Guernsey. 5 November 2015 - Eurocastle Investment Limited (Euronext Amsterdam: ECT) today has released the financial results for the first nine months ended 30 September 2015.

FINANCIAL HIGHLIGHTS
Normalised FFO
Q3 2015: €2.4 million, or €0.03 per share
First Nine Months 2015: €9.0 million or €0.16 per share
Before costs, New Investments alone generated €4.3 million of Normalised FFO for the third quarter, resulting in a return on average net invested capital[1] of 30% (27% over the first nine months of 2015)
Adjusted Net Asset Value[2]
€528.3 million, or €7.30 per share, a decline of €15.0 million or €0.20 per share from the second quarter following impairments within the Legacy Debt Investment portfolio and the third quarter dividend of €0.125 per share.
Third Quarter Dividend - of €9.1 million, or €0.125 per share paid in October 2015

Q3 2015 Q2 2015 Q3 YTD 2015 Q3 YTD 2014
€ million € per share € million € per share € million € per share € million € per share

Normalised FFO 2.4 0.03 2.3 0.04 9.0 0.16 1.7 0.05
Legacy Cash Flow Received 27.4 0.38 3.8 0.06 60.6 1.11 34.1 1.05
Adjusted NAV[i]2 528.3 7.30 543.3 7.50 528.3 7.30 288.7 8.85

THIRD QUARTER 2015 BUSINESS HIGHLIGHTS
New Investments - On 16 September 2015, the Company successfully executed on its €10.7 million commitment to acquire units in an unlisted Italian real estate fund at a discount of 56% to the fund's NAV3. The investment is now valued at €15.4 million as a result of positive asset management activity since the original commitment made last year.

New Investment Performance - Collected €10.0 million of cash flow. This includes €7.4 million from a €3.9 million investment in a distressed bond; the Company's first fully resolved investment since the establishment of its new investment strategy in 2013. Cash flows for the nine months ended 30 September 2015 totalled €25.9 million, €11.6 million ahead of expectations.

Legacy Business Realisations - In addition to the €33.2 million received from sales in the first half of 2015, Eurocastle received a further €27.4 million of cash flow primarily through the sale of the majority of the assets in the Wave portfolio. Further expected net proceeds of €8-10 million have been secured from the sale of the remaining assets in the Wave and Mars Fixed 2 portfolios.

HIGHLIGHTS SUBSEQUENT TO THIRD QUARTER END
On 30 October 2015, together with Fortress affiliates, the Company completed the acquisition of UniCredit Credit Management Bank S.p.A. ("UCCMB") from UniCredit. Eurocastle acquired a 50% share of the deal for an equity investment of approximately €250 million, subject to certain post-closing adjustments. The investment includes:

A portfolio of non-performing loans ("NPLs") with a Gross Book Value ("GBV") of approximately €2.4 billion.
An NPL servicing business (the "Servicer"). The Servicer has been renamed from UCCMB to doBank and is now the largest third party servicer in Italy servicing over €45 billion GBV of loans.

On 30 October 2015, the Company sold the remaining assets in the Mars Floating portfolio within its Legacy Business. The sale resulted in Eurocastle receiving fees of €1.2 million with the remaining outstanding debt forgiven by the lender.

ADDITIONAL INFORMATION
For additional information that management believes to be useful for investors, please refer to the latest presentation posted on the Investor Relations section of the Company's website, www.eurocastleinv.com. For consolidated investment portfolio information, please refer to the Company's most recent Financial Report, which is available on the Company's website (www.eurocastleinv.com).

