DGAP-News: TLG IMMOBILIEN AG / Key word(s): Final Results/Real Estate TLG IMMOBILIEN increases FFO by 34% and portfolio value by 52% 23.03.2018 / 07:00 The issuer is solely responsible for the content of this announcement. --------------------------------------------------------------------------- TLG IMMOBILIEN increases FFO by 34% and portfolio value by 52% - Funds from operations increased by 33.6% to EUR 102.7 m based on a 19.8% increase in rental income to EUR 168.3 m - The property value of the portfolio increased by 51.7% to EUR 3.4 bn. - The EPRA Vacancy Rate decreased to 3.6% - the WALT increased to 6.3 years - The Net LTV decreased to 39.2%; average cash costs of debt decreased to 1.84% - EPRA Net Asset Value increased to EUR 21.84 per share - Proposed dividend of EUR 0.82 per share - New corporate income tax and trade tax loss carryforwards of EUR 239.8 m on the level of TLG IMMOBILIEN have secured a lower long-term tax burden Berlin, 23 March 2018 - TLG IMMOBILIEN (ISIN: DE000A12B8Z4) ended the 2017 financial year on a high note: in addition to market-based value growth and value enhancing measures of individual properties, these positive developments were driven by acquisitions and the takeover of WCM in October 2017. The property value of the portfolio therefore increased to EUR 3.4 bn (31/12/2016: EUR 2.2 bn). Rental income increased by 19.8% to EUR 168.3 m (2016: EUR 140.5 m) due to factors including acquisitions and the currently positive market developments. In the same period, funds from operations (FFO) increased by 33.6% to EUR 102.7 m (2016: EUR 76.9 m). Over the course of the year, TLG IMMOBILIEN had revised its FFO forecast upwards twice, most recently to between EUR 95 m and EUR 97 m in November 2017. This corridor was greatly surpassed by the actual figures for the year. This was essentially caused by the corporate income tax and trade tax loss carryforwards assessed for TLG IMMOBILIEN and the unexpectedly high net operating income from letting activities. CONTINUED ORGANIC GROWTH IN THE PROPERTY PORTFOLIO As at 31 December 2017, there were 426 properties in the portfolio of TLG IMMOBILIEN (31/12/2016: 404 properties). 85 property acquisitions, 56 of which as part of the takeover of WCM, stood in contrast to 63 disposals designed to optimise the portfolio. The majority of the property acquisitions were in western and southern German locations with the office property "astropark" in Frankfurt/Main in July 2017 and 28 retail properties through two transactions in November 2017. In this regard, a total of around EUR 205 m was invested. As at the reporting date, the EPRA Vacancy Rate for the portfolio was 3.6% (31/12/2016: 3.8%), the weighted average lease term (WALT) was 6.3 years (31/12/2016: 6.1 years) and the in-place rental yield was 6.3% (31/12/2016: 6.9%). The EPRA Net Asset Value was EUR 2.2 bn or EUR 21.84 per share as at 31 December 2017 (31/12/2016: EUR 18.57 per share). A SOLID FINANCING STRUCTURE TLG IMMOBILIEN was active in the capital market multiple times in the previous year. It issued a total of 14.1 m shares through two capital increases and generated gross proceeds of EUR 262 m. Additionally, in November 2017, the company issued its first bond with a nominal value of EUR 400 m. Most of the liabilities assumed through the bond were used to repay existing loans. The average cash costs of debt therefore decreased to 1.84% (31/12/2016: 2.46%) with an average weighted maturity of 6.3 years. For 100% of the liabilities, the interest rate is fixed over the term of each liability by fixed interest rate agreements or secured by interest rate hedges. With a Net LTV of 39.2% (31/12/2016: 43.4%), TLG IMMOBILIEN had a solid financing structure as at the reporting date. The decrease in the Net LTV is due to the two cash capital increases and gains from the remeasurement of investment property. Peter Finkbeiner, member of the Management Board of TLG IMMOBILIEN, explains: "Once again, the figures for the 2017 financial year show that we were able to maintain our high rate of growth in the previous year without compromising with our financing structure or portfolio quality. We increased our FFO significantly and were able to secure additional loss carryforwards on the level of TLG IMMOBILIEN. TLG IMMOBILIEN remains well financed and equipped for future growth following the capital increases and the successful issuance of its bond." Niclas Karoff, member of the Management Board of TLG IMMOBILIEN, regarding the portfolio: "In the previous year, the most important event