TAG Immobilien AG exceeds forecasts for the 2025 financial year

For TAG Immobilien AG (TAG), the 2025 financial year was extremely successful in Germany and Poland. As a result, the forecasts for FFO I and FFO II, which had already been raised in November 2025, were exceeded once again. The EPRA NTA per share showed strong growth. At the same time, major acquisitions laid the foundations for further growth in Germany and Poland, while the debt-to-equity ratio (LTV) fell significantly. Value gains in the portfolio and measurable progress in decarbonisation round off the strong annual result. For 2026, the company expects further significant earnings and dividend growth.

Overview of rental business – FFO I above the forecast raised in November 2025

In Germany, the vacancy rate of around 83,500 apartments fell from 3.6% at the beginning of the year to just 3.2% in December 2025. On the basis of a comparable portfolio (like-for-like), rent growth of 3.0% p.a. was achieved in Germany in line with the previous year.

In Poland, the rental portfolio continued to grow and comprised around 3,500 apartments as of the reporting date. Rental growth for units that have been rented for more than a year amounted to 3.4% in 2025, compared to 3.2% p.a. in the previous year. The vacancy rate of these apartments was only 1.3% at the end of the year (previous year: 1.5%).

The strong operating performance of the German and Polish rental portfolios led to an increase in adjusted EBITDA from leasing to EUR 247.6 million (2024: EUR 238.5 million; +4%). Total rental income (FFO I) rose to EUR 181.0 million from EUR 175.1 million in the previous year (+3%), thus exceeding the forecast raised to EUR 174-179 million in November 2025 (original forecast: EUR 172-176 million).

In the period under review, TAG was also able to exploit further external growth potential in its two rental markets of Germany and Poland. In Poland, for example, a contract was signed in August 2025 to acquire approximately 5,300 newly built rental units. The agreed purchase price of approx. EUR 565 million corresponds to an implicit gross initial interest rate of approx. 7.5%. The closing is still subject to antitrust approval, which is now expected in the second quarter of 2026. But TAG is also on course for growth in Germany. In the third and fourth quarters of 2025, contracts for the acquisition of approx. 1,200 apartments were notarized at a total purchase price of EUR 34 million and an implied gross initial interest rate of approx. 10%. Some of these apartment acquisitions have already been completed or are also expected in the second quarter of 2026.

Overview of sales business in Poland – forecasts exceeded here as well

At EUR 68.0 million (previous year: EUR 66.2 million), the result from the sale in Poland was above the forecast range of EUR 61-67 million. This was mainly due to higher sales prices and, as a result, improved gross profit margins for the 2,077 apartments handed over to customers in the 2025 financial year (previous year: 2,666). Adjusted EBITDA from the sales business in Poland amounted to EUR 85.5 million (previous year: EUR 76.6 million).

Due to the strong increase in FFO I and the better-than-expected sales result in Poland, FFO II, the sum of these two key figures, at EUR 248.2 million (previous year: EUR 239.4 million; +4% Y-o-Y), also exceeded the forecast of EUR 235-246 million, which had already been raised in November 2025 (original forecast: EUR 233-243 million).

In the course of the 2025 financial year, TAG sold a total of 2,823 apartments in Poland, up 46% on the previous year with 1,936 apartments. At EUR 467 million, the sales volume also significantly exceeded the previous year’s level of EUR 358 million (+30%).

In order to further exploit the opportunities of the Polish housing market and accelerate growth, the Polish subsidiary ROBYG is currently exploring possible strategic alternatives together with TAG, including capital market transactions such as a public offering and a listing of ROBYG’s shares on the regulated market of the Warsaw Stock Exchange. However, TAG will continue to be ROBYG’s majority shareholder.

