Eurocastle Investments Limited and subsidiaries financial results for the year and quarter ended 31 December 2006

Released: 07/03/2007

Eurocastle Investment Limited primarily owns and invests in German commercial real estate. The Company is Euro dominated and currently listed on Euronext Amsterdam under the symbol “ECT”. Eurocastle’s objective is to pay out stable and growing dividends and to deliver attractive risk-adjusted returns. Eurocastle is managed by an affiliate of Fortress Investment Group LLC (FIG LLC). For more information regarding Eurocastle and to be added to our email distribution list, please visit www.eurocastleinv.com

Highlights

Fourth Quarter 2006

• Declared a second interim dividend of €0.14 per share for the fourth quarter 2006, in addition to a first interim dividend of €0.29 per share paid in December 2006.
• Total dividend per share for the fourth quarter 2006 amounts to €0.43. This compares to the third quarter 2006 dividend of €0.43 per share and fourth quarter 2005 dividend of €0.37 cents per share.
• Acquired a portfolio of six office properties in Germany for an all-in purchase price of €502 million.
• Acquired 24 retail units in Germany for an all in purchase price of €79 million, to complete the purchase of a €198 million 63 unit retail property portfolio.
• Entered into an agreement to acquire a €2.1 billion property portfolio comprising 56 German commercial real estate assets from an open-ended fund. The acquisition was completed at the end of February 2007.
• Signed 87 leases for approximately 22,000 square meters.
• Occupancy of the total real estate portfolio increased from 85% at the end of the third quarter to 87.5% at the end of December 2006.
• Raised net proceeds of €645 million of new equity capital to finance 2006 acquisitions.

Year Ended 2006

• Acquired €2.8 billion of German commercial real estate (including the €2 billion acquisition of the Dresdner portfolio at the beginning of 2006).
• Entered into agreements to acquire an additional €2.2 billion of German commercial real estate, all of which was completed by the end of February 2007.
• Total assets increased by 149% from €2.3 billion at the end of 2005 to €5.7 billion at year end 2006.
• Raised net proceeds of approximately €1.2 billion of new equity capital.
• Increased net asset value from €0.3 billion to €1.6 billion. This includes revaluation gains of approximately €78 million on the total investment property portfolio that are included in operating income for the year.
• Signed 186 new leases for approximately 45,600 square meters contributing to increased occupancy.
  • Deutsche Bank portfolio occupancy was over 81% at 2006 year end, an increase of approximately 7% from previous year end.
  • Dresdner Bank portfolio occupancy ended the year at nearly 84%, up 3% from acquisition.

View the full Year End Report 2006 in PDF format (244 KB, opens in a new window).