(Hamburg, 21 August 2008). TAG Tegernsee Immobilien- und Beteiligungs-Aktiengesellschaft (or TAG for short) achieved further growth in operating business in the second quarter of 2008. With the systematic extensions made to its real estate portfolio and higher rental income, it achieved a substantial increase in revenues over the year-ago period in tandem with improved profitability. The shareholders passed a resolution at this year´s annual general meeting to adopt a new name in the future - TAG Immobilien AG.

TAG´s revenues grew by an encouraging 49 percent in the first half of the year, rising to EUR 51.1 million, up from EUR 34.3 million in the previous year. This significant increase was primarily caused by sales proceeds and TAG´s successful rental business. Rental income climbed by 35 percent to EUR 21.8 million (previous year: EUR 16.1 million). 

At EUR 6.7 million, earnings before taxes (EBT) fell short of the previous year´s figure (EUR 14.3 million), which had been inflated by gains from fair-value revaluation. Despite the reduced gains from fair-value revaluations in the period under review, gross profit remained at a high EUR 31.4 million.

TAG´s favourable business performance is also reflected in its total assets, which widened by just under EUR 23 million compared with the end of 2007, rising to EUR 909.3 million. TAG´s successful acquisition activities in the first half of 2008 as well as spending on the portfolio and project development caused real estate volumes to increase by around 11 percent to a total of EUR 843 million, with the equity ratio remaining at a high 34 percent. On a particularly positive note, the loan-to-value (LTV) ratio contracted from 67 percent to 63 percent in the first half of the year despite the investments which had been completed.  LTV is the ratio of loan liabilities to the market value of the real estate.

"TAG´s gratifying business performance is unfortunately not reflected in its stock," says Andreas Ibel, CEO of TAG. "The crisis afflicting the capital markets is also a crisis of confidence, which is influencing investor behaviour in the stock markets. Listed real estate companies are particularly bearing the brunt and trading at discounts of up to 70 percent on their net asset value at the moment."

In line with its buy, build and hold strategy, TAG will continue to focus on enhancing the value of its portfolio in the long term as well as attractive acquisitions and new construction projects. Given the sustained strong demand for commercial and residential rental properties, rentals - particularly in the residential segment - are expected to rise in the second half of 2008. In the second half of 2008, TAG will continue to focus on asset management activities to further boost the return on its portfolios via higher rentals and cost optimization.

Despite the growth in the Company´s operating business, TAG´s Management Board is cautious with respect to its full-year forecast on account of the negative underlying conditions and currently forecasts earnings before taxes (EBT) of EUR 15 - 20 million, i.e. less than in the previous year.

Press inquiries:
TAG Tegernsee Immobilien- und Beteiligungs- Aktiengesellschaft
Head of investor & public relations
Kirsten Schleicher
Tel. +49 (0) 40 380 32 300
Fax +49 (0) 40 380 32 390
pr(at)tag-ag.com

pr(at)tag-ag.com