EQS-News:  Preliminary results for FY 2024: TAG Immobilien AG exceeds guidance

PRESS RELEASE

Preliminary results for FY 2024: TAG Immobilien AG exceeds guidance

• FFO I in 2024 at EUR 175.1m (guidance: EUR 170-174m)
• Net income from sales in Poland at EUR 66.2m in 2024 significantly exceeds the guidance of EUR 46-52m (c. +35%)
• FFO II of EUR 239.4m in 2024, is also significantly above the guidance of EUR 217-223m (c. +9%)
• Strong operating performance in the German portfolio: vacancy in residential units falls to 3.6% at 31 December 2024; total like-for-like rental growth increases to 3.0% p.a.
• Rental growth in Poland at 3.2% p.a. in 2024; c. 3,200 rental apartments completed; vacancy in residential units that have been let for more than one year at just 1.5%
• Almost 2,000 residential units sold in Poland in 2024, for a total sales volume of EUR 358m; further year-on-year increase in sales prices in major Polish cities between around 5% and 10%
• Positive H2 2024 valuation result for both the German and Polish portfolios; sale of c. 1,400 residential units in Germany in 2024 at cumulative sales prices of EUR 143.1m
• EPRA NTA per share increases by c. 5% to EUR 19.15 in 2024; LTV slightly lower at 46.9% as at 31 December 2024 compared to beginning of the year
• All guidance for 2025 financial year and dividend forecast for FY 2024 (EUR 0.40 per share) confirmed

Hamburg, 25 February 2025

To supplement the ad hoc announcement published today, which already reported that the adjusted net income from sales in Poland and FFO II significantly exceeded the guidance for the year, TAG Immobilien AG (TAG) is publishing further selected results and metrics for FY 2024 below. These results and metrics are still preliminary and unaudited. The final, audited results will be published as planned with the annual report for the 2024 financial year, on 25 March 2025.

Strong operating business performance in FY 2024

The 2024 financial year saw a strong operating performance. Vacancy in the German portfolio was just 3.6% at the end of the year, compared to 4.0% at the beginning of the year. Total like-for-like rental growth increased to 3.0% p.a. after 2.3% in the previous year. As a result, adjusted EBITDA from the German rental business exceeded the forecast figure of EUR 218-222m at EUR 226.3m (previous year: EUR 227.6m), despite the sale of in total close to 2,800 residential units in the current and previous year.

The Polish rental portfolio continued to grow in 2024 and comprised 3,219 (previous year: 2,417) residential units as at the reporting date. Like-for-like rental growth for units that have been on the market for more than a year was 3.2% p.a. in 2024, compared to 10.8% in the previous year. The vacancy rate in these residential units was just 1.5% at 31 December 2024 (previous year: 2.2%). In the portfolio as a whole, including the residential units that were only completed during the course of the year, vacancy was 4.9% (previous year: 7.2%). At EUR 12.2m (previous year: EUR 8.8m), adjusted EBITDA from the Polish rental business was within the expected range of EUR 11m-13m.

The strong operating performance of both the German and the Polish rental portfolios resulted in an FFO I of EUR 175.1m, exceeding the guidance range of EUR 170-174m.

In the 2024 financial year, 1,936 (previous year: 3,586) residential units were sold in Poland. Although the number of residential units sold fell year-on-year, the further increase in sales prices in 2024 had offset the drop in sold units to a large extent and therefore brought the total sales volume of EUR 358m (previous year: EUR 479m). Sales in Poland are expected to increase to around 2,800 units with a sales volume of c. EUR 450m in 2025.

At EUR 66.2m (previous year: EUR 82.8m), the adjusted net income from sales in Poland in 2024 was well above the expected EUR 46-52m. This was due in particular to higher selling prices and the therefore better than expected gross profit margins on the 2,666 (previous year: 3,812) residential units handed over as well as from the sale of undeveloped land, and increased interest income from loans to joint ventures and from short-term investments. As a result, the adjusted EBITDA from the sales business in Poland of EUR 76.6m (previous year: EUR 100.6m) also exceeded the guidance of EUR 64-70m.

As a result of the strong adjusted net income from sales in Poland, FFO II, which also includes the rental result FFO I of EUR 175.1m (previous year: EUR 171.7m) and the net income from sales in Germany of EUR -1.9m (previous year: EUR 1.1m), increased to EUR 239.4m (previous year: EUR 255.6m).

Valuation of the German portfolio improved in H2 2024 for the first time in two years; Polish rental portfolio showed valuation gains in 2024; c. 5% increase in EPRA NTA per share and slightly lower LTV in 2024

Following a valuation loss in the German portfolio in the first half of 2024, a positive value development was achieved in the second half of the year (c. +0.9% value increase compared to 30 June 2024) for the first time in more than two years. The German portfolio is now valued at a gross initial yield of 6.6% (previous year: 6.3%) and an average of c. EUR 1,040 (previous year: c. EUR 1,060) per sqm. In Poland, there was a valuation gain of EUR 19.4m for the rental portfolio in FY 2024 (previous year: EUR 13.7m). This results in a gross initial yield in the valuation of the Polish portfolio of 5.6% (previous year: 5.9%) or an average of c. EUR 3,000 (previous year: c. EUR 2,700) per sqm.

Despite the valuation adjustments made in Germany in the first half of 2024, TAG's good operating performance and the resulting strong cash flow led to a c. 5% increase in EPRA NTA per share, to EUR 19.15 (31 December 2023: EUR 18.31).

The LTV declined slightly by 0.1 percentage points to 46.9% vs year-end 2023. There was a slight uptick compared to the previous quarter due to increased investments in land in Poland, in particular for the sales business, but remained nearly stable compared to the end of 2023. The land bank for the sales and rental segments in Poland totalled c. 28,000 (previous year: c. 21,000) potential residential units at the end of 2024. Other financial KPIs such as the interest coverage ratio (ICR) and the ratio of net financial debt to adjusted EBITDA remained strong at 6.4 times and 9.9 times respectively at the end of 2024. Total free cash and cash equivalents in the balance sheet amounted to EUR 603.5m as at 31 December 2024 compared to EUR 128.6m and the end of the previous financial year.

Further details on the 2024 financial year can be found in the annual report, which will be published as planned on 25 March 2025 with a supplementary investor presentation and made available at https://www.tag-ag.com/en/investor-relations.

Key financials at a glance

Contact

TAG Immobilien AG

Dominique Mann

Head of Investor & Public Relations

Phone +49 (0) 40 380 32 305

ir@tag-ag.com