TAG Immobilien AG: Rising rental and sales results in Q1 2024; LTV already
close to target at 45.6%

EQS-News: TAG Immobilien AG / Key word(s): Quarter Results
TAG Immobilien AG: Rising rental and sales results in Q1 2024; LTV already
close to target at 45.6%

14.05.2024 / 06:59 CET/CEST
The issuer is solely responsible for the content of this announcement.

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PRESS RELEASE

Rising rental and sales results in Q1 2024; LTV already close to target at
45.6%

  * Result from rental business (FFO I) increases to EUR 44.6m after EUR
    42.6m in Q1 2023 (+5%)

  * Sales result in Poland up by EUR 11.0m to EUR 19.8m compared to EUR 8.8m
    in Q1 2023

* All guidance for financial year 2024 confirmed

  * C. 780 residential units sold in Germany since the beginning of the year
    until May 2024; sales are expected to result in net cash proceeds of c.
    EUR 59.0m

  * LTV declines to 45.6% from 47.0% at 31 December 2023; other financing
    KPIs remain at excellent levels

  * Homes for Generations: Further improvement in the climate efficiency of
    the German portfolio and awards for TAG's social commitment

Hamburg, 14 May 2024

Earnings increase in Q1 2024 - continuation of positive operating business
performance from previous year

In operational terms, the first three months of the financial year 2024 were
a very successful quarter for TAG Immobilien AG (TAG). FFO I, which includes
the German and Polish rental business, rose by 5% year-on-year to EUR 44.6m
(EUR +2.0m).

This result was initially driven by total like-for-like rental growth in the
German portfolio of 2.4% p.a. (FY 2023: 2.3%). Vacancy in the Group's c.
84,500 residential units in Germany increased slightly from 4.0% at the
beginning of the year to 4.2% in March 2024 (compared to 4.7% in March 2023)
due to seasonal factors. In the Polish rental portfolio, which comprised c.
2,600 residential units as of the reporting date, like-for-like rental
growth amounted to 10.1% p.a. after 10.8% in FY 2023. As newly completed
residential units were again let in the first quarter of 2024, vacancy
increased to 9.8% as of the reporting date from 7.2% as of 31 December 2023.
By contrast, the vacancy rate for units rented for more than one year in
Poland was only 2.6%.

The sales segment, which is an integral part of TAG's business model in
Poland, also performed very well. Compared to Q1 2023, the adjusted net
income from sales in Poland more than doubled (+125%) to EUR 19.8m (Q1 2023:
EUR 8.8m). This was mainly due to a year-on-year increase in the number of
units handed over (821 residential units handed over in Q1 2024 compared to
583 units in Q1 2023).

Although the number of residential units sold in Poland decreased
year-on-year from 972 in Q1 2023 to 636 in Q1 2024, the strong increase in
sales prices in recent quarters resulted in a higher total sales volume of
EUR 118m compared to EUR 110m in Q1 2023.

Consolidated net income increased to EUR 52.9m in Q1 2024 from EUR 33.1m in
Q1 2023 (+60%) thanks to the good operating results. All guidance for the
financial year 2024 remains unchanged and is confirmed.

Sales of residential units in Germany continue to generate significant
liquidity

Since the beginning of the 2024 financial year until the publication of
today's interim statement, sales contracts have been signed for c. 780
residential units in Germany. The cumulative selling prices amount to c. EUR
67.6m. The expected net cash proceeds, after repayment of the corresponding
bank loans, will amount to c. EUR 59.0m. The average gross yield on the
units sold was around 5.3%.

In the first quarter of 2024, 157 residential units were sold with
cumulative selling prices of EUR 11.0m, net cash proceeds of c. EUR 6.9m and
an approximately break-even sales result.

The sales are expected to close during the second and third quarters of
2024.

Lower LTV and strong financial ratios

TAG's loan-to-value (LTV) ratio stood at 45.6% as of 31 March 2024, well
below the level of 47.0% as of 31 December 2023. In addition to the good
performance of the rental business, this was mainly due to the liquidity
inflow from the sales in Poland.

Other financial ratios, such as the interest coverage ratio (ICR) and the
ratio of net financial debt to adjusted EBITDA, were strong at 6.7x and
8.7x, respectively, at the end of the quarter (5.2x and 12.9x, respectively,
excluding the Polish sales business). The average interest rate on financial
debt remained constant at 2.2% compared to 2.2% at the end of 2023 and 2.1%
at the end of 2022.

Martin Thiel, CFO and Co-CEO of TAG, commented: "With an LTV ratio close to
our target of c. 45%, we are very well positioned financially. The surplus
liquidity generated in both the rental and the sales business will enable us
to invest more in the expansion of our Polish rental portfolio and, at the
same time, to counteract rising financing costs by reducing financial debt.
In addition, with the write-downs already recognised in the past quarters,
the majority of the value adjustments in the German portfolio should be
behind us, so we expect only a minor negative impact on the LTV ratio in
this respect."

