Aareal Bank AG

Aareal Bank Group posts good results, despite the financial markets crisis

Tue, 11 Nov 2008 00:01:00 +0100

Pre-tax profit of � 31 million for the third quarter of 2008;
� 106 million (� 122 million adjusted for non-recurring effects) for the first nine months
Third-quarter net interest income up 17% year-on-year
Allowance for credit losses remains stable
Sound liquidity status, backed by adequate capital base

Wiesbaden, 11 November 2008 � Aareal Bank posted positive results for the third quarter of 2008, in spite of the escalating crisis affecting global financial markets. Profit before taxes amounted to � 31 million. Adjusted for non-recurring effects attributable to the financial markets crisis, the Q3 result was � 41 million, exceeding both the previous quarter (Q2 2008: � 38 million) and the third quarter of the previous year (Q3 2007: � 32 million). Third-quarter Group net income after minority interest was � 15 million. This means that Aareal Bank Group has posted positive results in each quarterly reporting period since the onset of the financial market crisis. Financial performance Consolidated net interest income rose by 17% year-on-year during the third quarter, to � 117 million (Q3/2007: � 100 million), thanks to a higher level of risk-weighted assets and increased margins. With allowance for credit losses stable, at � 20 million (in line with the two preceding quarters), net interest income after allowance for credit losses was � 97 million, up from � 81 million for the third quarter of 2007. Net commission income totalled � 34 million, compared to � 32 million in the same period of the previous year. Net trading income/expenses of � 25 million reflected the impact of hedge transactions, and must be seen as a very satisfactory figure for the third quarter of 2008. The net figure included ongoing expenditure for securitisation transactions (�� 2 million), and write-downs on a bond issued by Lehman Brothers (�� 7 million); these items were offset by � 34 million in income from hedge transactions, whereby the corresponding negative results were reflected in the results from non-trading assets. At �� 37 million, results from non-trading assets for the period under review were dominated by the current market turbulence. (The � 162 million figure reported in the same period of the previous year included � 153 million in non-recurring income from the sale of the stake in Immobilien Scout GmbH.) The figure includes � 15 million in write-downs on equity holdings, which we recognised in income rather than in the revaluation surplus. Against the background of the deterioration of the financial markets crisis, the International Accounting Standards Board (IASB) adopted amendments to standards IAS 39 and IFRS 7 ("Reclassification of Financial Assets"), which the European Union approved in October. In particular, the amendments provide for the option to reclassify certain non-derivative financial assets within the measurement categories pursuant to IAS 39, with retrospective effect from
1 July 2008, and subject to certain conditions. Aareal Bank Group opted for reclassification, and now carries certain securities (which were previously measured at market value) at amortised cost. This approach is based on the fact that no active market existed for these securities during the third quarter of 2008. Had these assets not been reclassified, third-quarter income would have been reduced by � 17 million and the burden on the revaluation surplus would have amounted to � 39 million. Aareal Bank would still have posted a noticeable profit for the third-quarter even if it had not used the reclassification option. The net relief on third-quarter results was only � 2 million, with � 17 million attributable to accounting relief options offset by � 15 million in write-downs on equity holdings. The overall direct burden on third-quarter income resulting from the financial markets crisis amounted to � 10 million. Aareal Bank has not exercised the 'fair value option' which permits the carrying of liabilities at market value; this is in line with its previous financial statements. At � 84 million, administrative expenses were not only markedly lower year-on-year (Q3 2007: � 93 million), but also improved on the low figure posted for the previous quarter (Q2 2008: � 89 million). This highlights Aareal Bank Group�s continued strict cost discipline. Net other operating income/expenses was �� 5 million, compared to a � 10 million deficit the year before. The net figure includes � 8 million in provisions recognised for measures to enhance the efficiency of loan processing in our German business. On balance, consolidated operating profit for the third quarter amounted to � 31 million (Q3 2007: � 221 million, including non-recurring income of � 153 million from the sale of the stake in Immobilien Scout GmbH, plus � 63 million from the Interhotel transaction). After deduction of � 11 million in income taxes and � 5 million in income attributable to minority interests, consolidated net income after minority interests amounted to � 15 million (Q3 2007: � 183 million). Operating profit before taxes and minority interests for the first nine months of the financial year was � 106 million; adjusted for non-recurring effects, it was � 122 million. Consolidated net income after minority interests was � 56 million. Segment performance Aareal Bank maintained a new business policy � strictly focusing on quality � in its Structured Property Financing segment. New business generated during the period under review was � 2.1 billion, bringing the total figure for the first three quarters of 2008 to � 5.0 billion (9m 2007: � 8.8 billion). Net interest income was � 99 million, compared to � 95 million in the previous quarter, and � 83 million in the third quarter of 2007. Financing volumes remained virtually unchanged year-on-year: as at 30 September 2008, the volume of property financing under management amounted to � 23.7 billion (30 Sep 2007: � 23.7 billion), despite the sale of a residential financing portfolio sized at � 1.5 billion to Deutsche Postbank AG. The Consulting/Services segment, serving the institutional housing sector, once again showed a strong performance, delivering the ninth consecutive positive quarterly contribution. At � 11 million, operating profit was in line with the previous two quarters. The result � adjusted for the non-recurring income of � 153 million from the sale of the Immobilien Scout stake � was increased by � 7 million over the same quarter of the previous year. Sound liquidity status, backed by adequate capital base Aareal Bank Group continues to maintain sound liquidity, despite the current tensions on financial markets. During the first nine months of the 2008 financial year, the Group raised long-term funds totalling � 2.3 billion. The property financing portfolio to be refinanced totalled � 23.0 billion as at 30 September 2008 (30 Sep 2007: � 22.1 billion). With � 19.8 billion in long-term funding and very stable deposit volumes from the German institutional housing sector of
� 4.5 billion, Aareal Bank's liquidity profile is comfortable indeed. Aareal Bank thus considers its capital base to be appropriate � also against the background of current developments in the banking sector. The bank�s tier 1 ratio, in accordance with the German Banking Act (Credit Risk Standard Approach � �CRSA�), was 8.0% as at 30 September 2008, based on � 23.4 billion in risk-weighted assets (30 Jun 2008: � 22.0 billion). Operating business within budget, despite the financial markets crisis �Aareal Bank�s conservative business model, incorporating the two pillars of Structured Property Financing and Consulting/Services, has proved to be correct and sustainable � particularly during the current crisis", said Dr Wolf Schumacher, Chairman of the Management Board of Aareal Bank AG.

"We remain convinced that Aareal Bank Group is well-positioned. In spite of the crisis affecting financial markets, our operating business is within budget after the first nine months of the year. Nevertheless, as the dramatic market distortions seen over recent weeks have shown, the current environment does not permit any reliable forecast for the year 2008 as a whole", Schumacher added. Aareal Bank Aareal Bank AG is one of the leading international specialist property banks. The Aareal Bank share is included in Deutsche B�rse's mid-cap MDAX index. Aareal Bank operates on three continents: leveraging its successful European business model, the bank has established similar platforms in North America and in the Asia-Pacific region. It provides property financing solutions in more than 25 countries.

