Press release

TLG IMMOBILIEN continues to grow and increases its FFO by 20%

- In the first nine months of 2017, the funds from operations grew by 19.6% compared to the same period in the previous year, reaching EUR 70.1 m

- Rental income increased by 13.5% compared to the previous year, reaching EUR 117.3 m

- EPRA Net Asset Value increased to EUR 20.00 per share as at 30 September 2017

- Property value increased by 8.1% to around EUR 2.4 bn compared to the end of 2016

- Several retail properties in Germany acquired after the reporting date for around EUR 113.8 m

- Around 86% of the shareholders of WCM AG accepted the takeover offer of TLG IMMOBILIEN and TLG IMMOBILIEN revised its FFO forecast upwards to between EUR 95 m and EUR 97 m

Berlin, 9 November 2017 - TLG IMMOBILIEN AG (ISIN: DE000A12B8Z4) released its report as at 30 September 2017 today. In the first three quarters of the year, the company was able to increase its rental income by 13.5% compared to the same period in the previous year to EUR 117.3 m through active asset management including rental increases, new rental agreements and by successfully placing another property under management. Likewise, the funds from operations (FFO) grew by 19.6% to EUR 70.1 m in the same period (9M/2016: EUR 58.6 m).

As at the reporting date, the EPRA Vacancy Rate of the portfolio was 3.7% and therefore 0.1 percentage points lower than at the end of 2016. Compared to the first half of 2017, the EPRA Vacancy Rate was 0.8 percentage points higher due to the acquisition of the office property "astropark" in Frankfurt/Main (the EPRA Vacancy Rate was 22.6% as at the date of acquisition). The first new rental agreements for this property are expected to be concluded soon. Compared to the start of the year, the weighted average lease term (WALT) in the portfolio decreased moderately by 0.1 percentage points to 6.0 years as at 30 September 2017. Compared to 31 December 2016, the EPRA Net Asset Value (EPRA NAV) has increased by 18.8% to around EUR 1.5 bn. It was therefore EUR 20.00 per share as at the reporting date (31/12/2016: EUR 18.51 per share).

As at the reporting date, the Net LTV of TLG IMMOBILIEN has remained conservative at 37.9% (31/12/2016: 43.4%). The company's average costs of borrowed capital recognised in profit or loss were 2.11%. As at 30 September 2017, the loans of the company still had an average remaining term of 6.1 years due to factors including extensive refinancing measures in the previous quarters.

The portfolio of TLG IMMOBILIEN comprised 364 properties as at 30 September 2017. This represents a decrease of 40 properties compared to the end of 2016, due primarily to disposals of smaller retail properties in the context of active portfolio management and disposals of other properties. Nevertheless, the value of the property portfolio grew by 8.1% in this period. Essentially, the growth was driven by the consistently positive market developments, especially in Berlin, as reflected by rental agreements and in turn valuations, as well as a positive balance between acquisitions and disposals.

After the reporting date, TLG IMMOBILIEN acquired a neighbourhood shopping centre in Rostock and a portfolio of 27 retail properties for EUR 113.8 m in total (see here for details). Furthermore, the takeover offer made to the shareholders of WCM AG was accepted by around 86% of the shareholders, which means that the next steps towards the conclusion of a domination agreement have now been initiated. The takeover of WCM will enable TLG IMMOBILIEN to greatly expand its presence in the economic growth centres in western Germany. This fits in with the growth strategy of the company that has gained momentum since the IPO in 2014.

Peter Finkbeiner, member of the Management Board of TLG IMMOBILIEN, comments on the interim figures: "We view the outstanding operating performance in 2017 so far and the positive development of the key financial figures of the Group as a strong basis for the trust recently placed in us by the shareholders of WCM AG. We will strive to build on the strong growth of our company in the fourth quarter of 2017 and beyond for all of our shareholders and keep TLG IMMOBILIEN on course for profitable growth." In light of the consolidation of WCM AG in the fourth quarter, the Management Board of TLG IMMOBILIEN has revised the FFO forecast for the 2017 financial year upwards to between EUR 95 m and EUR 97 m.

