TAG Immobilien AG achieved a net profit of EUR 6.4 million in the first half of 2010

TAG Immobilien AG achieved a net profit of EUR 6.4 million in the first half of 2010. - Further vacancy

TAG Immobilien AG achieved a net profit of EUR 6.4 million in the first half of 2010

TAG Immobilien AG / Half Year Results

10.08.2010 08:15

Dissemination of a Corporate News, transmitted by
DGAP - a company of EquityStory AG.
The issuer / publisher is solely responsible for the content of this announcement.


TAG Immobilien AG achieved a net profit of EUR 6.4 million in the first
half of 2010.

  - Further vacancy reduction at Group level to 6.2 percent - including new
  - EUR 2.1 million increase in rental income stems solely from the
    residential sector
  - Earnings before taxes (EBT) of EUR 6.2 million for the first half of
  - Forecast for EUR 10 million in pre-tax earnings (EBT) for the full
    fiscal year confirmed

Hamburg (10. August 2010) -TAG Immobilien AG (TAG) was able to further
expand its positive operations in the second quarter and generated
first-half earnings before taxes (EBT) of EUR 6.2 million and net profit of
EUR 6.4 million during the first six months of 2010.

One important contributor to this was the group's continued aggressive
vacancy reduction, particularly in the residential sector. A focus on
active rental and asset management and the profitable running of its
existing properties further reduced vacancy throughout the Group from 7.4
percent at year-end 2009 to currently 6.2 percent, including two newly
acquired residential portfolios. These successes in vacancy reduction are
directly reflected in the bottom-line rental profits, which increased from
EUR 17.2 million in the first half of 2009 to EUR 19.3 million for the
first half-year 2010. It is particularly remarkable that this EUR 2.1
million increase was achieved solely in the residential sector. The rapid
conclusion of a portfolio acquisition with 787 units of residential
properties in Berlin led to an extraordinary effect on earnings of just
under EUR 4 million in the first quarter.

In May of this year, TAG acquired another attractive residential property
portfolio of around 2,000 units from FranconoWest AG with properties
situated in central locations in North Rhine-Westphalia and from Francono
Advisory AG, which now trades as TAG Sachsen, with properties in selected
locations in Saxony. The current market value of this portfolio is
approximately EUR 104 million. The acquisition of the portfolio was again
financed by issuing new TAG shares. Most of the newly acquired properties
won't be consolidated as part of the TAG Group until September 2010.

The two acquisitions serve to illustrate our strategy and show that our
investment focus is clearly on the residential property sector: long-term
structural developments are taking place in this sector of the real estate
market, whose potential awaits realisation. TAG has positioned itself in
the German market as a focused, performance-driven real estate group and
will actively benefit from this development as it takes advantage of
existing potential for enhancing value. In addition, TAG will continue to
take advantage of its existing growth potential in order to further grow
its portfolio in a sustainable manner. Acquisitions are subject to strict
criteria, however, and must improve TAG's profitability and cash flow. TAG
is confident that the successful implementation of its strategy will
continue to result in sustained growth and increase the value of its

The successful implementation of all activities in the year to date would
not have been possible without the confidence of the financial and capital
market in TAG shares. In May, TAG successfully issued a convertible bond of
EUR 30 million, and the above-mentioned acquisitions were or will be paid
in part by issuing new shares. However, this did not result in a diluted
net asset value (NAV). On the contrary: NAV increased to 6.05 EUR per share
on 30 June 2010, and was therefore slightly above the value at year-end
2009 (6.03 EUR).

The Management Board of TAG continues to uphold the forecast published in
the Annual Report 2009 of a pre-tax profit (EBT) of EUR 10 million for the
2010 financial year.

Press enquiries:

TAG Immobilien AG
Investor & public relations
Britta Lackenbauer / Dominique Mann
Phone +49 (0) 40 380 32 300
Fax +49 (0) 40 380 32 390

TAG Immobilien AG
Investor and Public Relations 
Britta Lackenbauer / Dominique Mann
Tel. +49 (0) 40 380 32 -386 / -305
Fax +49 (0) 40 380 32 390

10.08.2010 Ad hoc announcement, Financial News and Press Release distributed by DGAP.
Media archive at and

Language:     English
Company:      TAG Immobilien AG
              Steckelhörn 5
              20457 Hamburg
Phone:        040 380 32 300
Fax:          040 380 32 390
ISIN:         DE0008303504
WKN:          830350
Indices:      SDAX
Listed:       Regulierter Markt in Frankfurt (Prime Standard), München;
              Freiverkehr in Hamburg, Düsseldorf, Berlin, Hannover,
End of News                                     DGAP News-Service