TAG Immobilien AG

H1 2026 FFO I was EUR 100.2 million, up 9% year on year. FFO II rose 11% year on year, and net income from sales in Poland was up 12%. Like-for-like rental growth was 3% in Germany and 2.4% in Poland excluding Resi4Rent; the German portfolio value increased 1.5% in H1, or about 0.7% to 0.8% excluding CapEx. TAG also reported Polish unit sales of 1,350 in H1 versus a little more than 1,150 a year earlier. For full-year 2026, management confirmed guidance and said FFO I should land at the upper end of the range, around EUR 197 million. FFO II guidance remains unchanged at EUR 92 million to EUR 98 million, and Polish unit sales guidance remains around 2,800 to 3,000 units. The ROBYG IPO produced EUR 282 million of gross proceeds, about EUR 272 million net after roughly EUR 10 million of IPO costs, and should add about EUR 55 million of NTA, or roughly EUR 0.30 per share; pro forma LTV was said to be 42.2% after the transaction.

Martin Thiel’s message was that TAG exited H1 with strong operational momentum and more financial flexibility. He emphasized that the company is now in a position to grow both rental businesses and the Polish build-to-sell platform, while staying selective and disciplined on acquisitions. His tone was confident but not complacent, repeatedly stressing that the company will not chase growth “at any price.”

Thiel highlighted improving profitability, with EBITDA up 5% and net financial result about EUR 1.4 million better because cash sat on the balance sheet ahead of the Resi4Rent closing. He pointed to an average cost of debt of 2.7%, two rating upgrades in May and after the IPO, and a pro forma cash position of about EUR 1.05 billion, offset by EUR 578 million of 2026 maturities. He said the company would still have more than EUR 450 million of free cash after those maturities, and that fully redeploying available liquidity would bring leverage back toward the 45% LTV target.

Analysts pressed on where TAG will redeploy capital after the ROBYG IPO, including whether share buybacks might be more attractive than new acquisitions or development. Management said buybacks are “not yet on the table” and argued that buying or building rental assets still makes sense because of long-term cash flow growth, vacancy upside in Germany, and value growth in Poland, though it kept the door open to buybacks later. Questions also focused on Polish rental growth, German vacancy, and the lower valuation uplift; management said Polish rent growth has moderated because more tenants are signing 2- to 3-year inflation-linked leases, German vacancy remains on track for the full-year reduction guide, and lower valuation gains mainly reflect less exceptional Polish sales-price appreciation than in prior years.