TAG Immobilien AG: TAG Immobilien AG generates pre-tax profits of EUR 4.1 million in Q1 2010
TAG Immobilien AG / Quarter Results12.05.2010 07:41Dissemination of a Corporate News, transmitted byDGAP - a company of EquityStory AG.The issuer / publisher is solely responsible for the content of this announcement.---------------------------------------------------------------------------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) ofEUR 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 inthe German market. The rapid completion of the acquisition of a Berlinresidential property portfolio with 787 units contributed to this successon the one hand, by leading to unscheduled earnings of nearly EUR 4million. On the other hand, vacancy throughout the portfolio was furtherreduced using strong, innovative sales channels the, which strengthened theoperating business. Having achieved turnaround and largely completed the consolidation processwithin the Group during the second half of last year, TAG is now focusingon active rental and asset management to ensure the profitability of itsexisting properties. In the first quarter of 2010 these activities led to asignificant 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 from10.3 percent at year-end 2009 to 8.1 percent at the end of Q1 2010. AtGroup level, the overall vacancy rate for residential and commercialproperties therefore decreased from 7.4 percent at year-end 2009 to 5.5percent at the end of March 2010 (Q1/2009: 11.3 percent). As well as its pre-tax earnings, TAG also further improved its rentalprofits situation: rental income increased from EUR 8.9 million in Q1 2009to EUR 9.7 million for the first three months of 2010. 6 percent of thisresulted from the acquisition of the Berlin residential property portfolio,and the remainder from active leasing and asset management. This increaseis all the more remarkable given the significant property sales volume ofaround EUR 73 million in 2009.The TAG Group's key financials also reflect the effects of internalrestructuring and the optimisation of the Group structure. First-quarterpersonnel costs were down by 8 percent year-on-year from EUR 2.1 million inthe first quarter of 2009 to currently EUR 1.9 million. This includes anyseasonal bonuses to employees, so personnel expenditure will have declinedeven further by the end of the first half. The company's balance sheet figures were also solid. Total assets increasedfrom EUR 801.4 million on 31 December 2009 to EUR 848.2 million at the endof Q1 2010, mainly due to the acquisition of the Berlin residentialproperty portfolio. Equity before minority interests also increased duringthe same period, from EUR 196.4 million to EUR 209 million, resulting inthe 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 withincreasing property volumes (from EUR 770 million to EUR 814 million).Strengthening the operational business and sustainable growth throughtargeted acquisitions are the top priority for TAG. In this connection, on6 May 2010 TAG acquired an attractive residential property portfolioconsisting of some 2,000 units and total floor-space of around 126,000 m².The properties are situated in central locations in North Rhine-Westphaliaand at selected sites in Saxony. The current market value of this portfoliois 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--------------------------------------------------------------------------- Language: EnglishCompany: TAG Immobilien AG Steckelhörn 5 20457 Hamburg DeutschlandPhone: 040 380 32 300Fax: 040 380 32 390E-mail: ir@tag-ag.comInternet: www.tag-ag.comISIN: DE0008303504WKN: 830350Indices: SDAXListed: Regulierter Markt in Frankfurt (Prime Standard), München; Freiverkehr in Berlin, Hannover, Düsseldorf, Hamburg, Stuttgart End of News DGAP News-Service ---------------------------------------------------------------------------