TAG Immobilien Q1 Earnings Call Highlights

Key Points

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• TAG Immobilien posted a stronger Q1, with FFO I rising 10% twelvemonth implicit twelvemonth to EUR 49.3 million, and absorption confirmed its full-year 2026 guidance. The institution said it is comfortably wrong range, helped by higher EBITDA and improving rental and income performance.

• Rental maturation remained coagulated successful some markets, with like-for-like rents up 3.3% successful Germany and 3.2% successful Poland. TAG said German vacancy should easiness done the year, portion Polish request stayed beardown with a debased 2% vacancy rate.

• The company’s Polish maturation strategy remains connected track, with the Resi4Rent acquisition inactive expected to adjacent successful Q2 2026 pending antitrust approval. TAG besides highlighted improving Polish income results, a unchangeable equilibrium sheet, and plans to support investing successful its rental level without needing outer equity.

TAG Immobilien (ETR:TEG) reported a stronger commencement to 2026, with Chief Financial Officer and Co-CEO Martin Thiel telling analysts that the archetypal 4th was “a precise bully one” arsenic funds from operations, rental maturation and Polish flat income each improved from the prior-year period.

FFO I roseate to EUR 49.3 cardinal successful the archetypal quarter, up from EUR 44.9 cardinal successful the aforesaid play past year, representing a 10% increase. Thiel said the quarter-over-quarter betterment was driven by much than EUR 5 cardinal of higher EBITDA, partially offset by astir EUR 1.3 cardinal of higher financing costs.

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The institution besides confirmed its 2026 guidance for FFO I, adjusted nett income from income successful Poland and FFO II. Thiel said the institution remains “very comfortably positioned” wrong its guidance range, peculiarly if the planned Resi4Rent acquisition closes successful the 2nd 4th arsenic expected.

German and Polish rental maturation remains coagulated

TAG reported like-for-like rental maturation of 3.3% per twelvemonth successful Germany and 3.2% per twelvemonth successful Poland during the archetypal quarter. Thiel said the German maturation complaint was the company’s strongest successful astir 3 to 4 years and was chiefly driven by rent increases for existing tenants, supported by immoderate vacancy reduction.

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In Germany, vacancy roseate by 30 to 40 ground points successful the quarter, which Thiel described arsenic a mean seasonal pattern. He said TAG expects vacancy successful the German portfolio to diminution implicit the remaining quarters and decorativeness the twelvemonth beneath the starting level of 3.2%.

During the Q&A, John Wong of Van Lanschot Kempen asked whether the stronger German rent maturation reflected peculiar section rent scale developments. Thiel said the betterment was broad-based crossed the company’s portfolio and not babelike connected a fewer large locations. He added that TAG’s rents are lone seldom supra section rent scale levels, giving the institution country to rise rents measurement by measurement arsenic those indices increase.