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

TAG Immobilien AG / Quarter ResultsRelease of a Corporate News, transmitted by DGAP - a company of EquityStoryAG.The issuer / publisher is solely responsible for the content of this announcement.----------------------------------------------------------------------PRESS RELEASEReport on the first nine months of 2008TAG 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, TAGImmobilien AG was able to further improve its business performance, withrevenues rising by 37 percent over the year-ago period from EUR 58.3million to 80.1 million. This was accompanied by a disproportionatelystrong 44 % increase in rental income from EUR 26.5 million to 38.2million, underpinned by the newly acquired cash-flow-heavy portfolios suchas 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 increasedrevenues and net rental income. At EUR 44.4 million, gross profit for theperiod under review remained steady at the year-ago figure despite thereduced fair value remeasurement gains. EBT came to EUR 6.7 million in thefirst nine months of 2008. A balanced figure was also achieved at the EBTlevel in the third quarter against the backdrop of increased interestexpense resulting from the greater real estate volumes and lower fair valueremeasurement gains.'Banks’ substantially more restrictive lending practices already startedmaking themselves felt on potential buyers’ ability to arrange finance inthe third quarter, causing delays in transactions for the purchase and saleof real estate. Given the crisis afflicting the financial markets and thefall-out for the real economy, the Company is currently unable to issue anyreliable 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 itsbudgeted sales by the end of 2008, the Company is adjusting its revenue andearnings forecast. However, the current conditions may not only affectplanned real estate sales but also impact the fair value of individualproperties. Accordingly, TAG’s Management Board expects the Company tobreak even at the EBT level in 2008 as a whole.Despite the revised expectations for 2008, the Company will master thechallenges arising from the crisis thanks to increased rental income, itssolid financial structure and its concentration on the German real estatemarket 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 washigh by sector standards. As well as this, current liabilities to bankscontracted from EUR 217 million at the end of 2007 to EUR 106 million as of30 September 2008. At the same time, non-current liabilities rose from EUR296 million to EUR 433 million.  Despite the current adverse conditions inthe credit markets, TAG assumes that all loans will be renewed upon expiry.About TAG Immobilien AGA real estate company listed in the SDAX, TAG Immobilien AG can look backon a history spanning 125 years. TAG’s main business activities entailresidential and commercial real estate in good urban locations in Germanmetropolitan 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 TAGGewerbeimmobilien AG and TAG Asset Management GmbH.TAG has branches in Hamburg, Berlin, Leipzig and Munich.Press inquiries:TAG Immobilien AGKirsten SchleicherHead of Investor & Public RelationsTel. +49 (0) 40 380 32 300Fax +49 (0) 40 380 32 388pr@tag-ag.comContact:TAG Immobilien AGHead of investor and public relations Kirsten SchleicherTel. +49 (0) 40 380 32 300Fax +49 (0) 40 380 32 388pr@tag-ag.com13.11.2008  Financial News transmitted by DGAP---------------------------------------------------------------------- Language:     EnglishIssuer:       TAG Immobilien AG              Steckelhörn 5              20457 Hamburg              DeutschlandPhone:        040 380 32-300Fax:          040 / 380 32-388E-mail:       info@tag-ag.comInternet:     www.tag-ag.comISIN:         DE0008303504WKN:          830350Indices:      SDAXListed:       Regulierter Markt in Frankfurt (Prime Standard), München;              Freiverkehr in Berlin, Hannover, Hamburg, Düsseldorf,              Stuttgart End of News                                     DGAP News-Service ---------------------------------------------------------------------------