Aareal Bank opens representative office in Shanghai

Wed, 10 Sep 2008 00:00:00 +0200

Wiesbaden, 10 September 2008 � Regulatory authorities in China have approved the opening of an Aareal Bank AG representative office in Shanghai. At the same time, the authorities approved the appointment of Mr Thomas Adaemmer as the head of the representative office. "The licence to open a representative office is a key milestone in our endeavours to grow the business in Asia, and to further expand our portfolio of international exposures," said Norbert Kickum, member of the Management Board and responsible for the bank�s global distribution network. "Our primary objective is to leverage our local presence to intensify existing client relationships, and to win new clients." Aareal Bank pursues a �three-continent strategy� that extends across Europe, North America and the Asia/Pacific region. International financings already account for some 73 per cent of Aareal Bank�s overall credit portfolio, 4 per cent of which are derived from the Asia/Pacific region. The bank has been active in the region since 2004, through its Singapore subsidiary Aareal Bank Asia Limited, which also acts in the capacity of a distribution hub for the entire Asia/Pacific region. Aareal Bank Asia Limited was licensed as a merchant bank in August 2007. Keynote transactions in the region have included Aareal Bank�s mandate as Sole Lead Arranger and Underwriter to finance the USD 479 million purchase of an office building in Shanghai. Aareal Bank Aareal Bank AG is one of the leading international specialist property banks. The Aareal Bank share is included in Deutsche B�rse's mid-cap MDAX index. Aareal Bank operates on three continents: leveraging its successful European business model, the bank has established similar platforms in North America and in the Asia-Pacific region. It provides property financing solutions in more than 25 countries.

Aareal Bank Group remains on course in the 2008 financial year

Tue, 12 Aug 2008 00:01:00 +0200

Significant improvement in second quarter operating profit compared with the first quarter
Sharp increase in net interest income
Positive development continues in Consulting/Services segment

Wiesbaden,�12 August 2008 � Aareal Bank Group�s positive development continues during the course of the 2008 financial year, despite the persistently challenging market environment. In the second quarter of 2008 the international property specialist posted operating profit of � 48 million (Q2 2007: � 53 million), after � 27 million in the first quarter of 2008. Supported by an increase in lending volume and higher margins over the same period of the previous year, consolidated net interest income posted a particularly positive development, rising by 9.6% from � 104 million to � 114 million. In the Structured Property Financing segment, where it pursues a strict new business policy that focuses on quality and return, Aareal Bank benefited from the successful geographical diversification achieved within the scope of its three-continent strategy. Against the background of the current difficult market environment, Aareal Bank is aiming principally at expanding the interest-bearing business in Structured Property Financing, in order to further increase net interest income in this segment: in the second quarter of 2008, it rose by 6.7% to � 95 million (Q2 2007: � 89 million). The Consulting/Services segment continued to perform well. The previous quarter�s result (Q2 2007), which was defined by a � 5 million positive one-off effect from the shareholding in Immobilien Scout GmbH (which has been disposed of in the meantime), was almost matched in the second quarter of 2008, without the benefit of any non-recurring income. At � 11 million, the segment result before taxes was almost at the level of the same quarter of the previous year (Q2 2007: � 12 million). The greater importance of the segment as a stable source of income, particularly during turbulent times on capital markets, is reiterated once again by the rise in operating profit to � 22 million in the first half of this year, up from � 19 million in the same period of the previous year. The segment is therefore within the target range to meet the forecast for the year as a whole; that is to say, operating profit of � 40 to 50 million. Consolidated administrative expenses fell in the second quarter, to � 89 million from � 91 million in the same period of the previous year, and in the first half-year from � 180 million to � 177 million � this is a reflection of the strict cost discipline Aareal Bank Group continues to pursue. Dr Wolf Schumacher, Chairman of the Management Board of Aareal Bank, commented on the results of the first six months: �Aareal Bank Group is well on track in a market environment that remains difficult. Our solid business policy and business model comprising two strong pillars has proven successful in the course of the current financial year as well. Unlike many other international financial institutions, we have achieved a positive result in all quarters since the outbreak of the financial market crisis.� Group profitability: stable allowance for credit losses and administrative expenditure Net interest income for Aareal Bank Group for the second quarter of 2008 was � 114 million, and therefore � 221 million in the first half of the year (H1 2007: � 202 million). Allowance for credit losses of � 20 million in the second quarter was within the scope of our planning, and was slightly lower than the corresponding figure for the same quarter of the previous quarter (Q2 2007: � 22 million). Net interest income after allowance for credit losses for the first six months was � 181 million, compared with � 158 million for the first half of 2007. This equates to an increase of 14.6%. Six-month allowance for credit losses stood at � 40 million in 2008, after � 44 million in the first half of 2007. At � 35 million, net commission income in the second quarter was just short of the figure for same period of the previous year (Q2 2007: � 36 million). A lower net figure in the Structured Property Financing segment was offset by an increase in the Consulting/Services segment. Net commission income totalled � 68 million for the first half of the year (H1 2007: � 73 million). Net trading income/expenses, which was burdened by the financial crisis in the three previous quarters, was minus � 3 million for the period between April and June (Q2 2007: � 5 million). Developments in the first quarter of 2008 reflected a charge of approx. � 16 million, due to lower market-to-market valuations of asset-backed securities (ABS issues), in net trading income. There were no write-downs on ABS securities in the quarter under review, nor were there any defaults or rating downgrades on the portfolio with a residual nominal value of � 616 million (after scheduled redemptions). Net trading income also regularly includes ongoing expenditure for the bank's own securitisation transactions; as in the first quarter, these amounted to roughly � 2 million in the second quarter. The remaining balance of � 1 million was attributable to stand-alone derivatives, bank bonds, government bonds issued by EU member states, interest payments, and currency effects. Net trading income for the first half of 2008 was minus � 25 million, after a plus of � 7 million in the first six months of 2007 achieved before the outbreak of the financial markets crisis.� The result from non-trading assets was minus � 8 million in the second quarter (Q2 2007: � 14 million). The decline was due mainly to the sale of securities held in the investment portfolio. The result from non-trading assets for the first half-year therefore stands at � 1 million, compared with � 26 million for the same period of the previous year. Administrative expenses in the Group amounted to � 89 million in the second quarter, and � 177 million in the first half-year. Net other operating income/expenses posted a positive balance of � 16 million for the period from April to June, after minus � 2 million in the same quarter of the previous year. Income of � 7 million (Q2 2007: � 2 million) from the Deutsche Interhotel investment is also reflected in this item, with an additional � 3 million recognised in the result from investments accounted for using the equity method. On balance, consolidated operating profit for the second quarter amounted to � 48 million (Q2 2007: � 53 million). After deduction of � 16 million in income taxes and � 4 million in income attributable to minority interests, consolidated net income after minority interests amounted to � 28 million. Aareal Bank's operating profits totalled � 75 million in the first half of 2008, after � 132 million for the same period of the previous year, which was defined by non-recurring income. Consolidated net income after minority interests was � 41 million in the first six months, compared with � 89 million for the same period of the previous year. Structured Property Financing: expanding the interest-bearing business Notwithstanding the difficult environment on a number of important markets that were affected by the financial markets crisis, Aareal Bank succeeded in expanding its interest-bearing business further. The property financing portfolio under management was � 24.2 billion as at 30 June 2008, corresponding to an increase of 0.8% from year-end 2007. This increase was also supported by solid new business, which amounted to � 1.8 billion in the second quarter and � 2.9 billion in the first half-year. The bank continued to expand its international financing business, which now accounts for 73% of the total loan portfolio. The entire sales structure is being aligned to the three-continent strategy, where the activities of related economic regions are aggregated into regional sales centres ('hubs'). A new hub for Central and Eastern Europe (CEE) is being established in Warsaw, which should further enhance Aareal Bank�s market position in this region defined by strong growth. The establishment of our representative office in Moscow, which commenced operations on 1 July 2008, should also contribute to this expansion. During the period under review, Aareal Bank continued its strategy of focusing on its core business, whereby it disposed of a portfolio of residential property loans totalling around � 1.47 billion to Deutsche Postbank AG. Aareal Bank has concentrated on commercial property finance since 2002. The successful transaction has reduced roughly 84% of the bank�s residential property loan portfolio. Consulting/Services: stable and positive sources of income In the second quarter of 2008, Aareal Bank Group continued to strengthen its position as market leader for integrated payment systems for the property management sector. In the first half-year, the bank acquired eight additional users � managing a total of 40,000 rental units between them � as new clients for the BK 01 payments system. The positive trend in the business development of Aareon AG, a leading European systems house for the commercial housing sector, also continued during the second quarter. The successful realignment of the segment and investments made in new products in recent years are increasingly paying off � across all business units. The marketing of the Blue Eagle property software followed up on the sales successes realised in the previous quarter. The Consulting/Services segment generated stable sources of income that remained largely immune from the turbulences on the financial markets. Refinancing: comfortable liquidity situation Aareal Bank�s liquidity profile remains comfortable. Aareal Bank Group successfully shaped its scope for refinancing on the capital market, even in the difficult market environment experienced in 2008. The bank raised a total of around � 1.7 billion in long-term funds during the first half-year: � 1.2 billion in the second quarter of 2008 alone. The property financing portfolio to be refinanced totalled � 23.0 billion as at 30 June 2008. With � 20.1 billion in long-term funding and very stable deposit volumes from the institutional housing sector of � 4.5 billion, Aareal Bank's liquidity profile is comfortable indeed. Outlook: developments in line with projections in the latter course of the year The impact of the crisis affecting financial markets and accelerating inflationary pressures will continue to burden the world economy throughout the remainder of this year, extending into the start of 2009. This makes it generally more difficult to deliver forecasts. Backed by the good results for the first half-year, Aareal Bank Group remains cautiously optimistic for the remainder of the year as well. Dr Wolf Schumacher, Chairman of the Management Board summarised thus: �We sincerely believe that Aareal Bank Group�s strategy of focusing consistently on two core segments has proven to be correct and sustainable. Aareal Bank is well positioned to continue successfully along the path upon which it has embarked, even in the current market environment. Given no further major distortions on the financial markets, we continue to believe that operating profit in 2008 will match that of the previous year�. Aareal Bank Aareal Bank AG is one of the leading international specialist property banks. The Aareal Bank share is included in Deutsche B�rse's mid-cap MDAX index. Aareal Bank operates on three continents: leveraging its successful European business model, the bank has established similar platforms in North America and in the Asia-Pacific region. It provides property financing solutions in more than 25 countries.

