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 3

Following a redefinition of the calculation of deferred taxes and taking
into account the dividend of EUR 0.35 per share paid out in 2014, NAV (Net
Asset Value) per share was EUR 10.16 per share at the end of Q3 2014, after
EUR 9.96 at year-end. Under the previous definition, NAV is EUR 9.66 per
share after EUR 9.45 at 31 December 2013.

In the interim report for the quarter ended 30 September 2014, TAG changed
its financial reporting and made it more comprehensive. Key indicators such
as FFO and NAV were redefined or will be shown additionally under
alternative assumptions, in order to increase the transparency of the
quarterly report and facilitate comparability with competitors.

Strategic focus, share buyback, and selective use of sales opportunities:
The strategy for shareholders focuses on the total return on individual
shares. A growth in absolute numbers is no longer a priority for TAG, in
contrast to previous years. The company has now reached a size at around
75,000 units that allows to effectively manage the portfolio. Further
growth no longer leads to economies of scale to the extent it did in the
past. TAG can therefore focus much more on optimising the portfolio and
effectively increasing the cash flows.

As early as the 2013 financial year, we had bought back EUR 72 m in
convertible bonds, thereby significantly reducing the potential dilutive
effect for our shareholders. In September and October 2014 a share buyback
of 10% of the outstanding share capital in the amount of approximately EUR
122 m of TAG shares below NAV, at a price of EUR 9.30 per share, created
additional value for our shareholders. A strong liquidity position, among
other things from the sale of our commercial portfolio in May this year,
made this share buyback possible.

At the same time, the strategy is governed by explicit capital discipline
when purchasing new portfolios. Since last December, nearly 9,000 units
have been acquired, especially in locations with development potential in
East Germany where TAG already has holdings.

Meanwhile, sales opportunities in the residential portfolio are also being
seized provided the sales improve the profitability of the overall
portfolio. One successful example of this strategy is the sale of a
2,600-unit property in the Marzahn district of Berlin that was registered a
few days ago. At the beginning of November, the portfolio, which had been
managed by TAG since 2011, sold for EUR 170.4 m. The contract is scheduled
to close at the end of Q4 2014, and the sale is expected to result in net
cash inflow (after deducting the liabilities to banks on the properties),
of around EUR 72 m and an increase in NAV per share (before prepayment