Equity

As at 31 March 2008, the property financing portfolio under management amounted to € 23.7 billion and was therefore virtually unchanged from the figure of € 24 million reported as at 31 December 2007. The slight fall of 1.4 % in the first quarter is due to the very selective approach to new business, owing to the current market environment.

At the end of the first quarter, the share of international financings amounted to € 16.7 billion or 71% of the overall portfolio. The share of the German lending business was € 6.95 billion. An analysis of the performance of our property financing portfolio over the past four years shows that we have successfully reduced the high share of German exposures and replaced them with international business. It is also evident that since the financial year 2007, we have approached a level that is in line with our successful diversification strategy.

As of March 31st, 2008, the core capital ratio of Aareal Bank Group in accordance with the German Banking Act is 7.7%, the total capital ratio is 11.7%. According to BIS rules, the core capital ratio is 7.3% and the total capital ratio is 11.1%.