TAG Immobilien (TEG) Q1 2025 earnings summary

Executive summary

• FFO I rose to EUR 44.9 million in Q1 2025, slightly above Q4 2024, with adjusted EBITDA rental at EUR 62.8 million, reflecting strong operational performance despite recent disposals in Germany.

• Rental income increased 3.6% year-over-year to EUR 92.0 million, while consolidated net income declined to EUR 39.0 million due to lower Polish sales.

• Like-for-like rental growth reached 3% in both Germany and Poland; Polish sales segment earnings were seasonally lower at EUR 5.0 million, with 592 units sold and higher handovers expected later in 2025.

• EPRA NTA per share increased to EUR 19.75 (+3% QoQ, +6% YoY); LTV reduced to 45.6% due to disposals, strong cash flows, and currency effects.

• EUR 332 million convertible bond issued in March 2025, boosting cash position to nearly EUR 1 billion and completing refinancing for 2025/2026 maturities.

Financial highlights

• Adjusted EBITDA from rental business increased to EUR 62.8 million; net actual rent in Germany per sqm rose to EUR 5.86, with new leases at EUR 6.24 per sqm.

• Net income from Polish sales was EUR 5.0 million, with sales revenue at EUR 33.3 million and gross margin above 30%.

• AFFO rose to EUR 27.9 million from EUR 21.4 million quarter-on-quarter.

• Cash and cash equivalents surged to EUR 994 million, up from EUR 603.5 million at year-end 2024.

• EPRA NTA per share: EUR 19.75; LTV: 45.6%; equity ratio at 38.4%.

Outlook and guidance

• Full-year 2025 guidance confirmed: FFO I EUR 172–176 million, FFO II EUR 233–243 million, EBITDA rental EUR 224–228 million, EBITDA sales EUR 79–85 million.

• Dividend proposal of EUR 0.40/share (40% of FFO I) with scrip option; guidance factors in potential new shares.

• Like-for-like rental growth expected at 2.5–3.0% in Germany and 3.0–3.5% in Poland; Polish sales volume projected at EUR 450 million for 2025.