Q3 2024 TAG Immobilien AG Earnings Call Transcript
Key Points
- TAG Immobilien AG (TAGOF) reported a strong increase in net income from its operations in Poland, exceeding expectations.
- The company achieved a significant reduction in the vacancy rate of its German portfolio, now below 4% for the first time.
- TAG Immobilien AG (TAGOF) successfully issued a EUR500 million corporate bond, enhancing its liquidity position to EUR670 million.
- The company reinstated its dividend, proposing a payout of EUR0.40 per share, based on a 40% payout ratio of FFO1.
- TAG Immobilien AG (TAGOF) expects a 25% increase in rental EBITDA from its Polish portfolio by 2028, indicating strong future growth potential.
- The company experienced a slight loss of EUR1.8 million from the sale of 915 units in Germany, selling them around book value.
- Higher maintenance costs in the German portfolio impacted the ABR from the rental business, reducing it by EUR0.3 million.
- TAG Immobilien AG (TAGOF) anticipates stable FFO1 for 2025, indicating limited immediate growth in this metric.
- The company faces cost inflation pressures, particularly in property management costs.
- TAG Immobilien AG (TAGOF) reported a slight negative rent growth in its Polish portfolio in Łódź, though not seen as a long-term trend.
(Operator instructions) It's a pleasure to hand over to Martin Thiel CFO. Please go ahead.
Yeah, many thanks and good morning. All, many thanks for dialling in for our conference call for the Q3 2024 results.
Let's start right away with the presentation and I'm on slide number four, which shows the highlights of the third quarter, 2024. And basically, we want to discuss the slide 5 areas with you. Firstly, in the operation of business for financial year 2024 is well on track FF01 was basically unchanged compared to previous year as expected, net income from stage in Poland was even a little bit better than expected.
Quite a strong increase by nearly 40% to EUR39 million and that means also that we had a good development in the FF02 looking at the operational business in Germany, I think we performed here very well, quite a strong increase in like for like rental growth in the German portfolio now including the impacts of a reduction at 2.8% at 30
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