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 3

infrastructure, TAG is able to efficiently manage and develop the
portfolio, which was taken over from complex ownership and administrative
structures. The transfer of ownership rights, benefits and obligations is
scheduled for 31 December 2015.

Also in early November 2015, a portfolio in North Rhine Westphalia and
Lower Saxony with around 1,300 units and a rentable area of around 84,600
m² was acquired at a purchase price of about EUR 36.75 million as part of
an asset deal. The portfolio's current annual net cold rent is
approximately EUR 4.0 million. The residential units are mainly
concentrated around the cities of Bochum, Eschweiler and Goslar. The
current vacancy rate is approximately 11.3%. The transfer of ownership
rights, benefits and obligations is scheduled for 31 December 2015.

TAG sells commercial property in Stuttgart at the end of October 2015

In late October 2015, a contract for the sale of a mixed-use commercial
complex in Stuttgart that TAG developed and built in 2010 was signed with
an institutional investor following a structured bidding process. The sale
is structured as a share deal and reflects a property value of EUR 87.5
million.

The transfer of ownership rights, benefits and obligations has been agreed
for 31 December 2015. Even after accounting for EUR 10.3 million of profit
from the annual revaluation recorded on 30 September 2015, TAG expects to
realize an additional book profit from the sale, net of transaction costs
and before taxes, of approximately EUR 7.5 million. After deducting bank
liabilities transferred with the sale, net cash proceeds, net of
transaction costs and before taxes, amount to approximately EUR 40.0
million.

By selling this almost fully let property, which accommodates a hotel as
well as residential, retail, office and restaurant space, generating annual
rental income of around EUR 4.1 million, TAG is consequently pursuing its
focus on the management of residential property in the TAG core regions.

FFO and dividend forecast for 2015 and 2016

As a result of the acquisitions and sales of financial year 2015, that lead
to a shift of approximately EUR 3 million in profits to the following year
due to delayed closing dates of the transactions, as well as around EUR 1
million higher cash taxes due to higher than expected net revenues from
Single Unit Sales and an effect of approximately EUR 1.5 million from a
temporarily reduced net rental income margin, which we expect to be
compensated by the current strong vacancy reduction in the following year,