Aareal Award of Excellence to start second round

Wed, 06 Aug 2008 00:01:00 +0200

�Aareal Award of Excellence in Real Estate Research� presented for the first time at international level Wiesbaden, 6 August 2008 � Aareal Bank AG, together with the Real Estate Management Institute (REMI) will present the annual �Aareal Award of Excellence in Real Estate Research� for the second time. This year, for the first time, the competition will be directed at students from international universities. The award carries prize monies totalling � 10,000 and is intended to reward superior scientific endeavour in the field of real estate economics. Linking research and teaching at international level The consistent enhancement of the award, which was presented for the first time in February 2008, emphasises the organisers� international focus. Pursuing a three-continent strategy, Aareal Bank AG is represented in Europe, the US and in Asia, offering local market expertise in more than 25 countries. �Promoting young scientists, supporting research, and helping to network science and teaching at international level - those are the goals we are pursuing with the �Aareal Award of Excellence in Real Estate Research�, noted Dr. Wolf Schumacher, Chairman of the Management Board of Aareal Bank AG. He also emphasised that Aareal Bank AG�s dedicated commitment to promoting high-potential young professionals recognises its obligation to society. With its international profile featuring more than 150 partner universities throughout the world, its interdisciplinary approach, and consistent reference to practice, REMI is committed to offering state-of-the-art undergraduate and graduate programmes while at the same time fostering research. �Education thrives on innovation and innovation stems from excellent research. We see this new prize as an initiative especially to get young professionals interested and involved in research,� explained the institute�s director, Prof. Nico Rottke. Aareal Bank AG has sponsored a professorship at the REMI since 2006; with the internationalisation of the award, the cooperation continues to be strengthened. Participation and subjects 2009 The media partner for the award is the Immobilien-Manager trade magazine. This specialist publication supports the jury particularly in selecting the topics to be included in the call for submissions. Papers for the Award 2009 may be entered, no later than 16 January 2009, in any of the three areas of real estate financing, real estate risk management and environmental efficiency in the real estate sector. Scientific papers of all categories, i.e. Bachelor or Master theses, diploma or doctoral theses of all types of universities including universities of applied science and universities of cooperative education are admitted to the competition. The rules for participation can be found under www.rem-institute.org (click on �Forschung� and then on �Aareal Award of Excellence�). Award ceremonies 2009 An independent jury chaired by Prof. Dr. Nico B. Rottke will select the best works from the submitted papers. The �Aareal Award of Excellence in Real Estate Research� will be presented on 27 February 2009 on the occasion of the EBS Real Estate Congress on the campus of the European Business School at Schlo� Reichartshausen in Oestrich-Winkel. Aareal Bank Aareal Bank AG is one of the leading international specialist property banks. The Aareal Bank share is included in Deutsche B�rse's mid-cap MDAX index. Aareal Bank operates on three continents: leveraging its successful European business model, the bank has established similar platforms in North America and in the Asia-Pacific region. It provides property financing solutions in more than 25 countries.
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Real Estate Management Institute The Real Estate Management Institute (REMI) at the European Business School (EBS) is one of Germany�s leading institutions of higher education and research in the field of real estate. With its commitment to excellence, entrepreneurship and internationalism in science, REMI offers curricula in the tenets of real estate economics with a focus on real estate investments, financing and valuation. These are complemented by the interdisciplinary fields of law, taxes and economics.

