Announcement

TAG Immobilien AG reports EBT of EUR 22 million for fiscal 2010, exceeding its raised forecast

--------------------------------------------------------------------- 01.03.2011 Dissemination of a

TAG Immobilien AG reports EBT of EUR 22 million for fiscal 2010, exceeding its raised forecast

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

01.03.2011 / 07:50

* Successful reduction of vacancy leads to a vacancy rate of 5.3 percent
throughout the Group
* Significant 15-percent improvement in rental profit, to nearly EUR 40
million
* Earnings before taxes (EBT) were EUR 22 million, exceeding the projected
target of EUR 20 million and confirming the excellent overall direction of
the Group
* Expansion strategy is working and successful

Hamburg (01 March 2011) - TAG Immobilien AG ('TAG' in the following) today
released its preliminary, unaudited results for the 2010 fiscal year.
TAG successfully concluded the past fiscal year, exceeding even the revised
forecast of earnings before tax (EBT) of EUR 20 million. The company
generated Group-level EBT of EUR 22 million (previous year: EUR -25
million) in fiscal 2010. This positive performance is due to successes in
vacancy reduction as well as the acquired residential portfolios, which
expanded the Group's property holdings by over 40 percent. TAG exploited
attractive opportunities in the market for further growth in 2010 to
optimise its portfolio of existing locations and expand strategically. The
new acquisitions were successfully integrated into the TAG Group within a
very short time. Vacancy reduction was continuously advanced through active
asset and rental management. In the newly acquired portfolios alone, the
acquired vacancy rate of 15 percent was more than halved to 7 percent by
year-end 2010. In the residential property sector, vacancy in the existing
inventory was reduced from 10 percent to just under 6 percent, and in the
commercial portfolio, vacancy was reduced from 5 percent to just under 4
percent. This successful vacancy reduction is reflected in the rental
profit, which rose steadily across the Group by 15 percent from EUR 35
million in 2009 to EUR 40 million in 2010. In addition, the rental profit
and earnings before tax (EBT) both confirm the excellent overall direction
of the TAG Group.

Successfully placed capital measures formed the basis for all the
acquisitions and takeovers - capital increases and the issuance of
convertible bonds with a total volume of around EUR 180 million - and
demonstrated the high level of interest in TAG shares.

TAG's (interim) key financials are also solid. The Group's total assets at
year-end exceeded the EUR 1 billion mark for the first time and amounted to
EUR 1,200 million at 31 Dec 2010 (previous year: EUR 800 million).
Shareholders' equity increased significantly as a result of the capital
measures issued in 2010, and after minority interests came to EUR 356
million, compared to EUR 196 million in 2009. This increased the NAV (Net
Asset Value) per share from EUR 6.03 to EUR 6.09 based on the balance sheet
equity at 31 Dec 2010. This is based on a value of EUR 5.55 per CRE share.
Taking into account the announced CRE valuation, this corresponds to an NAV
of app. EUR 6.70 at TAG level. Currently, after taking over the majority of
CRE in February, this means that NAV is now at about EUR 7.10.

Bank borrowings at 31 Dec 2010 totalled EUR 634 million, against EUR 517
million at year-end 2009. With an LTV (Loan to Value) ratio of 53 percent
(previous year: 67 percent) and an equity ratio of 30 percent (previous
year: 25 percent) TAG Group's balance sheet ratio at 31 Dec 2010 was
outstanding for the sector.


During the Colonia Real Estate AG (CRE) acquisition process, control of the
company passed to TAG in mid-February when it acquired a majority stake of
over 50 percent. Merging the two companies results in an interesting
magnitude on the German real estate market. The restructuring process is
now being initiated to realise existing synergy potential. CRE will be
consolidated as part of the TAG Group during the first quarter 2011.

'The determining factor in TAG's strategic direction is a long-term
increase in shareholder value, i.e. the realisation of sustainable
value-creation potential for our shareholders,' said Rolf Elgeti, CEO of
TAG.'Our figures show that we are on the right track with our expansion
strategy coupled with the consolidation kick-started in the German property
market. In 2011 we expect earnings before tax (EBT) of EUR 50-60 million.
The Net Asset Value (NAV) per share should be at least EUR 8.00.'

The audited consolidated results for the fiscal 2010 will be published on
13 April 2011.

 
Press enquiries:
TAG Immobilien AG
Investor & Public Relations
Britta Lackenbauer / Dominique Mann
Tel +49 40 380 32 300
Fax +49 40 380 32 390
pr@tag-ag.com


End of Corporate News

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Language:    English                                                    
Company:     TAG Immobilien AG                                          
             Steckelhörn 5                                              
             20457 Hamburg                                              
             Deutschland                                                
Phone:       040 380 32 300                                             
Fax:         040 380 32 390                                             
E-mail:      ir@tag-ag.com                                              
Internet:    www.tag-ag.com                                      
ISIN:        DE0008303504                                               
WKN:         830350                                                     
Listed:      Regulierter Markt in Frankfurt (Prime Standard), München;  
             Freiverkehr in Berlin, Düsseldorf, Hamburg, Hannover,      
             Stuttgart                                                  
 
 
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