IMMOEAST Annual Report 2006/07

upward potential for the valuation of the property; if the value in the expert opinion is lower, this effect increases
the write-down.
A decline in foreign exchange rates compared to the Euro lead to lower Euro amounts in the fair values than the
amounts shown in prior years when the fair values of properties are translated. When the latest value is compared
with the unchanged amount from a prior year expert opinion in Euro, the translation of the prior year Euro amount
back into the functional currency (local currency) leads to a higher value – because of the lower exchange rate – and
therefore to a write-up. If the value in the expert opinion rises, this foreign exchange effect increases the upward for
the valuation of the property; if the value in the expert opinion is lower, this effect reduces the write-down.
As of 30 April 2007, the net revaluation income recognised by IMMOEAST totalled TEUR 493,095.1. This figure comprises
revaluation income of TEUR 567,003.6 and impairment charges of TEUR 73,908.5. Part of the impairment
charges resulted exclusively from an increase in the value of the local currency compared with the Euro. This effect
involved properties in Hungary, Poland, Slovakia and Romania.
The following Group exchange rates were used for foreign currency translation as of 30 April 2007:
HUF PLN CZK ROL
Closing rate on 30 April 2007 247.180000 3.781000 28.123000 33293.000000
Average rate 255.630000 3.827850 28.271500 34021.500000
RON CYP SKK EEK
Closing rate on 30 April 2007 3.329300 0.582600 33.72700 15.64660
Average rate 3.402150 0.579300 35.561000 15.646600
BGN USD CHF RUB
Closing rate on 30 April 2007 1.955800 1.360500 1.645800 35.01000
Average rate 1.955800 1.307100 1.608550 34.570000
HRK UAH BAM
Closing rate on 30 April 2007 7.36150 6.81810 1.95910
Average rate 7.361500 6.688975 1.951550
Report by the Executive Board 227
Highlights 2006/07
Business Model and Strategy
Portfolio Structure
Corporate Governance and Outlook
Property Portfolio
Development of Business
Consolidated Financial Statements
Service and Glossary
CSD SEK
Closing rate on 30 April 2007 81.30900 9.15230
Average rate 83.460000 9.177000
A theoretical increase of 2.5% in exchange rates in Hungary, Poland, Slovakia and Romania against the Euro as of the
balance sheet date would have resulted in a negative impact of TEUR 49,632.4 on revaluation results.
A theoretical increase of 2.0% in the exchange rates of all countries against the Euro as of the balance sheet date
would have resulted in a net positive impact of TEUR 424,705.2 on revaluation results. This would reflect a revaluation
of TEUR 603,494.3 and impairment charges of TEUR 178,789.1.
A theoretical decrease of 2.0% in the exchange rates of all countries against the Euro as of the balance sheet date
would have resulted in a net positive impact of TEUR 561,485.0 on revaluation results. This would reflect a revaluation
of TEUR 714,741.3 and impairment charges of TEUR 153,256.3.
Notes