TAG Immobilien AG underlines strong operating business performance by exceeding FFO I and FFO II guidance for 2024, and expects further earnings growth following completion of refinancing phase 

• FFO I of EUR 175.1m above guidance (EUR 170-174m)
• Strong operating performance in the German property portfolio reduces vacancy to 3.6% at year-end and pushes like-for-like rental growth to 3.0% p.a.
• At EUR 66.2m, net income from sales in Poland significantly exceeds the guidance range of EUR 46-52m (+35%); as a result, FFO II of EUR 239.4m also significantly exceeds the guidance of EUR 217-223m (+9%)
• Positive valuation result in the second half of 2024 in both the German and Polish rental portfolios; EPRA NTA per share increases by 5% to EUR 19.15 in 2024
• LTV of 46.9% as of 31 December 2024 down slightly compared to the beginning of the year; TAG completes refinancing phase with successful issuance of a convertible bond with a total nominal value of EUR 332m in March 2025
• New sustainability report: first-time application of the European Sustainability Reporting Standards (ESRS) as a framework for non-financial reporting for the Group

Hamburg, 25 March 2025

From an operational perspective, FY 2024 was an extremely successful year for TAG Immobilien AG (TAG) in Germany and Poland. As already reported in the ad hoc announcement and accompanying press release on 25 February 2025, the guidance for 2024 was exceeded, in some cases significantly. The preliminary figures announced in these releases remained unchanged following the completion of the audit.

Overview of the rental business – FFO I exceeds guidance

In Germany, vacancy in the Group’s nearly 84,000 residential units fell from 4.0% at the beginning of the year to 3.6% in December 2024. Based on a comparable portfolio (like-for-like), overall rental growth in Germany was 3.0% (financial year 2023: 2.3%) p.a. As a result, adjusted EBITDA from the German rental business exceeded the forecast figure of EUR 218-222m at EUR 226.3m (previous year: EUR 227.6m), despite the property disposals during the course of the year.

The rental portfolio in Poland continued to grow and comprised 3,219 (previous year: 2,417) residential units at the reporting date. Like-for-like rental growth for units that have been on the market for more than a year was 3.2% in 2024, compared to 10.8% p.a. in the previous year. The vacancy rate in these residential units was just 1.5% at the end of the year (previous year: 2.2%). In the portfolio as a whole, including the residential units that were only completed during the course of the year, vacancy was 4.9% (previous year: 7.2%). At EUR 12.2m (previous year: EUR 8.8m), adjusted EBITDA from the Polish rental business was within the expected range of EUR 11-13m.

The strong operating performance of both the German and Polish rental portfolios led to FFO I of EUR 175.1m, exceeding the upper end of the guidance range of EUR 170-174m.

Overview of the sales business – FFO II guidance significantly exceeded

In the course of the 2024 financial year, TAG sold 1,936 residential units in Poland (previous year: 3,586). Although the number of residential units sold declined compared to the previous year, the renewed increase in average selling prices realised in 2024 compensated for the decline in units sold, resulting in a sales volume of EUR 358 m (previous year: EUR 479 m). In 2025, sales in Poland are expected to increase to around 2,800 units with a sales volume of c. EUR 450m.

At EUR 66.2m (previous year: EUR 82.8m), the adjusted net income from sales in Poland was well above expectations of EUR 46-52m. Against the backdrop of higher sales prices, this was due in particular to better than expected gross profit margins for the 2,666 (previous year: 3,812) residential units handed over and income from land bank sales, as well as increased interest income from loans to joint ventures and from short-term cash investments. At EUR 76.6m (previous year: EUR 100.6m), adjusted EBITDA from the sales business in Poland also exceeded the guidance range of EUR 64-70m.

Due to the higher-than-expected adjusted net income from sales in Poland, FFO II – which also includes FFO I of EUR 175.1m (previous year: EUR 171.7m) and the net income from sales in Germany of EUR -1.9m (previous year: EUR 1.1m) – exceeded the forecast range of EUR 217–223m and came to EUR 239.4m (previous year: EUR 255.6m).

