In the first nine months of 2011 TAG Immobilien AG achieved earnings before taxes (EBT) of EUR 53 million
TAG Immobilien AG / Key word(s): Quarter Results
In the first nine months of 2011 TAG Immobilien AG achieved earnings before taxes (EBT) of EUR 53 million - synergies from recent acquisitions have led to increased profitability in the Group:
- Rental income nearly doubles to EUR 59 million
- EBT up by EUR 14.1 million year-on-year to EUR 53.4 million
- NAV per share of EUR 8.43
- Sound balance sheet and financial structure with an LTV of 59 percent
Hamburg (9 November 2011) - In the third quarter of 2011, TAG Immobilien AG ('TAG' in the following) was able to realise synergies at income level for the first time, primarily due to the successful integration of Colonia Real Estate AG ('Colonia' in the following). In the third quarter alone, savings in administration and financial restructuring led to cost savings of EUR 10 million. At operational level there was further success in vacancy reduction - following the acquisition of Colonia, the residential vacancy rate in the Group fell from 13.3 percent to 12.5 percent. The vacancy rate in TAG's 'existing inventory' fell from 5.0 percent to 4.1 percent during the quarter. TAG's NAV (net asset value) has now risen to EUR 8.43. The figures for the first nine months of 2011 confirm the company's operational and strategic success.
Total revenues for the first nine months increased from EUR 64.1 million in 2010 to EUR 108.3 million in 2011. This is largely attributable to the first-time consolidation of Colonia. Rental revenue alone more than doubled year-on-year, from EUR 37.5 million to EUR 83.0 million in 2011. This results in a consolidated net rental income (TAG and Colonia) of EUR 58.8 million compared to EUR 30.2 million in the prior-year period. The good net rental income, the income from the consolidation of Colonia totalling EUR 28.7 million, one-off effects from other acquisitions and revaluation gains in the residential and commercial portfolio of around EUR 23 million resulted in EBT of EUR 53.4 million in the first nine months of 2011, vs. EUR 14.1 million in the prior-year period. This resulted in a consolidated net profit of EUR 40.8 million for the first nine months of 2011, as compared to EUR 12.1 million in 2010.
Total assets increased by 62 percent from EUR 1.2 billion at year-end 2010 to EUR 1.9 billion at the end of September 2011, mainly through the acquisition of Colonia. The Group's sound balance sheet and financial structure is reflected in an unchanged LTV (Loan to Value) of 59 percent and an equity ratio before minority interests of 23 percent.
Third-quarter EBT came to EUR 19.6 million, of which EUR 17.1 million was due to a revaluation of investment properties and EUR 2.6 million to operating profit. TAG's operating profitability improved in the third quarter compared to the second quarter, mainly due to the reduction of administrative costs and the elimination of one-off financing costs. Rents of the revalued properties increased by approximately 2.5 percent year-on-year, while the revaluation itself represents an increase of only about 1.5 percent. Earnings per share amounted to EUR 0.18 in the third quarter and EUR 0.67 for the first nine months of 2011.
' The strategic and operational successes of recent acquisitions and integrations allow us to look to the future with confidence. In particular, the placement of our shares as part of our recent acquisitions in northern Germany and Saxony at a price of EUR 8 per share confirms the confidence in our company and its strategy. We are well on our way to comfortably meeting our forecasts for 2011, with pre-tax profits of EUR 50-60 million and an NAV per share of EUR 8.75. The long-term enhancement of shareholder value is and will continue to remain the focus of TAG's strategic direction,' said Rolf Elgeti, CEO of TAG.
For more details please refer to the quarterly financial report to 30 September 2011, released today.
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|Company:||TAG Immobilien AG|
|Phone:||040 380 32 0|
|Fax:||040 380 32 390|
|Listed:||Regulierter Markt in Frankfurt (Prime Standard), München; Freiverkehr in Berlin, Düsseldorf, Hamburg, Hannover, Stuttgart|
|End of News||DGAP News-Service|