PRESS RELEASE

TAG Immobilien AG achieved strong operating results in financial year 2013, with FFO at EUR 68.1 million. A dividend of 35 cents per share will be proposed at the Annual General Meeting.

- Funds from Operations (FFO I) reach EUR 68.1 million

- Vacancy in the residential portfolio at 8.7%

- Rental growth of 1% in Q4 2013

- FFO I forecast of EUR 90 million for 2014

- Proposed dividend of 35 cents per share for FY 2013

- EPRA NAV of EUR 9.45 per share despite adjusted valuation methodology

- Changes to the Management Board and Supervisory Board

Hamburg (27 February 2014) - TAG Immobilien AG ('TAG' in the following) today released its preliminary, not yet audited or certified annual financial statements for the 2013 financial year. The strong operating results are based on continued vacancy reductions, rent increases and, in particular, savings achieved through refinancing.

Rental revenues increased from EUR 192.5 million to EUR 251.0 million at year-end 2013, resulting in net rental income of EUR 199.1 million (prior year: EUR 145.2 million): the margin of close to 80% demonstrates the portfolio's operating profitability. New rentals increased across the group, so that vacancy in the residential sector - not including the for-sale portfolio - fell to 8.7% at year-end. Vacancy in the Salzgitter was reduced from 21.3% to 18.6% within a 12-month period. Average actual rents per square metre increased during the year from EUR 4.98 to EUR 5.05 - of which 5 cents in the fourth quarter alone.

The Group's earnings before taxes (EBT) amounted to EUR 23.1 million, well below the previous year (EUR 202.6). This decrease resulted from a change in the real-estate valuation methodology, which TAG undertook in part of its residential portfolio ​​against the background of changes in IFRS accounting rules and the German Real Estate Transfer Act. This change to the fair value valuation, which assumed higher potential transaction costs than in the past, impacted EBT to the tune of approximately EUR 52 million.

FFO I (funds from operations), which does not take into account cash inflows from property sales and reflects the company's operating profitability, was EUR 68.1 million at the end of December 2013. FFO II, which includes cash inflow from sales, was EUR 121.0 million.

Total assets at 31 December 2013 were virtually unchanged at EUR 3.7 billion. The value of the real-estate volume at the end of Q4 2013 was EUR 3.6 billion; the equity ratio before minority interests was 29.4%; the LTV (loan to value) ratio was around 62.1% or, taking into account liabilities from convertible bonds, 65.0%.

The NAV per share (net asset value) decreased to EUR 9.45 at year-end 2013 compared with the previous year's figure of EUR 9.96, or taking into account the potential dilution from outstanding convertible bonds, to EUR 9.31. This decrease is mainly attributable to the partial buyback of convertible bonds, the dividend payout of 25 cents per share, as well as to the adjusted evaluation methodology applied to parts of the residential portfolio as at 31 Dec 2013.

In 2013, loans totalling around EUR 600 million were refinanced or extended at lower interest rates. This will lead to future interest savings of about EUR 10 million per year. The average rate on loans was 3.70% at 31 Dec 2013 with an average term of approximately 10 years.

Based on its successful performance in FY 2013, TAG will propose a dividend of EUR 0.35 per share to its shareholders at the Annual General Meeting on 13 June 2014.

"The successful integration of our acquisitions, as well as the optimisation of our financing structure, have had a positive effect on the balance sheet and income level. This consolidates our position as an efficient, high-yield, publicly traded company in the German housing industry. The combination of rising rents, falling vacancy, falling interest rates and cost efficiency will also lead to very strong organic growth in our company's cash flow. We therefore reaffirm our FFO guidance of EUR 90 million for 2014. We will maintain our dividend policy of paying out about 75% of FFO I to our shareholders and will therefore propose a dividend of EUR 0.35 per share to shareholders at the Annual General Meeting," said Rolf Elgeti, CEO of TAG Immobilien AG.

TAG also announces the following changes to its Boards:

The Chairman of the Supervisory Board Dr Lutz R. Ristow will be retiring from the Supervisory Board at the end of the next AGM for reasons of age. His deputy, Prof Ronald Frohne, will also step down from his position at the end of the next AGM for personal reasons. Dr Hans-Jürgen Ahlbrecht and Dr Ingo-Hans Holz, each of Berlin, will be proposed as successors at the upcoming Annual General Meeting. Both will enhance the TAG Supervisory Board with their expertise and many years of experience in the German real-estate market. Mr Lothar Lanz is to be proposed as the next Chairman of the Supervisory Board.
Mr Georg Griesemann will resign from the TAG Management Board on 31 March 2014 by agreement with the Supervisory Board. The Supervisory Board and Management Board thank Mr Griesemann for his work at TAG. Mr Martin Thiel, an auditor from Hamburg, has been appointed to succeed him as CFO with effect from 1 April 2014.

For further details, please refer to the presentation of the preliminary results for 2013, published today, at http://www.tag-ag.com/investor-relations.

The audited consolidated results for the 2013 financial year will be published on 16 April 2014.

Press enquiries:
TAG Immobilien AG
Head of Investor & Public Relations
Dominique Mann
Phone +49 (0) 40 380 32 300
Fax +49 (0) 40 380 32 388
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