Significant rise in rental income despite challenging market conditions

Real Estate Segment rental income for the first six months of 2009 rose by CHF 15.6 million to CHF 96.5 million, 19.3% higher than the prior year period.

This includes rental income from the Tivona properties as of full integration per end of February 2009. During the period under review the St. Gall Shopping Arena opened in March 2008 and Thônex (Geneva) district shopping center opened in September 2008 contributed full rental incomes for the first time.

Adjusted for these expansion effects, the comparable rise in rental income as against the prior year period is 1.8%. Vacant floor areas remained at a consistently low level. As before, roughly 5% of total rental income is attributable to turnover-linked rentals.

Slightly lower retail turnovers in challenging market conditions

Due to rather challenging market conditions, Retail Segment turnover (House of Brands, with unchanged sales floor areas, Geneva hotel operations) amounting to CHF 80.8 million was 5.1% lower than the very successful prior year period.

Overall turnover for the entire House of Brands (Jelmoli Zurich shopping center) amounting to CHF 153 million, including third-party tenants, declined slightly by 5.4% compared with the excellent prior year level.