TAG Immobilien AG announces operatinal turnaround, unveils preliminary figures for 2009

PRESS RELEASE TAG Immobilien AG announces operational turnaround, unveils preliminary figures for 2009

TAG Immobilien AG announces operatinal turnaround, unveils preliminary figures for 2009

TAG Immobilien AG / Preliminary Results

03.03.2010 07:44

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TAG Immobilien AG announces operational turnaround, unveils preliminary
figures for 2009

  - Successful vacancy reduction by 40% results in Group-wide vacancy rate
    of 7.3%
  - Rental profit on par with previous year at EUR 35 million (2008: EUR 34
    million) despite property sales of EUR 73 million in 2009
  - Second-half earnings before taxes (EBT) and before reappraisals came to
    EUR 2.1 million after EUR -13.1 million for the first half - EBT for
    all of 2009 was EUR -11.0 million (2008: EUR -23.4 million)
  - Outlook for 2010: Earnings before taxes (EBT) EUR 10 million

Hamburg (03 March 2010) - TAG Immobilien AG (TAG) publishes preliminary,
as-yet unaudited results for fiscal 2009.

The two halves of the year 2009 were as different as can be for TAG. After
the CEO changeover at the end of the first half, the management decided for
reasons of transparency to simultaneously adjust the value of the
properties by EUR -15.3 million and of the discontinued lines of business
by EUR -9 million. These items resulted in a pre-tax loss (EBT) of EUR 28.4
million at the end of the first half of 2009. In contrast to this, the
second half of 2009 was dominated by vacancy reductions and cost cuts. TAG
saw initial successes from these measures during Q3/2009, and was able to
build on them in Q4 by maintaining the required focus. The uptrend is
evident in the quarterly results. For example, in Q3/2009 TAG had EUR 3.0
million in pre-tax earnings (EBT), followed by EUR 0.7 million in Q4. Due
to the non-cash expenses from the first half, earnings before taxes (EBT)
for the full year came to EUR -24.7 million.

The aggressive vacancy reduction was a direct contributor to the positive
second-half performance. Vacancy was cut by 40% across the Group. In
residential property alone, vacancy was reduced by nearly half, bringing
the vacancy rate down from 16.4% to 10.1%. In Berlin, rental activities
brought vacancy down to currently 14% (2008: 25.6%). This successful
vacancy reduction is reflected in the rental profit, which at EUR 35
million at year-end 2009 is on par with that of the previous year - even
given a high (property) sales volume of EUR 73 million in 2009. On an
annualised basis, the vacancy reduction added EUR 2.4 million to the net
income, which would be equivalent to a rise in NAV of 1 EUR per share.

Some additional preliminary figures: 

The net actual rents increased to EUR 46.9 million (2008: EUR 46.0
million), even though a significant portion of the property holdings was

The balance sheet figures are also on a solid foundation. The Group's
balance sheet total came to EUR 798 million at 31 Dec 2009 (2008: EUR 841
million). Equity has declined to EUR 196 million after deducting for
minority shares in the amount of EUR 228 million. As a result, the NAV per
share dropped from EUR 7.01 to EUR 6.03 at 31 Dec 2009. Financial debts and
liabilities totalled EUR 517 million as compared with EUR 538 million at
year-end 2008. With LTV at 67% and an equity ratio of nearly 25%, the TAG
Group has a relatively solid balance sheet for the industry.

Consolidation within the Group is largely completed and the operational
turnaround has been achieved - in other words: all of the Group's costs can
be covered with the rental income alone. As planned, there were no more
write-downs during the second half of 2009, and future personnel costs as
well as non-property-related costs were reduced significantly. In addition,
the portfolio was optimised with a focus on cash flow and yields.

As part of its operational development, TAG Immobilien AG took the
strategic step of increasing its holdings in Bau-Verein from 71% to 91% at
the end of the year, thereby underscoring its focus on the residential
segment. On this basis, TAG is well positioned to effectively advance the
positive development of its business in 2010. The management expects
earnings before taxes (EBT) to reach EUR 10 million in 2010.

Within the TAG Group, there are the following preliminary results to report
for Bau-Verein zu Hamburg AG in for 2009:

Bau-Verein generated earnings before taxes (EBT) in the amount of EUR -10.7
million (2008: EUR -18.4 million) in 2009. Due to property sales, the
balance sheet total was down year-on-year from EUR 354 million to EUR 297
million at year-end 2009. In parallel to this, equity declined from EUR 102
million to EUR 94 million at 31 Dec 2009. The equity ratio increased from
28.9% to 31.7%.

The above figures for TAG and Bau-Verein are preliminary and as yet
unaudited. The final figures for the 2009 financial year will be published
on 21 April 2010.

Press enquiries:

TAG Immobilien AG
Investor & Public Relations
Britta Lackenbauer / Dominique Mann
Phone +49 40 380 32 300
Fax +49 40 380 32 390

03.03.2010 Ad hoc announcement, Financial News and Media Release distributed by DGAP.
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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 Berlin, Hannover, Düsseldorf, Hamburg,
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