DGAP-News

TAG Immobilien AG reports strong operational successes in vacancy reduction and lowers financing costs long-term in Q2 2015

DGAP-News: TAG Immobilien AG / Key word(s): Half Year Results
TAG Immobilien AG reports strong operational successes in vacancy
reduction and lowers financing costs long-term in Q2 2015

06.08.2015 / 07:30

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PRESS RELEASE

TAG Immobilien AG reports strong operational successes in vacancy reduction
and lowers financing costs long-term in Q2 2015

- Continued very positive development in reducing vacancy, especially at
the Salzgitter location;

- Like-for-like rental growth of 1.3%, or 2.3% including the effects from
vacancy reduction;

- Significant reduction in financing costs thanks to conversions and
early repayment of bank loans in July 2015

- Payment of a tax-free dividend of EUR 0.50 per share in June 2015
corresponds to attractive dividend yield of around 4.5%.

Hamburg (6 August 2015) - TAG Immobilien AG ('TAG' in the following)
reported second-quarter FFO of EUR 18.6 million, after EUR 18.1 million in
the previous quarter. FFO for the entire first half of the year amounted to
EUR 36.7 million or EUR 0.30 per share. The capital recycling strategy was
consistently pursued in the first half of 2015. An opportunistic sale of
972 units in Berlin resulted in a book profit of EUR 10.7 million and net
cash proceeds of EUR 34.6 million. At the same time, a total of 1,174 units
in TAG's core regions were acquired at attractive prices in the months of
May to July 2015.

At EUR 64.8 million, total rental income for the second quarter 2015 was
above the previous quarter (EUR 64.1 million). Apart from effects from the
rental growth and vacancy reduction, the previous year's acquisitions of
around 2,850 units, which came into effect in February 2015, also
contributed to this increase. Mostly due to higher maintenance costs
compared with the previous quarter, net rental income was EUR 51.5 million,
down from EUR 52.7 million in Q1 2015. Rental income for the entire first
half of 2015 came to EUR 128.9 after EUR 130.5 million in H1 2014, which
still included the commercial portfolio sold in May 2014.

Across the Group, and taking into account the previous year's acquisitions
and disposals, vacancy in the residential units decreased from 9.0% at the
beginning of 2015 to 8.7% at the end of the second quarter. Vacancy
continued to decline after the reporting date, and in July 2015 was at just
8.6%. It is particularly noteworthy that vacancy in Salzgitter was once
again significantly reduced in the second quarter of 2015, down from 15.5%
at the beginning of the year to 14.6% in June 2015 and 14.0% in July 2015.
Average net cold actual rent per square meter across all residential units