DGAP-News

TAG Immobilien AG reports strong operating result, FFO of EUR 15.1 million in Q1/2013

DGAP-News: TAG Immobilien AG / Key word(s): Quarter Results
TAG Immobilien AG reports strong operating result, FFO of EUR 15.1
million in Q1/2013

08.05.2013 / 08:01

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PRESS RELEASE

TAG Immobilien AG reports strong operating result, FFO of EUR 15.1 million
in Q1/2013

- Integration of TAG Wohnen with 11,350 units completed

- Synergy potential to be visible in income from H'2/ 2013

- Vacancy in the residential portfolio reduced to 9.4%

- Loan to value (LTV) ratio at 57.6%

- Funds from Operations (FFO) at EUR 15.1 million

- Future target dividend pay-out of approx. 75% of FFO

Hamburg (May 8, 2013) - For TAG Immobilien AG ('TAG'), the first quarter of
2013 was dominated by the integration and consolidation of TAG Wohnen
(formerly TLG Wohnen GmbH). The operating profitability of the Group's
overall portfolio with around 70,000 units is now emerging clearly, even if
the delayed effects of potential synergies and savings from refinancing
loans show won't have an effect on income until later in the year. The
Group financials of the first quarter of 2013 provide evidence for the
success of TAG's strategy.

The Group nearly tripled its total revenues from EUR 57.0 million in
Q1/2012 to EUR 164.9 million in the first quarter of 2013. Rental revenues
increased from EUR 34.4 million in the first quarter of 2012 to EUR 63.2
million in 2013, and resulted in net rental income of EUR 49.2 million, a
year-on-year increase of about 90 percent. This figure includes the rental
results of the TAG Potsdam and TAG Wohnen (formerly DKBI and TLG Wohnen)
portfolios acquired last year; the significant increase in the operating
result demonstrates the success of the TAG Group's active rental and asset
management. The successful integration of the acquired units is also
reflected in the effective reduction of vacancy: across the Group, the
vacancy rate in the residential sector was further improved from 9.9% at
the end of 2012 to 9.4%.

The Group's earnings before taxes (EBT) in Q1/2013 came to EUR 13.3
million. Net interest in the first quarter of 2013 was EUR -25.7 million,
an appropriate level given the company's strong growth in 2012. Funds from
Operations (FFO) as an indicator of operating profitability amounted to EUR
15.1 million for the first quarter of 2013, excluding sales - or EUR 60.1
million including cash inflow from property sales.

At EUR 3.7 billion, the balance sheet total at 31 March 2013 was nearly