for our company was the successful takeover of WCM. The takeover combined with other property acquisitions and value growth caused the value of our portfolio to increase by more than 50% and by more than 100% compared to the IPO. This growth has had a positive effect on rental income and FFO. We will continue to work to optimise our diversified portfolio of office, retail and hotel properties in attractive locations in Germany. Additionally, we intend to examine the available potential for development in our portfolio closely over the next few years." PROPOSED DIVIDEND OF EUR 0.82 PER SHARE Given the successful course of business in 2017 and with the approval of the Supervisory Board, the Management Board is able to propose the payment of a dividend of EUR 0.82 per share based on the number of shares as at 31 December 2017 of 102.0 m to the general meeting of TLG IMMOBILIEN in Berlin on 25 May 2018. The Management Board expects the property portfolio to continue to grow in the 2018 financial year and the FFO to increase to between EUR 125 m and EUR 128 m. LATEST FINANCIAL REPORT www.tlg.eu > Investor Relations > Financial Reports & Presentations WEBCAST ON THE QUARTERLY FIGURES FROM AROUND 10 A.M. TODAY www.tlg.eu KEY GROUP FIGURES ACCORDING TO IFRS Results of operations Unit 01/01/2017-3- 01/01/2016-3- Change 1/12/2017 1/12/2016 in % Rental income EUR 168,310 140,464 19.8 k Net operating income from EUR 153,548 125,588 22.3 letting activities (NOI) k Disposal profits EUR 2,561 6,391 -59.9 k Net income EUR 284,373 94,109 202.2 k Funds from Operations (FFO) EUR 102,673 76,877 33.6 k FFO per share1 EUR 1.29 1.14 13.2 Statement of financial Unit 31/12/2017 31/12/2016 Change position in % Investment property EUR 3,383,259 2,215,228 52.7 k Cash and cash equivalents EUR 201,476 68,415 194.5 k Balance sheet total EUR 3,835,748 2,344,763 63.6 k Equity EUR 1,936,560 1,009,503 91.8 k Equity ratio % 50.5 43.1 7.4 pp Interest-bearing liabilities EUR 1,541,692 1,040,412 48.2 k Net debt EUR 1,340,216 971,997 37.9 k Net LTV² % 39.2 43.4 -4.2 pp EPRA NAV3 EUR 2,228,512 1,252,131 78.0 k EPRA NAV per share1, 3 EUR 21.84 18.57 17.6 Portfolio key figures Unit 31/12/2017 31/12/2016 Change in % Property value4 EUR 3,400,582 2,241,615 51.7 k Properties numb- 426 404 22 er units Annualised in-place rent5 EUR 214,057 155,276 37.9 k In-place rental yield in % 6.3 6.9 -0.6 pp EPRA Vacancy Rate in % 3.6 3.8 -0.2 pp WALT in 6.3 6.1 0.2 year- years s Average rent EUR/- 10.05 9.67 3.9 sqm 1 Total number of shares as at 31 December 2016: 67.4 m; as at 31 December 2017: 102.0 m. The weighted average number of shares in 2016 was 67.4 m and 79.7 m in 2017. 2 Calculation: Net debt divided by property value 3 The calculation has changed in accordance with the specifications of the EPRA. For more detailed information, see page 42 of the annual report. 4 Pursuant to the values reported in the financial statements in accordance with IAS 40, IAS 2, IAS 16, IFRS 5 5 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 Sven Annutsch Corporate Communications Investor Relations Phone: +49 30 2470 6355 Phone: +49 30 2470 6089 E-mail: [email protected] 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 in-come and exhibits low vacancy rates, very good building stock and profits from its local employees' excel-lent 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 region-ally 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 on-ly due to their excellent locations but also because of their long-term rental or lease agreements. As at 31 December 2017, the property value amounted to EUR 3.4 bn. As at the same reporting date, the EPRA Net Asset Value per share amounted to EUR 21.84. 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. --------------------------------------------------------------------------- 23.03.2018 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG. The issuer is solely responsible for the content of this announcement. The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Archive at www.dgap.de --------------------------------------------------------------------------- Language: English Company: TLG IMMOBILIEN AG Hausvogteiplatz 12 10117 Berlin Germany Phone: 030 - 2470 - 50 Fax: 030 - 2470 - 7337 E-mail: [email protected] Internet: www.tlg.de ISIN: DE000A12B8Z4 WKN: A12B8Z Indices: SDAX Listed: Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover, Stuttgart, Tradegate Exchange End of News DGAP News Service --------------------------------------------------------------------------- 667879 23.03.2018