DGAP-News

TAG Immobilien AG increases Funds from Operations (FFO) to EUR 19.0 million and net profit to EUR 67.0 million in the third quarter of 2015

DGAP-News: TAG Immobilien AG / Key word(s): Quarter Results
TAG Immobilien AG increases Funds from Operations (FFO) to EUR 19.0
million and net profit to EUR 67.0 million in the third quarter of
2015

05.11.2015 / 07:30

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PRESS RELEASE

TAG Immobilien AG increases Funds from Operations (FFO) to EUR 19.0 million
and net profit to EUR 67.0 million in the third quarter of 2015. Strong
performance pushes net asset value (NAV) to EUR 10.38 per share, Loan
to-value (LTV) ratio excluding convertible bonds drops to 61.9%.

- Acquisition in early November 2015 of approximately 3,100 residential
units in the city of Brandenburg and North Rhine-Westphalia/Lower
Saxony with average gross yield above 10%

- Sale of a mixed-use commercial property in Stuttgart at the end of
October 2015 for EUR 87.5m, crystallizing a book profit (including
valuation gain 30 September 2015) of around EUR 18.0 million

- Significant further vacancy reduction in residential units of the
portfolio, from 9.0% at the beginning of the year down to 8.4% in
September and 8.1% in October 2015

- Revised FFO guidance for financial year 2015 to currently around EUR 74
million to EUR 75 million, or approximately EUR 0.60 per share based on
the weighted number of shares outstanding

- FFO forecast for financial year 2016 of around EUR 84 million to EUR 85
million, or approximately EUR 0.67 per share

- Dividend forecast for 2015 at EUR 0.55 per share, dividend increase to
EUR 0.57 per share planned for 2016

Hamburg (5 November 2015) - At the end of Q3 2015, TAG Immobilien AG ('TAG'
in the following) had achieved further operational growth in its portfolio,
which currently comprises nearly 75,300 units, through rent increases and
vacancy reduction. FFO for the first nine months of 2015 is EUR 55.6
million or EUR 0.45 per share (based on the average number of shares
outstanding), while total net income was EUR 115.2 million.

By way of a number of targeted property sales, TAG underlines its strategy
of capital recycling, i.e. selling at the right time at attractive terms in
order to generate proceeds to be deployed for new higher yielding
acquisitions. Year to date, nearly 4,300 residential units were acquired at
attractive prices in TAG's core regions, while a total of approximately
1,700 units in high-priced markets were sold. Through the sale of its large
commercial property in Stuttgart, TAG is able to benefit from the current
market environment whilst setting another milestone in implementing its