Claudia Hoyer, COO and Co-CEO of TAG, analyses the earnings performance: “Since TAG’s market entry, its business in Poland has developed steadily and positively across both sales and rentals, and continued to be an important growth driver for our company in 2024. The ongoing realisation of our development pipeline means that we can expect continuously growing earnings contributions in the future.”

Positive valuation adjustments recorded again for the first time in Germany; increase in EPRA NTA per share

After a valuation loss was recorded in the German portfolio for the first half of 2024, a valuation gain was recorded in the second half of the year for the first time in over two years (c. +0.9% increase in value compared to 30 June 2024). The German portfolio is now valued at a gross initial yield of 6.6% (previous year: 6.3%) and an average of c. EUR 1,040 (previous year: c. EUR 1,060) per square metre.

In Poland, the rental portfolio saw a valuation gain of EUR 19.4m for the full year 2024 (previous year: EUR 13.7m). This results in a gross initial yield of 5.8% for the Polish portfolio (previous year: 5.9%) or, as in the previous year, an average valuation of c. EUR 2,700 per sqm.

Despite the valuation adjustments made to the German portfolio in the first half of 2024, TAG’s good operating results and resulting strong cash flow led to a 5% increase in EPRA NTA per share, to EUR 19.15 (31 December 2023: EUR 18.31).

Successful refinancing measures in 2024 and early 2025

Following the successful issue of a EUR 500m benchmark bond in August 2024 and the equally successful placement of a EUR 332m convertible bond in March 2025, TAG has a strong liquidity position. As of 31 December 2024, this amounted to EUR 604m and, taking into account the convertible bond of March 2025, currently amounts to around EUR 930m on a pro-forma basis. The liquidity generated by these two financing instruments forms an excellent basis for further investments in the Polish rental portfolio. The LTV ratio dipped slightly by 0.1 percentage points to 46.9% compared to year-end 2023.

Martin Thiel, CFO and Co-CEO of TAG, commented: “These last two successful capital market transactions conclude the refinancing phase for TAG. The liquidity now available enables us to examine suitable measures for a value-creating development of the company and to implement them in a focussed manner as needed.”

Guidance for FY 2025, resumption of dividend payment for FY 2024

All guidance figures for the 2025 financial year, as published in November 2024, remain unchanged:

• FFO I: EUR 172-176m
• Adjusted net income from sales Poland: EUR 61-67m
• FFO II: EUR 233-243m

As already communicated, TAG’s Management Board and Supervisory Board plan to propose a dividend payment for the 2024 financial year at the next Annual General Meeting in May 2025. It is to be based on a pay-out ratio of 40% of FFO I and thus amounts to EUR 0.40 per share. For the first time, shareholders will have the choice between a cash distribution (cash dividend) and new TAG shares (scrip dividend).

Sustainable action remains an integral part of TAG’s business model

Sustainability is a key consideration in TAG’s business decisions, which makes it an integral part of TAG’s corporate strategy. The focus here is on harmonising economic, ecological and social interests and promoting the implementation of sustainable corporate development.

This year’s Annual Report contains a significantly expanded and comprehensive summarised non-financial statement that almost completely covers the disclosure requirements of the European Sustainability Reporting Standards (ESRS). However, TAG has not only expanded its sustainability initiatives in the area of reporting. These were also recognised with numerous awards in 2024. For example, TAG received the special prize at the Real Estate Social Impact Investing Award 2024 for its commitment to strong neighbourhoods and was also honoured with the German award for sustainability projects. In an ESG rating published by Sustainalytics in May 2024, TAG was again classified in the best possible category ‘negligible ESG risk’. The score of 4.6 put TAG at #2 among more than 1,000 real estate companies, and at #9 among the more than 16,000 companies analysed worldwide.

Further details on the 2024 financial year can be found in the annual report published today and in a supplementary presentation at www.tag-ag.com/en/investor-relations/presentations/.

Key financials at a glance

Contact

TAG Immobilien AG

Dominique Mann

Head of Investor & Public Relations

Phone +49 (0) 40 380 32 305

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