Overview of the letting business – increased FFO I, strong operating performance and portfolio growth lead to FFO I 2026e at the upper end of the forecast range
The first six months of the 2026 financial year were an extremely successful first half of the year for TAG Immobilien AG (TAG). FFO I, which includes the letting business in Germany and Poland, increased significantly to EUR 100.2 million in the first half of 2026, up 9% year-on-year (H1 2025: EUR 91.6 million).
This development was driven in particular by the continued good like-for-like rental growth of 3.0% p.a. (incl. vacancy reduction) in Germany and 2.4% p.a. in Poland. Vacancy rates remained at a low level of 3.8% in German residential units and 2.1% in Poland (for apartments that have been rented for at least one year). Against this backdrop, EBITDA from leasing increased to EUR 132.2 million in the first half of 2026, exceeding the previous year’s figure by 5% (H1 2025: EUR 126.4 million).
The Polish rental portfolio received an additional growth spurt from the acquisition of the R4R portfolio, which comprises around 5,300 newly built rental apartments. The transaction, which had already been notarised on August 16, 2025, was completed on May 27, 2026 following unconditional antitrust clearance. The final purchase price amounted to around EUR 575 million, which corresponds to a gross initial yield of around 7.5% expected by TAG. The initial valuation of the portfolio as of 30 June 2026 led to an increase in value of approx. 7% to a new book value of around EUR 611 million.
TAG is also continuing to expand its rental portfolio in Germany. Since the first quarter of 2026, a total of 894 residential units have been acquired at a purchase price of EUR 51.6 million (257 units in Q2 2026 and 637 units after the balance sheet date). The properties have a current gross initial yield of 7.1% with an average vacancy rate of around 4.3% and are mainly located in eastern Germany. These acquisitions are expected to close in the course of the second half of the year or at the end of 2026.
With the acquisition of the R4R portfolio, the Polish rental apartment portfolio now reaches a substantial size of around 9,100 apartments. The additional, high-yield rental units increase current cash flows in the Polish rental segment. Against this backdrop, together with the very good operating performance in both rental markets to date, TAG now expects FFO I in 2026 to be at the upper end of the forecast range.
Overview of the Polish sales business – more apartments sold and significant growth in sales result and FFO II in H1 2026
In the first half of 2026, 1,350 apartments were sold in Poland, once again more units than in the same period of the previous year (H1 2025: 1,158 apartments). Sales prices remained at a high level. As a result, the sales result in Poland developed very positively in the first half of 2026 and, at EUR 18.6 million, was 12% higher than the previous year’s figure (H1 2025: EUR 16.6 million).
FFO II, which includes FFO I as well as the sales results, which come almost exclusively from Poland, rose to EUR 118.6 million in the first half of 2026 and was also significantly higher than in the previous year (H1 2025: EUR 107.3 million; +11%).
ROBYG IPO leads to a “win-win situation” for all segments of TAG
The successful initial public offering (IPO) of the Polish subsidiary ROBYG S.A. (ROBYG) in June and July 2026 marks an important milestone for TAG’s business activities in Poland. A partial sale of the ROBYG shares held by TAG and cash capital increases at ROBYG level generated gross proceeds of around EUR 282 million for the Group (of which around EUR 188 million at TAG level and around EUR 94 million at ROBYG level). The capital freed up by the IPO can now be invested specifically in rental housing stocks in Germany and Poland, thus strengthening the rental result (FFO I), which is the basis for TAG’s dividend distribution. At the same time, ROBYG now has significant funds to grow further and strengthen TAG’s Polish sales business.
Even after the IPO, TAG will remain the majority shareholder of ROBYG with a 67.1% stake and will remain associated with the company for the long term. The sale of the ROBYG shares is expected to have a positive effect on the EPRA NTA of around EUR 55 million, or approx. EUR 0.30 per share. The LTV of the TAG Group will decrease by approximately 3.2 percentage points as a result of the total cash inflow from the IPO. Since the main transactions in the context of the IPO did not take effect until after the reporting date, these effects are not yet included in the interim financial statements as of June 30, 2026.
Following the IPO, ROBYG has a market capitalisation of approximately EUR 860 million, based on the placement price of PLN 34.00 per share. The 67.1% stake still held by TAG is valued at approximately EUR 580 million on this basis. Based on the historical acquisition costs for ROBYG in 2022, TAG has thus realized an increase in the value of its investment of around 40%.
The further improved capital structure following the ROBYG IPO is also reflected in the rating: Moody’s upgraded TAG to “Baa2” in May 2026 and S&P Global to “BBB” in July 2026. Both rating agencies point to TAG’s strong financial profile with low debt and good liquidity compared to the rest of the industry.
Claudia Hoyer, COO and Co-CEO of TAG, assesses the earnings development: “We are very satisfied with the earnings development in the first half of 2026. The strong development of our rental business in Germany and Poland as well as the successful ROBYG IPO underline the strength of our business model in both countries. ROBYG’s IPO is a real win-win situation: we are creating an independently listed company, retaining a majority stake with significant value and at the same time being able to reinvest capital in our rental portfolio, which further strengthens our FFO I. With its combined rental and sales business, we believe that TAG is excellently positioned for further value-creating growth.”
Further valuation gains in the German and Polish real estate portfolios; EPRA NTA per share up 6% year-on-year; LTV on a pro forma basis after ROBYG IPO at approx. 42.2%
The German portfolio recorded an increase in value of around 1.5% in the first half of 2026, building on the positive developments of the two previous half-year valuations (+1.4% in H1 2025 and +1.7% in H2 2025). There were also positive valuation results in the Polish real estate portfolio, in particular from the aforementioned first-time valuation of the R4R portfolio.
