TAG Immobilien (TEG) Q3 2025 earnings summary

Executive summary

• FFO I for the first nine months of 2025 rose 4.1% year-over-year to €135.8 million, driven by higher EBITDA from rental operations in Germany and Poland.

• Net actual rent increased by 3.3% year-over-year to €277.1 million, with consolidated net income surging to €306.0 million from €30.2 million, mainly due to higher operating results and positive property revaluations.

• Polish sales results slightly decreased to €34.2 million, but unit sales rose to 1,973 from 1,435 year-over-year.

• LTV dropped to 42.3% due to a €186 million capital increase and operational improvements; pro forma LTV post-Resi4Rent acquisition is 46.1%.

• Strong cash position of €1.35 billion, with €565 million earmarked for the Resi4Rent acquisition and €470 million for convertible bond repayment in 2026.

Financial highlights

• FFO I guidance for 2025 raised to €174–179 million; 2026 guidance set at €187–197 million, a 9% increase in absolute terms and 4% per share.

• FFO II guidance for 2026 is €279–295 million, up 19% in absolute terms and 14% per share.

• Dividend payout ratio to increase from 40% to 50% of FFO I for 2026, implying nearly 28–30% dividend growth.

• EPRA NTA per share improved to €20.19, and German portfolio value increased 1.4% in H1 2025.

• Adjusted EBITDA from rental business in Germany and Poland grew to €188.4 million from €178.3 million year-over-year.

Outlook and guidance

• Expecting further vacancy reduction and rental growth in both Germany and Poland in 2026.

• Polish sales volume for 2026 projected near €0.5 billion, with 2,900 units expected to be sold at high margins above 30%.

• Construction of 2,300 new rental units in Poland planned for 2026, with further growth targeted.

• High pre-sale ratio (~80%) for 2026 handovers in Poland, providing strong visibility on results.

• R4R acquisition expected to add €14 million to FFO I in 2026 (full-year impact €17 million).