Announcement

TAG Immobilien AG: TAG Immobilien AG generates pre-tax profits of EUR 4.1 million in Q1 2010

TAG Immobilien AG generates pre-tax profits of EUR 4.1 million in Q1 2010 * Vacancy throughout the Group

TAG Immobilien AG: TAG Immobilien AG generates pre-tax profits of EUR 4.1 million in Q1 2010

TAG Immobilien AG / Quarter Results

12.05.2010 07:41

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TAG Immobilien AG generates pre-tax profits of EUR 4.1 million in Q1 2010 
* Vacancy throughout the Group reduced to 5.5% (7.4% at end of 2009) 
* Rental income up 9% from EUR 8.9 million to EUR 9.7 million 
* Acquisition of Berlin residential real estate portfolio finalised
  
(Hamburg, 12 May 2010) TAG Immobilien AG earned pre-tax profits (EBT) of
EUR 4.1 million in the first quarter of 2010, (Q1 2009: EUR -1.0 million),
thereby positioning itself as a focused and efficient real estate group in
the German market. The rapid completion of the acquisition of a Berlin
residential property portfolio with 787 units contributed to this success
on the one hand, by leading to unscheduled earnings of nearly EUR 4
million. On the other hand, vacancy throughout the portfolio was further
reduced using strong, innovative sales channels the, which strengthened the
operating business.
  
Having achieved turnaround and largely completed the consolidation process
within the Group during the second half of last year, TAG is now focusing
on active rental and asset management to ensure the profitability of its
existing properties. In the first quarter of 2010 these activities led to a
significant reduction in vacancy in the commercial real estate segment,
from 5.2 percent at year-end 2009 to currently 3.5 percent.

Furthermore, vacancy in the residential real estate sector was reduced from
10.3 percent at year-end 2009 to 8.1 percent at the end of Q1 2010. At
Group level, the overall vacancy rate for residential and commercial
properties therefore decreased from 7.4 percent at year-end 2009 to 5.5
percent at the end of March 2010 (Q1/2009: 11.3 percent).
  
As well as its pre-tax earnings, TAG also further improved its rental
profits situation: rental income increased from EUR 8.9 million in Q1 2009
to EUR 9.7 million for the first three months of 2010. 6 percent of this
resulted from the acquisition of the Berlin residential property portfolio,
and the remainder from active leasing and asset management. This increase
is all the more remarkable given the significant property sales volume of
around EUR 73 million in 2009.

The TAG Group's key financials also reflect the effects of internal
restructuring and the optimisation of the Group structure. First-quarter
personnel costs were down by 8 percent year-on-year from EUR 2.1 million in
the first quarter of 2009 to currently EUR 1.9 million. This includes any
seasonal bonuses to employees, so personnel expenditure will have declined
even further by the end of the first half.
  
The company's balance sheet figures were also solid. Total assets increased
from EUR 801.4 million on 31 December 2009 to EUR 848.2 million at the end
of Q1 2010, mainly due to the acquisition of the Berlin residential
property portfolio. Equity before minority interests also increased during
the same period, from EUR 196.4 million to EUR 209 million, resulting in
the current equity ratio before minority interests of 24.6 percent, vs.
24.5 percent at year-end 2009. LTV remained stable at 66.9 percent with
increasing property volumes (from EUR 770 million to EUR 814 million).

Strengthening the operational business and sustainable growth through
targeted acquisitions are the top priority for TAG. In this connection, on
6 May 2010 TAG acquired an attractive residential property portfolio
consisting of some 2,000 units and total floor-space of around 126,000 m².
The properties are situated in central locations in North Rhine-Westphalia
and at selected sites in Saxony. The current market value of this portfolio
is estimated at around EUR 104 million.
TAG confirms its earnings forecast of EUR 10 million in pre-tax profits
(EBT) for the current fiscal year.


12.05.2010 Ad hoc announcement, Financial News and Media Release distributed by DGAP.
Media archive at www.dgap-medientreff.de and www.dgap.de

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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
Indices:      SDAX
Listed:       Regulierter Markt in Frankfurt (Prime Standard), München;
              Freiverkehr in Berlin, Hannover, Düsseldorf, Hamburg,
              Stuttgart
 
End of News                                     DGAP News-Service
 
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