TAG Immobilien AG reports strong operating result, FFO of EUR 15.1 million in Q1/2013

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

08.05.2013 / 08:01


TAG Immobilien AG reports strong operating result, FFO of EUR 15.1 million in Q1/2013

- Integration of TAG Wohnen with 11,350 units completed

            - Synergy potential to be visible in income from H'2/ 2013

- Vacancy in the residential portfolio reduced to 9.4%

- Loan to value (LTV) ratio at 57.6%

- Funds from Operations (FFO) at EUR 15.1 million

- Future target dividend pay-out of approx. 75% of FFO

Hamburg (May 8, 2013) - For TAG Immobilien AG ('TAG'), the first quarter of 2013 was dominated by the integration and consolidation of TAG Wohnen (formerly TLG Wohnen GmbH). The operating profitability of the Group's overall portfolio with around 70,000 units is now emerging clearly, even if the delayed effects of potential synergies and savings from refinancing loans show won't have an effect on income until later in the year. The Group financials of the first quarter of 2013 provide evidence for the success of TAG's strategy.

The Group nearly tripled its total revenues from EUR 57.0 million in Q1/2012 to EUR 164.9 million in the first quarter of 2013. Rental revenues increased from EUR 34.4 million in the first quarter of 2012 to EUR 63.2 million in 2013, and resulted in net rental income of EUR 49.2 million, a year-on-year increase of about 90 percent. This figure includes the rental results of the TAG Potsdam and TAG Wohnen (formerly DKBI and TLG Wohnen) portfolios acquired last year; the significant increase in the operating result demonstrates the success of the TAG Group's active rental and asset management. The successful integration of the acquired units is also reflected in the effective reduction of vacancy: across the Group, the vacancy rate in the residential sector was further improved from 9.9% at the end of 2012 to 9.4%.

The Group's earnings before taxes (EBT) in Q1/2013 came to EUR 13.3 million. Net interest in the first quarter of 2013 was EUR -25.7 million, an appropriate level given the company's strong growth in 2012. Funds from Operations (FFO) as an indicator of operating profitability amounted to EUR 15.1 million for the first quarter of 2013, excluding sales - or EUR 60.1 million including cash inflow from property sales.

At EUR 3.7 billion, the balance sheet total at 31 March 2013 was nearly unchanged vs. year-end 2012. Parallel to this, the real estate volume at the end of Q1/2013 was EUR 3.56 million. The equity ratio before minorities is 31.8 percent, and the LTV (loan to value) ratio approximately 57.6 percent, both variables having improved significantly once again compared to the end of 2012. NAV (net asset value) per share increased slightly from EUR 9.96 at year-end 2012 to EUR 10.0 at the end of Q1/2013.

The strong operational start to the year puts us well track for achieving our forecasts of EUR 68 million in FFO and net rental income of EUR 254 million, which are hereby confirmed.

'The first-quarter figures show that our profitability and efficiency continue to improve on all levels. This increasing operational strength allows us to increase our dividend. At the upcoming Annual General Meeting in June, we plan to propose a payout of 25 cents per share - roughly equivalent to 80% of last year's operating profit last year. In future, too, we want to continue paying out a large part of our FFO as dividends, and are aiming for a target payout ratio of approximately three-quarters in the years ahead,' said Rolf Elgeti, CEO of TAG Immobilien AG.

For details, please refer to the Q3 report to 31 March 2013, published today, at http://www.tag-ag.com/investor-relations/finanzberichte/quartalsberichte/.

Press enquiries:
TAG Immobilien AG
Head of Investor & Public Relations
Dominique Mann
Phone +49 (0) 40 380 32 0
Fax +49 (0) 40 380 32 390

End of Corporate News

08.05.2013 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 0
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

210154  08.05.2013