TAG Immobilien AG reports strong growth in FFO I and EPRA NTA in the first half of 2025; positive valuation results in Germany and Poland; further decline in LTV
|
EQS-News: TAG Immobilien AG
/ Key word(s): Half Year Results
PRESS RELEASE TAG Immobilien AG reports strong growth in FFO I and EPRA NTA in the first half of 2025; positive valuation results in Germany and Poland; further decline in LTV
Hamburg, 12 August 2025 Overview of the rental business – increased FFO I and growth in operating result (EBITDA) confirm successful operational development in Germany and Poland The first six months of the 2025 financial year proved to be a very successful first half of the year. FFO I, which comprises the rental business in Germany and Poland, continued its positive trend in the second quarter of 2025 (Q1 2025: EUR 44.9m and Q2 2025: EUR 46.7m) and was thus significantly higher in the first half of 2025 at EUR 91.6m than in the same period of the previous year (H1 2024: EUR 88.1m), representing an increase of 4%. The consistently high overall like-for-like rental growth of 2.9% p.a. (Q1 2025: 3.0% p.a.) in the German portfolio contributed to this in particular. In Germany, the vacancy rate remained unchanged at 3.9% in the second quarter of 2025 compared with the first quarter of 2025. Also due to like-for-like rental growth of 3.3% p.a. in the Polish portfolio, adjusted EBITDA from rental business exceeded the prior-year period at EUR 126.4 m. (Q1 2025: 3.0% p.a.), adjusted EBITDA from rental business exceeded the prior-year period H1 2024 (EUR 120.1m) at EUR 126.4m, representing growth of 5%. In Poland, the rental portfolio remained unchanged from Q1 2025 at around 3,350 apartments as of the reporting date. The vacancy rate for units rented for more than one year remained at a very low level of 2.1% at the end of the first half of 2025, following 1.9% in Q1 2025. Across the entire portfolio, including apartments completed in the last 12 months, the vacancy rate was 3.8% (Q1 2025: 6.3%). As a result, adjusted EBITDA from the Polish rental business rose significantly to EUR 8.1m compared with the same period of the previous year (H1 2024: EUR 5.1m). Overview of the Polish sales business – higher number of units sold in H1 2025; rising apartment handovers and results expected in H2 2025 In the first half of 2025, 1,158 apartments were sold, more than in the same period of the previous year (1,056). Sales prices in Poland remained at a high level. Comparing the development since the beginning of 2022, i.e. within the last three and a half years, prices have risen by between approximately 40% and 60% depending on location due to the high demand for new-build apartments. As expected, adjusted net income from sales in Poland was higher in the second quarter of 2025 at EUR 11.6m than in the first quarter of 2025 (EUR 5.0m) and amounted to EUR 16.6m in the first half of 2025 (H1 2024: EUR 34.1m). A significant increase in apartment handovers and thus also in net income from sales is expected for the second half of 2025, particularly in Q4 2025, in line with planning. At the same time, TAG anticipates higher sales numbers in the second half of 2025 due to the continued strong market momentum, which is supported by falling interest rates in Poland, so that c. 2,800 apartments are still expected to be sold in 2025 as a whole. FFO II, which includes FFO I as well as net income from sales in Poland and Germany, rose in the second quarter of 2025 compared with the previous quarter (EUR 50.1m) to EUR 57.2m. FFO II for the first half of the year was EUR 107.3m (H1 2024: EUR 121.4m). Valuation gains in the German and Polish real estate portfolios; EPRA NTA per share rises by 10% year-on-year despite dividend distribution The German portfolio recorded an increase in value of c. 1.4% in the first half of 2025. Following positive performance in the second half of 2024 (c. +0.9%), this underscores the renewed positive trend in property valuations, which is also expected for the second half of 2025. Significant valuation gains of EUR 91.3m (H2 2024: EUR 14.4m) were also recorded in Poland in the first half of 2025 due to the sharp rise in sales prices in the past. As a result of the positive valuation results and the continued strong operating cash flow from TAG's rental and sales business, EPRA NTA per share increased to EUR 20.18 in H1 2025, despite the dividend payment of EUR 0.40 per share in June 2025. This represents an increase of 10% compared to 30 June 2024 (EUR 18.33) and of 5% compared to 31 December 2024 (EUR 19.15). Claudia Hoyer, COO and Co-CEO of TAG, comments on the earnings performance: "TAG got off to a very good start in 2025 and this positive development continued in the second quarter of 2025. We are pleased with the very good operating results, which