Aareal Bank on track for growth in Central and Eastern Europe - Representative office opened in Moscow

Wed, 02 Jul 2008 00:01:00 +0200

Wiesbaden, 2 July 2008 � Aareal Bank AG opened a representative office in Moscow on 1 July 2008. Following official approval the Central Bank of the Russian Federation (CBR), the office � located in the heart of Russia�s capital city � is now authorised to commence business operations. The opening of the new representative office is an important step within the framework of Aareal Bank�s plans to achieve broad global diversification and to further expand its credit portfolio exposure to Central and Eastern Europe (CEE). The business activities of Aareal Bank�s Polish subsidiary � Aareal Financial Service Polska Sp. z o.o., Warsaw � were transferred to Aareal Bank's newly-established Warsaw branch, also with effect from�1 July 2008. The transfer has been approved by the Polish Financial Supervisory Authority (PFSA). The new branch office was established in order to concentrate Aareal Bank�s businesses in the CEE region, and to strengthen the good position that the bank already commands in that market. Accordingly, sales activities in Poland, the Czech Republic, the Republic of Slovakia, the Russian Federation, and Romania will henceforth be concentrated at the Warsaw branch. Norbert Kickum, member of Aareal Bank�s Management Board, explained: �In line with our three-continent strategy, we will structure our distribution activities through so-called hubs � distribution centres focusing on a specific economic region.� He explained that, leveraging the success of the model Aareal Bank introduced in Scandinavia, the bank has developed Singapore into its Asian hub. Concentrating sales activities for Central and Eastern Europe is the next logical step: �The structure of a hub provides us with great flexibility, which we will utilise to develop our growth potential across the entire CEE region even more efficiently�, Norbert Kickum added. With regard to the new representative office in Moscow, Karl Wilson, Managing Director of Aareal Bank and head of the new CEE hub in Warsaw, explained that Russia is one of the key growth markets in the CEE region: �Our local expertise will allow us to maintain direct, close contact with our clients and focus on their specific needs.� The assets that Aareal Bank will finance in Russia comprise mainly large office buildings, hotels and shopping centres in the Greater Moscow and
St Petersburg regions. Aareal Bank has had a presence in the CEE region since 1998, and in Russia since 2003. It is one of the leading property finance houses in the CEE region. The bank was honoured as �Best Property Bank in Central and Eastern Europe� within the scope of the CEE Real Estate Quality Award in 2004 and 2006, in recognition of its success. Last year, roughly 8.5 percent of Aareal Bank�s new business was generated in this region. Aareal Bank Aareal Bank AG is one of the leading international specialist property banks. The Aareal Bank share is included in Deutsche B�rse's mid-cap MDAX index. Aareal Bank operates on three continents: leveraging its successful European business model, the bank has established similar platforms in North America and in the Asia-Pacific region. It provides property financing solutions in more than 25 countries.

Aareal Bank launches new electronic banking package for the institutional housing sector

Tue, 03 Jun 2008 00:01:00 +0200

Wiesbaden, 3 June 2008 � Aareal Bank's Institutional Housing Business has launched �Aareal Account�, a new electronic banking solution that facilitates mass payments for clients. Scheduled for launch in June 2008, Aareal Account comprises a suite of payments services and account products. Aareal Account allows clients to execute mass payments via a direct link to Aareal Bank - independent of the client�s industry sector or IT platform used. Aareal Bank is one of the leading providers of optimised payments and other banking and financial services, with a focus on the institutional housing and property management sectors. BK01 and BKXL, its tried-and-tested payment modules have been integrated into several enterprise resource planning (ERP) systems commonly used in the commercial housing sector, including �Blue Eagle�, the SAP-based solution developed by Aareal Bank�s subsidiary Aareon AG. As a �stand-alone� electronic banking product that can be run independently of any existing ERP system, Aareal Account has been developed specifically for smaller enterprises. With this additional product, Aareal Bank aims to explore further target customer groups. Users access Aareal Account through a portal site protected by state-of-the-art encryption technology; thanks to this web-based access option, the solution does not tie up computing capacity at companies using it. The portal can be used to submit all types of payment orders and release instructions: it can also import electronic account information. Moreover, through the use of 'virtual' account numbers, Aareal Account helps to improve reconciliation of bank account entries to pending items in the internal accounting system � thereby avoiding errors. Aareal Account users also gain access to various value-added services, including Aareal Bank�s newly-developed accounts management system, which is already compliant with SEPA, the Single Euro Payments Area. Available on a 24/7 basis, the accounts management system offers particular benefits in terms of flexible account schemes and user authorisation levels.

Aareal Bank Group

Aareal Bank is one of the leading international specialist property banks. The Aareal Bank share is included in Deutsche B�rse's mid-cap MDAX index. Leveraging its successful European business model, Aareal Bank�s Structured Property Financing segment is active on three continents, having established similar platforms in North America and in the Asia-Pacific region. It provides property financing solutions in more than 25 countries. The Consulting/Services segment, which includes the Institutional Housing Business, offers the institutional housing sector a comprehensive range of services for managing residential property portfolios and processing mass payment flows. The bank is a market leader in providing payments services to German property companies.

Aareal Bank's Annual General Meeting passes resolution to distribute dividends, approves hive-off of retail portfolio

Wed, 21 May 2008 00:01:00 +0200

Business model proven, even in a challenging environment
Dr Schumacher cautiously optimistic for business performance during the remainder of the 2008 financial year

Wiesbaden, 21 May 2008 - Aareal Bank AG will pay an unchanged dividend of � 0.50 per share to its shareholders for the 2007 financial year. Today�s Annual General Meeting passed a corresponding resolution, with a 99,87% majority of the capital represented.

Shareholders also approved the other proposals on the agenda with a large majority. These included the hive-off and transfer of a portfolio of private home loan financings to a subsidiary of Aareal Bank, in preparation for the sale of this portfolio. Aareal Bank AG already disclosed on 20 May 2008 that it had entered into a corresponding agreement with Deutsche Postbank AG. Under the transaction, Postbank will acquire the portfolio, which comprises approx. 28,000 individual loans with an aggregate volume of � 1.47 billion. The portfolio consists of approx. � 1,040 million of loans originated by Aareal Bank, plus approx. � 430 million of loans from DEPFA Deutsche Pfandbriefbank AG�s residual property finance portfolio, which Aareal Bank has been responsible for since 1999.

The purchase agreement itself was not the subject of a resolution passed by the General Meeting.

Dr Wolf Schumacher, Chairman of Aareal Bank�s Management Board, expressed his strong satisfaction with the results achieved in the 2007 financial year: �Clearly, our strategy of focusing consistently on our two core segments of Structured Property Financing and Consulting/Services proved to be correct and sustainable. Aareal Bank concluded the financial year under review with the best result in its corporate history.� Consolidated net income after minority interests climbed by 171% to � 290 million for the 2007 financial year, equivalent to a return on equity after taxes of 25.0%.

