TAG Immobilien (TEG) Q4 2025 earnings summary

Executive summary

• Exceeded raised 2025 guidance for FFO I (€181.0m, +3% YoY) and FFO II (€248.2m, +4% YoY), with strong operational and financial performance in Germany and Poland.

• Major acquisitions included ~5,300 rental units in Poland (€565m, 7.5% yield) and ~1,200 units in Germany (€34m, 10.4% yield).

• EPRA NTA per share rose 10% YoY to €20.98, even after dividend and capital increase.

• Dividend payout ratio set at 40% for 2025 (€0.40/share, scrip option), rising to 50% of FFO I for 2026.

• Achieved first major milestone in decarbonisation strategy, surpassing CO2 reduction targets.

Financial highlights

• FFO I at €181.0m (+3% YoY), FFO II at €248.2m (+4% YoY), both exceeding guidance.

• Adjusted EBITDA from rental business rose 4% YoY to €247.6m; total adjusted EBITDA €333.1m.

• Net income from sales in Poland €68.0m (+3% YoY), exceeding guidance.

• EPRA NTA per share up 10% to €20.98; LTV reduced to 41.0% (from 46.9%).

• Gross margin in Polish sales above 30%.

Outlook and guidance

• 2026 guidance confirmed: FFO I €187–197m, FFO II €279–295m, profit on sales in Poland €92–98m; strong growth expected.

• Guidance range accommodates possible delays in Polish acquisition closing; R4R portfolio expected to close Q2 2026.

• Dividend payout ratio to rise to 50% of FFO I for 2026.

• Conservative assumptions for German rental EBITDA; potential for outperformance.

• Continued investment planned in both Germany and Poland.