DGAP-News

TAG Immobilien AG reports strong operational successes in vacancy reduction and lowers financing costs long-term in Q2 2015 - Seite 2

was EUR 5.00 at 30 June 2015, with like-for-like rental growth of 1.3% over
the past twelve months. Taking the effects from the vacancy reduction into
account, rental growth was 2.3%.

Group net income at the end of H1 2015 came to EUR 48.3 million after EUR
14.2 million at 30 June 2014. This significant increase is mainly due to
strong results from sales totalling EUR 11.3 million (prior-year period EUR
- 0.8 million) and the positive valuation results of newly acquired
residential portfolios at EUR 21.2 million (prior-year period EUR 6.9
million).

At the end of Q2 2015, Funds from Operations (FFO) as an indicator of
operating performance came to EUR 18.6 million not including disposals (FFO
I), after EUR 18.1 million in the previous quarter. Taking into account the
results from property sales (FFO II) there was a quarter-on-quarter
increase from EUR 17.9 million to EUR 30.1 million

TAG's equity ratio at 30 June 2015 increased to 27.5% (31 December 2014:
26.9%). At 63.2% and 65.7% (including convertible bonds), the LTV (Loan to
Value) ratio was on par with the levels at 31 December 2014 of 62.2% and
65.3%. NAV (Net Asset Value) per share, following payment of a tax-free
dividend of EUR 0.50 to the shareholders, was EUR 9.78 at the end of Q2
2015, after EUR 10.10 at 31 December 2014.

In 2015, TAG has systematically continued the capital recycling strategy
adopted in 2014. In May, June and July 2015, real estate portfolios
comprising a total of 1,174 residential units in Saxony and Saxony-Anhalt,
the city of Brandenburg and on the island of Rügen were purchased for
between 7.9 and 11.9 times their current annual net cold rent. The transfer
of the newly acquired inventory is expected to occur in Q3 2015. The sale
of 972 units in the Marzahn and Hellersdorf districts of Berlin in April
this year, at a selling price of EUR 59.8 million or approximately 17 times
the current annual net cold rent, resulted in a book profit of EUR 10.7
million at 30 June 2015, and net cash proceeds of EUR 34.6 million.
Following these purchases and disposals, TAG's real estate portfolio
continues to comprise around 75,000 units.

"By early termination in July 2015 of a convertible bond with an original
maturity at the end of this year, that carried interest of 6.5% p.a. and
whose book value still amounted to EUR 32.2 million at the beginning of the
year, TAG will reduce both its financing costs and its LTV. Also in July
2015, we carried out an early repayment of bank loans with interest rates