Eurocastle Investment Limited and Subsidiaries Financial Results for the nine months and quarter ended 30 September 2007

Released: 15/11/2007

Eurocastle Investment Limited owns and invests primarily in German commercial property. The Group is Euro denominated and currently listed on Euronext Amsterdam, under the symbol "ECT" and on the Frankfurt Stock Exchange, under the symbol "EUI1". Eurocastle’s objective is to build long-term value for its shareholders and to pay out stable and growing dividends. Eurocastle is managed by an affiliate of Fortress Investment Group LLC. For more information regarding Eurocastle and to be added to our email distribution list, please visit www.eurocastleinv.com.

Nine Month Highlights

• Dividend declared for the third quarter 2007 is €0.60 per share. This compares to the third quarter 2006 dividend of €0.43 per share and second quarter 2007 dividend of €0.60 per share.
• Completed €2.3 billion of commercial property purchases, including the acquisition of 56 German commercial property assets ("the Mars portfolio") announced in December 2006 and completed in first quarter 2007.
• Entered into an agreement to acquire 12 retail properties for an aggregate all-in purchase price of approximately €49.6 million.
• Signed 508 leases for approximately 175,000 square meters, including 238 new leases for approximately 64,000 square meters.
• Completed the sale of 78 non-core assets, at a 9% premium to the 2006 year end carrying value, resulting in a realised gain on the book cost, net of associated sale costs, fees and taxes, of €27.8 million or €0.43 per share.
• Entered into an agreement to sell a non-core asset for €155 million, which is expected to realise a gain on the book cost, net of associated sale costs, fees and taxes, of €17.3 million or €0.27 per share.

Key Performance Indicators

Third Quarter 2007

• Net profit after tax of €49.4 million for the third quarter 2007, increased from €27.5 million for the third quarter 2006.
• Earnings per ordinary share of €0.77 per ordinary share (30 September 2006: €0.60 per ordinary share) or €0.76 per diluted share (30 September 2006: €0.58 per diluted share).
• Funds from Operations ("FFO", see Key Financial Information) increased by 58% to €33.1 million for the third quarter 2007 from €20.9 million for the third quarter 2006.
• FFO of €0.52 per ordinary share (30 September 2006: €0.46 per ordinary share) or €0.51 per diluted share (30 September 2006: €0.44 per diluted share).
• FFO return on average invested capital* was 9.0% for the third quarter 2007.
• NAV per share decreased to €27.95 at the end of the third quarter 2007 from €29.07 at the end of the second quarter 2007, a decrease of 3.9%. This decline primarily relates to unrealised mark-to-market losses on the debt portfolio. Mark-to-market changes do not impact earnings or FFO.

Nine Months 2007

• Net profit after tax of €340.0 million for the nine months to 30 September 2007, increased from €134.1 million for the nine months to 30 September 2006.
• Earnings per ordinary share of €5.33 per ordinary share (30 September 2006: €3.12 per ordinary share) or €5.17 per diluted share (30 September 2006: €3.00 per diluted share).
• FFO increased by 124% to €118.2 million for the nine months to 30 September 2007 from €52.8 million for the nine months to 30 September 2006.
• FFO of €1.85 per ordinary share (30 September 2006: €1.23 per ordinary share) or €1.80 per diluted share (30 September 2006: €1.18 per diluted share).
• FFO return on average invested capital* was 10.8% for the nine months ended 30 September 2007.
• NAV per share increased to €27.95 at the end of the third quarter 2007, from €24.73 at 31 December 2006, an increase of 13.0%.

* Invested capital represents capital and reserves less hedging reserves, fair value of interest rate swaps and net unrealised gains on available-for-sale securities, real estate fund units and investment properties (net of attributable deferred taxation).

** Earnings per share and FFO per share, are calculated on the weighted average number of shares at 30 September 2007.

Conference Call

Management will conduct a conference call today, 15 November 2007, to review the Group's financial results for the quarter ended 30 September 2007. The conference call is scheduled for 3:00 P.M. London time (10:00 A.M. New York time). All interested parties are welcome to participate on the live call. You can access the conference call by dialing +1-877-717-3044 (from within the U.S.) or +1-706-679-1521 (from outside of the U.S.) ten minutes prior to the scheduled start of the call; please reference "Eurocastle Third Quarter Earnings Call".

A webcast of the conference call will be available to the public on a listen-only basis at www.eurocastleinv.com. Please allow extra time prior to the call to visit the site and download the necessary software required to listen to the internet broadcast. A replay of the webcast will be available for three months following the call.

For those who are not available to listen to the live call, a replay will be available until 11:59 P.M. New York time on Thursday, 22 November 2007 by dialing +1-800-642-1687 (from within the U.S.) or +1-706-645-9291 (from outside of the U.S.); please reference access code "22874526".

View the full Eurocastle Investment Limited and Subsidiaries Financial Results for the nine months and quarter ended 30 September 2007 in PDF format (328 KB, opens in a new window).