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
- Result from rental business (FFO I) rises to EUR 91.6m (+4% compared to H1 2024)
- Operating rental result (EBITDA) also stronger than in H1 2024 at EUR 126.4m (+5%)
- Number of units sold in Poland increases to 1,158 in H1 2025 (previous year: 1,056); adjusted net income from sales in Poland at EUR 16.6m (previous year: EUR 34.1m); increased number of units sold and net income from sales expected in the second half of the year
- Another positive valuation result in the German portfolio (increase in value of c. +1.4%); Polish rental portfolio with strong positive performance compared to the previous year
- EPRA NTA per share increased significantly to EUR 20.18, despite dividend payment, compared with 31 December 2024 (+5%) and 30 June 2024 (+10%)
- LTV falls to 45.3%; Moody’s raises outlook for TAG’s investment grade rating from “stable” to “positive”
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
| Income statement key figures (in EURm) |
01/01/2025- 06/30//2025 |
01/01/2024- 06/30//2024 |
| Rental income (net actual rent) |
184.2 |
178.2 |
| EBITDA (adjusted) Germany and Poland rental business |
126.4 |
120.1 |
| EBITDA (adjusted) from sales Poland |
19.8 |
38.9 |
| EBITDA (adjusted) total |
146.2 |
159.0 |
| Adjusted net income from sales Poland |
16.6 |
34.1 |
| Consolidated net profit |
151.1 |
-7.1 |
| FFO I per share in EUR |
0.52 |
0.50 |
| FFO I |
91.6 |
88.1 |
| FFO II per share in EUR |
0.61 |
0.69 |
| FFO II |
107.3 |
121.4 |
| |
| Balance sheet key figures (in EURm) |
06/30/2025 |
12/31/2024 |
| Total assets |
8,256.0 |
7,750.3 |
| Equity |
3,194.2 |
3,099.9 |
| EPRA NTA per share in EUR |
20.18 |
19.15 |
| LTV in % |
45.3 |
46.9 |
| |
| Portfolio data |
06/30/2025 |
12/31/2024 |
| Units Germany |
82,957 |
83,618 |
| Units Poland (completed rental apartments) |
3,349 |
3,219 |
| Sold units Poland |
1,158 |
1,936 |
| Handovers Poland |
516 |
2,666 |
| GAV Total (real estate assets, in EURm) |
6,781.8 |
6,505.9 |
| GAV Germany (real estate assets, in EURm) |
5,318.3 |
5,286.1 |
| GAV Poland (real estate assets, in EURm) |
1,463.5 |
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) |
3.8 |
4.9 |
| Vacancy in % Poland (units on the market > 1 year) |
2.1 |
1.5 |
| l-f-l rental growth in % Germany |
2.4 |
2.5 |
| l-f-l rental growth in % Germany (incl. vacancy reduction) |
2.9 |
3.0 |
| l-f-l rental growth in % Poland |
3.3 |
3.2 |
| |
| Employees |
06/30/2025 |
12/31/2024 |
| Number of employees |
1,905 |
1,856 |
| |
| Capital market data |
|
| Market capitalisation as at 06/30/2025 in EURm |
2,664 |
| Share capital as at 06/30/2025 in EUR |
176,556,650 |
| WKN/ISIN |
830350/DE0008303504 |
| Number of shares as at 06/30/2025 (issued) |
176,556,650 |
| Number of shares as at 06/30/2025 (outstanding, excluding treasury shares) |
176,472.226 |
| Free float in % (excluding treasury shares) |
100 |
| Index |
MDAX/EPRA |
Contact
TAG Immobilien AG
Dominique Mann
Head of Investor & Public Relations
Fon +49 (0) 40 380 32 305
ir@tag-ag.com
