Operational Success and Financial Highlights for TAG Immobilien AG in FY 2023

TAG Immobilien AG reported a significantly successful fiscal year 2023, achieving and exceeding financial forecasts. The company’s FFO I reached EUR 171.7 million, aligning with the projected range of EUR 170-174 million, despite witnessing a decrease from the previous year's figure of EUR 189.4 million. This decline was attributed to higher financing costs offsetting the increased EBITDA from the rental business.

In Poland, TAG exceeded its FFO II guidance, showcasing strong sales results and achieving EUR 255.6 million against the previous year’s EUR 247.3 million. The company launched new rental projects, conducted its first successful refinancing in the Polish rental portfolio, and sold nearly 3,600 apartments in Poland, indicating a robust demand in the Polish housing market. The Polish operations experienced a substantial like-for-like rental growth of 10.8%, a testament to the strong performance of TAG’s Polish rental portfolio.

Germany also contributed to TAG’s operational success with the sale of almost 1,400 apartments generating net cash proceeds of EUR 187.4 million. Despite a valuation adjustment in the German property portfolio, TAG managed to keep its loan-to-value (LTV) ratio stable at 47.0%, thanks to its sales achievements and the decision to suspend dividend payments for 2023. This strategic approach has positioned the company well for further strengthening its capital base and financing new projects with high returns, especially in Poland.

Looking ahead, TAG Immobilien AG remains optimistic about maintaining its operational success and financial stability in the 2024 financial year, continuing its focus on expanding and refining its portfolio in both Germany and Poland.