TAG Immobilien AG / Preliminary Results
02.03.2009
Release of a Adhoc News, transmitted by DGAP - a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.
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TAG Immobilien AG: Preliminary figures for 2008
- Improvement in operating profit - 45 % increase in rental income
- Consolidated post-tax loss from continuing activities of EUR 32 million
- Focus on rental activities and moderate investment backed by solid
financial structure
- Strong performance in the first two months of 2009 with increased sales
volumes
Hamburg (2 March 2009) - TAG Immobilien AG sustained a post-tax loss of EUR
32 million in 2008 despite increased rental income. This was due to
impairments necessitated by fair-value accounting and associated companies.
According to preliminary figures, consolidated sales came to around EUR 102
million (previous year: EUR 125 million). Rental income rose by 45 percent
to some EUR 54 million (previous year: EUR 37.3 million). Net income from
ongoing real estate management activities grew by 58 percent to around EUR
34 million in 2008 (previous year: EUR 21.8 million). In the period under
review, revenues of around EUR 45 million were generated from the sale of
residential and commercial real estate, yielding gross profit of EUR 2.5
million.
However, this favourable performance of rental income is not reflected in
the fair-value remeasurement of the real estate holdings, which resulted in
impairments of around EUR 24 million. These impairments are primarily
caused by higher interest on property particularly in the commercial
segment. On the basis of provisional figures, fair values were adjusted
down by 4.4% in the commercial segment and by 1.7% in the residential
segment relative to 31 December 2007. These corrections do not
have any impact on the Group's liquidity or the observance of the financial
covenants.
The Company has reacted to the global financial market crisis and the
resultant effects on all sectors of the economy by modifying its previous
business model. As a result, rental activities in particular have been
extended, while new construction and portfolio development have been scaled
back. Moreover, staff costs were reduced substantially in 2008. TAG
Immobilien AG is planning to reduce its staff and material costs by a total
of 50% by 2010. The adjustment to the Group structure led to non-recurring
costs of EUR 4.4 million in 2008. The loss before tax from continuing
activities stands at an estimated EUR 42 million, with the post-tax loss
from continuing activities expected to come to around EUR 32 million.
With a loan-to-value ratio of 67 % and an equity ratio of just over 30 %,
the TAG Group has a sound balance sheet structure by sector standards and
remains solidly financed.
In the first two months of 2009, the Company recorded a sizeable increase
in income from sales. At EUR 28 million and with a positive gross margin,
sales were well up on the same period in earlier years. The Company sees
this as fundamental confirmation of the viability of this business.
The final figures for fiscal 2008 will be released on April 23, 2009.
Contact:
TAG Immobilien AG
Head of investor and public relations
Kirsten Schleicher
Tel. +49 (0) 40 380 32 300
Fax +49 (0) 40 380 32 388
pr@tag-ag.com
DGAP 02.03.2009
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Language: English
Issuer: TAG Immobilien AG
Steckelhörn 5
20457 Hamburg
Deutschland
Phone: 040 30 60 59-40
Fax: 040 / 30 60 59 - 49
E-mail: info@tag-ag.com
Internet: http://www.tag-ag.com
ISIN: DE0008303504
WKN: 830350
Indices: SDAX
Listed: Regulierter Markt in Frankfurt (Prime Standard), München;
Freiverkehr in Berlin, Hannover, Hamburg, Düsseldorf,
Stuttgart
End of News DGAP News-Service
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DGAP-Adhoc: TAG Immobilien AG: Preliminary Figures for 2008
| Source: EQS Group AG