TAG Immobilien AG: TAG adjusting revenue and earnings forecast 2008

TAG Immobilien AG / Quarter Results

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TAG Immobilien AG

TAG adjusting revenue and earnings forecast for 2008

(Hamburg, 12 November 2008) In the first nine months of 2008, TAG
Immobilien AG’s revenues rose by 37 percent from EUR 58.3 million to EUR
80.1 million. This was accompanied by a disproportionately strong 44 %
increase in rental income to EUR 38.2 million.

Operating earnings improved particularly as a result of the increased
revenues and net rental income. At EUR 44.4 million, gross profit for the
period under review remained steady at the year-ago figure despite the
reduced fair value remeasurement gains. EBT came to EUR 6.7 million in the
first nine months of 2008. A balanced figure was also achieved in the third
quarter at the EBT level against the backdrop of the increased interest
expense resulting from the greater real estate volumes and reduced fair
value remeasurement gains.

Given the crisis afflicting the financial markets and the fall-out for the
real economy, the Company is currently unable to issue any reliable
forecasts for 2008. As it is not possible to tell whether TAG will be able
to achieve its budgeted sales by the end of 2008, the Company is, however,
adjusting its revenue and earnings forecast. The current conditions may not
only affect planned real estate sales but also impact the fair value of
individual properties. Accordingly, TAG’s Management Board expects the
Company to break even at the EBT level in 2008 as a whole.

At around 33 percent at the end of the third quarter, the equity ratio was
high by sector standards. As well as this, current liabilities to banks
contracted from EUR 217 million at the end of 2007 to EUR 106 million as of
30 September 2008. At the same time, non-current liabilities rose from EUR
296 million to EUR 433 million.  Despite the current adverse conditions in
the credit markets, TAG assumes that all loans will be renewed upon expiry.

More information can be found in the press release which TAG will be
publishing in due course.

TAG Immobilien AG
Head of investor and public relations 
Kirsten Schleicher

Tel. +49 (0) 40 380 32 300
Fax +49 (0) 40 380 32 388

12.11.2008  Financial News transmitted by DGAP
Language:     English
Issuer:       TAG Immobilien AG
              Steckelhörn 5
              20457 Hamburg
Phone:        040 380 32-300
Fax:          040 / 380 32-388
E-mail:       info@tag-ag.com
Internet:     www.tag-ag.com
ISIN:         DE0008303504
WKN:          830350
Indices:      SDAX
Listed:       Regulierter Markt in Frankfurt (Prime Standard), München;
              Freiverkehr in Berlin, Hannover, Hamburg, Düsseldorf,
End of News                                     DGAP News-Service