Positive valuation trend in Germany continues in the second half of 2025; EPRA NTA per share up 10%; LTV drops significantly

After an increase in value of 1.4% in the German portfolio in the first half of 2025, this trend continued in the second half of the year, leading to a total increase in value of 3.1% for the full year 2025. The German portfolio is now valued at an average value of approx. EUR 1,070 (previous year: approx. EUR 1,040) per m² due to increased rental income and a gross initial interest rate of 6.6%, unchanged from the previous year.

For the portfolio in Poland, there was a valuation gain of EUR 96.1 million for the full year 2025 (previous year: EUR 19.3 million). The gross initial interest rate of the Polish rental portfolio amounted to 5.1% as of the reporting date (previous year: 5.8%), the average value is approx. EUR 3,300 (previous year: approx. EUR 2,700) per m².

Despite the dividend of EUR 0.40 per share paid in the first half of 2025 and a capital increase in August 2025 to refinance the portfolio acquisition in Poland, the very good operating results and valuation gains led to a strong increase in the EPRA NTA per share by 10% to EUR 20.98 (31 December 2024: EUR 19.15) over the course of the year.

Compared to the end of 2024 (46.9%), LTV fell significantly by 5.9 percentage points to 41.0%. The pro forma LTV after completion of the acquisition in Poland is approximately 45.3%, i.e. already within the target range of approximately 45%.

Martin Thiel, CFO and Co-CEO of TAG, commented: “With cash and cash equivalents of over EUR 1.3 billion as of the reporting date, we have not only already refinanced the acquisitions signed in 2025 and the capital market liabilities due in 2026, but also have a very good basis for further growth. Against this backdrop, we intend to continue investing in both Germany and Poland and continuously increase our earnings.”

Guidance for the 2026 financial year confirmed, further growth in earnings and dividends expected

All forecasts for the 2026 financial year published in November 2025 are confirmed and remain unchanged as follows:

• FFO I: EUR 187-197 million (approx. +6%)
• Sales result Poland: EUR 92-98 million (approx. +40%)
• FFO II: EUR 279-295 million (approx. +16%)
• Dividend for 2026: 50% of FFO I (approx. +28%)

TAG’s Management Board and Supervisory Board plan to propose a dividend of EUR 0.40 per share for the 2025 financial year to the next Annual General Meeting in May 2026. This is based on a payout ratio of 40% of FFO I. Shareholders will again be given the choice between a cash distribution (cash dividend) and new TAG shares (scrip dividend). An increase in the payout ratio to 50% of FFO I is then planned for the 2026 financial year.

First milestone in TAG’s decarbonisation strategy reached

Sustainability continues to be a key aspect of corporate decisions and thus an integral part of TAG’s corporate strategy. The focus is on reconciling economic, ecological and social interests and promoting sustainable corporate development.

A key focus of TAG’s decarbonisation strategy, which was adopted at the end of 2021, is the reduction of CO₂ emissions in its portfolios. For the German portfolio, the goal was to reduce CO₂ emission intensity by around 12% to around 28 kg CO₂/m² per year by the end of 2025 compared to the base year 2019 (year of initial accounting). In 2025, the actual specific CO₂ emissions (Scope 1 and 2) were 27.1 kg CO₂/m². Compared to the base year 2019 with 31.9 kg CO₂/m², this results in a reduction of approx. 15%. This means that TAG has not only achieved its target for 2025, but exceeded it.

By 2030, the aim is to further reduce CO₂ emission intensity to approx. 22 kg CO₂/m² p.a. The long-term goal is to reduce CO₂/m² per year to below 7 kg by 2045 and thus achieve extensive climate neutrality in the portfolio.

Claudia Hoyer, COO and Co-CEO of TAG: “I am very pleased that we not only exceeded our financial and operational targets in the 2025 financial year, but were also able to show that economic success and social and environmental responsibility go together perfectly. With the successful acquisition and our further project pipeline in Poland as well as additional acquisitions in Germany, we are consistently continuing our profitable growth course.”

Further details on the 2025 financial year can be found in the Annual Report published today and in a related presentation under Presentations | TAG Immobilien AG

Overview of key financial metrics

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