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 - Seite 2

strategy to focus on residential properties.

Operational Indicators

At EUR 64.5 million, rental income in Q3 2015 was roughly on par with the
previous two quarters (EUR 64.1 million in Q1 and EUR 64.8 million in Q2).
Due to the successful vacancy reduction and lower maintenance costs, net
rental income was EUR 52.3 million, up from EUR 51.5 million in the
previous quarter. The group-wide vacancy rate in the residential units of
the portfolio was significantly improved from 9.0% at the beginning of the
year to 8.4% in September 2015 and 8.1% in October 2015. Once again,
vacancy reduction was steepest in Salzgitter, where vacancy has been
brought down by more than 2 percentage points since the beginning of the
year, from 15.5% to 13.4% in September and 13.1% in October 2015.
Like-for-like rental growth over the past twelve months in TAG's
residential units was 1.5%; taking into account the effects of the vacancy
reduction, overall rental growth on a like-for-like basis was 2.6% per
year. Earnings before taxes (EBT) amounted to EUR 143.8 at the end of Q3
2015, compared to EUR 82.9 million for the same period in the previous
year. This significant increase is mainly due to strong net revenues from
sales of EUR 12.1 million (prior-year period: EUR -0.6 million) and higher
valuation gains of EUR 94.1 million (prior-year period: EUR 51.5 million),
most of which result from the annual revaluation carried out as of 30
September 2015. Group net income at the end of the third quarter 2015 was
EUR 115.2 million (prior-year period: EUR 63.5 million).

FFO (FFO I without sales) at the end of the third quarter 2015 came to EUR
19.0 million, after EUR 18.6 million and EUR 18.1 million in the previous
two quarters. At 61.9% and 63.9% (including convertible bonds), the LTV
ratio was significantly below the 63.2% and 65.7% at 30 June 2015. As a
result of the strong net income, NAV per share increased to EUR 10.38 at 30
September 2015, compared to EUR 9.78 at 30 June 2015.

Acquisition of approximately 3,100 residential units in two transactions in
November 2015

At the beginning of November 2015, TAG acquired approximately 1,800
apartments in Brandenburg an der Havel for a purchase price of around EUR
41.5 million. The annual net cold rent is about EUR 4.1 million. The
portfolio, with a rentable area of approximately 97,200 m² and a vacancy
rate of around 18.6%, was acquired by means of an asset deal. The value-add
potential is to be exploited in the years ahead through targeted
investments and asset management concepts. Due to the existing good local