TAG signs agreement to acquire a substantial portfolio of rental units in Poland; on this basis and following the financial performance in H1 2025, increased dividend planned from 2026 onwards
16 augusti, 03:30
EQS-News: TAG Immobilien AG / Key word(s): Acquisition TAG signs agreement to acquire a substantial portfolio of rental units in Poland; on this basis and following the strong financial performance in the first half of 2025, increased dividend planned from financial year 2026 onwards
Hamburg, 16 August 2025 TAG Immobilien AG (TAG) today signed an agreement through its wholly owned Polish subsidiary Vantage Development S.A. to acquire 5,322 rental units from R4R Poland sp. z o.o. (Resi4Rent). The transaction is expected to be completed at the end of the third or in the course of the fourth quarter of 2025, subject to approval by the Polish antitrust authority. The purchase price for the portfolio of PLN 2,405m (c. EUR 565m based on the current EUR/PLN exchange rate of c. 1:4.25) will be adjusted at the time of closing by the working capital available in the property-holding companies to be acquired by TAG. TAG will not assume any financial debt. The 5,322 rental units to be acquired have a total usable area of c. 177,700 square meters and are located in Poland's six largest cities: Warsaw (1,755 units), Wrocław (1,653 units), Poznań (571 units), Kraków (535 units), Łódź (506 units) and Gdańsk (302 units). There are a total of 18 projects, most of which were newly constructed in the last three years and are almost fully let with a vacancy rate of generally only c. 2%. Five projects began renting within the last 12 months, of which two projects were only completed in recent weeks and are therefore currently still in the initial phase of letting. The purchase price will be paid from the Group's existing cash and cash equivalents, which amounted to EUR 870m as of 30 June 2025. TAG’s liquidity is supported via a bridge facility of up to EUR 600m, provided by Bank of America and Société Générale, with a term of up to 24 months, which TAG intends to refinance through a range of potential capital markets instruments, market conditions permitting. After all acquired projects have been fully let and taking into account the synergies that will be achieved within the Group, TAG expects, based on preliminary calculations, in the 2026 financial year the rental units to generate net actual rent (NAR) of c. PLN 175-180m (c. EUR 41-43m), net rental income (NRI) of c. PLN 163-167m (c. EUR 38-40m) and a contribution to adjusted EBITDA of c. PLN 140-145m (c. EUR 32-34m). The purchase price thus corresponds to an expected gross initial yield (NAR yield) by TAG of c. 7.5% and an expected yield on net rental income (NRI yield) by TAG of c. 6.8% in 2026. Further details on the impact on TAG's financial KPIs will be available after the transaction has been completed. They are expected to be announced with the forecast for the 2026 financial year, which will be published with the interim statement for the third quarter of 2025. Assuming successful closing of the transaction, the total Polish Gross Asset Value (GAV) would increase to c. EUR 2,000m (30 June 2025: EUR 1,464m). The GAV in Germany, TAG's core market, amounted to EUR 5,318m as of 30 June 2025, based on c. 83,000 apartments there. Claudia Hoyer, COO and Co-CEO of TAG, explains: "With this acquisition, we will achieve our strategic goal of having c. 10,000 rental apartments in Poland by the end of 2028 significantly earlier than planned. We will therefore very soon have a high-quality, high-yield portfolio of new-build properties in the six largest cities of a country with excellent fundamentals, both in terms of the overall economy and the housing market. At the same time, we continue to see growth opportunities in Poland. We will therefore be able to continue expanding our rental portfolio step by step over the next few years, focusing on the most attractive projects." Poland’s economy has demonstrated remarkable resilience in recent years, consistently outperforming EU-27 peers in GDP growth, even during economic downturns such as the pandemic. This underscores its strong domestic demand. The persistent decline in Poland’s unemployment rate reflects robust job creation and labor market flexibility. This trend is further supported by favorable demographics and increased labor force participation among younger generations. The Polish housing market continues to experience a significant shortage of housing. Poland has one of the smallest living space per inhabitant and one of the highest average number of persons per household in the European Union. In addition to that, almost 50% of the inhabited apartments was built between 1945 and 1988 already, not meeting the quality requirements of today’s residents. Based on these strong fundamentals and trends, Poland has seen a significant increase in sales prices (c. +40% to +60%, depending on location) and rents (c. +25% to +40%, depending on location) for newly built apartments in the country's six largest cities since the beginning