TAG Immobilien AG generates strong second-quarter operating result with FFO of EUR 10.8 million
TAG Immobilien AG / Key word(s): Half Year Results
- Rental income for H'1/2012 comes to EUR 67.3 million
- First-half earnings before taxes (EBT) reach EUR 120.6 million
- Integration of DKBI in the TAG group progresses more quickly than expected
- High Net Asset Value (NAV) of EUR 9.37 on 30 Jun 2012, after dividend payout
Hamburg (9 August 2012) - For TAG Immobilien AG ('TAG' in the following), the first half of 2012 was dominated by the acquisition and integration of DKB Immobilien AG ('DKBI' in the following). Both the new company and its portfolio with over 25,000 units have been integrated in the TAG group for the most part. The composition of boards has been changed, structures and processes standardised, and since April TAG has been in charge of DKB Immobilien AG's entire real-estate value chain. The Group's key financials for the first half of 2012 underline the success of TAG's expansion strategy:
Total revenue grew from EUR 72.7 million in H'1/2011 to EUR 118.0 million in the first half of 2012. First-half rental revenue increased year-on-year from EUR 53.5 million in 2011 to EUR 87.4 million in 2012. This resulted in rental profits of EUR 67.3 million, including EUR 14.8 million in rental income from DKBI. Minus this, TAG's rental income would amount to EUR 52.5 million, nearly 34 percent above the comparable figure for 2011 (EUR 39.2 million). This increase in the operating result underscores the success of TAG's active rental and asset management.
The Group's pre-tax earnings (EBT) for H'1/2012 totalled EUR 120.6 million. The lion's share of this, EUR 99.2 million, comes from other operating income in connection with the first-time consolidation of DKBI. Despite the company's expansion, its net interest income in H'1/2012 was down only slightly to EUR -38.7 million, after EUR -32.8 million in H'1/2011. TAG's group result for the first half of 2012 was EUR 116.1 million, after EUR 27.7 million in H'1/2011. In 2012, TAG first started publishing Funds from Operations (FFO) as an indicator of its operating profitability. At the end of the first quarter, FFO came to EUR 5.6 million without sales, and in the second quarter nearly doubled to EUR 10.8 million. This results in FFO of EUR 16.4 million in the first six months of 2012. In fact FFO II, which includes liquidity inflow from property sales, came to EUR 33.5 million for the first half of 2012.
The DKBI acquisition increased the balance sheet total from EUR 2.0 billion at the end of last year to EUR 3.2 billion at 30 June 2012. This was accompanied by a rise in real-estate volume from EUR 1,969 million to EUR 3,064 million. The equity ratio before minority interests is 24.4 percent and the LTV (Loan to Value) ratio is 62.5 percent. Despite the payout of a tax-free dividend of 20 Cents per share, at EUR 9.37 the NAV (Net Asset Value) per share is on par with that of Q1/2012 (EUR 9.39).
Based on its strong start to the year and the DKBI acquisition, TAG confirms its guidance for the current fiscal year and expects to generate EBT of EUR 140 million in fiscal 2012, with FFO (not including sales) amounting to EUR 40 million. The NAV per share forecast remains at EUR 9.75.
'TAG's transformation in recent years has had a positive impact on our balance sheet and results. The company's current size and structure have lifted us to a dimension that allows us to sustainably generate an attractive cash flow. The second-quarter figures are very clear proof of this. Further operational improvements and the synergies from the latest acquisition will enable us to further improve our FFO considerably,' says Rolf Elgeti, CEO of TAG Immobilien AG.
For details, please refer to the interim report for the quarter ended on 30 Jun 2012, published today at http://www.tag-ag.com/en/investor-relations/financial-reports/interim-reports
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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|