Announcement

TAG Immobilien AG starts the 2017 financial year with increased FFO of EUR 28.5m and new acquisitions

DGAP-News: TAG Immobilien AG / Key word(s): Quarter Results04.05.2017 / 06:50 The issuer is solely responsible

TAG Immobilien AG starts the 2017 financial year with increased FFO of EUR 28.5m and new acquisitions

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

04.05.2017 / 06:50
The issuer is solely responsible for the content of this announcement.


PRESS RELEASE

TAG Immobilien AG starts the 2017 financial year with increased FFO of EUR 28.5m and new acquisitions

- FFO for Q1 2017 rises to EUR 28.5m or EUR 0.20 per share, after EUR 27.0m and EUR 0.19 per share in Q4 2016

- Purchase of c. 2,700 residential units in first quarter of 2017, closing scheduled for end of the second quarter

- Vacancy in residential units of the portfolio drops to below 6% for the first time; 5.9% in March 2017

- Total like-for-like rental growth at 3.4% p.a. at 31 March 2017

- Successful placement of 4.1m treasury shares in March 2017 creates basis for further acquisitions and optimises capital structure

- NAV per share rises to EUR 11.73 (31 December 2016: EUR 11.53)

- LTV reduced to 55.8% after 57.1% at the end of 2016

- Dividend payment of EUR 0.57 per share for 2016 scheduled for May 2017, dividend per share for 2017 increases to EUR 0.60

Hamburg (4 May 2017) - In the first quarter of 2017, TAG Immobilien AG (TAG) generated FFO of EUR 28.5m or EUR 0.20 per share, after FFO of EUR 27.0m (EUR 0.19 per share) in Q4 2016, once again increasing its operating cash flow. In addition to the acquisition of 1,650 residential units at the end of 2016, this positive development was driven by attractive rental growth as well as by a further decline in vacancy in the portfolio. The placement of the last remaining treasury shares from the 2014 share buyback in March 2017 resulted in gross proceeds of EUR 51.1m, creating new liquidity for further acquisitions, and optimised the capital structure by an increase in NAV and a reduction in LTV. In February and March 2017, another 2,700 residential units were purchased in the city of Brandenburg and in Halle an der Saale.

Rental income increased to EUR 71.5m in the first quarter of 2017 after EUR 70.0m in Q4 2016. In the first quarter of 2016, rental income was EUR 67.7m. Mainly due to higher maintenance expenses and increased income from service charge settlements in Q4 2016, rental income for Q1 2017 dipped slightly to EUR 59.0m (previous quarter EUR 59.8m). However, in a year-on-year comparison (Q1 2016) there was a significant increase of EUR 5.9m.

The positive operating performance was due primarily to like-for-like rental growth (i.e. based on an identical portfolio) of 3.4% p.a. at 31 March 2017, and 1.9% p.a. excluding vacancy reduction effects. In addition, portfolios totalling 1,650 units newly acquired at year-end 2016 contributed to the overall rental growth. Across the Group, vacancy in the portfolio dropped to 6.4% in March 2017, after 6.5% at the beginning of the year. In April 2017, the overall vacancy rate fell again to 6.2%. In the residential units, vacancy was reduced from 6.1% at the beginning of the year to 5.9% in March 2017, and to 5.8% in April 2017.

At the end of the first quarter of 2017, Group net income was EUR 22.1m, compared to EUR 26.6m in the previous quarter and EUR 18.0m in the first quarter of 2016. At the end of Q1 2017, Funds from Operations (as FFO I excluding net revenue from sales) amounted to EUR 28.5m after EUR 27.0m in Q4 2016 and EUR 21.6m in the first quarter of 2016. Adjusted Funds from Operations (AFFO), which are derived from FFO deducting total Capex, significantly increased in Q1 2017 and amounted to EUR 20.6m after EUR 15.5m in Q4 2016 and EUR 12.0m in Q1 2016.

Total assets remained constant compared to the end of 2016, and was EUR 4.1 billion at 31 March 2017. The equity ratio rose to 35.0% at 31 March 2017 after 34.0% at 31 December 2016, mainly as a result of the placement of 4.1 million treasury shares in March 2017. The loan to value (LTV) ratio was reduced to 55.8% after 57.1% at 31 December 2016. Net asset value (NAV) per share rose from EUR 11.53 at year-end 2016 to EUR 11.73 at the end of Q1 2017.

In the first quarter of 2017, a total of EUR 84.8m was invested in new portfolios. Given current annual net cold rent of EUR 6.89m from these portfolios, this corresponds to an average purchase multiplier of 12.3 times or a gross initial yield of 8.1%. At the end of February 2017, TAG signed the purchase of a residential property portfolio with 1,441 units in the city of Brandenburg. The purchase price, including transaction costs borne by TAG, was EUR 41.9m. The portfolio currently generates annual rental income of around EUR 3.42m, and vacancy is at about 19.3%. At the end of March 2017, a purchase agreement for 1,252 units in Halle an der Saale was signed. The purchase price was EUR 42.9m. The annual net rental income is currently at around EUR 3.47m and vacancy is approximately 7.2%. Both transactions are expected to close at the end of Q2 2017.

"In parallel with our strong operational growth, in the first quarter of 2017 we also laid the foundations for continued targeted external growth and optimised our capital structure by successfully placing the last remaining treasury shares from the 2014 share buyback. As a result, we were able to purchase another 2,700 residential units at the end of February and at the end of March 2017," explains Martin Thiel, Chief Financial Officer of TAG Immobilien AG. "We have already proposed a dividend of EUR 0.57 per share to the AGM on May 16, 2017, which is once again higher than the previous year and corresponds to a dividend yield of almost 4.5% on the current share price. The dividend for the 2017 financial year will then be further increased to EUR 0.60 so that our shareholders will continue to participate directly in TAG's growing cash flows."

Further details on the first quarter of 2017 can be found in the interim report published today at https://www.tag-ag.com/en/investor-relations/financial-statements/quarterly-reports/.

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
pr@tag-ag.com



04.05.2017 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.

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Language: English
Company: TAG Immobilien AG
Steckelhörn 5
20457 Hamburg
Germany
Phone: 040 380 32 0
Fax: 040 380 32 388
E-mail: ir@tag-ag.com
Internet: www.tag-ag.com
ISIN: DE0008303504, XS0954227210, DE000A12T101
WKN: 830350, A1TNFU, A12T10
Indices: MDAX
Listed: Regulated Market in Frankfurt (Prime Standard), Munich; Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover, Stuttgart, Tradegate Exchange


 
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