TAG Tegernsee Immobilien- und Beteiligungs-AG:
TAG Tegernsee Immobilien- und Beteiligungs-AG:
TAG Tegernsee Immobilien u. Beteiligungs AG / Half Year Results
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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
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
TAG Tegernsee Immobilien- und
Head of Investor & Public Relations
Tel. +49 (0) 40 380 32,300
Fax +49 (0) 40 380 32 388
30.08.2007 Financial News transmitted by DGAP
Issuer: TAG Tegernsee Immobilien u. Beteiligungs AG
Phone: +49 (0)40 30 60 59-40
Fax: +49 (0)40 30 60 59-49
Listed: Amtlicher Markt in Frankfurt (Prime Standard), München;
Freiverkehr in Berlin, Düsseldorf, Hamburg, Stuttgart
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