DGAP-News: TLG IMMOBILIEN AG / Key word(s): Half Year Results/Real Estate TLG IMMOBILIEN increases its FFO by around 45% and rental income by around 40% in the first half of 2018 10.08.2018 / 07:00 The issuer is solely responsible for the content of this announcement. --------------------------------------------------------------------------- TLG IMMOBILIEN increases its FFO by around 45% and rental income by around 40% in the first half of 2018 - Rental income increased by 39.6% to EUR 109.6 m compared to the same period in the previous year - Funds from operations increased by 45.4% to EUR 67.6 m in the first half of 2018 and by 3.1% to EUR 0.66 per share - EPRA Net Asset Value increased to EUR 23.26 per share as at 30 June 2018 - FFO forecast of between EUR 125 m and EUR 128 m revised upwards to between EUR 130 m and EUR 133 m Berlin, 10 August 2018 - Once again, TLG IMMOBILIEN reported a positive course of business in the first half of the 2018 financial year. Rental income increased by 39.6% compared to the same period in the previous year and was EUR 109.6 m as at 30 June 2018. The funds from operations (FFO) increased to EUR 67.6 m due to higher net operating income from letting activities, which represents an increase of 45.4% compared to the first half of 2017. The significant increase in rental income and FFO compared to the same period in the previous year is due primarily to the takeover of WCM and the acquisition of further properties. Compared to the end of 2017, the EPRA Vacancy Rate decreased by 0.2 percentage points to 3.4%. The WALT, or weighted average lease term for rental agreements, was 6.0 years as at 30 June 2018. Compared to the end of 2017, this represents a decrease of 0.3 years. As at the reporting date, the EPRA Net Asset Value (EPRA NAV) was around EUR 2.4 bn, having increased by 7.7% in the first half of the year. The EPRA NAV per share is EUR 23.26 (31/12/2017: EUR 21.84 per share). As at the reporting date, the financing structure of TLG IMMOBILIEN continued to have a solid net LTV of 39.9% (31/12/2017: 39.2%). As at 30 June 2018, the company's average cash costs of debt were 1.83%. As at the end of the first half of 2018, the interest-bearing liabilities had an average weighted maturity of 5.9 years. The value of the property portfolio increased by 7.8% to around EUR 3,665 m in the first half of 2018 (31/12/2017: EUR 3,401 m). Besides acquisitions and the positive effects of asset management, the increase is essentially due to the positive development of the markets, especially in Berlin. In light of the successful property acquisitions and the progress with the integration of WCM into the processes and structures of the overall Group, the Management Board of TLG IMMOBILIEN has revised the FFO forecast for the 2018 financial year upwards to between EUR 130 m and EUR 133 m. CURRENT HALF-YEAR FINANCIAL REPORT www.tlg.eu > Investor Relations > Financial Reports & Presentations WEBCAST ON THE QUARTERLY FIGURES FROM AROUND 11 A.M. TODAY www.tlg.eu KEY GROUP FIGURES ACCORDING TO IFRS Results of operations Unit 01/01/2018- 01/01/2017- Change 30/06/2018 30/06/2017 in % Rental income EUR 109,570 78,481 39.6 k Net operating income from EUR 96,278 71,147 35.3 letting activities (NOI) k Disposal profits EUR 0 169 -100.0 k Net income for the period EUR 170,858 76,532 123.3 k Funds from Operations (FFO) EUR 67,635 46,505 45.4 k FFO per share1 EUR 0.66 0.64 3.1 Statement of financial Unit 30/06/2018 31/12/2017 Change position in % Investment property EUR 3,651,646 3,383,259 7.9 k Cash and cash equivalents EUR 109,120 201,476 -45.8 k Balance sheet total EUR 4,048,349 3,835,748 5.5 k Equity EUR 2,020,746 1,936,560 4.3 k Equity ratio % 49.9 50.5 -0.6 pp Interest-bearing liabilities EUR 1,593,284 1,541,692 3.3 k Net debt EUR 1,484,164 1,340,216 10.7 k Net LTV² % 39.9 39.2 0.7 pp EPRA NAV EUR 2,401,176 2,228,512 7.7 k EPRA NAV per share1 EUR 23.26 21.84 6.5 KPIs of the portfolio Unit 30/06/2018 31/12/2017 Change in % Property value3 EUR 3,665,478 3,400,582 7.8 k Properties numb- 419 426 -7 er units Annualised in-place rent4 EUR 221,636 214,057 3.5 k In-place rental yield % 6.0 6.3 -0.3 pp EPRA Vacancy Rate % 3.4 3.6 -0.2 pp WALT year- 6.0 6.3 -0.3 s years Average rent EUR/- 10.26 10.05 2.1 sqm 1 Total number of shares as at 31 December 2017: 102.0 m; as at 30 June 2018: 103.2 m. The weighted average number of shares was 73.1 m in the first half of 2017 and 102.4 in the first half of 2018. 2 Calculation: Net debt divided by real estate assets 3 In line with values disclosed according to IAS 40, IAS 2, IAS 16, IFRS 5 4 The annualised in-place rent is calculated using the annualised rents agreed as at the reporting date - not factoring in rent-free periods. CONTACT Christoph Wilhelm Sven Annutsch Corporate Communications Investor Relations Phone: +49 30 2470 6355 Phone: +49 30 2470 6089 E-mail: [1][email protected] E-mail: [1][email protected] 1. mailto:[email protected] 1. mailto:[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 June 2018, the property value amounted to EUR 3.7 bn. As at the same reporting date, the EPRA Net Asset Value per share amounted to EUR 23.26. 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. --------------------------------------------------------------------------- 10.08.2018 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 --------------------------------------------------------------------------- 712837 10.08.2018