As a result of these valuation results and the continued strong operating cash flow, the EPRA NTA increased to EUR 21.38 per share as of 30 June 2026, despite the capital increase carried out in August 2025 to finance the acquisition of the R4R portfolio and the dividend payment made in June 2026. This corresponds to an increase of 6% compared to the same period of the previous year (June 30, 2025: EUR 20.18).
The gearing ratio (LTV) was 45.4% as of 30 June 2026, at the target of around 45%; pro forma, including the ROBYG IPO, the LTV is only around 42.2%.
Martin Thiel, CFO and Co-CEO of TAG, adds: “The strong earnings growth underlines the high profitability of our business model in Germany and Poland, which is proving to be profitable even in the current interest rate environment. With a pro forma LTV after the ROBYG IPO well below our target value, we are showing that we can shape our growth from a position of financial strength.”
Extension of Claudia Hoyer’s Management Board contract and elections to the Supervisory Board
In July 2026, the Supervisory Board of TAG prematurely extended Claudia Hoyer’s Management Board contract for a further five years, i.e. until 30 June 2032. Ms. Hoyer, who has been a member of the company’s Management Board since July 1, 2012, will continue to lead the company in her role as COO and Co-CEO together with TAG’s other member of the Management Board, Martin Thiel (CFO and Co-CEO).
Olaf Borkers, Chairman of the Supervisory Board of TAG, comments: “I am very pleased that we have been able to extend the Management Board contract with Claudia Hoyer on a long-term basis. Ms. Hoyer has been a formative force for TAG for many years. We owe her not only a very well-running operating business, but also numerous important strategic decisions in recent years.”
In addition, at TAG’s Annual General Meeting on 20 May 2026, Prof. Dr. Marion Peyinghaus was elected as a new shareholder representative to replace Prof. Dr. Kristin Wellner, whose term of office expired at the end of this Annual General Meeting. The Chairman of the Supervisory Board, Mr. Olaf Borkers, was re-elected to the Supervisory Board for a further term of office. The employee representatives on the Supervisory Board, Ms. Beate Schulz and Mr. Björn Eifler, were also re-elected by the employees for another term of office. The term of office of all newly and re-elected Supervisory Board members is three years.
Further details on the first half of 2026 can be found in the interim report published today and in a summary presentation at https://www.tag-ag.com/investor-relations/finanzberichte/quartalsberichte/
Overview of key financial metrics
Key figures of the income statement (in EUR million)
| Key figure | 01.01.2026 – 30.06.2026 | 01.01.2025 – 30.06.2025 |
|---|---|---|
| Total net actual rent | 196.6 | SKU 184.2 |
| EBITDA (adjusted) Leasing Germany and Poland | 132.2 | 126.4 |
| EBITDA (adjusted) Sale Poland | 23.9 | 19.8 |
| EBITDA (adjusted) Total | 156.1 | 146.2 |
| Adjusted sales result Poland | 18.6 | 16.6 |
| Net income | 114.5 | 151.1 |
| FFO I per share in EUR | 0.53 | 0.52 |
| FFO I | 100.2 | 91.6 |
| FFO II per share in EUR | 0.63 | 0.61 |
| FFO II | 118.6 | 107.3 |
Key figures of the consolidated balance sheet (in EUR million)
| Key figure | 06/30/2026 | Dec 31, 2025 |
|---|---|---|
| Total assets | 9.025,3 | SKU 8,951.2 |
| 3,369.1 | 3,322.0 | |
| EPRA NTA per share | 21.38 | 20,98 |
| LTV in % | 45.4 | 41.0 |
Portfolio data
| Key figure | 06/30/2026 | Dec 31, 2025 |
|---|---|---|
| Units Germany | SKU 84,073 | SKU 83,504 |
| Units Poland (completed rental apartments) | 9,119 | 3,526 |
| Sold apartments Poland | 1,350 | 2,823 |
| Surrendered apartments Poland | 652 | 2,077 |
| Total real estate volume (in EUR million) | 7.777,9 | 6,971.5 |
| Real estate volume in Germany (in EUR million) | 5,506.9 | 5,425.2 |
| Real estate volume Poland (in EUR million) | 2,271.0 | 1,546.3 |
| Vacancy rate in % Germany (total) | 4.2 | 3.5 |
| Vacancy rate in % Germany (residential units) | 3.8 | 3.2 |
| Vacancy rate in % Poland (total) | 5.4 | 4.8 |
| Vacancy rate in % Poland (residential units > 1 year in letting) | 2.1 | 1.3 |
| l-f-l Rent growth in % Germany | 2.9 | 2.6 |
| l-f-l Rent growth in % Germany (incl. vacancy reduction) | 3.0 | 3.0 |
| l-f-l Rent growth in % Poland | 2.4 | 3.4 |
Employees
| Key figure | 06/30/2026 | Dec 31, 2025 |
|---|---|---|
| Number of employees | 1,951 | 1,922 |
Capital market data
| Market capitalization as of 30.06.2026 in EUR bn | 2,7 |
|---|---|
| Share capital as of 30.06.2026 in EUR | 190.328.340,00 |
| Number of shares as of 30.06.2026 (issued) | 190,328,340 |
| Number of shares as of 30.06.2026 (outstanding, excluding treasury shares) | 190,269,776 |
| Index | MDAX / EPRA |
