TAG Immobilien narrows H1 profit drop on robust Poland sales, keeps 2025 outlook

Published 12/08/2025, 11:14
© Reuters.

Investing.com -- Tag Immobilien AG (ETR:TEGG) on Tuesday reported stronger second-quarter housing sales in Poland, helping narrow its first-half 2025 funds from operations (FFO) II decline to 11.6% from 22% in the first quarter, and reaffirmed its full-year guidance.

FFO II, which includes property sales in Poland, totaled €107.3 million in the first half, down from €121.3 million a year earlier. 

Second-quarter housing sales in Poland contributed €11.6 million, more than double the €5 million recorded in the first quarter, though still below the €34.1 million from the same period in 2024.

FFO I, covering the group’s rental business in Germany and Poland, rose 4% year-on-year to €91.6 million, or €0.52 per share, compared with €88.1 million a year earlier. Adjusted EBITDA from rental activities grew 5.2% to €126.4 million. Rental income increased 3.4% to €184.2 million, compared with 0.7% growth in the first quarter and 2.9% in 2024.

Like-for-like rental growth in Germany was 2.9% in the first half, with the vacancy rate steady at 3.9% from the previous quarter. 

In Poland, like-for-like rental growth was 3.3%, and the vacancy rate fell to 3.8% at the end of June from 6.3% at the end of March.

The company handed over 516 units in Poland in the first half, up from 224 in the first quarter but down from 1,330 a year earlier. 

It sold 1,158 units, compared with 592 in the first quarter and 1,056 in the first half of 2024. 

TAG said it expects higher sales and handovers in the second half and confirmed its forecast of about 2,100 handovers and 2,800 units sold in Poland for the full year.

The company maintained its 2025 guidance for FFO I between €172 million and €176 million, and FFO II between €233 million and €243 million.

The fair value of TAG’s German portfolio rose 1.4% in the first half, while Poland recorded a €91.3 million valuation gain, up from €9.5 million in the same period last year. 

EPRA net tangible assets per share increased 5.4% from December to €20.18, and the loan-to-value ratio edged down to 45.3% from 45.6% in the first quarter and 46.9% in 2024.

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