TAG Immobilien AG with a successful start to 2026; Operationally strong development continues

Overview of the letting business – Rental growth in Germany and Poland drives significant increase in FFO I in the first quarter of 2026

The first three months of the 2026 financial year mark a very successful start. FFO I, which includes the German and Polish rental business, rose to EUR 49.3 million in the first quarter of 2026, significantly higher than Q1 2025 (EUR 44.9 million; +10%). Adjusted EBITDA from the rental business increased to EUR 64.3 million in the first quarter of 2026, compared to EUR 62.8 million in the same quarter of the previous year.

A key driver of this development was the good like-for-like rent growth in TAG’s two markets. In Germany, overall rent growth of 3.3% p.a. was achieved, while in Poland, like-for-like rent growth was 3.2% p.a. As was also observed in the first quarter of previous years, the vacancy rate in the apartments in the German rental business increased slightly at the start of the year from 3.2% at the beginning of the year to 3.6% as of March 31, 2026. In Poland, the vacancy rate for apartments that have been rented for at least one year was 2.0%, compared with 1.3% at the end of the previous year.

Overview of sales business – sales result in Poland above previous year’s level

In the first quarter of 2026, the positive development also continued in the Polish sales business. With 658 apartments sold, the number of units sold was higher than in the same quarter of the previous year (Q1 2025: 592 apartments). Net sales in Poland amounted to EUR 12.7 million, significantly higher than the previous year’s figure of EUR 5.0 million. At the same time, EBITDA from the Polish sales business increased to EUR 16.0 million after EUR 5.9 million in Q1 2025.

FFO II, which includes FFO I as well as the Polish sales result, reached EUR 61.8 million in the first quarter of 2026 after EUR 50.1 million in Q1 2025 (+23%).

Claudia Hoyer, COO and Co-CEO of TAG, comments: “We can look back on a very successful start to the year in our business in Germany and Poland. With the completion of the acquisition of around 5,300 rental apartments in Poland, which is expected to take place in the second quarter of 2026 and was already notarized in August 2025, we will reach another important milestone in the expansion of our Polish rental business. On this basis, we want to consistently continue our value-creating growth in Poland and Germany.”

EPRA NTA per share grows 7% year-on-year; Continued strong financing ratios

At the end of the first quarter of 2026, the EPRA NTA per share amounted to EUR 21.08, slightly above the value at the end of 2025 of EUR 20.98 and 7% above the prior-year quarter Q1 2025 of EUR 19.75.

The gearing ratio (LTV) remained unchanged at the low level of the end of 2025 at 41.0% as of 31 March 2026. Including the completion of the acquisition of the Polish rental portfolio, the pro forma LTV is around 45.3% and thus a value based on the LTV target value of around 45%. Other financing metrics, such as the interest coverage ratio (ICR) and the ratio of net financial debt to adjusted EBITDA, remain at strong levels of 6.5x and 8.6x, respectively.

Martin Thiel, CFO and Co-CEO of TAG, explains: “Our balance sheet is also very strong in the first quarter of 2026. With an LTV that is already at target, including the portfolio acquisition in Poland, and a comfortable liquidity situation, we have sufficient financial leeway to drive our growth. Against the backdrop of stable gross initial yields and good rental growth, the next regular portfolio valuation on 30 June 2026 should lead to an increase in value in the order of the last two half-year valuations, which also supports the growth prospects.”

Guidance for the 2026 financial year and dividend for the 2025 financial year

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

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

As already announced, the Management Board and Supervisory Board will propose a dividend payment of EUR 0.40 per share for the 2025 financial year to the next Annual General Meeting on May 20, 2026. This is based on a payout ratio of 40% of FFO I. This year, shareholders will once again have the choice between a cash distribution (cash dividend) and new TAG shares (scrip dividend).

Further details on the first quarter of 2026 can be found in the interim statement published today and in a presentation under https://www.tag-ag.com/investor-relations/finanzberichte/quartalsberichte.

Overview of key financial metrics