Schumacher also said that Aareal Bank held its ground well, even in a market environment that remained difficult during the first quarter of 2008, which he referred to as the �toughest and most challenging quarter the financial services sector has faced to date�. Operating profit of � 27 million, adjusted for non-recurring items, was up 2.4% on the same period of the previous year. �In view of the difficult market environment, we decided upon a conservative strategy, with a selective approach to doing business. As a result, we were free to decide, at any time, on our positioning in terms of lending and funding�, Schumacher emphasised.

Addressing the bank�s shareholders, the Chairman of the Management Board also affirmed the targets already communicated by Aareal Bank Group: �We remain cautiously optimistic for business during the remainder of 2008, although the financial markets crisis renders any forecasting in the property financing business extremely difficult. Assuming that the distortions in the financial markets will not prevail, we continue to believe that operating profit in 2008 will match that of the previous year.�

Provided markets return to normal next year, Aareal Bank Group aims to achieve a return on equity after taxes of around 13% by the year 2010. The cost/income ratio in the Structured Property Financing segment should then be less than 40%. Average risk-weighted assets are planned to increase to � 27 � 28 billion. The bank projects an increase from � 65 million to � 75 million in operating profit in the Consulting/Services segment, which is more than double the figure achieved in 2007.

Aareal Bank

Aareal Bank AG is one of the leading international specialist property banks. The Aareal Bank share listed in Deutsche B�rse's mid-cap MDAX index. Leveraging its successful European business model, Aareal Bank is active on three continents, having established similar platforms in North America and in the Asia-Pacific region. It provides property financing solutions in more than 25 countries.

Aareal Bank sells � 1.47 billion private client portfolio to Postbank

Tue, 20 May 2008 00:01:00 +0200

Wiesbaden, 20 May 2008 � Aareal Bank AG has sold a portfolio of private construction financing with a total volume of approx. � 1.47 billion to Deutsche Postbank AG. Without exception, the portfolio consists of performing loans. Both parties have agreed not to disclose the purchase price. The transaction does not have any impact on Aareal Bank�s annual result. These loans will be transferred by spinning them off to subsidiaries which will be sold to Postbank. This transaction requires the approval of the Annual General Meeting of Aareal Bank, which is being held on 21 May 2008, as well as the clearance from the German Federal Cartel Office. This transaction will presumably be concluded by the third quarter of 2008. The sale of this loan portfolio is fully in line with the consistent focus by Aareal Bank on its core business. Since 2002, Aareal Bank has concentrated on commercial property financing projects and has no longer been active in private client operations since then. Approximately 84% of the private construction loans at Aareal Bank will have been reduced with this transaction. �With Postbank, we have been able to win over one of the largest retail banks in Germany for this transaction, whose focus, amongst others, lies on private construction financing. We are convinced, therefore, that our clients will receive sustained and comprehensive service under the umbrella of the Postbank Group. With regard to the legal structure of this transaction, both companies have attached special importance to the fact that their clients� rights will be fully preserved�, commented Hermann J. Merkens, the Aareal Bank Board member responsible for this transaction. As part of this transaction, Postbank is acquiring a portfolio of approx. 28,000 private loans. This portfolio comprises financing with a total volume of � 1,040 million from Aareal Bank and financing from the remainder of property credits of DEPFA Deutsche Pfandbriefbank AG totalling � 430 million, for which Aareal Bank has in been responsible since 1999. �With this transaction, we have succeeded in disposing of business that is not in line with our strategy�, said Merkens. �At the same time, we are reducing the complexity within our ompany with this sale, by decreasing the number of interfaces with DEPFA Deutsche Pfandbriefbank AG and ending up agreements with cooperation and trust partners�, Merkens went on to say.

Aareal Bank

Aareal Bank AG is one of the leading international specialist property banks. The Aareal Bank share is listed on the Deutsche B�rse�s mid-cap MDAX index. Leveraging its successful European business model, Aareal Bank is active on three continents, having established similar platforms in North America and in the Asia-Pacific region. It provides property financing solutions in more than 25 countries.

Aareal Bank finances the purchase of an office building in Shanghai, providing US$ 479 million in Senior Financing as Sole Arranger and Underwriter

Fri, 16 May 2008 00:01:00 +0200

Singapore/Shanghai, 16 May 2008 � Aareal Bank AG has been mandated by Asia Pacific Land Group (APL) as Sole Arranger and Underwriter, for a Senior Financing US$ 479 million for the purchase of an office building in Shanghai. APL manages real estate assets with an aggregate value of approximately US$ 3 billion in Asia. The property acquired is a 45-floor building located in Shanghai�s central Puxi district. Built in 2004 by international conglomerate Hutchison Whampoa Group, the building is one of the few international �Grade A+� office towers in Shanghai and is fully leased with top-tier multinational tenants. The financial close of the deal was today. �Our strategy in the Asia/Pacific region is to finance first-class properties acting as Sole Arranger and Underwriter�, explained J�rgen Hetzler, CEO of Aareal Bank Asia Limited, Singapore. �Our clients and partners benefit from our expertise and our ability to structure and finance deals on a stand-alone basis. We draw on a team of seasoned experts with a broad range of Structured Property Financing solutions.� Established in Singapore in 2004, Aareal Bank Asia Limited was licensed as a Merchant Bank in August, 2007. Aareal Bank�s Singapore-based subsidiary acts as the bank�s sales hub for the entire Asia/Pacific region. �The importance of the Asian market for Aareal Bank continues to grow�, added Norbert Kickum, member of Aareal Bank�s Management Board and responsible for the bank�s global distribution network: "Providing this financing is a milestone and a benchmark for our expansion in the region.� �We are delighted with Aareal Bank�s expertise, support and execution in this landmark transaction. We look forward to our continued partnership with Aareal Bank,� said William Schoenfeld, President of APL.

Aareal Bank

Aareal Bank AG, headquartered in Wiesbaden, Germany, is one of the leading international specialist property banks. The Aareal Bank share is included in Deutsche B�rse's mid-cap MDAX index. Leveraging its successful European business model, Aareal Bank is active on three continents, having established similar platforms in North America and in the Asia-Pacific region. It provides property financing solutions in more than 25 countries.

