PRESS RELEASE
TAG Immobilien AG successfully starts into 2025; strong operating cash flow drives further NTA growth and reduces LTV to near target level
- Rental income (FFO I) up to EUR 44.9m on both the previous quarter Q4 2024 and the prior-year quarter Q1 2024 (EUR 44.6m in each case)
- Operating rental income (EBITDA) of EUR 62.8m significantly above previous quarter Q4 2024 (EUR 60.3m) and prior-year quarter Q1 2024 (EUR 61.4m)
- Continuously strong like-for-like rental growth in Germany with 3.0% p.a.
- Increase in number of units sold in Poland in Q1 2025 to 592 compared to 501 units in Q4 2024
- EPRA NTA per share increased to EUR 19.75, up 6% compared to Q1 2024 (EUR 18.63) and 3% compared to Q4 2024 (EUR 19.15)
- LTV at 45.6%, in target range of c. 45% (46.9% as at 31 December 2024)
Hamburg, 15 May 2025
Overview of the rental business – increased FFO I and significant growth in operating result (EBITDA)
The first three months of FY 2025 provided a successful start to the year as far as operations were concerned. FFO I, which comprises both the German and Polish rental businesses, was EUR 44.9m, up on both the previous quarter (Q4 2024) and the prior-year quarter (Q1 2024) (EUR 44.6m in each case).
This was mainly due to the continued strong like-for-like rental growth of 3.0% p.a. in the German portfolio. In Germany, vacancy in the Group's approximately 83,000 residential units rose slightly, which is not unusual for the first quarter of a year, from 3.6% at the end of FY 2024 to 3.9% in March 2025. Thanks to low maintenance costs and further portfolio growth in Poland, total adjusted EBITDA from rental activities, at EUR 62.8m, was significantly above the previous quarter Q4 2024 (EUR 60.3m) and the same quarter of the previous year Q1 2024 (EUR 61.4m).
In Poland, the rental portfolio comprised 3,350 residential units as of the reporting date (31 December 2024: 3,219). The vacancy rate for units that have been on the market for more than one year remained low at 1.9% at the end of Q1 2025, compared with 1.5% at the end of 2024. Across the entire portfolio, including apartments completed during the reporting period, vacancy was 6.3% (31 December 2024: 4.9%). Adjusted EBITDA from the growing Polish rental business was EUR 4.6m, up on the previous year (Q1 2024: EUR 3.2m). Like-for-like rental growth in Poland was 3.0% p.a. in the reporting period, compared with 3.2% at the end of the previous year.
Overview of the sales business – higher number of units sold in Poland
During the first quarter of 2025, a higher number of residential units were sold (592 units) compared with the previous quarter Q4 2024 (501 units sold). Sales prices in Poland remain at a high level after rising sharply by a cumulative 45% over the last three years due to strong demand for new-build residential units. As expected, adjusted net income from sales in Poland declined in the first quarter of 2025 due to fewer apartment handovers, amounting to EUR 5.0m (after EUR 27.4m in Q4 2024 and EUR 19.8m in Q1 2024). In line with the guidance, an increase in residential handovers and thus also in higher sales results is expected for the rest of the year.
FFO II, which includes FFO I as well as the Polish and German sales results, subsequently declined to EUR 50.1m in the first quarter of 2025 (Q4 2024: EUR 71.9m; Q1 2024: EUR 64.3m). Here too, an increase is expected in the course of 2025 due to higher sales results.
Claudia Hoyer, COO and Co-CEO of TAG, comments on the earnings performance: "TAG has made a very good start to 2025. We are particularly pleased that the operating result has risen further year-on-year despite the property sales we completed in Germany last year. Both the German and Polish residential markets continue to show high demand. Against this background, we expect a slight value increase in Germany again with regard to the next property valuation on 30 June 2025, as we already saw in the second half of 2024."
EPRA NTA per share grows 6% year-on-year, LTV almost at target level
At the end of the first quarter of 2025, EPRA NTA per share increased to EUR 19.75, representing an increase of 6% compared to the first quarter of 2024 (EUR 18.63) and 3% compared to Q4 2024 (EUR 19.15). This positive development was predominantly attributable to TAG's strong cash generation from operating activities.
As a result of the positive operating results, the closing of disposals in Germany signed in the previous year, and positive effects from the currency translation of the Polish zloty into euros, the LTV ratio decreased from 46.9% in Q4 2024 to 45.6%. This brings this ratio down nearly to the target level of c. 45%.
