Significant increase in earnings as at 30 September 2026: FFO I forecast raised for 2026; first-ever forecast for 2027 indicates further growth; debt ratio remains low

TAG Immobilien AG (TAG) continued its extremely positive operational performance in the first nine months of the 2026 financial year. FFO I, which reflects the letting business in Germany and Poland, rose to EUR 152.7 million, compared with EUR 135.8 million in the same period of the previous year. This represents an increase of 12 per cent. EBITDA from the letting business rose by 9 per cent to EUR 205.9 million (9M 2025: EUR 188.4 million).

Net actual rent amounted to EUR 304.3 million, which was around 10 per cent higher than the previous year’s figure of EUR 277.1 million. In Germany, like-for-like rental growth reached 3.1% p.a. or 3.0% including changes in vacancy rates (2.3% and 2.6% in the corresponding period of the previous year). The vacancy rate for German residential units stood at 3.9% as at 30 September 2026, compared with 3.8% as at 30 September 2025.

The Polish rental business also continued to perform well. Following the completion of an acquisition of around 5,300 rental flats at the end of May 2026, the portfolio comprised around 9,100 flats as at the reporting date. Like-for-like rental growth stood at 1.7 per cent (30 September 2025: 3.4 per cent), whilst the vacancy rate was 2.4 per cent, in line with the same period last year.

Against the backdrop of the current debate on the nationalisation of housing companies in Berlin, it should be made clear once again that TAG’s housing stock in Berlin comprises fewer than 200 flats and that TAG would therefore not be affected by any nationalisation. In some cases, press reports and analyses over the past few months have incorrectly included flats located in the federal state of Brandenburg within TAG’s Berlin housing stock.

In the Polish sales business, a total of 2,152 flats were sold in the first nine months of 2026 (9M 2025: 1,973). In the third quarter of 2026, the number of flats sold stood at 802 (Q2 2026: 692). Sales revenue rose to EUR 355 million, up from EUR 327 million in the first nine months of the previous year.

1,272 flats were handed over to buyers during the reporting period (9M 2025: 1,063), thereby leading to the recognition of profit in the balance sheet. Net sales profit in Poland amounted to EUR 29.6 million (9M 2025: EUR 34.2 million) and was therefore in line with expectations. Due to a higher number of flats being handed over, a significant increase in net sales profit is expected for Q4 2026, as in the previous year.

FFO II, which, alongside FFO I, includes the profit from the Polish sales business, rose to EUR 181.9 million, compared with EUR 169.3 million in the same period last year.

Claudia Hoyer, COO and Co-CEO of TAG, comments: “Our results have performed very well in the first nine months of the 2026 financial year and, in terms of our letting business, have even exceeded our expectations. We are therefore pleased to be able to raise the FFO I forecast for the 2026 financial year. At the same time, we are consistently pursuing our growth strategy: by further developing our portfolios in Germany, expanding our Polish rental housing portfolio, and making selective portfolio acquisitions where these create long-term value.”

The successful initial public offering (IPO) of the Polish subsidiary ROBYG in July 2026 has further strengthened the TAG Group’s balance sheet and financial flexibility. The IPO generated gross proceeds of around EUR 282 million for the Group (approximately EUR 188 million from the sale of shares at TAG level and approximately EUR 94 million from capital increases at ROBYG level). 

Following the IPO, TAG remains the majority shareholder in ROBYG with a 67 per cent stake and will therefore continue to benefit from the long-term growth of the Polish retail business. This results in a base effect for TAG’s financial reporting, as ROBYG’s results are now recognised in proportion to TAG’s 67 per cent stake (previously 100 per cent).

Following the ROBYG IPO, the LTV as at 30 September 2026 was significantly reduced to 42.6 per cent (down from 45.4 per cent as at 30 June 2026), bucking the trend in the listed property sector, and was thus comfortably below the target figure of around 45 per cent.

