TAG Immobilien (TEG) Q4 2024 earnings summary

Executive summary

• FFO1 reached €175.1 million in 2024, exceeding guidance, driven by strong German rental operations and robust Polish sales and rental performance.

• Like-for-like rental growth in Germany was 3% in 2024, with vacancy reduced to 3.6%.

• Polish sales net income was €66.2 million, 35% above guidance, with nearly 2,000 units sold and higher average sales prices.

• EPRA NTA per share rose 5% to €19.15, with a positive value increase in the German portfolio in H2 2024.

• Strong liquidity position with over €930 million pro forma cash, covering all major 2025/2026 maturities; dividend proposal of €0.40 per share (40% of FFO1) with a scrip option.

Financial highlights

• FFO1 up 2% year-on-year, exceeding guidance; AFFO up 12% due to lower modernization CapEx.

• Adjusted EBITDA rental business at €238.5 million; German rental EBITDA stable, Polish rental EBITDA up to €12.2 million.

• EPRA NTA per share grew 5% to €19.15; LTV at 46.9%; average cost of debt at 2.6%, average maturity 4.4 years.

• German portfolio valued at a 6.6% gross yield, €1,040 per sq m.

• Net actual rent was €360.2 million; consolidated net income €122.1 million.

Outlook and guidance

• 2025 guidance for FFO1, Polish net sales income, and FFO2 unchanged and fully confirmed.

• Expected Polish unit sales for 2025 at 2,800, up from 2,000 in 2024.

• Dividend payout ratio to remain at 40% of FFO1.

• Midterm plan targets 10,000 Polish rental units by 2028, with 25% EBITDA growth from Polish rentals over four years.