TAG Immobilien AG achieved a net profit of EUR 6.4 million in the first half of 2010
TAG Immobilien AG / Half Year Results10.08.2010 08:15Dissemination of a Corporate News, transmitted byDGAP - 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 firsthalf of 2010. - Further vacancy reduction at Group level to 6.2 percent - including new acquisitions - 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 2010 - Forecast for EUR 10 million in pre-tax earnings (EBT) for the full fiscal year confirmedHamburg (10. August 2010) -TAG Immobilien AG (TAG) was able to furtherexpand its positive operations in the second quarter and generatedfirst-half earnings before taxes (EBT) of EUR 6.2 million and net profit ofEUR 6.4 million during the first six months of 2010.One important contributor to this was the group's continued aggressivevacancy reduction, particularly in the residential sector. A focus onactive rental and asset management and the profitable running of itsexisting properties further reduced vacancy throughout the Group from 7.4percent at year-end 2009 to currently 6.2 percent, including two newlyacquired residential portfolios. These successes in vacancy reduction aredirectly reflected in the bottom-line rental profits, which increased fromEUR 17.2 million in the first half of 2009 to EUR 19.3 million for thefirst half-year 2010. It is particularly remarkable that this EUR 2.1million increase was achieved solely in the residential sector. The rapidconclusion of a portfolio acquisition with 787 units of residentialproperties in Berlin led to an extraordinary effect on earnings of justunder EUR 4 million in the first quarter.In May of this year, TAG acquired another attractive residential propertyportfolio of around 2,000 units from FranconoWest AG with propertiessituated in central locations in North Rhine-Westphalia and from FranconoAdvisory AG, which now trades as TAG Sachsen, with properties in selectedlocations in Saxony. The current market value of this portfolio isapproximately EUR 104 million. The acquisition of the portfolio was againfinanced by issuing new TAG shares. Most of the newly acquired propertieswon't be consolidated as part of the TAG Group until September 2010.The two acquisitions serve to illustrate our strategy and show that ourinvestment focus is clearly on the residential property sector: long-termstructural developments are taking place in this sector of the real estatemarket, whose potential awaits realisation. TAG has positioned itself inthe German market as a focused, performance-driven real estate group andwill actively benefit from this development as it takes advantage ofexisting potential for enhancing value. In addition, TAG will continue totake advantage of its existing growth potential in order to further growits portfolio in a sustainable manner. Acquisitions are subject to strictcriteria, however, and must improve TAG's profitability and cash flow. TAGis confident that the successful implementation of its strategy willcontinue to result in sustained growth and increase the value of itsportfolio.The successful implementation of all activities in the year to date wouldnot have been possible without the confidence of the financial and capitalmarket in TAG shares. In May, TAG successfully issued a convertible bond ofEUR 30 million, and the above-mentioned acquisitions were or will be paidin part by issuing new shares. However, this did not result in a dilutednet asset value (NAV). On the contrary: NAV increased to 6.05 EUR per shareon 30 June 2010, and was therefore slightly above the value at year-end2009 (6.03 EUR).The Management Board of TAG continues to uphold the forecast published inthe Annual Report 2009 of a pre-tax profit (EBT) of EUR 10 million for the2010 financial year.Press enquiries:TAG Immobilien AGInvestor & public relationsBritta Lackenbauer / Dominique MannPhone +49 (0) 40 380 32 300Fax +49 (0) 40 380 32 390pr@tag-ag.comKontakt:TAG Immobilien AGInvestor and Public Relations Britta Lackenbauer / Dominique MannTel. +49 (0) 40 380 32 -386 / -305Fax +49 (0) 40 380 32 390ir@tag-ag.com10.08.2010 Ad hoc announcement, Financial News and Press Release distributed by DGAP.Media archive at www.dgap-medientreff.de and www.dgap.de--------------------------------------------------------------------------- Language: EnglishCompany: TAG Immobilien AG Steckelhörn 5 20457 Hamburg DeutschlandPhone: 040 380 32 300Fax: 040 380 32 390E-mail: ir@tag-ag.comInternet: www.tag-ag.comISIN: DE0008303504WKN: 830350Indices: SDAXListed: Regulierter Markt in Frankfurt (Prime Standard), München; Freiverkehr in Hamburg, Düsseldorf, Berlin, Hannover, Stuttgart End of News DGAP News-Service ---------------------------------------------------------------------------