Press release

TLG IMMOBILIEN AG continues growth in successful Q1 2016

- Funds from operations increased by 8.8% year on year to EUR 17.1 m

- Rental income up 7.0% to EUR 32.5 m

- Portfolio value increases by 5.6% after assumption of nine new assets

- Purchase agreements for two additional properties signed in Q1 (total investment volume of EUR 107.8 m)

- EPRA Net Asset Value rises by 1.6% to EUR 17.64 per share as at 31 March 2016

- FFO forecast of between EUR 72 m and EUR 74 m, including made acquisitions, confirmed for 2016

Berlin, 13 May 2016 - TLG IMMOBILIEN AG published its Q1 2016 financial figures today, which confirmed yet another successful start to the year. In the first three months of 2016, the Company built on its successful performance in the previous year. The Group generated a total of approx. EUR 32.5 m in rental income during the reporting period, representing an increase of 7.0% against the first quarter of the previous year (EUR 30.4 m). Funds from operations (FFO) increased by 8.8% to EUR 17.1 m (Q1 2015: EUR 15.8 m).

In the first quarter of the year, the EPRA Vacancy Rate declined by 0.4 percentage points to 3.3%. The weighted average lease term (WALT) in TLG IMMOBILIEN AG's portfolio is currently 6.5 years. As at 31 March 2016, the EPRA Net Asset Value (EPRA NAV) amounted to EUR 1,190 m, or EUR 17.64 per share, representing an increase of 1.6% as compared to the end of 2015.

In addition to the successful development of its operating business, TLG IMMOBILIEN AG continued to have a conservative financing structure. The Net Loan to Value (Net LVT) as at the reporting date was 36.2% (31 December 2015: 33.6%) and the Company's average cost of debt amounted to 2.91%. Existing loans have an average remaining term of 4.7 years as at 31 March 2016. At present, the Company's costs for new long-term financing are significantly lower than 2.0%.

As at 31 March 2016, TLG IMMOBILIEN AG's portfolio includes a total of 414 properties (31 December 2015: 418) whose value under IFRS totals approx. EUR 1.865 bn (31 December 2015: EUR 1.766 bn). This corresponds to a 5.6% increase in the value of the properties in Q1 2016, which was due primarily to new acquisitions made in line with the portfolio strategy. This includes the seven office properties and two hotel properties in Leipzig and Dresden that were purchased at the end of 2015 and included in the portfolio in Q1 2016. The transaction costs for these properties totalled approx. EUR 112.8 m. Furthermore, purchase agreements were signed in Q1 2016 for two additional office properties in Berlin and Leipzig with a total investment volume of EUR 107.8 m.

"In the first quarter of the current financial year we not only further increased our consolidated net profit and improved our operating KPIs, but also acquired additional properties, thereby making great strides in reaching a portfolio value of EUR 2 bn that was initially targeted for 2017", says Peter Finkbeiner, Management Board member of TLG IMMOBILIEN AG.

In light of the ongoing excellent business performance, the Management Board of TLG IMMOBILIEN AG expects that the Company will continue to perform well in the full year 2016 and confirms its forecast that the Company will close out 2016 with FFO of between EUR 72 m and EUR 74 m, taking into account the acquisitions made thus far.

Download the quarterly report here:

www.tlg.eu > Investor Relations > Financial Reports & Presentations > 2016


KEY GROUP FIGURES ACCORDING TO IFRS

Results of operations	Unit	01/01/2016-31/03/2016	01/01/2015-31/03/2015	Change in %
Rental income	EUR k	32,513	30,374	7.0
Net operating income from letting activities (NOI)	EUR k	28,892	26,854	7.6
Disposal profits	EUR k	619	5,790	-89.3
Net income	EUR k	12,888	32,124	-59.9
FFO	EUR k	17,135	15,753	8.8
FFO per share1	EUR	0.25	0.,26	-3.8
Balance sheet metrics	Unit	31/03/2016	31/12/2015	Change in %
Investment property	EUR k	1,852,405	1,739,474	6.5
Cash and cash equivalents	EUR k	99,779	183,736	-45.7
Balance sheet total	EUR k	1,997,950	1,999,461	-0.1
Equity	EUR k	978,325	967,874	1.1
Equity ratio	%	49.0	48.4	0.6 pp
Liabilities to financial institutions	EUR k	775,115	782,688	-1.0
Net debt	EUR k	675,336	598,952	12.8
Net LTV²	%	36.2	33.6	2.6 pp
EPRA NAV	EUR k	1,189,829	1,171,594	1.6
EPRA NAV per share1	EUR	17.64	17.37	1.6
KPIs of the portfolio	Unit	31/03/2016	31/12/2015	Change in %
IFRS portfolio value3	EUR k	1,864,756	1,765,834	5.6
Properties	number	414	418	-4 units
Annualised in-place rent4	EUR k	135,991	131,379	3.5
In-place rental yield	in %	7.3	7.4	-0.1 pp
EPRA Vacancy Rate	in %	3.3	3.7	-0.4 pp
WALT	in years	6.5	6.5	0.0 years
Average rent	EUR/sqm	9.50	9.23	2.9

1 Total number of shares as at 31 March 2015: 61.3 m; as at 31 March 2016: 67.4 m. Due to the capital increase in November 2015, the weighted average number of shares in the first quarter 2015 was 61.3 m and 62.0 m in the first quarter 2016.

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 stock exchange-listed leading commercial real estate company focusing on Berlin and growth regions in Eastern Germany. For 25 years, TLG IMMOBILIEN AG is synonymous with real estate expertise in Germany's East. 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. TLG IMMOBILIEN AG focuses on managing a high-quality portfolio of office properties in Berlin and other regional economic centres, as well as 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 very long-term rental or lease agreements.

As at 31 March 2016, the value of the properties under IFRS totalled EUR 1,865 bn. As at the same reporting date, the EPRA Net Asset Value per share amounted to EUR 17.64.