Gagfah S.A. : GAGFAH Starts to Deliver

- Q3 Recurring FFO per share up 25% compared to Q2

- Strong vacancy reduction in Q3; new year-end target is below 4.5%

- Initial value-enhancing investments completed at attractive yields

- Continuously strong margin of 25.2% from condo sales during the first nine months

Luxembourg, November 12, 2013 - GAGFAH S.A. has started to deliver a stronger performance, as announced. The Q3 FFO per share grew by 25% to EUR0.15 compared to Q2 on the back of substantially lower interest expenses. With additional interest savings and further operational improvements expected in Q4, GAGFAH reiterates its guidance of 5% to 10% recurring FFO per share growth for this year and 30% to 35% for 2014.

Q3 showed a solid operating performance with good progress on vacancy reduction. Driven by a focused vacancy reduction program with attractive yields of around 20%, the vacancy rate at the end of Q3 dropped to 4.8% after 5.1% at the end of Q2. Having already achieved the original year-end target by the end of September, GAGFAH revises the vacancy rate guidance from 4.8% to below 4.5% by the end of this year.

The value-enhancing investment projects that have already been completed and those that are currently ongoing prove the Company's strategy to generate an average return on investment of at least 7.5%. The investment program is running according to plan and the results already achieved within a short period show that GAGFAH is on the right track.

On the sales side of the business, GAGFAH completed 373 single-unit sales during the first nine months and generated a net cash contribution of EUR15.2 million from these sales plus an additional net cash contribution of EUR7.7 million from other sales. The single-unit sales had a gross margin of 25.2% and a net cold rent multiple of 21.1x.

Thomas Zinnöcker, CEO of GAGFAH GROUP and Member of the Board of Directors of GAGFAH S.A. commented, 'We are very pleased with the progress we have been making on the various topics. Our Q3 results are reflecting the successful refinancings, and after basically completing our capital restructuring, our next step is now to finalize our turnaround by further improving our operational performance. We are seeing the first positive results and based on the groundwork we have now laid, we are looking at a very promising future.'

The management will host anearnings call today at 10:00 A.M.Luxembourg time (9:00 A.M. London time). All interested parties are welcome to participate in the live call. You can access the conference call by dialing

- 1 866 966 9439 from the U.S.

- 0800 694 0257 from the U.K.

- 8002 7512 from Luxembourg

- 0800 101 4960 from Germany

- [phone] from all other countries

ten minutes prior to the scheduled start of the call. Please refer to 'GAGFAH S.A. 9M 2013 Earnings Call'. Theconference IDwill be93250513.

Alive virtual audio webcastof the conference call will be available at www.gagfah.com. A replay of the live virtual audio webcast will be available for twelve months following the call. The 9M 2013 interim report and management presentation are available as PDF downloads on www.gagfah.com.

Contact
GAGFAH S.A.
Investor Relations
Rene Hoffmann
2-4, rue Beck
L-1222 Luxembourg
Tel.: [phone]
[e-mail]
www.gagfah.com
R.C.S. Luxembourg B 109.526

Media
Dirk T. Schmitt
[phone]
[e-mail]

About GAGFAH S.A.

GAGFAH S.A. is a joint stock corporation organized under the laws of the Grand Duchy of Luxembourg qualifying as a securitization company under the Luxembourg Securitization Law of March 22, 2004. The core business of GAGFAH S.A.'s operating subsidiaries is the ownership and management of a residential property portfolio located in Germany.

GAGFAH is a leading owner and operator of residential real estate in Germany. Our portfolio includes about 144,000 own residential units that are mostly located in the large German cities and their respective commuter belts. We believe that our size, our significant presence in the key residential markets and our scalable operating platform make us one of the leading providers of affordable housing for low- to medium- income households in Germany. Our operating subsidiaries are full-scale service providers for a broad range of property and facility management services.

Our objective is to generate shareholder value through sustainable and growing cash flows, increasing net asset value and sustainable dividends by efficiently managing our portfolio, carrying out value-enhancing property investments, pursuing accretive growth opportunities, and realizing value through selected asset sales.

End of Corporate News