards Euro.
• The net loss for the year amounts to EUR 43 Million compared to a net gain of EUR 233 Million, strongly impact in 2010 by the one off gain on the Safeguard bonds' restructuring. In 2011, the net operating result of EUR 40 Million is impacted by the interest expenses of EUR 82 Million and the negative foreign exchange result.