Other financing indicators, such as the interest coverage ratio (ICR) and the ratio of net financial debt to adjusted EBITDA, remained strong at 5.9x and 10.3x, respectively.
Martin Thiel, CFO and Co-CEO of TAG, commented: "The successful placement of the EUR 332m convertible bonds in March 2025 further strengthened our liquidity position. With cash and cash equivalents close to EUR 1.0bn as of the reporting date, not only have we refinanced all capital market debt due in the coming years ahead of schedule, but our strong financial position also provides a solid foundation for investments in our Polish rental business, which we expect will comprise around 10,000 units by the end of 2028.’
Guidance for financial year 2025 confirmed
All guidance previously published for the financial year 2025 is confirmed in full. This also applies for key financials on per-share basis, taking into account potential new shares from the scrip dividend option proposed to shareholders for the next Annual General Meeting:
- FFO I: EUR 172-176m (EUR 0.99 per share)
- Adjusted net income from sales Poland: EUR 61-67m
- FFO II: EUR 233-243m (EUR 1.36 per share)
Dividend
As previously announced, the Management Board and Supervisory Board of TAG will propose a dividend of EUR 0.40 per share for FY 2024 at the next Annual General Meeting, to be held on 16 May 2025. This is based on a payout ratio of 40% of FFO I. For the first time, shareholders will have the option of choosing between a cash distribution (cash dividend) and new TAG shares (scrip dividend) in order to further support TAG's growth plans through the scrip dividend.
Further details on the first quarter 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
| Income statement key figures (in EURm) |
01/01/2025- 03/31//2025 |
01/01/2024- 03/31//2024 |
| Rental income (net actual rent) |
92.0 |
88.8 |
| EBITDA (adjusted) Germany and Poland rental business |
62.8 |
61.4 |
| EBITDA (adjusted) from sales Poland |
5.9 |
22.8 |
| EBITDA (adjusted) total |
68.7 |
84.2 |
| Adjusted net income from sales Poland |
5.0 |
19.8 |
| Consolidated net profit |
39.0 |
52.9 |
| FFO I per share in EUR |
0.26 |
0.25 |
| FFO I |
44.9 |
44.6 |
| FFO II per share in EUR |
0.29 |
0.37 |
| FFO II |
50.1 |
64.3 |
| |
| Balance sheet key figures (in EURm) |
03/31/2025 |
12/31/2024 |
| Total assets |
8,210.8 |
7,750.3 |
| Equity |
3,154.1 |
3,099.9 |
| EPRA NTA per share in EUR |
19.75 |
19.15 |
| LTV in % |
45.6 |
46.9 |
| |
| Portfolio data |
03/31/2025 |
12/31/2024 |
| Units Germany |
83,126 |
83,618 |
| Units Poland (completed rental apartments) |
3,350 |
3,219 |
| Sold units Poland |
592 |
1,936 |
| Handovers Poland |
224 |
2,666 |
| GAV Total (real estate assets, in EURm) |
6,603.3 |
6,505.9 |
| GAV Germany (real estate assets, in EURm) |
5,265.9 |
5,286.1 |
| GAV Poland (real estate assets, in EURm) |
1,337.4 |
1,219.8 |
| Vacancy in % Germany (total portfolio) |
4.1 |
3.9 |
| Vacancy in % Germany (residential units) |
3.9 |
3.6 |
| Vacancy in % Poland (total portfolio) |
6.3 |
4.9 |
| Vacancy in % Poland (units on the market > 1 year) |
1.9 |
1.5 |
| l-f-l rental growth in % Germany (incl. vacancy reduction) |
2.5 |
2.5 |
| l-f-l rental growth in % Poland |
3.0 |
3.0 |
| Vacancy in % Germany (total portfolio) |
3.0 |
3.2 |
| |
| Employees |
03/31/2025 |
12/31/2024 |
| Number of employees |
1,884 |
1,848 |
| |
| Capital market data |
|
| Market capitalisation as at 03/31/2025 in EURm |
2,208 |
| Share capital as at 03/31/2025 in EUR |
175,489,025 |
| WKN/ISIN |
830350/DE0008303504 |
| Number of shares as at 03/31/2025 (issued) |
175,489,025 |
| Number of shares as at 03/31/2025 (outstanding, excluding treasury shares) |
175,404,601 |
| Free float in % (excluding treasury shares) |
100 |
| Index |
MDAX/EPRA |
Press enquiries
TAG Immobilien AG
Dominique Mann
Head of Investor & Public Relations
Phone +49 (0) 40 380 32 305
Fax +49 (0) 40 380 32 388
ir@tag-ag.com
