TAG Immobilien achieves high earnings through sales

26/02/2015

At the end of last year, TAG Immobilien sold 3,500 units at rent multipliers of 18 or 19 in expensive Berlin and acquired 3,150 residential units at multipliers of 10-11 on other locations. In the fourth quarter alone, the Hamburg-based firm attained book profits of €43.1mn through residential sales. Its 2014 earnings before taxes (EBT) soared from €23.1mn to €83.1mn, also driven by valuation gains amounting to €46.8mn. On the other hand, TAG had to take a valuation loss of €8.9mn on a commercial property which the group continues to own and a €35.6mn complete impairment on a deferred purchase price component from the sale of the commercial portfolio to Apollo, which had not paid the full purchase price of €297mn – payment of the remainder was apparently subject to conditions. TAG’s net income, due to non-cash deferred taxes amounting to €54.1mn, thus increased only slightly, from €27mn to €29mn.


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