Aareal Bank Group starts the 2008 financial year on a positive note, despite the challenging environment

Wed, 14 May 2008 00:01:00 +0200

Net interest income rises to � 107 million
� 27 million operating profit, despite write-downs on the ABS portfolio
Structured Property Financing originates new business on a selective basis, with higher margins
Continued improvement in results contributed by the Consulting/Services segment

Wiesbaden, 14 May 2008 � Aareal Bank Group maintained its positive business momentum during the first months of 2008, in a market environment that continues to be difficult. The international property specialist posted operating profit of � 27 million for the first three months of the year. Adjusted for special effects, this figure was higher than in the same quarter of the previous year: the operating profit figure for the first quarter of 2007 (� 79 million) included � 37 million (before taxes) in non-recurring income, whilst the figure for the period under review was burdened by � 16 million in charges from the revaluation of the ABS portfolio, as a result of the global financial crisis. Consolidated net income after minority interests amounted to � 13 million for the first quarter of 2008 (Q1 2007: � 51 million, including non-recurring effects). In the Structured Property Financing segment, Aareal Bank pursues a strict, selective new business policy that focuses on quality and return, and on attractive high-margin market opportunities. In this context, the volume of business in the first three months declined, to � 1.1 billion (Q1 2007: � 2.2 billion), also due to the drop in transaction volumes on major property markets as a consequence of the financial crisis. At the same time, the bank achieved a significant year-on-year increase in interest margins on new business. The Consulting/Services segment, serving the institutional housing sector, showed another strong performance during the first quarter of 2008. Posting a further increase in operating profit, to � 11 million (Q1 2007: � 7 million), the segment once again demonstrated its increasing importance as a stable source of income. Dr Wolf Schumacher, Chairman of the Management Board of Aareal Bank, commented: �Aareal Bank Group performed very well during the first quarter of 2008, against a background of ongoing market difficulties. Our business model, incorporating the strong two columns of Structured Property Financing and Consulting/Services, is not only unique in our industry, but has also once again proved its robustness. We are well positioned to weather the challenges we face in the market. Over the coming months, we will continue to consistently � and selectively � exploit the opportunities available to our Structured Property Financing segment, and we will further expand our market position in Consulting/Services.� Financial performance: higher net interest income Aareal Bank�s consolidated net interest income for the first three months of 2008 was � 107 million, up 9.2% (Q1 2007: � 98 million). Provisions for loan losses were slightly lower, at � 20 million (Q1 2007: � 22 million). Net interest income after loan losses thus rose by 14.5%, to � 87 million (Q1 2007: � 76 million). At � 33 million, net commission income was lower than in the same quarter of 2007 (Q1 2007: � 37 million), mainly due to the bank�s more selective new business policy in 2008, and lower prepayments compared with the previous year. Higher net commission income generated in the Consulting/Services segment offset the respective decrease in Structured Property Financing to some extent. Net trading income was down by � 24 million compared to the previous year's figure, to minus � 22 million. First-quarter developments reflected a charge of approx. � 16 million in lower mark-to-market valuations of Asset Backed Securities (ABS issues). Net trading income also regularly includes ongoing expenditure for the bank�s own securitisations; these amounted to approx. � 2 million during the first quarter. The remaining balance was attributable to stand-alone derivatives, bank bonds, government bonds issued by EU member states, interest payments, and currency effects. Roughly 90% of the ABS issues held are rated AAA. These ratings have remained stable since the onset of the US financial crisis, with some issues even having been upgraded. Aareal Bank Group has no direct or indirect exposure to the US sub-prime market, nor does it hold any investments in US RMBS issues, CDOs, or in any transactions guaranteed by monoline insurers.� Results from non-trading assets of � 9 million (Q1 2007: � 12 million) were largely attributable to the disposal of securities from the available-for-sale portfolio. Net other operating income/expenses was positive, at � 6 million. The corresponding figure of � 39 million for the first quarter of 2007 included a � 37 million compensation payment received from DEPFA Deutsche Pfandbriefbank AG. Administrative expenses were reduced from � 89 million in the first three months of 2007 to � 88 million in the first quarter of 2008. Consolidated operating profit thus amounted to � 27 million. After deduction of � 9 million in income taxes and � 5 million in income attributable to minority shareholders, consolidated net income after minority interests amounted to � 13 million. Structured Property Financing successful across three continents Aareal Bank continued to push ahead with the successful three-continent strategy adopted in its Structured Property Financing segment. Just under 90% of new business, totalling � 1.1 billion, was originated outside Germany: North America accounted for 15.9%, and the high-growth Asia/Pacific region 6.6%. At � 23.7 billion (31 March 2008), the property financing portfolio under management contracted slightly, compared to the end-2007 figure of � 24 billion. This was primarily attributable to the selective stance adopted vis-�-vis new business. At the same time, the continued high proportion of new international commitments further enhanced the regional diversification of Aareal Bank�s portfolio. At the end of the first quarter, the share of international financings amounted to 71% of the overall portfolio. Consulting/Services: stable source of income The Consulting/Services segment carried the strong performance shown in the previous financial year into the period under review. Results at the Aareon AG subsidiary slightly outperformed the seasonal budget, as the multi-product strategy implemented in 2006 and 2007 � comprising the four enterprise resource planning (ERP) systems Blue Eagle, GES, Wohndata and Wodis � continues to bear fruit. Aareal Bank Group further extended its client base in the payments and deposit-taking businesses: the Group envisages significant distribution potential for its �BK01� family of mass payment products, also through an expansion of sales to other sectors beyond the commercial housing sector. The operating profit generated in the Consulting/Services segment rose to � 11 million in the first three months of 2008 (Q1 2007: � 7 million). For seven quarters in a row now, the segment has been making a positive profit contribution, and has thus evolved into a key source of income and an integral part of Aareal Bank Group. Refinancing: growing importance of Pfandbrief issuance Aareal Bank successfully shaped its scope for refinancing during the first quarter of 2008. The bank raised � 490 million in long-term funds up until the end of March, with mortgage bonds accounting for � 400 million, public-sector covered securities for � 30 million, and senior unsecured issues for � 60 million. Thanks to the high quality and strict legal framework governing Pfandbrief issues, German covered bond issues are a key element of Aareal Bank�s funding mix. Aareal Bank is maintaining its plans to clearly expand the Pfandbrief share of refinancing activities in the medium term, from currently 35% in terms of the bank�s property financing portfolio, the proportion of mortgage bond refinancing is planned to increase from 25% at present to around 30% by the end of 2008. The significant level of deposits attracted by the Group�s Institutional Housing Business also offers competitive advantages on the refinancing side, and clearly reduces dependency on the money and capital markets in the current volatile environment. Average deposits taken amounted to approx. � 4.5 billion during the first quarter of 2008. Outlook: cautiously optimistic The Management Board maintains its cautiously optimistic stance for the year 2008 as a whole: �Based on our performance during the first quarter, during which our business model once again demonstrated its resilience and sustainability, we still believe that we will be able to match 2007�s operating profit in the current year � unless the distortions on financial markets continue to prevail�, Schumacher explained. The Chairman of Aareal Bank's Management Board added: �At the same time, we will undertake all internal measures required to sustain our competitiveness, within the scope of our adjusted growth programme �FUTURE 2010�. This will provide the basis for Aareal Bank Group�s continued success, regardless of the changing framework.� The uncertainty affecting the current market situation continues to make a precise forecast for the Structured Property Financing segment difficult. During the remainder of the year, Aareal Bank will continue to pursue a selective new business origination policy, with strict requirements in terms of quality and returns, to consistently exploit available market opportunities. It is envisaged that the positive performance of the Consulting/Services segment will prevail.

