Announcement

TAG Tegernsee Immobilien- und Beteiligungs-AG: TAG reporting increased revenues and improved profitability

49 percent increase in revenues to EUR 51.1 million - Earnings before taxes (EBT) of EUR 6.7 million

TAG Tegernsee Immobilien- und Beteiligungs-AG: TAG reporting increased revenues and improved profitability

TAG Tegernsee Immobilien u. Beteiligungs AG / Half Year Results

Release of a Corporate News, transmitted by DGAP - a company of EquityStory
AG.
The issuer / publisher is solely responsible for the content of this announcement.
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- 49 percent increase in revenues to EUR 51.1 million
- Earnings before taxes (EBT) of EUR 6.7 million
- Portfolio widened to EUR 843 million 
- Muted full-year outlook for 2008

(Hamburg, 21 August 2008). TAG Tegernsee Immobilien- und
Beteiligungs-Aktiengesellschaft (or TAG for short) achieved further growth
in operating business in the second quarter of 2008. With the systematic
extensions made to its real estate portfolio and higher rental income, it
achieved a substantial increase in revenues over the year-ago period in
tandem with improved profitability. The shareholders passed a resolution at
this year’s annual general meeting to adopt a new name in the future - TAG
Immobilien AG.
TAG’s revenues grew by an encouraging 49 percent in the first half of the
year, rising to EUR 51.1 million, up from EUR 34.3 million in the previous
year. This significant increase was primarily caused by sales proceeds and
TAG’s successful rental business. Rental income climbed by 35 percent to
EUR 21.8 million (previous year: EUR 16.1 million).
At EUR 6.7 million, earnings before taxes (EBT) fell short of the previous
year’s figure (EUR 14.3 million), which had been inflated by gains from
fair-value revaluation. Despite the reduced gains from fair-value
revaluations in the period under review, gross profit remained at a high
EUR 31.4 million.
TAG’s favourable business performance is also reflected in its total
assets, which widened by just under EUR 23 million compared with the end of
2007, rising to EUR 909.3 million. TAG’s successful acquisition activities
in the first half of 2008 as well as spending on the portfolio and project
development caused real estate volumes to increase by around 11 percent to
a total of EUR 843 million, with the equity ratio remaining at a high 34
percent. On a particularly positive note, the loan-to-value (LTV) ratio
contracted from 67 percent to 63 percent in the first half of the year
despite the investments which had been completed.  LTV is the ratio of loan
liabilities to the market value of the real estate.
'TAG’s gratifying business performance is unfortunately not reflected in
its stock,' says Andreas Ibel, CEO of TAG. 'The crisis afflicting the
capital markets is also a crisis of confidence, which is influencing
investor behaviour in the stock markets. Listed real estate companies are
particularly bearing the brunt and trading at discounts of up to 70 percent
on their net asset value at the moment.'
In line with its buy, build and hold strategy, TAG will continue to focus
on enhancing the value of its portfolio in the long term as well as
attractive acquisitions and new construction projects. Given the sustained
strong demand for commercial and residential rental properties, rentals -
particularly in the residential segment - are expected to rise in the
second half of 2008. In the second half of 2008, TAG will continue to focus
on asset management activities to further boost the return on its
portfolios via higher rentals and cost optimization.
Despite the growth in the Company’s operating business, TAG’s Management
Board is cautious with respect to its full-year forecast on account of the
negative underlying conditions and currently forecasts earnings before
taxes (EBT) of EUR 15 - 20 million, i.e. less than in the previous year.


Contact:
TAG Tegernsee Immobilien- und
Beteiligungs-Aktiengesellschaft
Head of investor and public relations 
Kirsten Schleicher

Tel. +49 (0) 40 380 32 300
Fax +49 (0) 40 380 32 388
pr@tag-ag.com




21.08.2008  Financial News transmitted by DGAP
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Language:     English
Issuer:       TAG Tegernsee Immobilien u. Beteiligungs AG
              Steckelhörn 9
              20457 Hamburg
              Deutschland
Phone:        +49 (0)40 380 32 300
Fax:          +49 (0)40 380 32 399
E-mail:       info@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, Düsseldorf, Hamburg, Stuttgart
 
End of News                                     DGAP News-Service
 
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