Jk Wohnbau Aktiengesellschaft : Q3 2012: Profitability Restored for JK Wohnbau

• Earnings after taxes at 1.3 million Euros in Q3 2012
• Rise of the EBIT margin to more than 25 percent

09/11/2012 - JK Wohnbau AG, a leading project veloper of private housing construction in Munich, reports a substantial increase in profitability after a relatively slow-selling first semester, and is clearly back in the black. During the third quarter of 2012, the company realised positive earnings after taxes in the amount of 1.3 million Euros. Its EBIT (earnings before interest and taxes) for the same period came to 5.1 million Euros (compared to -2.2 million Euros in Q3 2011). This brings the EBIT margin up to 26 percent by 30 September 2012 (compared to less than five percent the previous year), climbing to 28 percent during Q3. During the first nine months of 2012, the EBIT realised a year-on-year increase from 2.4 million Euros to a total of 10.6 million Euros, while the result after taxes equalled -2.5 million Euros (up from -13.8 million Euros for the same period last year).

Sales Performance Keeps Rising against Market Trend
For the first nine months of 2012, JK Wohnbau reported a sales performance of 72.4 million Euros in apartment retailing. This implies a year-on-year increase in notarised sales by around 19 percent (up from 61 million Euros during the first nine months of last year). "We kept stepping up our sales to private buyers, going against the market trend," explained Michael Haupt, the company's CEO. As it were, the overall market in Munich has shown a first slight dip in volume during H1 2012 because competing companies have more or less exhausted their supply. "With our ample project pipeline, we are well positioned to keep livering attractive products in the positive market environment of Munich's resintial real estate market," Haupt went on to say.

Financial Results Improved
The financing structure was consirably enhanced during the financial year to date. "We cut down on finance expenditure, and improved the financial results of JK Wohnbau," Haupt explained. For instance, in addition to the rollover and upgra of existing financing arrangements, interest-bearing bt of more than 39.3 million Euros was repaid, representing nearly 24 percent of the total bt at the start of the year. As a result, finance expenditure is now 40 percent below the figure of the concluding quarter of 2011.

Shareholr's Equity Back in the Black
The group equity is also back in the black, equalling 0.646 million Euros by 30 September 2012. "The persistently sound market environment, the still copious reserves of properties already on the books, and an EBIT margin of more than 25 percent strongly suggests that we will realise above-average results in the years to come," stated Haupt. He add, "Once completed, we will be able to credit the significant appreciation of our assets to equity." At approximately 800 million Euros, JK Wohnbau certainly has a rather robust project pipeline.

Positive Outlook for Year as a Whole and for 2013
"We have continued to pursue our ongoing projects according to plan," said Haupt. The turnover for the first nine months of 2012 came to 40 million Euros. Sales in the final quarter are intend to achieve a similarly large volume. "We expect to remain in the black in the fourth quarter, too, and to conclu the year 2012 with an positive result overall. Moreover, we will go into the coming year well prepared," as Haupt elaborated.

About JK Wohnbau AG
JK Wohnbau is one of the leading project velopers for resintial construction in Munich. Formed in 1995, the company has been listed on the Prime Standard of Deutsche Börse since 1995. The spectrum of projects realised extends from multi-unit houses, to terrace housing, and all the way to the revitalisation of existing buildings, enabling JK Wohnbau to provi resintial real estate to suit the requirements of diverse customer target groups either for owner-occupation or as equity investment. For tails go to: www.jkwohnbau.

Company contact
JK Wohnbau AG
Leopoldstrasse 8 | D-80802 Munich
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E-mail: ir@jkwohnbau. | Web: www.JKWohnbau.

Press contact
Holger Friedrichs
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Dr. ZitelmannPB. GmbH
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