DGAP-News

TAG Immobilien AG is driving forward its operational growth with vacancy reduction and rent increases. At the same time, the successful share buyback has created further value for shareholders. Net Asset Value (NAV) rises to EUR 10.16 per share. - Seite 2

135.9 m. As in previous quarters, rental profit rose disproportionately to
rental income, demonstrating the efficiency of the inventory management. It
should be noted that a large proportion of the 9,000 units newly acquired
since year-end 2013 were not transferred into the inventory and therefore
did not have an effect on net income until the second half of the year.

Across the Group, vacancy in the residential portfolio improved slightly
(excluding new acquisitions during the year) to 8.6% at the end of
September 2014, after 8.9% at the end of 2013. The highest level of
reduction was once again recorded in Salzgitter, where vacancy has declined
by 2 percentage points since the beginning of the year, to 16.6%. This
development confirms the effectiveness of the rental policies and measures
pursued at this location. Average monthly net actual rent per square metre
in the Group increased to EUR 5.07 across the entire residential real
estate portfolio at the end of Q3 (EUR 5.04 at the end of 2013). This was
especially due to higher new leases, which averaged EUR 5.31 per sqm.

Earnings before taxes (EBT) from continuing operations in the residential
real estate portfolio amounted to EUR 85.4 m at the end of Q3 2014, after
EUR 52.4 m in the same period last year. Interest income from this business
segment was EUR -74.2 m in the first nine months of 2014, slightly below
the previous year's level (EUR -70.8 m). Total net income for the Group was
EUR 63.5 m as of the end of Q3 2014 (previous year EUR 38.2 m).

Funds From Operations (FFO) as an indicator of operating profitability was
EUR 0.51 per share at the end of Q3 2014, excluding sales (FFO I). The FFO
I forecast of EUR 0.69 per share (after EUR 0.52 per share in the previous
year) will be achieved by the end of the year, although the absolute amount
of EUR 90 m is less than we had predicted. The main reasons for this are
the sales concluded in the first half of the financial year, especially in
the commercial segment, as well as the fact that new acquisitions weren't
transferred into the inventory until the second half of 2014. For the 2015
financial year, a further increase in FFO I is forecast, to between EUR
0.71 and 0.73 per share.

The balance sheet total decreased slightly compared to year-end 2013, from
EUR 3,763 m to EUR 3,724 m at 30 September 2014. Meanwhile, the book value
of the entire real estate inventory was 3,530.5 m at the end of Q3 2014.
The loan-to-value (LTV) ratio not including convertible bonds was reduced
to 61.6%, after 62.1% at year-end.