Further improvement in the climate efficiency of the German portfolio and
awards for TAG's social commitment

In line with the Paris Climate Agreement, TAG's goal is to make its real
estate portfolio largely carbon-neutral by 2045. With a property portfolio
in Germany that currently emits around 29.4 kg CO2eq/m² (2022), TAG is
already very well positioned. At present, c. 62% of all buildings in the
German portfolio have Energy Performance Certificates in the four best
categories
(A+ to C). This share is to be further increased and driven forward by the
current model projects for serial refurbishment. The decarbonisation
strategy published at the beginning of 2022 is being systematically
continued. These successes in further advancing climate efficiency and TAG's
social commitment were reported on in detail in the Sustainability Report
for the 2023 financial year, published on 25 April 2024.

Claudia Hoyer, COO and Co-CEO of TAG, said: "For years, we have been
committed to promoting a good community spirit in our neighbourhoods.
Together with partners from the social sector, we have expanded projects in
several regions and launched new neighbourhood initiatives. In this way, we
are helping to ensure that our neighbourhoods are good places to live and
remain affordable. We are pleased that our social commitment has been
rewarded with several excellent rating results and awards - not only
nationally but also internationally."

Further details on the first quarter of 2024 can be found in the interim
statement published today and in a summary presentation at
https://www.tag-ag.com/en/investor-relations/financial-statements/quarterly-reports/.
The Sustainability Report for the 2023 financial year is available under
https://www.tag-ag.com/en/sustainability/reports-and-presentations.

Key financials at a glance

     Income statement key figures     01/01/2024-    01/01/2023-
     (in EUR m)                        03/31/2024    03/31//2023
     Rental income (net actual               88.8           86.6
     rent)
     EBITDA (adjusted) total                 61.4           59.0
     rental business
     EBITDA (adjusted) from sales            22.8           11.9
     Poland
     Adjusted net income from                19.8            8.8
     sales Poland
     Consolidated net profit                 52.9           33.1
     FFO I per share in EUR                  0.25           0.24
     FFO I                                   44.6           42.6
     FFO II per share in EUR                 0.37           0.29
     FFO II                                  64.3           51.1
     Balance sheet key figures (in     03/31/2024     12/31/2023
     EUR m)
     Total assets                         7,303.8        7,299.8
     Equity                               3,025.2        2,964.5
     EPRA NTA per share                     18.63          18.31
     LTV in %                                45.6           47.0

   Portfolio data                                    03/31/2024    12/31/2-
                                                                        023
   Units Germany                                         83,419      84,682
   Units Poland (completed rental apartments)             2,559       2,417
   Sold units Poland                                        636       3,586
   Hand overs Poland                                        821       3,812
   GAV total (real estate assets, in EUR m)             6,555.6     6,574.4
   GAV Germany (real estate assets, in EUR m)           5,451.8     5,442.9
   GAV Poland (in EUR m)                                1,103.8     1,131.5
   Vacancy in % Germany (total)                             4.4         4.3
   Vacancy in % Germany (residential units)                 4.2         4.0
   Vacancy in % Poland (total)                              9.8         7.2
   l-f-l rental growth in % Germany                         1.8         1.8
   l-f-l rental growth in % Germany (incl.                  2.4         2.3
   vacancy reduction)
   l-f-l rental growth in % Poland                         10.1        10.8

   Employees                                         03/31/2024    03/31//-
                                                                       2023
   Number of employees                                    1,848       1,849

   Capital market data
   Market capitalisation as 03/31/2024 in EUR m         2,224.3
   Share capital as at 03/31/2024 in EUR            175,489,025
   WKN/ISIN                                             830350/
                                                   DE0008303504
   Number of shares as at 03/31/2024 (issued)       175,489,025
   Number of shares as at 03/31/2024                175,482,891
   (outstanding, excluding treasury shares)
   Free float in % (excluding treasury shares)              100
   Index                                              MDAX/EPRA

Contact:

TAG Immobilien AG

Dominique Mann

Head of Investor & Public Relations

Fon +49 (0) 40 380 32 305

ir@tag-ag.com


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   Language:       English
   Company:        TAG Immobilien AG
                   Steckelhörn 5
                   20457 Hamburg
                   Germany
   Phone:          040 380 32 0
   Fax:            040 380 32 388
   E-mail:         ir@tag-ag.com
   Internet:       http://www.tag-ag.com
   ISIN:           DE0008303504
   WKN:            830350
   Indices:        MDAX
   Listed:         Regulated Market in Frankfurt (Prime Standard), Munich;
                   Regulated Unofficial Market in Berlin, Dusseldorf,
                   Hamburg, Hanover, Stuttgart, Tradegate Exchange
   EQS News ID:    1901881

End of News EQS News Service
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1901881 14.05.2024 CET/CEST