confirm that both the German and Polish residential markets continue to show high demand. As expected, the valuation of the German portfolio was again positive in the first half of 2025, continuing the trend from the second half of 2024. In particular, the Polish portfolio also recorded increases in value based on the sharp rise in sales prices in recent years. We therefore consider ourselves to be very well positioned with our portfolios in both countries." LTV falls to 45.3%; other financing ratios remain strong; TAG receives positive outlook in Moody's credit rating Thanks to the positive operating results, the realised valuation gains and the completion of property sales in Germany that were already signed in the previous year, the LTV ratio fell from 46.9% to 45.3% in the first half of 2025. Other financing ratios, such as the interest coverage ratio (ICR) and the ratio of net financial debt to adjusted EBITDA, remain strong at 5.6x and 10.4x respectively. In June 2025, the rating agency Moody's confirmed TAG's investment grade rating (Baa3) and, in this context, raised the outlook for the rating from ‘stable’ to ‘positive’. This decision was based on the stable operating performance in Germany, the growing rental business in Poland and the company's disciplined financial policy. According to Moody's, other positive factors included the improved capital structure, the targeted reduction of secured liabilities, the very good liquidity situation and reliable access to the capital markets. Martin Thiel, CFO and Co-CEO of TAG, commented as follows: ‘We are delighted that the very good operating performance and financial discipline of recent years are not only reflected in strong financial ratios, but also in the ratings awarded by the rating agencies. On this basis, we can continue to invest and grow.’ Further details on the first half of 2025 can be found in the interim report published today and in a summary presentation at https://www.tag-ag.com/en/investor-relations/financial-statements/quarterly-reports/.
Key financials at a glance
Contact TAG Immobilien AG Dominique Mann Head of Investor & Public Relations Fon +49 (0) 40 380 32 305
12.08.2025 CET/CEST Dissemination of a Corporate News, transmitted by EQS News - a service of EQS Group. |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Language: | English |
| Company: | TAG Immobilien AG |
| Steckelhörn 5 | |
| 20457 Hamburg | |
| Germany | |
| Phone: | 040 380 32 0 |
| Fax: | 040 380 32 388 |
| E-mail: | ir@tag-ag.com |
| Internet: | https://www.tag-ag.com |
| ISIN: | DE0008303504 |
| WKN: | 830350 |
| Indices: | MDAX |
| Listed: | Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover, Munich, Stuttgart, Tradegate Exchange |
| EQS News ID: | 2182430 |
| End of News | EQS News Service |
|
|
2182430 12.08.2025 CET/CEST
P R O D U C T S U G G E S T I O N S
The information presented here has been provided by our content partner EQS-Group. The originator of the news is the respective issuer, the company relating to the news, a publication service provider (press or information agency) which uses the distribution service of EQS to transmit company news to shareholders, investors, investors or interested parties. The original publications and other company-relevant information can be found at eqs-news.com.
The information you can access does not constitute investment advice. The presentation of our cooperation partners, where the implementation of investment decisions would be possible depending on the individual risk profile, is solely at the discretion of the person using the service. We only present companies of which we are convinced that the range of services and customer service will satisfy discerning investors.
If you are considering leverage products, familiarise yourself with the typical characteristics of the financial instruments beforehand. Take the time to determine the risk content of the planned investment before making an investment decision. Bear in mind that a total loss cannot be ruled out with leverage products.
For newcomers to the subject, we offer various options in both the training and the tools section, through which you can train theoretical knowledge and practical experience and thus improve your skills. The offer ranges from participation in webinars to personal mentoring. The range is continuously being expanded.
1 Lab features are usually functionalities that emerge from the think tank of the investor community. In the early stages, these are experimental functionalities whose development process is largely determined by use and the resulting feedback from the community. When integrating external services or functionalities, the functionality can only be guaranteed to the extent that the individual process elements, such as interfaces, interact with each other.