TAG Immobilien (ETR:TEG) management said it exceeded all of its full-year 2025 guidance, pointing to stronger-than-expected operating performance in both Germany and Poland, a solid contribution from its Polish sales business, and a continued improvement in leverage metrics.
Full-year 2025 results and drivers
Chief Financial Officer and Co-CEO Martin Thiel said FFO 1 (rental result) rose 3% year over year to EUR 181 million, above the company’s raised November guidance range of EUR 174 million to EUR 179 million. Thiel attributed the outperformance primarily to operations, including “very decent” like-for-like rental growth and lower vacancy.
The Polish sales result came in at EUR 68 million, up 3% year over year and slightly above guidance. Thiel said the fourth quarter was strong as planned due to a higher number of handovers. He also highlighted gross margins “quite strongly above 30%,” supported by past sales price development. TAG sold a little more than 2,800 units in Poland, in line with plans.
Portfolio actions: Resi4Rent acquisition and German purchases
TAG reiterated that it is awaiting antitrust approval to close its signed agreement (August 2025) to acquire 5,300 newly built residential rental units from Resi4Rent. Thiel said the company now expects approval in the second quarter of 2026, later than originally anticipated, and emphasized there is “basically nothing new” aside from the authority taking time to conduct market research. He said TAG remains “very confident” it will receive unconditional clearance, noting the review is focused on whether the combined platform could influence rents in Polish cities.
In Germany, TAG signed acquisitions for around 1,200 units, mainly late in the third quarter and during the fourth quarter of 2025, concentrated in regions where it already operates in eastern Germany. Thiel said the acquired portfolios carried a high gross initial yield of around 10%, or roughly 9% after factoring in CapEx backlog on some assets. In Q&A, he characterized Germany as “more opportunistic” versus the group’s planned growth path in Poland, and said the company expects to continue buying smaller portfolios in well-known regions where TAG has a clear view on vacancy reduction potential and construction quality.
Balance sheet, leverage, and financing position
TAG reported EPRA NTA per share increased by 10% to nearly EUR 21 at year-end, even after the dividend payment and an August 2025 capital increase. Thiel said a large part of the NTA increase was driven by operational profitability, with net profits contributing +EUR 1.60 per share, alongside support from valuation gains.
The loan-to-value ratio declined to 41% at year-end 2025 from 46.9% at the end of 2024. Thiel noted that on a pro forma basis—assuming the Resi4Rent closing—the LTV would be 45.3%, which he described as still a good ratio and consistent with TAG’s target. He said the LTV reduction was not solely driven by the capital increase: of the 5.9 percentage-point decrease, roughly 1.8 percentage points came from cash generation from operations.
Management also cited net financial debt to EBITDA of 8.8x and an interest coverage ratio of 6.1x. Addressing 2026 maturities, Thiel said the company has a strong cash position of EUR 1.3 billion, intended to fund the roughly EUR 565 million Resi4Rent purchase price and repay a EUR 470 million convertible bond that he said is “already refinanced” via the current liquidity position.
Valuation and operational commentary: Germany and Poland
In Germany, TAG said it achieved a 40 basis point like-for-like vacancy reduction year over year and sees room to reduce vacancy further, potentially to around 3% or below. Like-for-like rental growth excluding the vacancy impact was 2.6%, up slightly from 2.5% in the prior year.
The German portfolio recorded a 3.1% value increase for full-year 2025 (after 1.4% in the first half), which Thiel said was in line with peers and a sign that “years of portfolio devaluation are clearly behind us.” He pointed to the portfolio’s 6.6% gross yield as a cushion in higher-rate environments. TAG also changed its external valuer, with JLL conducting the year-end 2025 valuation for the first time after a long-standing relationship with CBRE; Thiel said results between the two were “very close together.”
In Poland, management said demand remained strong. Thiel noted that interest rates in Poland have fallen, and that discussions around potential subsidy programs are “off the table.” TAG reported more than 800 units sold in each of the third and fourth quarters of 2025 and said the company is confident it can grow sales volumes over time. In early 2026, TAG said trends remained strong and sales were “absolutely in plan,” with management also citing transparency from publicly listed peers on the Warsaw Stock Exchange.
Dividend, accounting items, and 2026 outlook
TAG confirmed a 40% payout ratio for the 2025 dividend, translating to EUR 0.40 per share based on EUR 1 per share FFO 1. The company said it will again offer a scrip dividend option, and that any resulting higher share count is already reflected in its guidance range.
Thiel also addressed several technical and accounting items raised in Q&A:
- Energy modernization subsidies: TAG excludes subsidy income from FFO 1 because the related CapEx is capitalized (and therefore does not affect FFO 1). Management said the subsidies are included in AFFO, where related expenses are also deducted.
- Services income: A year-over-year decrease in net income from services was attributed to lower net income from the energy business in Germany versus an “exceptionally high” 2024 level.
- Other operating income in Poland: Management said temporary rental income from existing buildings on land bank sites (pending rezoning/building permits) is “some hundreds of thousands of EUR,” not a significant amount.
- Deferred taxes: A large income tax line item (EUR -337 million) was described as a one-time, non-cash deferred tax effect in 2025 tied to a change in accounting approach to include trade tax deferred taxes, with no impact on LTV, NAV, or FFO 1.
TAG said it is confirming all 2026 guidance as previously communicated in November, with the FFO guidance assuming the Resi4Rent closing. Thiel explained that the guidance range includes timing sensitivity, with the lower end assuming a closing around mid-June. He also indicated that certain elements—such as the implied German rental EBITDA growth assumption—appear conservative given the stronger-than-expected 2025 finish.
Separately, management confirmed it is evaluating “strategic alternatives” for its Polish subsidiary Robyg, including capital market transactions and a potential IPO on the Warsaw Stock Exchange, but said there is no plan to sell the business and TAG intends to remain the majority shareholder in all scenarios. Thiel said a conclusion is expected “in the course of 2026,” and emphasized the company is not under pressure to act.
About TAG Immobilien (ETR:TEG)
TAG Immobilien AG, a real estate company, acquires, develops, and manages residential real estate properties in Germany. It also rents commercial real estate properties, as well as operates serviced apartments. The company was formerly known as TAG Tegernsee Immobilien-und Beteiligungs-Aktiengesellschaft and changed its name to TAG Immobilien AG in September 2008. TAG Immobilien AG was founded in 1882 and is headquartered in Hamburg, Germany.
