TAG Immobilien AG reports EBT of EUR 22 million for fiscal 2010, exceeding its raised forecast
TAG Immobilien AG / Key word(s): Preliminary Results01.03.2011 / 07:50* Successful reduction of vacancy leads to a vacancy rate of 5.3 percentthroughout the Group* Significant 15-percent improvement in rental profit, to nearly EUR 40million* Earnings before taxes (EBT) were EUR 22 million, exceeding the projectedtarget of EUR 20 million and confirming the excellent overall direction ofthe Group* Expansion strategy is working and successfulHamburg (01 March 2011) - TAG Immobilien AG ('TAG' in the following) todayreleased its preliminary, unaudited results for the 2010 fiscal year.TAG successfully concluded the past fiscal year, exceeding even the revisedforecast of earnings before tax (EBT) of EUR 20 million. The companygenerated Group-level EBT of EUR 22 million (previous year: EUR -25million) in fiscal 2010. This positive performance is due to successes invacancy reduction as well as the acquired residential portfolios, whichexpanded the Group's property holdings by over 40 percent. TAG exploitedattractive opportunities in the market for further growth in 2010 tooptimise its portfolio of existing locations and expand strategically. Thenew acquisitions were successfully integrated into the TAG Group within avery short time. Vacancy reduction was continuously advanced through activeasset and rental management. In the newly acquired portfolios alone, theacquired vacancy rate of 15 percent was more than halved to 7 percent byyear-end 2010. In the residential property sector, vacancy in the existinginventory was reduced from 10 percent to just under 6 percent, and in thecommercial portfolio, vacancy was reduced from 5 percent to just under 4percent. This successful vacancy reduction is reflected in the rentalprofit, which rose steadily across the Group by 15 percent from EUR 35million in 2009 to EUR 40 million in 2010. In addition, the rental profitand earnings before tax (EBT) both confirm the excellent overall directionof the TAG Group.Successfully placed capital measures formed the basis for all theacquisitions and takeovers - capital increases and the issuance ofconvertible bonds with a total volume of around EUR 180 million - anddemonstrated the high level of interest in TAG shares.TAG's (interim) key financials are also solid. The Group's total assets atyear-end exceeded the EUR 1 billion mark for the first time and amounted toEUR 1,200 million at 31 Dec 2010 (previous year: EUR 800 million).Shareholders' equity increased significantly as a result of the capitalmeasures issued in 2010, and after minority interests came to EUR 356million, compared to EUR 196 million in 2009. This increased the NAV (NetAsset Value) per share from EUR 6.03 to EUR 6.09 based on the balance sheetequity at 31 Dec 2010. This is based on a value of EUR 5.55 per CRE share.Taking into account the announced CRE valuation, this corresponds to an NAVof app. EUR 6.70 at TAG level. Currently, after taking over the majority ofCRE in February, this means that NAV is now at about EUR 7.10.Bank borrowings at 31 Dec 2010 totalled EUR 634 million, against EUR 517million at year-end 2009. With an LTV (Loan to Value) ratio of 53 percent(previous year: 67 percent) and an equity ratio of 30 percent (previousyear: 25 percent) TAG Group's balance sheet ratio at 31 Dec 2010 wasoutstanding for the sector.During the Colonia Real Estate AG (CRE) acquisition process, control of thecompany passed to TAG in mid-February when it acquired a majority stake ofover 50 percent. Merging the two companies results in an interestingmagnitude on the German real estate market. The restructuring process isnow being initiated to realise existing synergy potential. CRE will beconsolidated as part of the TAG Group during the first quarter 2011.'The determining factor in TAG's strategic direction is a long-termincrease in shareholder value, i.e. the realisation of sustainablevalue-creation potential for our shareholders,' said Rolf Elgeti, CEO ofTAG.'Our figures show that we are on the right track with our expansionstrategy coupled with the consolidation kick-started in the German propertymarket. In 2011 we expect earnings before tax (EBT) of EUR 50-60 million.The Net Asset Value (NAV) per share should be at least EUR 8.00.'The audited consolidated results for the fiscal 2010 will be published on13 April 2011. Press enquiries:TAG Immobilien AGInvestor & Public RelationsBritta Lackenbauer / Dominique MannTel +49 40 380 32 300Fax +49 40 380 32 390pr@tag-ag.comEnd of Corporate News---------------------------------------------------------------------01.03.2011 Dissemination of a Corporate News, transmitted by DGAP - acompany of EquityStory AG.The issuer is solely responsible for the content of this announcement.DGAP's Distribution Services include Regulatory Announcements,Financial/Corporate News and Press Releases.Media archive at www.dgap-medientreff.de and www.dgap.de---------------------------------------------------------------------Language: English Company: TAG Immobilien AG Steckelhörn 5 20457 Hamburg Deutschland Phone: 040 380 32 300 Fax: 040 380 32 390 E-mail: ir@tag-ag.com Internet: www.tag-ag.com ISIN: DE0008303504 WKN: 830350 Listed: Regulierter Markt in Frankfurt (Prime Standard), München; Freiverkehr in Berlin, Düsseldorf, Hamburg, Hannover, Stuttgart End of News DGAP News-Service --------------------------------------------------------------------- 113825 01.03.2011