In August 2026, TAG repaid a convertible bond worth EUR 470 million in full from existing liquidity. The interest coverage ratio (ICR) stood at 5.8x as at the reporting date, whilst the ratio of net financial debt to EBITDA was a low 9.9x by sector standards. These strong debt ratios are also reflected in the two investment-grade ratings – Baa2 (Moody’s) and BBB (S&P Global) – both of which were upgraded during the year, each with a stable outlook.

The EPRA NTA per share stood at EUR 21.79 as at 30 September 2026, up from EUR 20.98 at the end of 2025 (+8% year-on-year). An increase of EUR 62 million, or EUR 0.32 per share, was attributable to the positive effects of the ROBYG IPO.

Whilst the German property portfolio recorded a value increase of approximately 1.5 per cent in the first half of 2026, a decline in values is expected for the valuation in the second half of 2026, which will then result in a broadly stable valuation for 2026 as a whole. This is due to the significant rise in interest rates over recent months, which has led to a higher gross initial yield in the valuation and, consequently, to a reduction in value despite the very positive trend in rents. For the Polish portfolio, the valuation is expected to remain largely unchanged in the second half of 2026.

TAG adopts a return-oriented approach to capital allocation and deploys capital where the highest value per share can be created in the long term. The key benchmark is, in particular, the expected net return on alternative investments. The primary component of the strategy currently remains growth in the letting business through the construction of rental flats on TAG’s own land in Poland, supplemented by selective acquisitions in Germany and Poland, provided these contribute to sustainable value growth. At the same time, TAG remains committed to a sound balance sheet and an LTV in the region of the target figure of around 45 per cent.

Martin Thiel, CFO and Co-CEO of TAG, adds: “When allocating capital, we examine all options within a disciplined framework and will always take the economic environment into account. The key consideration is that the capital deployed creates the highest long-term value per share for our shareholders and is in line with our debt targets. In addition to investments in our letting business, share buy-backs may also be an option if they are attractive compared with other possible uses of capital. These options must be reviewed on an ongoing basis. Given the challenging market environment resulting from the rise in interest rates, such decisions must currently be taken with particular care.”

For the 2026 financial year, the forecasts have been revised upwards or confirmed as follows, in light of the positive performance in the first nine months:

• FFO I 2026: EUR 195–200 million or EUR 1.03–1.05 per share (approx. +9% or approx. +4% year-on-year; previously: EUR 187–197 million or EUR 0.99–1.04 per share)
• Sales revenue in Poland for 2026: EUR 92–98 million (approx. +40% year-on-year; unchanged)
• FFO II 2026: EUR 279–295 million or EUR 1.48–1.56 per share (approx. +16% or approx. +10% year-on-year; unchanged)

The following forecasts are being issued for the 2027 financial year for the first time:

• FFO I 2027: EUR 200–210 million (approx. +4% year-on-year)
• Profit on disposal in Poland 2027: EUR 50–60 million (approx. -40% year-on-year; primarily due to the 33% reduction in the stake in ROBYG as part of the IPO, which in turn resulted in a positive impact on the EPRA NTA of EUR 62 million)
• FFO II 2027: EUR 250–270 million or EUR 1.31–1.42 per share (approx. -9% or -10%
  year-on-year; primarily due to the 33% reduction in the stake in ROBYG)

TAG’s letting business, as reflected in FFO I, is therefore continuing to show growth in earnings – up 9 per cent in 2026 and 4 per cent in 2027 – despite the rise in financing costs.

Following a decline in earnings in 2027, TAG is once again expected to recognise a profit attributable to it for the 2028 financial year in Poland – despite the reduction in its stake in ROBYG to 67 per cent – which is expected to be roughly on a par with the level planned for 2026. Furthermore, an increase in flat sales in Poland to approximately 3,700–3,900 flats is planned for 2027 – up from an expected 2,900–3,100 flats in 2026 – which will secure future earnings growth.

With regard to the dividend, the previously announced payout ratio of 50 per cent of FFO I applies. However, in contrast to the previous two years, and in view of the fall in the share price, it is currently planned not to offer a cash dividend for the next dividend payment in order to avoid more significant dilution effects.

Further details on the first nine months of 2026 can be found in the interim report published today and in a presentation available at .