Q4 2025 TAG Immobilien AG Earnings Call Transcript
Key Points
- TAG Immobilien AG (TAGOF) exceeded all guidance for the full year 2025, with FFO I reaching EUR181 million, a 3% increase year-on-year.
- The company achieved strong operational development, with low vacancy rates in Germany (3.2%) and Poland (1.3%), indicating strong demand.
- Sales results in Poland were better than expected, with a 3% increase year-on-year and gross margins above 30%.
- The EPRA NTA showed a strong growth of 10%, driven by operational business and net profits.
- The LTV ratio decreased significantly from 46.9% to 41%, indicating a strong financial position and natural deleveraging process.
- The acquisition of 5,300 new build rental units from Resi4Rent is still pending antitrust approval, causing delays.
- There is uncertainty in the market due to geopolitical tensions, which could impact interest rates and portfolio valuation.
- The company faces potential risks from increasing energy prices, which could affect construction costs and margins.
- Personnel expenses increased by more than 10% in 2025, driven by salary increases and a higher number of employees in Poland.
- The tax position in the P&L showed a significant deferred tax impact, which is a non-cash item but affects reported earnings.
warm welcome from our side. This is Martin. Many thanks for dialing in into our conference call for the full year 2025 results. I think today, we can present a very decent set of results. Presumably, you have already seen our press release announcing that we have exceeded all guidances that we just have basically raised back in November last year. So, therefore, we are quite happy to guide you a little bit more through the details.
Let's start on Page number 3, the highlights slides. And perhaps we start with FFO I, our rental result, which came out at EUR181 million. That's a 3% increase year-on-year, even a little bit better than the guidance that we raised in November, which was EUR174 million to EUR179 million.
And I think it's fair to say that this was mostly driven by a strong operational development. So the EBITDA from the total rental business was also at the upper end of what we assumed, driven by very decent like-for-like rental growth in Germany, still at 3%,
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