Aareal Energy Forum: Launch panel analyses "Competitive developments in the European power market"

Fri, 25 Apr 2008 00:01:00 +0200

Wiesbaden/D�sseldorf, 25 April 2008 � �Aareal Energy Forum� is the platform Aareal Bank Group will use from time to time to bring together experts from the European power industry for an exchange of ideas on topical issues. The launch event took place on 24 April 2008 in D�sseldorf in the presence of Christa Thoben, Minister of Economics, Medium-sized Companies and Energy of the Land of North Rhine-Westphalia and was entitled �Competitive developments in the European power market�. In a panel discussion leading representatives of the German energy industry, among them the President of the Federal Network Agency, Matthias Kurth, talked about this issue. �The Aareal Energy Forum is intended to enhance the dialogue and the discussion in the energy and power sector � a sector which has to� face the challenges of an increasing and transnational competition as a result of new European guidelines�, explains Thomas Ortmanns, Member of the Management Board at Aareal Bank AG and responsible for the Consulting/Services segment, whose clients include power and other energy trading companies. �In a strongly regularised market like the power market, it is vital for the players to constantly optimise their processes in order to maintain a sustainably competitive position�, adds Ortmanns. Aareal Bank AG is Germany�s market leader for payment services solutions for the institutional housing industry, offering customised payment solutions oriented in the specific needs of the energy industry, thus making use of the synergy effects arising from both sectors. �Our premium solution BK 01 is well established in the institutional housing industry since many years�, states Ortmanns. �On the basis of our long standing expertise, we are able to successfully offer this standard product to the power industry and disposal companies.� Aareal Bank provides the module �BK 01� mit SAP for Utilities�� to optimise the process of mass payment transactions, a tool that has been customised for the needs of the public utilities and disposal industry. It has been developed by SAP for Aareal Bank and is a payment solution integrated into SAP. The system offers SAP-customers an automatic allocation of all business transactions related to payment transfers, with a match rate of nearly 100 %. It leads to a considerable reduction of time, effort and costs. To this target group, Aareal bank offers the product �BK 01 immoconnect� as a customer retention tool. Information for the editorial departments:
We will be glad to provide photos of the event on request. � Launch event Aareal Energy Forum:
�Competitive developments in the European power market�
24� April 2008 in Dusseldorf

Presentation:	�
Dirk Lindgens	Chief editor e/m/w, Journal for Energy, Market, Competition (Zeitschrift f�r Energie, Markt, Wettbewerb)
Opening remarks:	�
Dr. Volkhard Riechmann	Head of the section �Energy, Climate Protection and Mining� in the Ministry of Economic Affairs, North Rhine-Westphalia
Panel discussion:	�
Matthias Kurth	President of the Federal Network Agency for Electricity, Gas, Telecommunications, Post and Railway
Dr. Thomas Mecke	Chairman of the Management Board NUON Deutschland GmbH
Hans-Joachim Reck	CEO of the VKU, Association of Municipal Companies (Verband kommunaler Unternehmen)
Dr. J�rgen Kroneberg	Member of the Management Board RWE Energy AG
Thomas Ortmanns	Member of the Management Board Aareal Bank AG

Aareal Bank Group� Aareal Bank AG is one of the leading international property specialists listed in Deutsche B�rse�s MDAX index. In the business segment Real Estate Structured Finance the bank is active across three continents. Based on the successful European business model, we have developed a similar platform in North America and Asia/Pacific. We provide property financing solutions in more than 25 countries. In the business segment Consulting / Services Aareal Bank offers comprehensive services for the administration of housing portfolios and the processing of money transfer for companies with mass payment transactions. It is market leader in Germany for payment transactions in Real Estate companies.

New publication of "Real Estate Capital Markets" Handbook

Thu, 10 Apr 2008 00:01:00 +0200

Co-operation between Real Estate Management Institute (REMI) and Aareal Bank Wiesbaden, 10 April 2008 � The various aspects of interaction between capital and property markets at international level are subject to analysis by the newly published �Real Estate Capital Markets� Handbook - an international perspective on functionality, subprime crisis and future developments�. In this Handbook, 55 leading international authors from the research and economic sector explain the fundamental changes in the field of real estate economics during the last few years. One of the Handbook�s main topics is the increasing global interconnection between property and capital markets. The editor of this book is Professor0 Dr. Nico B. Rottke, Director of the Real Estate Management Institute (REMI) at the European Business School (EBS). �This Handbook provides an excellent, state-of-the-art synopsis of real estate economics research and will assert itself as international standard work� notes Dr. Wolf Schumacher, Chairman of the Management Board of Aareal Bank AG. REMI has been supported by Aareal Bank AG for a long time. Both institutes have been working closely together for years in the fields of research and the promotion of young scientists.� Aareal Bank AG has sponsored the Aareal professorship for Real Estate Banking at the REMI since 2006 and in February 2008, the Bank and REMI together celebrated the premier presentation of the� �Aareal Award of Excellence in Real Estate Research�. The competition will be held each year and is intended to reward outstanding scientific achievements in real estate economics. �By supporting our institute, Aareal Bank sets the framework conditions which are indispensable for facilitating the execution of challenging and topical scientific projects like the publication of this book in English� explains Professor Nico Rottke. The Handbook can be ordered under ISBN number 978-3-89984-165-7 at the price of 129 Euro (99 Euro as introductory price until 30 June 2008). Real Estate Management Institute The Real Estate Management Institute (REMI) at the European Business School (EBS) is one of Germany�s leading institutions of higher education and research in the field of real estate. With its commitment to excellence, free enterprise and internationalism in science, REMI offers curricula in the tenets of real estate economics with a focus on real estate investments, financing and valuation. These are complemented by the interdisciplinary fields of law, taxes and economics. Aareal Bank Aareal Bank AG is one of the leading international specialist property banks. The Aareal Bank share is included in Deutsche B�rse's mid-cap MDAX index. Aareal Bank operates on three continents: leveraging its successful European business model, the bank has established similar platforms in North America and in the Asia-Pacific region. It provides property financing solutions in more than 25 countries. �

Aareal Bank Group proves its business model in a challenging environment

Fri, 28 Mar 2008 00:01:00 +0100

Consolidated net income almost tripled, to post record results for 2007
Three-continent strategy for Structured Property Financing to be pursued further in 2008
Consulting/Services once again expected to contribute stronger results

