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Vienna Stock Exchange: Real Estate Stocks Cheaper Than Ever

  • Let the bargain hunting begin
  • Good prospects for the Viennese market

After falling steadily in price since the first quarter, Viennese real estate stocks have now reached especially attractive valuation levels. The prices are approaching those seen 12 months ago, spurring the analysts at UniCredit (CA IB) to take a closer look at the sector. "Austrian real estate stocks have already fallen to levels that we have in some cases never seen before," says Alfred Reisenberger, Head of Equity Research Austria at UniCredit Group.

Unlike on the Vienna stock exchange, Central and Eastern European real estate stock prices have not seen a comparable price correction. This means that prices are considerably lower than for equity to the East. The price/net asset value ratio, which is applied frequently to assess real estate stocks, is currently at a low 0.95 (2007) and 0.83 (2008) in Austria. The same ratio is currently at 2.1 (2007) and 1.6 (2008) in Central and Eastern Europe.

"One of the main reasons for this atypically significant difference is the fact that the entire Austrian real estate sector has been feeling the same pressure as the rest of Western Europe, in spite of its strong focus on Eastern Europe," explains Alexander Hodosi, real estate analyst with UniCredit Group.

General earnings expectations on the exchange upped slightly
The outlook for the stock market remains positive, and the projections for the economy are also good. UniCredit (CA IB) analysts have increased their earnings projections for the listed companies slightly after the very good results in the first quarter (4.5% for 2007, 17.5% for 2008), but the market is not expensive. A P/E ratio of 15.2 is now expected for 2007, and 12.9 for 2008.

The UniCredit (CA IB) analysts' top picks are KTM and Mayr Melnhof, Schoeller Bleckmann, voestalpine, Wienerberger and Zumtobel.
The most promising stocks in the real estate sector are CA Immo, CA Immo International, Conwert and Immo East.

The ATX should continue to climb over the next 12 months, and is expected to reach 5,350 points.

Enquiries: UniCredit Markets & Investment Banking, Public Relations
Veronika Fischer-Rief, Tel. +43 (0) 50505-82833
e-mail: veronika.fischer-rief@ba-ca.com



This document does not constitute an offer to issue or sell, or the solicitation of an offer to acquire or buy any securities to any person in any jurisdiction.

In the United Kingdom, this announcement is directed exclusively at persons who have professional experience in matters relating to investments who fall within Article 19 or 49 of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2001. In the United Kingdom, the securities will only be issued to such persons.

This press release is not an offer of securities for sale in the United States. The Bonds and the shares referred to herein have not been and will not be registered under the United States Securities Act of 1933 (the "Securities Act") and may not be offered or sold in the United States absent registration under the Securities Act or an exemption from registration. There will be no public offer of the bonds or the shares referred to herein in the United States.