TAG Immobilien AG reports significant increases in profit, NAV and real estate volume in Q1/2012 - New forecast for 2012

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

10.05.2012 / 08:00

TAG Immobilien AG reports significant increases in profit, NAV and real estate volume in Q1/2012 - New forecast for 2012

- Pre-tax earnings (EBT) at EUR 93.4 million

- Funds from Operations (FFO) of EUR 5.6 million

- DKBI integration process in full swing - potential synergies to become visible from 2013

- Forecast for 2012 raised considerably

Hamburg (10 May 2012) - For TAG Immobilien AG ('TAG' in the following), the first quarter of 2012 was dominated by the acquisition and first-time consolidation of DKB Immobilien AG ('DKBI' in the following). At the end of the quarter this led to a step-change in the accounts of TAG which will be significantly enhanced by the integration of DKBI. Total real estate volume has increased to around EUR 3.1 billion, and at the end of March, the TAG Group managed more than 57,270 residential units. The first-quarter Group financials for 2012 are testament to the success of TAG's expansionist strategy:

Total revenues generated during the first quarter increased from EUR 36.0 million in 2011 to EUR 57.0 million in 2012. First-quarter rental revenues rose from EUR 24.4 million in 2011 to EUR 34.4 million in 2012, resulting in rental income of EUR 26.1 million, a 36-percent year-on-year increase. This does not yet include rental income from DKB Immobilien AG, and therefore reflects the success of the Group's active rental and asset management, which helps boost the operating result.

The Group's earnings before taxes (EBT) for Q1/2012 totalled EUR 93.4 million. Most of this, EUR 83.1 million, is extraordinary operating income from the first-time consolidation of DKBI. Despite the Group's growth, at EUR 14.2 million net interest in Q1/2012 remained on par with the prior year. TAG generated Group net income of EUR 88.6 million after EUR 11.1 million in Q1/2011, a near eight-fold year-on-year increase. TAG is for the first time publishing Funds from Operations (FFO) as an indicator of its operating profitability. FFO for the first quarter of 2012 came to EUR 5.6 million without sales - or EUR 18.4 million including cash inflow from property sales.

The DKBI acquisition increased the balance sheet total from EUR 2.0 billion at year-end 2011 to EUR 3.2 billion at 31 March 2012. The real estate volume simultaneously rose from EUR 1,969 million to EUR 3,062 million. The equity ratio before minority interests is 23.8 percent and the LTV (Loan to Value) ratio is around 63 percent. NAV (Net Asset Value) per share increased from EUR 8.72 at year-end 2011 to EUR 9.39 at the end of the first quarter.

Given the strong start to the year on the operations side and the acquisition of DKBI, TAG has raised its full-year forecast for the 2012 fiscal year. Pre-tax earnings (EBT) are now expected to reach EUR 140 million (previous guidance: EUR 75 million), while the FFO (without sales) forecast has been raised from EUR 27 million to EUR 40 million. The expected NAV per share remains unchanged at EUR 9.75. It takes into consideration the dividend payout and the possible exercise of conversion rights.

'The first-quarter figures show that our operating profitability continues to improve at all levels. Rental profit is rising at a steeper rate than the company's growth, while interest expenses are growing much more slowly - in fact not at all in this quarter, compared with the prior year. This shows that our company has an enormously positive operating leverage, which provides further proof that our expansionist course makes excellent sense.

Our new size and structure have lifted us to a new dimension that will allow us not only to master the great challenges facing the industry - first and foremost demographic change and the energy footprint of our residential inventory - but to use them to economic advantage. Our mandate is to continue proving this in future with rising operating results and dividend payouts to our shareholders,' says Rolf Elgeti, Chairman & CEO of TAG Immobilien AG.

For details, please refer to the interim report for the quarter ended 31 March 2012, published today under http://www.tag-ag.com/en/investor-relations/financial-reports/interim-reports/.



Press enquiries:
TAG Immobilien AG
Investor & Public Relations
Britta Lackenbauer / Dominique Mann
Tel. +49 (0) 40 380 32 0
Fax +49 (0) 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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169021  10.05.2012