DGAP-News: FRIMAG

FRIMAG: Very pos. business development in 2005, outperformance of expectations

Corporate-News übermittelt durch die DGAP.
Für den Inhalt der Mitteilung ist der Emittent verantwortlich.
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Very positive business development in 2005, outperformance of expectations
-Sales +51%, EBIT +37%
-Adjusted EBT +148%, margin 22%
-DVFA earnings per share EUR0.24, prospective dividend EUR0.17
Significant growth and leveraging of 2006 plans

Frankfurt am Main, January 24, 2006 - Based on preliminary figures, in the
2005 financial year FRIMAG Frankfurter Immobilien AG achieved an increase in
sales of 51% to around EUR6.9 million (previous year EUR4.6 million). As
expected, the company has, as a result, recorded significant growth since the
successful stock market flotation in June.
While sales managed to fully meet high expectations, the company has been able
to surprise the market positively with its profit outcome. Profits from
normal business activity rose to EUR1.0 million, corresponding to a return on
sales of 15%. As a consequence, this result was 30% above budget.
However, the effective level of profitability is not apparent until profits
are adjusted for the costs of the stock market flotation. After this
adjustment, EBT amounted to EUR1.5 million in the reporting year,
corresponding to return on sales of 22%
On the basis of the pleasing business development, the Board and the
Supervisory Board expect to be able to recommend to the Annual General Meeting
on April 7 an increase of the dividend to EUR0.17 per share (versus
expectations so far of EUR0.15).

2006 budgets significantly more optimistic: target EBIT of EUR5 million on
EUR20 million of sales
Compared with the previous year, FRIMAG Frankfurter Immobilien AG increased
its volume of purchases in 2005 by around 170% from EUR4.5 million to around
EUR12 million. As a result, significantly more than budgeted was invested and
a good foundation was laid for future growth.
In addition, as announced several days ago, 400,000 shares were placed with
institutional investors. This capital increases the lead to an inflow of
funds to the company of EUR3 million to fund the acquisition of further
profitable properties.
On the basis of the positive company business development, very good market
prospects and a high level of interest shown by institutional investors, the
Board expects to outperform previous budgets also in the current year. As a
result, sales expectations are being raised from EUR17.5 million to EUR20
million and EBIT is now expected to reach EUR5 million instead of EUR3.5
million. Despite the increase in shares in issue, earnings per share are
expected to increase correspondingly from previously EUR0.48 to EUR0.59. As a
consequence, a higher dividend is also probable.
In response to the continued growth of the company and the increasing
attraction of FRIMAG Frankfurter Immobilien AG shares, in particular to
international investors, accounting will now be changed to IFRS (International
Financial Reporting Standards), with the aim of achieving greater
comparability. IFRS reporting will be adopted for the first quarter of 2006.
The Board will present further information about the 2005 business year,
expectations for 2006 and regarding corporate strategy at the end of February
at the time of the publication of the annual report.

Year-on-year comparison as of December 31
In TEUR (HGB) 2005 % of Sales 2004 % of Sales Change 04/05
Sales 6,904 4,563 51%
Gross profit 3,683 53% 1,821 40% 102%
EBIT 1,043 15% 760 17% 37%
IPO costs 687 /
EBT 795 12% 598 13% 33%
Ad.profit 1) 1,482 22% /
EpS (in EUR)2 0.24 0.44
Employees 5 6
Notes: 1): EBT 2005 adjusted for IPO costs. 2): according to DVFA and based on
3.583 million shares as average for 2005 and 1.0 million shares for 2004

Comparison of budgeted figures and preliminary figures
In TEUR (HGB) Pre. figures 2005 Budget figures 2005 Outperformance

Purchase volume 12,000 10,250 +17%
Sales 6,904 6,930 +-0%
Personnel expenses 477 470 1%
Other expenses 1,459 1,300 +12%
EBIT 1,043 790 +32%
EBIT margin (%) 16% 11% +46%
EBT 795 580 +37%
EBT margin (%) 12% 8% +50%
Profit after taxes 453 380 +19%
Margin on sales (%) 6.6% 5.4% +22%
Number of shares 1) 3,583 3,583
EpS (in EUR) 1) 0.24 0.18 +34%
Dividend per share 0.17 0.15 +13%
Notes: 1): according to DVFA and based on 3.583 million shares as average for
2005.

________________________________________________________________________
As a real estate trading company, the specialized niche provider buys houses
in the 1A locations of Frankfurt, creates apartments for owner-occupation and
sells the individual apartments at high gross profit margins. Share capital
currently stands at around EUR 13 million.
In future, the company is also planning to acquire larger portfolios in the
Rhine/Main area on behalf of investment management companies.

Forthcoming dates:
End of February 2006 Publication of annual report
April 7, 2006 Annual General Meeting, Frankfurt am Main

For further information: http://www.frimag.de
Contact: UBJ GmbH
Christian Lang, Ingo Janssen
Glißmannweg 7, D-22457 Hamburg
Tel.: +49 (0) 40 5598 - 39 73
Fax: +49 (0) 40 5598 - 39 75
cl@ubj.de, ij@ubj.de





Ende der Mitteilung (c)DGAP 24.01.2006
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WKN: 637262; ISIN: DE0006372626; Index:
Notiert: Open Market in Frankfurt (Entry Standard); Freiverkehr in Berlin-
Bremen, Hamburg, München und Stuttgart