TAG Immobilien AG reports EBT of EUR 12 million for Q1 2011

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

23.05.2011 / 08:00


TAG Immobilien AG reports EBT of EUR 12 million for Q1 2011

- net rental income to EUR 19 million verdoppelt

- Ergebnis vor Steuern (EBT) in Gesamtkonzern liegt bei EUR 12 million

- integration and restructuring of Colonia Real Estate AG proceeding at full throttle

Hamburg (23 May 2011) - For TAG Immobilien AG ('TAG' in the following), the first quarter of 2011 revolved around the takeover and first-time consolidation of Colonia Real Estate AG ('Colonia' in the following). This resulted in an entirely new balance sheet for TAG at the reporting date. The integration of Colonia has taken the Group to a new dimension in terms of both size and market importance. Its property volume has increased to approx. EUR 1.8 billion, and as of the end of March, the TAG Group manages 26,517 residential units. The first-quarter figures reflect the success of TAG's expansionist strategy:

Total revenue increased from EUR 21.1 million in Q1/2010 to EUR 36.0 million in the first three months of 2011. First-quarter rental revenues rose from von EUR 11.9 million in Q1/2010 to EUR 24.4 million in 2011, leading to consolidated net rental income of EUR 19.1 million (TAG and Colonia) alone was able to improve its first-quarter net rental income by nearly 30 percent to EUR 12.5 million (Q1 2010: EUR 9.7 million) thanks to successful vacancy reduction. TAG's net rental income after interest paid on property financing came to EUR 4.6 million in Q1/2011, after EUR 3.3 million for the comparable period in 2010. This shows that TAG's growth does actually help to increase the operating result.

The Group's Earnings before taxes (EBT) including Colonia came to EUR 12.0 million at the end of the first quarter 2011. The biggest contributor, in the amount of EUR 12.4 million, was the first-time consolidation of Colonia. The Colonia acquisition resulted in higher interest costs; the interest paid on the convertible bonds issued by TAG last year and higher interest on property loans resulting from acquisitions also impacted the result. Net interest income for the first quarter of 2011 was EUR -14.2 million after EUR -6.7 million in. TAG generated Group net income of EUR 11.1 million in Q1 2011, after EUR 4.3 million in Q1 2010.

The Colonia takeover increased the Group's total assets from EUR 1.2 billion to EUR 1.9 billion. Its equity rate before minorities is 19.3 percent and the LTV (Loan to Value) rate is around 60 percent.

TAG is sticking to the forecast issued at year-end 2010 and expects pre-tax earnings (EBT) of between EUR 50 million and EUR 60 million.

'The months ahead will contain great challenges arising from the integration of Colonia in TAG and the necessary restructuring measures. We are, however, making much faster and better progress on this than planned. At the same time we will pursue the expansion of our portfolio and continue growing based on the position we've now achieved,' says Rolf Elgeti, CEO of TAG.

For details, please refer to the interim report for the quarter ended on 31 Mar 2011, which was published today.

Press enquiries:

TAG Immobilien AG

Investor & Public Relations

Britta Lackenbauer / Dominique Mann

Tel. +49 40 380 32 300

Fax +49 40 380 32 390


End of Corporate News

23.05.2011 Dissemination of a Corporate News, transmitted by DGAP - a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.

DGAP's Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases.
Media archive at www.dgap-medientreff.de and www.dgap.de

Company:TAG Immobilien AG
Steckelhörn 5
20457 Hamburg
Phone:040 380 32 300
Fax:040 380 32 390
Listed:Regulierter Markt in Frankfurt (Prime Standard), München; Freiverkehr in Berlin, Düsseldorf, Hamburg, Hannover, Stuttgart
End of NewsDGAP News-Service

125693  23.05.2011