DGAP-News: TLG IMMOBILIEN increases its FFO during the first nine months of 2014 and further expands its portfolio


DGAP-News: TLG IMMOBILIEN AG / Key word(s): 9-month figures/Real
Estate
TLG IMMOBILIEN increases its FFO during the first nine months of 2014
and further expands its portfolio

28.11.2014 / 07:30

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Press release

TLG IMMOBILIEN AG increases its FFO during the first nine months of 2014
and further expands its portfolio

  - FFO increased by 28 percent to EUR 40.4 million (previous year: EUR
    31.6 million)

  - Third-quarter acquisitions further expand core portfolio

  - Management Board bolsters FFO forecast of approximately EUR 50.0
    million for all of 2014 and confirms potential dividend

Berlin, 28 November 2014 - TLG IMMOBILIEN AG, a leading commercial real
estate company focussed primarily on Berlin and regional economic centres
in eastern Germany, increased its Funds from Operations (FFO) by 28 percent
to EUR 40.4 million during the first nine months of the year (previous
year: EUR 31.6 million) and further optimised its real estate portfolio
through additional acquisitions. As at 30 September 2014, rental income
amounted to EUR 85.4 million (prior-year period: EUR 88.9 million), due
primarily to the Q4 2013 disposal of properties which were not aligned with
the portfolio's strategy. Consolidated net profit for the first nine months
of 2014 amounted to EUR 68.5 million (previous year: EUR 75.3 million).

The interim financial report along with TLG IMMOBILIEN AG's complete
consolidated interim financial statements for the first nine months of 2014
was published online today under the following URL: TLG.de > Investor
Relations > Financial Reports

Acquisitions further expand core portfolio

During the third quarter of 2014, TLG IMMOBILIEN expanded its core
portfolio centred around the "Forum am Brühl" - a premium, virtually
fully-let office property located in the heart of Leipzig directly across
from the city's central station.

In addition, TLG IMMOBILIEN further optimised its office property portfolio
after the reporting date by acquiring an additional property in
Berlin-Mitte located in direct proximity to the river Spree. This premium
office building, which was completed in 2014, has more than 12,000 square
metres of lettable space and is primarily leased long term to the Verdi
union and Deutsche Bahn. The vacancy rate of approximately twelve percent
as at the acquisition date has since already been reduced to below two
percent.

Furthermore, a purchase agreement was notarised on 27 November 2014 for a
speciality retail centre in Berlin-Adlershof with some 33,450 square metres
of lettable space. The total purchase price for this property amounts to
approximately EUR 30.8 million and net rent for the year excluding
utilities is anticipated to be EUR 3.0 million.

Key lease contracts landed in Q3 2014 

In August, Germany's Federal Office for Real Estate Management
(Bundesanstalt für Immobilienaufgaben) renewed its lease agreement for the
approximately 18,000 square metres of space it rents at Berliner
Karl-Liebknecht-Straße 31/33. Also, after expanding the space it rents at
the "1alex" property at Berlin's Alexanderplatz by some additional 1,600
square metres, BTB Bildungszentrum now lets approximately 3,600 square
metres of space.

The core portfolio's EPRA vacancy rate (3.5 percent as at 30 September
2014) had once more been decreased as compared to the first half of the
year. As at the reporting date, the weighted average lease term for the
office property portfolio amounted to 5.9 years and 7.1 years for the
retail portfolio.

Statement of financial position and financing structure remain sound

As at 30 September 2014, TLG IMMOBILIEN AG had a sound statement of
financial position and a conservative financing structure. Investment
property had increased to EUR 1.467 million as at the reporting date (31
December 2013: EUR 1.415 million). As at 30 September 2014, the net
Loan-to-Value (LTV) ratio amounted to 46.4 percent; the average borrowing
costs remained below three percent.

Management Board bolsters FFO forecast and focus on growth strategy

"Our business performance to date bolsters the forecast we made prior to
our IPO, namely that we will succeed in increasing TLG IMMOBILIEN's FFO to
approximately EUR 50.0 million for the full year in 2014. Beginning in
2015, our shareholders will share in the success of our company as we
distribute a dividend comprising 70 to 80 percent of our annual FFO", said
Peter Finkbeiner, member of the Management Board.

Niclas Karoff, member of the Management Board, stated, "Our recent
additions highlight the fact that we are systematically implementing our
ambitious growth strategy through value-enhancing acquisitions.
Furthermore, the issue proceeds generated from our IPO on 24 October 2014
represent a key springboard for us to expand our core portfolio through
additional positive cash flow properties in the coming months."

Contact
<pre>

Christoph Wilhelm                               Sven Annutsch
Corporate Communications                        Investor Relations
Phone: +49 30 2470 6355                         Phone: +49 30 2470 6089
Email: christoph.wilhelm@tlg.de                 Email: sven.annutsch@tlg.de


</pre>

About TLG IMMOBILIEN
TLG IMMOBILIEN AG is a leading commercial real estate company focusing on
Berlin and growth regions in Eastern Germany. For over 20 years, TLG
IMMOBILIEN has been synonymous with real estate expertise in Germany's
East. TLG IMMOBILIEN 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 is specialised in commercial properties for office and retail
use. TLG IMMOBILIEN 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 five hotels in Berlin, Dresden
and Rostock. TLG IMMOBILIEN'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 30 September 2014 the portfolio value (fair value) is EUR 1.5
billion. The EPRA net asset value per share is EUR 14,27 as at the
reference day.



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Language:    English                                                
Company:     TLG IMMOBILIEN AG                                      
             Hausvogteiplatz 12                                     
             10177 Berlin                                           
             Germany                                                
Phone:       030 - 2470 - 50                                        
Fax:         030 - 2470 - 7337                                      
E-mail:      kontakt@tlg.de                                         
Internet:    www.tlg.de                                             
ISIN:        DE000A12B8Z4                                           
WKN:         A12B8Z                                                 
Listed:      Regulierter Markt in Frankfurt (Prime Standard);       
             Freiverkehr in Berlin, Düsseldorf, Hamburg, Hannover,  
             Stuttgart                                              
 
 
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