TAG Immobilien AG: TAG Immobilien AG continues dynamic growth of previous years with a successful business year in 2012

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

28.02.2013 / 08:13

TAG Immobilien AG continues dynamic growth of previous years with a successful business year in 2012

- FFO of EUR 40 million confirms guidance for 2012

- Portfolio more than doubles to 69,000 units

- Net rental income nearly doubles to EUR 144.5 million (2011: EUR 79 million)

- Earnings before tax (EBT) up from EUR 83 million to EUR 203 million

- NAV forecast of EUR 9.75 per share exceeded with EUR 9.96

- Loan to value (LTV) ratio of 58.9%

- Vacancy across the residential portfolio decreases to 9.9%

- FFO guidance of EUR 68 million for 2013

- Proposed dividend of EUR 0.25 for the 2012 financial year

Hamburg (28 February 2013) - TAG Immobilien AG ('TAG' in the following) today released its preliminary, unaudited results for the 2012 financial year. The year's financials were characterised by the successful realisation of major acquisitions and the real estate inventory saw strong growth. In 2012, TAG developed into one of the largest listed real estate companies in the German housing industry.

The key performance indicators for 2012 demonstrate TAG's operational and strategic success:

TAG successfully completed the previous financial year, achieving and/or exceeding its forecasts. Total revenues increased from EUR 178.3 million in 2011 to EUR 252.8 million in 2012. Rental income rose from EUR 115.4 million in the previous year to EUR 192.5 million at year-end 2012, resulting in net rental income of EUR 144.5 million (2011: EUR 79.0 million). This growth at the operational level is due to the consolidation of TAG Potsdam Immobilien AG since April 2012 on the one hand, and on the other to the success of TAG Group's active rental and asset management. EBT grew from EUR 83.3 million last year to EUR 202.6 million. EUR 99.2 million of this comes from the consolidation of TAG Potsdam Immobilien AG alone. The financial result in 2012 increased to EUR -86.7 million after EUR -62.1 million in 2011. The TAG Group generated net income of EUR 180.8 million in 2012 after EUR 65.9 million in 2011. Based on the successful business year, TAG will propose a dividend of EUR 0.25 per share to shareholders at the Annual General Meeting.

FFO (funds from operations) as an indicator of operating profitability came to EUR 12.0 million excluding sales in the fourth quarter, up once again from the third quarter (EUR 11.2 million). This results in FFO for the full year 2012 of EUR 39.6 million. FFO II, which also includes cash inflow from sales, amounted to EUR 69.5 million in the reporting period.

Acquisitions in 2012 led to a doubling of the real estate portfolio to about 69,000 units. At 31 Dec 2012, the book value of the portfolio was around EUR 3.6 billion (previous year: around EUR 2 billion). Vacancy across the residential portfolio was further reduced during the year, from 11.4% at the end of 2011 to 9.9% at year-end 2012, and in all regions, especially in often critically viewed locations: in Salzgitter, vacancy fell by 22.5% to 21.3% in the second half of 2012, and in the remaining Colonia Real Estate AG inventories it was reduced from 15.8% to 15.0%. Vacancy in Thuringia/Saxony currently stands at 10.0%.

NAV (Net Asset Value) in accordance with EPRA guidelines was EUR 9.96 per share at the end of 2012 (previous year: EUR 8.75), well above the forecast of EUR 9.75. This steady increase in NAV reflects the TAG Group's intrinsic value-oriented portfolio management.

TAG's (preliminary) balance sheet ratios are on a sound basis. Shareholder equity increased in 2012, and after deducting minority interests amounted to about EUR 1.1 billion, after EUR 547 million in 2011. The equity ratio was 30% (previous year: 27%), while liabilities to banks at 31 December 2012 amounted to approximately EUR 2.2 billion after EUR 1.2 billion at the end of 2011. With an LTV (loan to value) ratio of nearly 59 percent above the previous year's level and a further improved equity ratio of 30 percent (previous year: 27 percent), TAG Group had a solid balance ratio appropriate for its business model at 31 December 2012.

Based on its strong operating performance and the successful integration of the major acquisitions of more than 25,000 units from the former DKBI, and of TLG Wohnen GmbH with an inventory of around 11,300 residential units, TAG forecasts an FFO of approximately EUR 68 million for the current 2013 financial year.

'Our figures for 2012 as well as our FFO forecast for 2013 show that we are on track for generating a sustainable operating cash flow from our holdings. This will continue to be reflected in the distribution of higher dividends in future. The combination of rising rents, falling vacancy, lower interest rates and synergies from the integration of our acquisitions will continue to ensure very strong, organic growth of our company's FFO,' said Rolf Elgeti, CEO of TAG Immobilien AG.

The audited consolidated results for the 2012 financial year will be published on 18 April 2013.

Press enquiries:

TAG Immobilien AG
Investor & Public Relations
Dominique Mann / Britta Wöhner
Phone +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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