PRESS RELEASE
 

TAG Immobilien AG starts 2018 financial year with improved FFO of EUR 35.1 million

- FFO increases to EUR 35.1 million (EUR 0.24 per share) in Q1 2018, after EUR 34.1 million (EUR 0.23 per share) in Q4 2017

- Vacancies in the residential units of the portfolio at 5.6% in March 2018 and 5.4% in April 2018, after 5.3% on a comparable basis at the beginning of the year

- Total like-for-like rental growth of 2.6% p.a. as of March 31, 2018 after 3.1% p.a. as of December 31, 2017

- NAV per share increased to EUR 14.01 (31 December 2017: EUR 13.80)

- LTV reduced to 51.4% from 52.3% at year-end 2017 thanks to closing of sales and ongoing loan repayments

- Dividend payment of EUR 0.65 per share planned for May 2018, dividend for 2018 to increase to EUR 0.70 per share

Hamburg (26 April 2018) - TAG Immobilien AG (TAG) achieved FFO (FFO I without results from sales) of EUR 35.1 million or EUR 0.24 per share in the first quarter of 2018, after FFO of EUR 34.1 million (EUR 0.23 per share) in Q4 2017 and EUR 28.5 million (EUR 0.20 per share) in Q1 2017. This positive development (year-on-year increase in FFO by 23% in absolute terms or 20% per share) was based on the acquisitions made in 2017 and the refinancing already implemented, as well as on continued attractive rental growth in the portfolio, which currently comprises around 83,000 apartments. Due to last year's refinancing, the capital structure is stable and attractive over the long term - LTV at the end of the first quarter of 2018 was only 51.4% after 52.3% at the end of 2017. NAV increased to EUR 14.01 as of March 31, 2018 (December 31, 2017: EUR 13.80), even without revaluation of the portfolio.

In the first quarter of 2018, TAG's net rents increased to EUR 75.6m from EUR 75.0m in the fourth quarter of 2017, while net rental income rose from EUR 59.1m to EUR 59.8m compared to the preceding quarter. The main basis for this positive operating development was like-for-like rental growth of 2.6% p.a. as of March 31, 2018 (December 31, 2017: 3.1% p.a.) or, excluding effects from vacancy reduction and on par with the 2017 financial year, 2.0% p.a. The portfolios of around 800 units transferred as of December 31, 2017 also contributed to the continued rental growth.

No further portfolios were acquired in the first three months of the 2018 financial year. On the sales side, 108 units were signed during this period for a total purchase price of EUR 6.9 million. Group-wide vacancy in the portfolio was 5.9% after 5.8% at the beginning of the year. In April 2018, the vacancy rate in the total portfolio dropped to 5.8% again. In the residential units, the vacancy rate rose temporarily from 5.3% at the beginning of 2018 to 5.6% in March 2018 due to the integration of last year's acquisitions, but by April 2018 had already been reduced to 5.4% again.

At the end of Q1 2018, consolidated net income amounted to EUR 26.7 million after EUR 220.0 million in the preceding quarter (increased valuation gains from the property valuation carried out as at 31 December 2017) and EUR 22.1 million in Q1 2017. Adjusted Funds From Operations (AFFO), which result from the FFO less all modernisation expenses (capex), also increased in Q1 2018 and were EUR 22.1m after EUR 20.9m in Q4 2017 and EUR 20.6m in Q1 2017.

At EUR 4.7 billion on March 31, 2018, the balance sheet total remained almost constant compared to the end of 2017 (EUR 4.6 billion). At 51.4%, the loan-to-value (LTV) debt ratio was again lower than on December 31, 2017 (52.3%). Net asset value (NAV) per share rose from EUR 13.80 at year-end 2017 to EUR 14.01 at the end of the first quarter 2018.

"Parallel to our good operating results, we have further optimised our capital structure in recent months and thereby laid the foundation for further increases in cash flows," explains Martin Thiel, CFO of TAG. "We have already proposed a dividend of EUR 0.65 per share, an increase on the previous year, to the ordinary Annual General Meeting taking place on May 23, 2018. The dividend for the 2018 financial year is expected to rise to EUR 0.70 per share, so that our shareholders will continue to participate directly in the positive performance of the real-estate regions we manage."

Further details on the first quarter of 2018 can be found in the interim statement published today at https://www.tag-ag.com/en/investor-relations/financial-statements/quarterly-reports/.

Press enquiries:
TAG Immobilien AG
Dominique Mann
Head of Investor & Public Relations
Phone +49 (0) 40 380 32 0
Fax +49 (0) 40 380 32 390
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