Wiesbaden, 28 March 2008 � Looking back on the most successful year in its corporate history, Aareal Bank Group is confident of being able to hold its course in a market environment that continues to be challenging, and to sustain its profitable growth trend over the coming years. �Aareal Bank Group is in an excellent strategic position. Thanks to its performance during the last two years, the Group is in a very robust state today. Our business model, incorporating the two strong columns of Structured Property Financing and Consulting/Services, is unique in our industry. What is more, it has turned out to be correct and sustainable � particularly in the current market environment, which is burdened by the crisis affecting global financial markets�, said Dr Wolf Schumacher, Chairman of the Management Board of Aareal Bank AG, at the press conference to present the financial statements held in Frankfurt/Main. Aareal Bank Group posted record results for the financial year under review: According to the final, audited results which are now available, consolidated net income after minority interest totalled � 290 million, up 171% year-on-year, and equivalent to a 25.0% net return on equity after taxes. Consolidated operating profit soared by approx. 138%, to � 380 million (2006: � 160 million). Excluding special effects of � 221 million (2006: � 27 million) before taxes, these were up by 20%. At � 11.7 billion, new business originated in the Structured Property Financing segment outperformed the target of � 10 billion by 17%. Net provisions for loan losses of � 77 million for the segment were below the � 80 to 90 million range projected for the full year 2007. Operating profit in the Consulting/Services segment rose nearly four-fold, to � 30 million, thus outperforming the projected target range of � 22 million to � 28 million. �We have returned Aareal Bank Group to profitability, after a successful turnaround. We have focused our strengths on what we do best. We are growing in all business lines, having achieved ambitious targets within a short period of time. We have demonstrated that our business model is correct and sustainable�, summarised Schumacher. Strategy to be developed further, in a consistent manner Aareal Bank Group will consistently pursue its successful strategy throughout the current year; in addition, appropriate measures will be undertaken to adapt the strategy to the changed environment, which reflects the crisis on financial markets. Aareal Bank continues to push ahead with the internationalisation of its Structured Property Financing business, implementing its three-continent strategy: in this context, its offices in Singapore and Warsaw will be developed into distribution hubs for the high-growth regions of Asia/Pacific and Central/Eastern Europe (CEE). �It is in difficult times like these that a broad geographical diversification is particularly valuable�, Schumacher explained, explaining that �the bank is thus in an even better position to offset any downtrends affecting individual markets through performance elsewhere.� The Group will also strongly benefit from the improvement in profit contributions from Consulting/Services: the segment has evolved into an increasingly important source of income. Its market position will be expanded through targeted investment in its product range and distribution power. Schumacher added: �The strategic combination of two strong segments gives us a unique edge, particularly beneficial in the current market environment: Consulting/Services generates income that is largely independent from property cycles and the current turbulence on financial markets.� Aareal Bank Group has reacted to the changes in market conditions, as a result of the crisis affecting financial markets, by adapting its strategic focus. The growth programme launched in the spring of 2007 was adjusted to match the new situation, with an extended planning horizon. Given that syndication and securitisation are unlikely to be available as feasible exit options in the property finance business for some time, the bank will modify its tried-and-tested �buy-manage-sell� model into a �buy-manage-hold� approach. The required adjustments to the organisational structure and processes will be undertaken within the framework of the adapted growth programme FUTURE 2010. This will also include further optimisation in the Consulting/Services segment. �These adjustments will provide a sustained enhancement to our competitiveness, enabling us to weather the challenges we face in the market. This will provide the basis for Aareal Bank Group�s continued success � despite a changed framework � and for achieving our ambitious targets�, Schumacher emphasised. Cautiously optimistic outlook for 2008 The Management Board is cautiously optimistic for the current financial year. Schumacher affirmed the outlook thus: �Barring any further major distortions on financial markets this year, in 2008 we will be able to repeat the strong results we delivered in the previous year � with a positive market environment, we should be able to even exceed them. Our medium-term financial targets remain, in fact, unchanged. Assuming a return to normal market conditions by 2009 at the latest, our projections indicate that we will reach our target return on equity after taxes of 13%; however, given the prevailing market uncertainty, this will be achieved by 2010.� Although the uncertainty affecting the current market situation makes a precise forecast for the Structured Property Financing segment difficult, it is worth noting that the current environment not only holds risks, but also significant opportunities. Aareal Bank will continue to pursue a selective new business origination policy, with strict requirements in terms of quality and returns, to consistently exploit available market opportunities. The Management Board envisages a continued increase in risk-weighted assets in 2008. Together with a continued recovery in margins, this will have a positive impact on net interest income. A significant increase is expected in the results generated by the Consulting/Services segment. Aareal Bank Aareal Bank AG is one of the leading international specialist property banks. The Aareal Bank share is included in Deutsche B�rse's mid-cap MDAX index. Aareal Bank operates on three continents: leveraging its successful European business model, the bank has established similar platforms in North America and in the Asia-Pacific region. It provides property financing solutions in more than 25 countries.

Aareal Bank AG: Supervisory Board renews Management Board contracts

Wed, 26 Mar 2008 00:01:00 +0100

Wiesbaden, 26 March 2008 � In its meeting today, the Supervisory Board of Aareal Bank AG renewed the appointment of incumbent members of the Management Board, Dr Wolf Schumacher (Chairman of the Management Board), Norbert Kickum, and Thomas Ortmanns, prior to the regular expiration of their service contracts. By virtue of this unanimous resolution of the Supervisory Board, their appointment to Aareal Bank's Management Board was extended for another five years, from 1 April 2008 to 31 March 2013. The contract of Mr Hermann J. Merkens, also a member of the Management Board, will soon be subject to renewal, at the end of his present term of office; the Supervisory Board will resolve on Mr Merkens�s re-appointment until the year 2014 in early April.

Hans W. Reich, Chairman of the Supervisory Board, commented on the personnel decisions: �Aareal Bank�s executive team is strong and well-recognised in the market. With their successful execution of a fundamental realignment, they have guided the bank towards sustainable growth, on the basis of a sound and feasible strategy. With today�s resolution, we have secured the long-term commitment of our successful Management Board to the bank, assuring continuity at top management level. This team will guide Aareal Bank into a successful future.�

The distribution of responsibilities within the Management Board remains unaffected by the personnel resolutions taken by the Supervisory Board.

Aareal Bank

Aareal Bank AG is one of the leading international specialist property banks. The Aareal Bank share is included in Deutsche B�rse's mid-cap MDAX index. Aareal Bank operates on three continents: leveraging its successful European business model, the bank has established similar platforms in North America and in the Asia-Pacific region. It provides property financing solutions in more than 25 countries.

Announcement in accordance with � 15 WpHG - Aareal Bank AG: Supervisory Board renews Management Board contracts

Wed, 26 Mar 2008 00:01:00 +0100

In its meeting today, the Supervisory Board of Aareal Bank AG renewed the appointment of incumbent members of the Management Board, Dr Wolf Schumacher (Chairman of the Management Board), Norbert Kickum, and Thomas Ortmanns, prior to the regular expiration of their service contracts. By virtue of this unanimous resolution of the Supervisory Board, their appointment to Aareal Bank's Management Board was extended for another five years, from 1 April 2008 to 31 March 2013. The contract of Mr Hermann J. Merkens, also a member of the Management Board, will soon be subject to renewal, at the end of his present term of office; the Supervisory Board will resolve on Mr Merkens�s re-appointment until the year 2014 in early April.