TAG Immobilien AG: TAG with a substantial increase in rental income

PRESS RELEASE Report on the first nine months of 2008 TAG with a substantial increase in rental income

TAG Immobilien AG: TAG with a substantial increase in rental income

TAG Immobilien AG / Quarter Results

Release of a Corporate News, transmitted by DGAP - a company of EquityStory
The issuer / publisher is solely responsible for the content of this announcement.


Report on the first nine months of 2008

TAG with a substantial increase in rental income 

  - Operating earnings improved
  - Current liabilities reduced 
  - Revenue and earnings forecast adjusted 

(Hamburg, 13 November 2008) In the first nine months of 2008, TAG
Immobilien AG was able to further improve its business performance, with
revenues rising by 37 percent over the year-ago period from EUR 58.3
million to 80.1 million. This was accompanied by a disproportionately
strong 44 % increase in rental income from EUR 26.5 million to 38.2
million, underpinned by the newly acquired cash-flow-heavy portfolios such
as the Siemens portfolio (commercial) and the VBL portfolio (residential)
together with reduced vacancies and rental hikes.

Operating earnings improved particularly as a result of the increased
revenues and net rental income. At EUR 44.4 million, gross profit for the
period under review remained steady at the year-ago figure despite the
reduced fair value remeasurement gains. EBT came to EUR 6.7 million in the
first nine months of 2008. A balanced figure was also achieved at the EBT
level in the third quarter against the backdrop of increased interest
expense resulting from the greater real estate volumes and lower fair value
remeasurement gains.

'Banks’ substantially more restrictive lending practices already started
making themselves felt on potential buyers’ ability to arrange finance in
the third quarter, causing delays in transactions for the purchase and sale
of real estate. Given the crisis afflicting the financial markets and the
fall-out for the real economy, the Company is currently unable to issue any
reliable forecasts for 2008,' says Andreas Ibel, CEO of TAG Immobilien AG.

As it is not possible to tell whether TAG will be able to achieve its
budgeted sales by the end of 2008, the Company is adjusting its revenue and
earnings forecast. However, the current conditions may not only affect
planned real estate sales but also impact the fair value of individual
properties. Accordingly, TAG’s Management Board expects the Company to
break even at the EBT level in 2008 as a whole.

Despite the revised expectations for 2008, the Company will master the
challenges arising from the crisis thanks to increased rental income, its
solid financial structure and its concentration on the German real estate
market with properties in good urban locations.

Solid financial condition 

TAG Immobilien AG has a highly solid financial base: 
At around 33 percent at the end of the third quarter, the equity ratio was
high by sector standards. As well as this, current liabilities to banks
contracted from EUR 217 million at the end of 2007 to EUR 106 million as of
30 September 2008. At the same time, non-current liabilities rose from EUR
296 million to EUR 433 million.  Despite the current adverse conditions in
the credit markets, TAG assumes that all loans will be renewed upon expiry.

About TAG Immobilien AG

A real estate company listed in the SDAX, TAG Immobilien AG can look back
on a history spanning 125 years. TAG’s main business activities entail
residential and commercial real estate in good urban locations in German
metropolitan regions as well as the provision of real estate services.

The Group’s operating business is primarily performed by its subsidiary,
the listed company Bau-Verein zu Hamburg AG as well as TAG
Gewerbeimmobilien AG and TAG Asset Management GmbH.

TAG has branches in Hamburg, Berlin, Leipzig and Munich.

Press inquiries:

TAG Immobilien AG
Kirsten Schleicher
Head of Investor & Public Relations
Tel. +49 (0) 40 380 32 300
Fax +49 (0) 40 380 32 388

TAG Immobilien AG
Head of investor and public relations 
Kirsten Schleicher

Tel. +49 (0) 40 380 32 300
Fax +49 (0) 40 380 32 388

13.11.2008  Financial News transmitted by DGAP
Language:     English
Issuer:       TAG Immobilien AG
              Steckelhörn 5
              20457 Hamburg
Phone:        040 380 32-300
Fax:          040 / 380 32-388
ISIN:         DE0008303504
WKN:          830350
Indices:      SDAX
Listed:       Regulierter Markt in Frankfurt (Prime Standard), München;
              Freiverkehr in Berlin, Hannover, Hamburg, Düsseldorf,
End of News                                     DGAP News-Service