TAG Immobilien AG Q2 2025 Earnings Call Highlights: FFO I Up 4% YoY, Rental Business EBITDA Strong

TAG Immobilien AG reported Q2 2025 earnings with FFO I increasing 4% YoY to EUR 46.7 million, driven by strong operational development and EBITDA from rental business. The company's H1 2025 results showed a positive trend, with FFO I up 4% YoY and a significant increase quarter-on-quarter.

TAG Immobilien AG has reported its Q2 2025 earnings, showcasing a 4% year-over-year (YoY) increase in Funds from Operations (FFO) I to EUR 46.7 million. This growth was driven by robust operational development and a significant increase in EBITDA from the rental business. The company's H1 2025 results also indicated a positive trend, with FFO I up 4% YoY and a notable quarter-on-quarter increase [1].

The German and Polish rental portfolios contributed significantly to this performance. In Germany, the like-for-like rental growth remained strong at 2.9% p.a., while in Poland, the rental portfolio recorded a 3.3% p.a. growth. The Polish sales business also showed promising results, with 1,158 apartments sold in the first half of 2025, up from 1,056 in the same period last year. This increase, along with a rise in sales prices, contributed to a higher adjusted net income from sales in Poland [1].

The company's valuation gains were also notable, with the German portfolio increasing by approximately 1.4% and the Polish portfolio recording significant valuation gains of EUR 91.3 million. These positive valuation results led to a 10% year-over-year increase in EPRA NTA per share, despite a dividend payment of EUR 0.40 per share in June 2025 [1].

The LTV ratio fell to 45.3% in the first half of 2025, reflecting the company's strong financial performance and disciplined financial policy. Moody's also raised its outlook for TAG's investment grade rating from "stable" to "positive," citing the company's stable operating performance and improved capital structure [1].

Overall, TAG Immobilien AG's Q2 2025 earnings report indicates a strong start to the year, driven by robust operational performance and positive valuation results. The company's outlook for the remainder of 2025 remains positive, with expectations of further growth in the Polish sales business and continued strong market momentum [1].

References:
[1] https://markets.ft.com/data/announce/detail?dockey=600-202508120055DGAP____CORPNEWS_corporate_2182430_en-1