TAG Immobilien AG exceeds FFO forecast for 2016 and increases FFO and dividend guidance for 2017

DGAP-News: TAG Immobilien AG / Key word(s): Preliminary Results

23.02.2017 / 07:00
The issuer is solely responsible for the content of this announcement.


TAG Immobilien AG exceeds FFO forecast for 2016 and increases FFO and dividend guidance for 2017

- FFO in FY 2016 up by 27% to EUR 97.0m, or by 16% to EUR 0.72 per share

- FFO reaches EUR 27.1m in Q4 2016, up from EUR 25.0m in previous quarter

- Vacancy continues to improve in the financial year, falling by 1.6 percentage points to 6.1%

- Like-for-like rental growth at 3.7% p.a. taking effects from vacancy reduction into account or 2.0% without these effects

- FFO forecast for financial year 2017 is raised to between EUR 110m and 112m, or EUR 0.77 per share (after formerly EUR 104m to 106m or EUR 0.74 per share)

- Dividend forecast for 2017 lifted to EUR 0.60 per share

Hamburg (23 February 2017) - TAG Immobilien AG (TAG) today released preliminary figures from its IFRS consolidated financial statements for the 2016 financial year. With a portfolio of approximately 80,000 units at the end of 2016, the company achieved significant success in vacancy reduction and generated a strong operating result. Funds from Operations (FFO without net revenues from sales) amounted to EUR 97.0m or EUR 0.72 per share, putting them considerably above the previous year's figure of EUR 76.3m or EUR 0.62 per share - and above the FFO forecast, which had already been raised during the course of 2016 to between EUR 92.0m and EUR 93.0m or EUR 0.68 per share. Consolidated net income increased by 36% to EUR 200.7m (previous year: EUR 147.3m).

Strong key indicators based on excellent operating performance

Rental income increased from EUR 259.3m in the previous year to EUR 275.2m in the financial year 2016. This resulted in net rental income of EUR 224.7m (previous year EUR 205.5m). New rentals increased across the Group, causing vacancy in the residential units to fall to 6.1% at the end of the year, vs. 7.7% at the beginning of the year. In the Salzgitter region, vacancy was reduced by 4.6 percentage points from 12.1% to 7.5% within a twelve-month period. The vacancy rate for the overall portfolio was 6.5% in December 2016, compared to 8.2% at the end of 2015. On a like-for-like basis, rental growth in the Group's residential portfolio was 3.7% p.a. taking into account the effects of vacancy reduction or 2.0% without these effects. This, too, reflects substantial increases compared to the previous year (3.3% and 1.6% p.a.).

At EUR 246.7m, earnings before taxes (EBT) were up by 41% over the previous year's EBT of EUR 175.0m. Among other things, this increase is due to valuation gains of EUR 163.1m already recorded in the previous quarters (previous year EUR 98.7m). Finally, the financial result also improved year-on-year, to EUR -89.5m as compared to EUR -96.0m in 2015. Consolidated net income increased by 36%, from EUR 147.3m in the previous year to EUR 200.7m in 2016

Despite the dividend pay-out of EUR 0.55 per share in June 2016, net asset value (NAV) per share increased to EUR 11.54 at the end of 2016, after EUR 10.64 at the end of the previous year. Meanwhile, the Loan to Value (LTV) ratio was reduced by 5.6 percentage points to 57.1% in 2016, compared to 62.7% at 31 December 2015.

Already-adjusted FFO forecast for 2016 exceeded; 2017 guidance increased

In August 2016, the FFO guidance for the full year 2016 had already been raised by around 10% to between EUR 92m and EUR 93m or EUR 0.68 per share. At EUR 97.0m and EUR 0.72 per share, this result was once again exceeded thanks to a strong third- and fourth-quarter performance in 2016. As a result, and supported by the acquisition of around 1,650 residential units in Q4 2016, the FFO forecast for financial year 2017 has been increased to between EUR 110.0m and EUR 112.0m (previously EUR 104.0m to EUR 106m). This corresponds to an increase in the expected FFO per share to EUR 0.77 (previously EUR 0.74).

A dividend of EUR 0.57 is still planned for the 2016 financial year. The dividend forecast for the 2017 financial year can already be further increased from the originally planned EUR 0.59 per share to EUR 0.60 per share.

Martin Thiel, CFO of TAG, says: "Our strategy is working better than ever: by selectively selling in high-price markets, and then reinvesting the sales proceeds in 'B locations' in Eastern Germany, we are generating attractive returns and cash flows. Targeted investments and dedicated neighbourhood management are the basis for our excellent rental performance and vacancy reduction. Against this backdrop and in view of the anticipated savings from the upcoming refinancing activities in 2017 and 2018, we will be able to keep increasing our dividend payments continuously".

For further details on the results of the 2016 financial year, please refer to the presentation published today at http://www.tag-ag.com/en/investor-relations/presentations. The Annual Report of TAG Immobilien AG will be published on 23 March 2017.

Press enquiries:
TAG Immobilien AG
Dominique Mann
Head of Investor & Public Relations
Phone +49 (0) 40 380 32 300, Fax +49 (0) 40 380 32 388

23.02.2017 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.

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Company:TAG Immobilien AG
Steckelhörn 5
20457 Hamburg
Phone:040 380 32 0
Fax:040 380 32 388
ISIN:DE0008303504, XS0954227210, DE000A12T101
WKN:830350, A1TNFU, A12T10
Listed:Regulated Market in Frankfurt (Prime Standard), Munich; Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover, Stuttgart, Tradegate Exchange

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