The current quarterly financial report is available to download here:

www.tlg.eu > Investor Relations > Financial Reports & Presentations > 2017

You can watch the webcast about the Q3/2017 figures from around 11 a.m. (CET) today here:

ww.tlg.eu

KEY GROUP FIGURES ACCORDING TO IFRS

Results of operations	Unit	01/01/2017- 30/09/2017	01/01/2016- 30/09/2016	Change in %
Rental income	EUR k	117,301	103,380	13.5
Net operating income from letting activities (NOI)	EUR k	105,764	92,612	14.2
Disposal profits	EUR k	349	617	-43.4
Net income	EUR k	128,497	53,022	142.3
FFO	EUR k	70,076	58,612	19.6
FFO per share1	EUR	0.95	0.87	9.2
Balance sheet metrics	Unit	30/09/2017	31/12/2016	Change in %
Investment property	EUR k	2,385,420	2,215,228	7.7
Cash and cash equivalents	EUR k	50,269	68,415	-26.5
Balance sheet total	EUR k	2,508,380	2,344,763	7.0
Equity	EUR k	1,200,507	1,009,503	18.9
Equity ratio	%	47.9	43.1	4.8 pp
Liabilities to financial institutions	EUR k	970,303	1,040,412	-6.7
Net debt	EUR k	920,034	971,997	-5.3
Net LTV²	%	37.9	43.4	-5.5 pp
EPRA NAV	EUR k	1,483,200	1,248,259	18.8
EPRA NAV per share1	EUR	20.00	18.51	8.0
Portfolio key figures	Unit	30/09/2017	31/12/2016	Change in %
Property value3	EUR k	2,423,481	2,241,615	8.1
Properties	number	364	404	-40 units
Annualised in-place rent4	EUR k	160,745	155,276	3.5
In-place rental yield	in %	6.6	6.9	-0.3 pp
EPRA Vacancy Rate	in %	3.7	3.8	-0.1 pp
WALT	in years	6.0	6.1	-0.1 years
Average rent	EUR/sqm	10.01	9.67	3.5

1 Total number of shares as at 31 December 2016: 67.4 m; as at 30 September 2017: 74.2 m. The weighted average number of shares in the first nine month of 2016 was 67.4 m and 73.4 m in the first nine month of 2017.

2 Calculation: Net debt divided by property value

3 Pursuant to the values reported in the financial statements in accordance with IAS 40, IAS 2, IAS 16, IFRS 5

4 Net rent for the year excluding utilities is calculated on the basis of the agreed annualised rent as at the reporting date and does not take into account any rent-free periods.

Contact

Christoph Wilhelm Corporate Communications Phone: +49 30 2470 6355 E-Mail: [email protected]

Sven Annutsch Investor Relations Phone: +49 30 2470 6089 E-Mail: [email protected]

 

About TLG IMMOBILIEN AG
TLG IMMOBILIEN AG is a listed leading commercial real estate company in Germany that has been synonymous with real estate expertise for over 25 years. TLG IMMOBILIEN AG generates stable rental income and exhibits low vacancy rates, very good building stock and profits from its local employees' excellent market knowledge. As an active portfolio manager, TLG IMMOBILIEN AG is specialised in commercial properties for office and retail use: it focuses on managing a high-quality portfolio mostly comprising office properties in Berlin, Frankfurt/Main, Dresden, Leipzig and Rostock. The company also has a regionally diversified portfolio of retail properties in highly frequented micro-locations. The portfolio also includes seven hotels in Berlin, Dresden, Leipzig and Rostock. TLG IMMOBILIEN AG's properties stand out not only due to their excellent locations but also because of their long-term rental or lease agreements.

As at 30 September 2017, the property value amounted to EUR 2.4 bn. As at the same reporting date, the EPRA Net Asset Value per share amounted to EUR 20.00.

This publication contains forward-looking statements based on current views and assumptions of TLG IMMOBILIEN AG's management and made to the best of knowledge. Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that could cause TLG IMMOBILIEN AG's revenues, profitability or the degree to which it performs or achieves its targets, to materially deviate from what is explicitly or implicitly stated or described in this publication. Therefore, persons who obtain possession of this publication should not rely on such forward-looking statements. TLG IMMOBILIEN AG accepts no guarantee or responsibility regarding such forward-looking statements and will not adjust them to future results or developments.