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Investin.com -- TAG Immobilien AG (ETR:TEGG) on Tuesday ended 2024 on a strong financial footing, reporting a 5% increase in EPRA NTA per share to €19.15, driven by higher-than-expected rental income in Germany and a surge in property sales in Poland.
The company’s liquidity position exceeded €930 million after a successful convertible bond issuance in March 2025, which helped refinance all unsecured debt maturities for 2025 and 2026, according to Jefferies.
In Germany, the company saw steady portfolio optimization, with like-for-like rental growth reaching 3.0% compared to 2.3% in the previous year.
This was supported by a reduction in residential vacancy rates to 3.6% from 4% in 2023. TAG sold 1,400 units in Germany, generating €143.1 million in sales revenue, with a 5% gross yield, Jefferies noted.
Poland remained a key area of growth, with net income from property sales amounting to €66.2 million, surpassing the guidance range of €46-52 million.
The company sold 1,936 residential units in 2024, slightly below the Q3 revised target of 2,000-2,200 units.
However, sales are expected to rise to 2,800 units in 2025, with projected sales revenue of approximately €450 million, up from €358 million in 2024.
Rental operations in Poland also improved, with completed rental apartments reaching 3,219 units, compared to 2,417 the previous year, while the vacancy rate dropped to 4.9% from 7.2%, according to Jefferies’ analysis.
TAG Immobilien reported Funds from Operations (FFO I) of €175.1 million, surpassing guidance expectations of €170-174 million, driven by stronger-than-expected adjusted EBITDA from the German rental segment and Polish contributions.
FFO II, which includes sales income, reached €239.4 million, exceeding guidance expectations despite a 6.3% year-on-year decline.
Jefferies pointed out that the leverage ratio (LTV) stood at 46.9%, slightly above the 45% target, due to increased investments in Poland, where the company’s land bank potential expanded to approximately 28,000 units from 21,000 the previous year.
TAG Immobilien reaffirmed its 2025 guidance, projecting FFO I between €172-176 million and FFO II between €233-243 million.
The company also proposed a €0.40 per share dividend, introducing a scrip dividend option for the first time, a move Jefferies highlighted in its report.