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Luxembourg, May 19, 2011 - GAGFAH S.A. (Frankfurt Stock Exchange: GFJ) today announced its financial results for the first quarter 2011.

William Joseph Brennan, CEO of GAGFAH S.A.'s German subsidiaries: "GAGFAH has delivered another stable quarter of earnings. For the first quarter 2011, GAGFAH produced 54.1 million Euros of FFO, equalling 24 cents per share on a portfolio of 12,600 fewer units, due to sales. The core rental business contributed 13 cents, with 11 cents coming from our sales channel. Q1 2010 produced FFO of 21 cents, of which 20 cents came from the rentals business line.

With 155,000 units, GAGFAH is the largest listed residential property company in Germany. As reflected in our key financial and operational metrics, the business is stable and healthy. Our Q1 2011 asset values hold steady on a portfolio worth 8.5 billion in total, our margin of 50.2% is stable. Our annualized same store rent growth came in at 1.7%, vacancy was 5.4%, and our tenant turnover was 11%, with our tenants remaining on average 11 years in their apartments. All in line with both our expectations, as well as the stable, normalised historical levels for GAGFAH.

We will be focusing on three areas of opportunity where we can drive positive change for the business:

1. Communications: providing broader, more balanced and factual perspectives
2. Property Investment: commercially sound, increased investments in our assets
3. Refinancing: improving our capital structure.

In order to retain additional flexibility and financial resources within the business and to support the Company's property investment and financing objectives, the Board has made the decision not to pay an interim dividend for the first quarter of 2011."

Highlights

Profit from leasing was EUR 105.1 million in the first quarter 2011 compared to EUR 124.9 million in the first quarter 2010, on an average base of about 12,600 fewer units due to sales.

Profit margin for the first quarter of 2011 of 50.2%.

Operations on track with 1.7 % annualized same-store1) rent growth, turnover at 11 % and a vacancy rate of 5.4 %.

Sales: We financially closed the sale of 3,259 units from the 2010 sales program for a total volume of EUR 177.8 million. In addition, we also closed or contracted to sell 211 condo units for a total value of EUR 22.5 million from our 2011 sales program.

Cost to manage per unit was EUR 379 annualized for the first quarter 2011 compared to EUR 393 for the prior-year period.

NAV of EUR 12.19 per share and gross asset value of EUR 857 per square meter as of March 31, 2011. The NAV per share as of December 31, 2010, was EUR 12.17.

Dividend: In order to retain additional flexibility and financial resources within the business and to support the Company's property investment and financing objectives, the Board has made the decision not to pay an interim dividend for the first quarter of 2011.

1) Same store basis: Residential units GAGFAH owned at both dates: As of December 31, 2010, and as of March 31, 2011.

Conference Call

Management will host an earnings conference call on Friday, May 20, 2011, at 12:00 noon CET (11:00 A.M. London time, 6:00 A.M. New York 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 within the U.S., or 0800 694 0257 from the U.K., or 8002 7512 from Luxembourg, or 0800 101 4960 from Germany or +44 (0) 1452 555 566 from all other countries ten minutes prior to the scheduled start of the call; please refer to "GAGFAH Q1 2011 Earnings Call". The conference ID will be 67804096.

A webcast of the conference call will be available to the public on a listen-only basis at www.gagfah.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 twelve months following the call on www.gagfah.com.

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 geographically diversified and well maintained residential property portfolio located throughout Germany. With a portfolio of approximately 155,000 apartments, GAGFAH is the largest German listed residential property company.

The Q1 2011 Interim Report of GAGFAH is available on www.gagfah.com.

Contact:
GAGFAH S.A.
2-4, Rue Beck
L-1222 Luxembourg
Grand Duchy of Luxembourg
info@gagfah.com
Tel: +352 266 366 21

Forward-Looking Statements
This press release contains statements that constitute forward-looking statements. Such forward-looking statements relate to, among other things, future commitments to acquire real estate and achievement of acquisition targets, timing of completion of acquisitions and the operating performance of our investments. Forward-looking statements are generally identifiable by use of forward looking terminology such as "may", "will", "should", "potential", "intend", "expect", "endeavour", "seek", "anticipate", "estimate", "overestimate", "underestimate", "believe", "could", "project", "predict", "continue", "plan", "forecast" or other similar words or expressions. Forward-looking statements are based on certain assumptions, discuss future expectations, describe future plans and strategies, contain projections of results from operations or of financial conditions or state other forward looking information. Our ability to predict results or the actual effect of future plans or strategies is limited. Although we believe that the expectations reflected in such forward-looking statements are based on reasonable assumptions, our actual results and performance may differ materially from those set forth in the forward-looking statements. These forward-looking statements are subject to risks, uncertainties and other factors that may cause our actual results in future periods to differ materially from forecasted results or stated expectations, including the risk that GAGFAH S.A. will be unable to extent existing financing at suitable terms, be unable to increase rents and occupancy, to privatize further units or further reduce management costs.