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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.


 

Report on the 1st half of 2007

 

TAG with a fourfold increase in earnings before tax

 

- Strong growth in real estate portfolio volume

 

- Upbeat outlook for the year as a whole

 

(Hamburg, 30 August 2007). In the first half of 2007, TAG Tegernsee

Immobilien- und Beteiligungs-Aktiengesellschaft achieved a very sharp

increase in earnings in tandem with strong growth. Earnings before tax

(EBT) rose from EUR 3.8 million in the first half of 2006 to EUR 14.3

million in the first half of 2007. TAG’s consolidated net profit came to

EUR 6.5 million in the first six months of 2007, up from EUR 1.1 million

one year earlier.

 

The main driving force behind earnings was the higher rental and management

income, which rose from EUR 16.3 million in the previous year to EUR 25.6

million in the period under review, as a result of the extensions to

portfolio volumes and service business. As planned, revenues from selling

activities contracted from EUR 29.0 million in the first half of 2006 to

EUR 8.7 million in the first half of 2007. As a result, TAG’s consolidated

revenues dropped from EUR 45.2 million in the first half of 2006 to EUR

34.3 million in the first six months of this year.

 

The Company expects the encouraging business performance achieved in the

first half of the year to continue throughout 2007 as a whole. 'With our

steady expansion strategy and encouraging business performance, we are able

to confirm our full-year guidance of consolidated EBT of EUR 31 million for

2007,' says Andreas Ibel, CEO of TAG.

 

In the first six months of 2007, TAG not only achieved impressive earnings

growth but has also nearly doubled the size of its portfolio over the past

few months. In particular, the volume of investment properties tripled in

value from EUR 172.1 million at the end of 2006 to EUR 502.3 million as of

30 June 2007.

 

Says Andreas Ibel: 'We will be continuing TAG’s growth strategy and

steadily extending our real estate portfolios. We invested over EUR 250

million in the first half, thus achieving a large part of the total

investment volume for 2007.'

 

TAG’s clear strategy of assigning one company or subgroup to each of the

areas in which it is engaged, namely commercial real estate, residential

real estate and real estate asset management, allowed it to harness

synergistic benefits and achieve further specialisation and expertise in

the individual segments. The success of our strategy is reflected in the

disproportionately strong increase in earnings in the first half of 2007.

 

Bau-Verein zu Hamburg Group, a subsidiary of TAG which concentrates on

residential real estate in German cities, closed the first half of 2007

with very encouraging results again, additionally increasing the value of

its portfolio. Bau-Verein generated consolidated earnings before tax (EBT)

of EUR 3.6 million in the first half of the year, thus demonstrating the

successful implementation of its strategy oriented to German residential

real estate.

 

At EUR 24.5 million in the first half of 2007, Bau-Verein’s revenues

remained steady at the year-ago figure (EUR 25.9 million). In line with

expectations, proceeds from selling activities contracted from EUR 12.5

million to EUR 5.3 million. Income from rent and asset management

activities rose by 42 percent from EUR 13.5 million to EUR 19.2 million.

 

TAG’s services have also been extended and integrated in the Group’s real

estate asset management activities. These activities owe their success to

detailed expertise, extensive knowledge of all aspects of asset management

as well as the provision of premium-quality services for external

companies. Revenues from management activities increased sharply in the

first half of 2007 to EUR 9.5 million, up from EUR 4.8 million in the first

half of 2006.

 

TAG has completed further important steps in preparation of the G-REIT:

Thus, TAG Gewerbeimmobilien-Aktiengesellschaft has been registered as a

pre-REIT. With the acquisition of the Siemens portfolio in June 2007, the

future asset volume doubled in value to around EUR 400 million.

 

Looking ahead over the next 12 to 15 months, further transactions are

planned. TAG’s acquisition strategy will continue to focus on properties in

urban locations in German cities offering development potential. With

market conditions still upbeat, the outlook for the Company’s business

performance remains positive and TAG’s management is confident of being

able to reinforce the Group’s stable position and keep it on its growth

trajectory.

 

Press inquiries:

 

TAG Tegernsee Immobilien- und

 

Beteiligungs-Aktiengesellschaft

 

Head of Investor & Public Relations

 

Kirsten Schleicher

 

Tel. +49 (0) 40 380 32,300

 

Fax +49 (0) 40 380 32 388

 

pr@tag-ag.com

30.08.2007 Financial News transmitted by DGAP


 

Language: English

Issuer: TAG Tegernsee Immobilien u. Beteiligungs AG

Steckelhörn 9

20457 Hamburg

Deutschland

Phone: +49 (0)40 30 60 59-40

Fax: +49 (0)40 30 60 59-49

E-mail: info@tag-ag.com

Internet: www.tag-ag.com

ISIN: DE0008303504

WKN: 830350

Indices: SDAX

Listed: Amtlicher Markt in Frankfurt (Prime Standard), München;

Freiverkehr in Berlin, Düsseldorf, Hamburg, Stuttgart

 

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