TAG Immobilien AG: Preliminary Figures for 2008

TAG Immobilien AG / Preliminary ResultsRelease of an Ad hoc announcement according to § 15 WpHG, transmitted byDGAP - a company of EquityStory AG.The issuer is solely responsible for the content of this announcement.----------------------------------------------------------------------TAG Immobilien AG: Preliminary figures for 2008   - Improvement in operating profit - 45 % increase in rental income  - Consolidated post-tax loss from continuing activities of EUR 32 million  - Focus on rental activities and moderate investment backed by solid    financial structure  - Strong performance in the first two months of 2009 with increased salesvolumesHamburg (2 March 2009) - TAG Immobilien AG sustained a post-tax loss of EUR32 million in 2008 despite increased rental income. This was due toimpairments necessitated by fair-value accounting and associated companies.According to preliminary figures, consolidated sales came to around EUR 102million (previous year: EUR 125 million). Rental income rose by 45 percentto some EUR 54 million (previous year: EUR 37.3 million). Net income fromongoing real estate management activities grew by 58 percent to around EUR34 million in 2008 (previous year: EUR 21.8 million). In the period underreview, revenues of around EUR 45 million were generated from the sale ofresidential and commercial real estate, yielding gross profit of EUR 2.5million.However, this favourable performance of rental income is not reflected inthe fair-value remeasurement of the real estate holdings, which resulted inimpairments of around EUR 24 million. These impairments are primarilycaused by higher interest on property particularly in the commercialsegment. On the basis of provisional figures, fair values were adjusteddown by 4.4% in the commercial segment and by 1.7% in the residentialsegment relative to 31 December 2007. These corrections do nothave any impact on the Group's liquidity or the observance of the financialcovenants.The Company has reacted to the global financial market crisis and theresultant effects on all sectors of the economy by modifying its previousbusiness model. As a result, rental activities in particular have beenextended, while new construction and portfolio development have been scaledback. Moreover, staff costs were reduced substantially in 2008. TAGImmobilien AG is planning to reduce its staff and material costs by a totalof 50% by 2010. The adjustment to the Group structure led to non-recurringcosts of EUR 4.4 million in 2008. The loss before tax from continuingactivities stands at an estimated EUR 42 million, with the post-tax lossfrom continuing activities expected to come to around EUR 32 million.With a loan-to-value ratio of 67 % and an equity ratio of just over 30 %,the TAG Group has a sound balance sheet structure by sector standards andremains solidly financed.In the first two months of 2009, the Company recorded a sizeable increasein income from sales. At EUR 28 million and with a positive gross margin,sales were well up on the same period in earlier years. The Company seesthis as fundamental confirmation of the viability of this business.The final figures for fiscal 2008 will be released on April 23, 2009.Contact:TAG Immobilien AGHead of investor and public relations Kirsten SchleicherTel. +49 (0) 40 380 32 300Fax +49 (0) 40 380 32 388pr@tag-ag.com02.03.2009  Financial News transmitted by DGAP---------------------------------------------------------------------- Language:     EnglishIssuer:       TAG Immobilien AG              Steckelhörn 5              20457 Hamburg              DeutschlandPhone:        040 30 60 59-40Fax:          040 / 30 60 59 - 49E-mail:       info@tag-ag.comInternet:     www.tag-ag.comISIN:         DE0008303504WKN:          830350Indices:      SDAXListed:       Regulierter Markt in Frankfurt (Prime Standard), München;              Freiverkehr in Berlin, Hannover, Hamburg, Düsseldorf,              Stuttgart End of News                                     DGAP News-Service ---------------------------------------------------------------------------