TAG Immobilien AG generated pre-tax earnings (EBT) of EUR 139.8 million in the first nine months of 2012

TAG Immobilien AG / Key word(s): Quarter Results

08.11.2012 / 08:05

TAG Immobilien AG generated pre-tax earnings (EBT) of EUR 139.8 million in the first nine months of 2012 and achieved third-quarter FFO in the amount of EUR 11.2 million with a strong operating result

- Integration of DKBI in the TAG Group largely completed

- Rental income nearly doubled to EUR 108 million

- Earnings before taxes (EBT) rose from EUR 53.4 million in the comparison period of 2011 to EUR 139.8 million

- Net Asset Value (NAV) per share up again since end of Q2 2012, to EUR 9.46

- Group structure further optimised -Bau-Verein squeeze-out completed, POLARES sold

- Vacancy declines again in Q3, especially in Salzgitter and eastern Germany

- TAG share moves up onto the MDax

Hamburg (8 November 2012) - TAG Immobilien AG ('TAG' in the following) generated a strong operating result in the third quarter of 2012. In particular, TAG achieved further success in reducing vacancy, which after the acquisition of TAG Potsdam Immobilien AG, formerly DKBI, was reduced from 11.4 percent to 11.1 percent across the Group's residential portfolio last quarter. Vacancy in Salzgitter decreased by 0.8 percentage points to 21.7 percent in Q3 2012. TAG's NAV (Net Asset Value) increased to EUR 9.46. The Group structure was further optimised through a successful 'squeeze out' at Bau-Verein zu Hamburg Aktien-Gesellschaft, and the management buyout of POLARES Real Estate Asset Management GmbH. The TAG share moved up onto the MDAX at the end of September.
The figures for the first nine months of 2012 demonstrate this operational and strategic success.

Total revenues rose from EUR 108.3 million in the first nine months of 2011 to EUR 179.4 million in 2012. Rental revenues increased from EUR 83.0 million at the end of September 2011 to EUR 139.8 million as of 30 Sep 2012 - a nearly 68-percent increase. This growth at the operational level is due to the consolidation of TAG Potsdam Immobilien AG since April 2012, and also demonstrates the success of the TAG Group's active rental and asset management.

The Group's earnings before taxes (EBT) amounted to EUR 139.8 million in the first nine months of 2012. The main contributor, totalling EUR 99.2 million, is 'Other operating income' from the first-time consolidation of TAG Immobilien AG Potsdam. Net interest income in the reporting period 2012 fell by EUR 18.3 million compared to the previous year to EUR -62.9 million after EUR -44.6 million in the first nine months of 2011 due to the company's strong growth. In the first three quarters of 2012, TAG achieved consolidated earnings of EUR 130.6 million after EUR 40.8 million for the same period in 2011. FFO (funds from operations) as an indicator of operating performance rose again to EUR 11.2 million excluding sales at the end of the third quarter, compared to EUR 10.8 million in the second quarter. This resulted in FFO of EUR 27.6 million for the first nine months of 2012. FFO II, which also includes cash inflow from sales, amounted to EUR 48.9 million in the same period of 2012.

Equity before non-controlling interests amounted to 25 percent and the loan-to-value (LTV) ratio was 62.2 percent. The NAV per share (net asset value) of EUR 9.46 was higher than in the first two quarters of the 2012. At the same time, the rise of the TAG share onto the MDAX at the end of September demonstrates its success on the capital market.

Strategically, TAG further streamlined its corporate structure - having completed the squeeze-out procedure, TAG is now the sole shareholder of Bau-Verein zu Hamburg AG, which means the expense of listing Bau-Verein on the stock market can be saved. The commercial real-estate services company POLARES Real Estate Asset Management GmbH was also sold under a management buy-out, thereby further strengthening the Group's focus on the residential real estate segment.

Due to the strong operative start to the year and the successful integration of DKB Immobilien AG, TAG confirms its forecast for the current financial year and continues to expect an EBT of EUR 140 million and FFO excluding sales of EUR 40 million for the full year 2012. The forecast of an NAV per share of EUR 9.75 remains unchanged.

'The strategic and operational successes of recent acquisitions and their successful integration have had a positive effect on our balance sheet and income levels,' said Rolf Elgeti, CEO of TAG Immobilien AG. 'With approximately 58,000 units in our real estate inventory, we look to the future with confidence. We are on the right track to comfortably achieving our forecasts for 2012 and will also be able to significantly increase our FFO once again. A long-term increase in shareholder value is and will remain decisive in TAG's strategic direction.'

For further details, please refer to the quarterly report for the period ended 30 Sep 2012, published today: http://www.tag-ag.com/en/investor-relations/financial-reports/interim-reports

Press enquiries:
TAG Immobilien AG
Investor & Public Relations
Britta Wöhner / Dominique Mann
Phone +49 40 380 32 0Fax +49 40 380 32 390

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Company:TAG Immobilien AG
Steckelhörn 5
20457 Hamburg
Phone:040 380 32 0
Fax:040 380 32 390
Listed:Regulierter Markt in Frankfurt (Prime Standard), München; Freiverkehr in Berlin, Düsseldorf, Hamburg, Hannover, Stuttgart
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