EARNINGS CALL INFORMATION
Eurocastle's management will host an earnings conference call on Thursday, 5 November 2015 at 1:00 P.M. London time (8:00 A.M. New York time). All interested parties are welcome to participate on the live call. You can access the conference call by dialing first +1-800-215-5243 (from within the U.S.) or +1-330-863-8154 (from outside of the U.S.) ten minutes prior to the scheduled start of the call; please reference "Eurocastle Third Quarter 2015 Earnings Call or conference ID number 66035588"

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 Sunday, 5 December 2015 by dialing +1-855-859-2056 (from within the U.S.) or +1-404-537-3406 (from outside of the U.S.); please reference access code "66035588"

NORMALISED FFO

Normalised FFO is a non-IFRS financial measure that, with respect to Eurocastle's Legacy Business, provides investors with additional information regarding the underlying performance of its Legacy Assets and their ability to service debt and make capital expenditure. The measure excludes realised gains and losses, sales related costs (including realised swap losses), impairment losses and foreign exchange movements. On the Company's New Investments, income is recognised on an expected yield basis allowing Eurocastle to report the run rate earnings from these investments in line with their projected annualised returns.

Eurocastle believes that, given the strategy of seeking to monetise the existing value of the Legacy Business, focusing on the Normalised FFO of the Company's New Investments will further enable the investor to understand current and future earnings given annualised returns achieved and the average net invested capital over the relevant period.

In the first nine months of 2015, Eurocastle generated Normalised FFO of €9.0 million, or €0.16 per share, with €11.6 million (€0.21 per share) related to New Investments before corporate costs. Given the average net invested capital in the first nine months of 2015 was approximately €57.2 million, this equates to a yield of 27%.

A reconciliation of Normalised FFO to the IFRS based net loss after tax for the quarter ended 30 September 2015 can be found below:

INCOME STATEMENT RECONCILIATION
New Investments
€ million Corporate[3] € million Legacy € million Total € million

Net loss after taxation
attributable to ordinary equity holders 5.2 (2.0) (29.8) (26.6)
Net loss (€ per Share) 0.07 (0.03) (0.41) (0.37)
Mars Floating Portfolio Losses (FY) - - 0.3 0.3
Drive Portfolio Losses (since Q2 only) - - 4.1 4.1
Fair Value to Effective Yield Adjustments (1.0) - - (1.0)
Legacy Real Estate Revaluations - - 3.7 3.7
Legacy Debt Impairments - - 24.1 24.1
Transaction Costs, G/L on FX & Other Adjustments - (1.4) (0.8) (2.2)
Normalised FFO 4.2 (3.4) 1.6 2.4
Normalised FFO (€ per Share) 0.06 (0.05) 0.02 0.03

ADJUSTED NAV RECONCILIATION
New Investments€ million Corporate1
€ million Legacy € million Total€ million
Assets 68.9 448.4 713.7 1,231.0
Liabilities 5.0 13.0 775.5 793.5
Total Equity 63.9 435.4 (61.8) 437.5
Non-controlling interest (1.2) - - (1.2)
Total Shareholders' Equity (NAV) 62.7 435.4 (61.8) 436.3

CDO V Negative NAV add-back - - 14.0 14.0
Mars Floating & Drive Negative NAV add-back - - 78.0 78.0
UCCMB Investment Reallocation 246.5 (246.5) - -
Mars Fixed 2 Portfolio Sale Reallocation - 15.6 (15.6) -
Wave Portfolio Sale Reallocation - (5.9) 5.9 -
Adjusted NAV 309.2 198.6 20.5 528.3
Adjusted NAV (€ per Share) 4.27 2.74 0.29 7.30

ABOUT EUROCASTLE

Eurocastle Investment Limited is a closed-ended investment company that owns Italian loans and real estate related assets, German commercial real estate and European real estate securities and loans. The Company is Euro denominated and is listed on Euronext Amsterdam under the symbol "ECT". Eurocastle is managed by an affiliate of Fortress Investment Group LLC, a leading global investment manager. For more information regarding Eurocastle Investment Limited and to be added to our email distribution list, please visit www.eurocastleinv.com.

FORWARD-LOOKING STATEMENTS
This release contains statements that constitute forward-looking statements. Such forward-looking statements may relate to, among other things, future commitments to sell real estate and achievement of disposal targets, availability of investment and divestment opportunities, timing or certainty of completion of acquisitions and disposals, the operating performance of our investments and financing needs. Forward-looking statements are generally identifiable by use of forward-looking terminology such as "may", "will", "should", "potential", "intend", "expect", "endeavour", "seek", "a etc. etc...