EUROCASTLE INVESTMENTS LIMITED AND SUBSIDIARIES
INTERIM RESULTS FOR THE THREE MONTHS ENDED 31 MARCH 2006
Eurocastle Investment Limited is a closed-ended investment company which invests primarily in German commercial real estate assets. The Company is Euro denominated and is listed on Euronext Amsterdam under the symbol “ECT”. Eurocastle’s objective is to pay out stable and growing dividends and to deliver attractive risk-adjusted returns. Eurocastle is managed by Fortress Investment Group LLC. For more information regarding Eurocastle and to be added to our email distribution list, please visit www.eurocastleinv.com.

First Quarter Highlights
Increased real estate investment portfolio to Eur2.8 billion
o Completed the acquisition of a Eur2 billion German property portfolio from Dresdner Bank in February 2006, via the acquisition of Dresdner Grund-Fonds
o Continued acquisition program, completing 21 new retail property acquisitions for a purchase price of Eur54.7 million, and a yield of approximately 7.1%

Committed to purchase or entered into exclusive negotiations to purchase an additional Eur250 million of real estate assets at an approximate average 6.75% yield
Raised net proceeds of Eur524 million of new equity capital, helping to more than triple equity book value from year end 2005 to Eur928.7 million, or an increase of 65% to Eur20.37 on a per share basis
Increase in net asset value includes revaluation gains of Eur77.9 million, based on an independent valuation of the Dresdner Bank portfolio, which are included in operating income for the quarter
Continued lease-up of Deutsche Bank portfolio to current occupancy rate of approximately 77% at quarter end, up from 74.6% at 2005 year end
Key Performance Indicators

Net profit after tax of Eur92.9million for the first quarter 2006, increased from Eur6.5million for the first quarter 2005
Earnings per ordinary share of Eur2.47, or Eur2.37 per diluted share, for the first quarter 2006 compared to Eur0.35 per share, or Eur0.34 per diluted share, for the first quarter 2005
Funds from operations (“FFO”, see Key Financial Information) increased by 44% to Eur13.9 million for the first quarter 2006 from Eur9.6 million for the fourth quarter 2005
FFO of Eur0.35 per weighted average diluted share (39.2 million shares), or Eur0.30 per ordinary share outstanding at quarter end (45.6 million shares)
FFO return on average invested capital was 8.9%
Dividends declared for the period was 30 cents per share on 45.6 million shares outstanding
Number of shares outstanding increased by 21.4 million shares to 45.6 million shares in the first quarter 2006
Earnings for the first quarter 2006 are higher than management’sexpectations at the time of the Dresdner Bank acquisition. As expected, the earnings do not reflect a full quarter run rate as the Dresdner portfolio acquisition was completed in mid-February and therefore, only contributed six weeks of income to Eurocastle’s first quarter financials, but are applied to the increased number of shares of 45.6 million. The inclusion of a full quarter of earnings from the Dresdner Bank portfolio would have increased first quarter FFO to approximately 40 cents per outstanding share.

Conference Call
Management will conduct a conference call today, 24 May 2006 to review the Company's financial results for the first quarter ended 31 March 2006. The conference call is scheduled for 4 P.M. London time (11 A.M. New York time). All interested parties are welcome to participate on the live call. You can access the conference call by dialing +1-866-323-3742 (from within the U.S.) or +1-706-643-0550 (from outside of the U.S.) ten minutes prior to the scheduled start of the call; please reference “Eurocastle First Quarter Earnings Call.”

A webcast of the conference call will be available to the public on a listen-only basis at www.eurocastleinv.com. Please allow extra time prior to the call to visit the site and download the necessary software required to listen to the internet broadcast. A replay of the webcast will be available for three months following the call.

For those who are not available to listen to the live call, a replay will be available until 11:59 P.M. New York time on Wednesday, 31 May 2006 by dialing +1-800-642-1687 (from within the U.S.) or +1-706-645-9291 (from outside of the U.S.); please reference access code “9019196.”
For the whole press release use the link below
Bron : Eurocastle Investments Limited