of 2022. As already reported on 12 August 2025, the first half of the 2025 financial year was very successful for TAG. With FFO I of EUR 91.6m, an increase of 4% was achieved compared to the same period of the previous year. The Polish sales business also recorded an increase in net income in the second quarter of 2025, reaching EUR 11.6m (Q1 2025: EUR 5.0m). The German portfolio saw a continuation of the positive valuation trend already observed at the end of 2024 in the first half of 2025. The portfolio's value increased by c. 1.4%, compared to c. 0.9% in H2 2024. Supported by strong valuation performance in the Polish rental portfolio, this, in addition to the positive operating performance, led to an increase in NTA per share to EUR 20.18 (31 December 2024: EUR 19.15) and a further decrease in LTV to 45.3% (31 December 2024: 46.9%), despite the dividend of EUR 0.40 per share distributed in June. On this basis and as a result of the strong growth in the Polish rental portfolio following closing of the transaction, TAG's operating cash flow will increase significantly. Against this backdrop, the plan is to increase the dividend payout ratio to at least 50% of FFO I. This is to apply for the first time to the dividend for the 2026 financial year. The previous payout ratio of 40% of FFO I will continue to apply to the dividend for the current 2025 financial year. Martin Thiel, Chief Financial Officer and Co-CEO of TAG, adds: ‘With the acquisition of this portfolio, we have taken a major step in bringing forward the growth planned for the coming years. This means that we can now, supported by a very successful first half of 2025, increase the dividend payout ratio earlier than planned. Nevertheless, we will not lose sight of the conservative and disciplined financing policy we have pursued over the past few years. This latest acquisition demonstrates that TAG, from a position of financial strength, can take advantage of attractive market opportunities to achieve sustainable economic growth.’ Contact TAG Immobilien AG Dominique Mann Head of Investor & Public Relations +49 (0) 40 380 32 305 16.08.2025 CET/CEST Dissemination of a Corporate News, transmitted by EQS News - a service of EQS Group. |
Language: | English |
Company: | TAG Immobilien AG |
Steckelhörn 5 | |
20457 Hamburg | |
Germany | |
Phone: | 040 380 32 0 |
Fax: | 040 380 32 388 |
E-mail: | ir@tag-ag.com |
Internet: | https://www.tag-ag.com |
ISIN: | DE0008303504 |
WKN: | 830350 |
Indices: | MDAX |
Listed: | Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover, Munich, Stuttgart, Tradegate Exchange |
EQS News ID: | 2184798 |
End of News | EQS News Service |
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TAG signs agreement to acquire a substantial portfolio of rental units in Poland; on this basis and following the financial performance in H1 2025, increased dividend planned from 2026 onwards
16 augusti, 03:30
EQS-News: TAG Immobilien AG / Key word(s): Acquisition TAG signs agreement to acquire a substantial portfolio of rental units in Poland; on this basis and following the strong financial performance in the first half of 2025, increased dividend planned from financial year 2026 onwards
Hamburg, 16 August 2025 TAG Immobilien AG (TAG) today signed an agreement through its wholly owned Polish subsidiary Vantage Development S.A. to acquire 5,322 rental units from R4R Poland sp. z o.o. (Resi4Rent). The transaction is expected to be completed at the end of the third or in the course of the fourth quarter of 2025, subject to approval by the Polish antitrust authority. The purchase price for the portfolio of PLN 2,405m (c. EUR 565m based on the current EUR/PLN exchange rate of c. 1:4.25) will be adjusted at the time of closing by the working capital available in the property-holding companies to be acquired by TAG. TAG will not assume any financial debt. The 5,322 rental units to be acquired have a total usable area of c. 177,700 square meters and are located in Poland's six largest cities: Warsaw (1,755 units), Wrocław (1,653 units), Poznań (571 units), Kraków (535 units), Łódź (506 units) and Gdańsk (302 units). There are a total of 18 projects, most of which were newly constructed in the last three years and are almost fully let with a vacancy rate of generally only c. 2%. Five projects began renting within the last 12 months, of which two projects were only completed in recent weeks and are therefore currently still in the initial phase of letting. The purchase price will be paid from the Group's existing cash and cash equivalents, which amounted to EUR 870m as of 30 June 2025. TAG’s liquidity is supported via a bridge facility of up to EUR 600m, provided by Bank of America and Société Générale, with a term of up to 24 months, which TAG intends to refinance through a range of potential capital markets instruments, market conditions permitting. After all acquired projects have been fully let and taking into account the synergies that will be achieved within the Group, TAG expects, based on preliminary calculations, in the 2026 financial year the rental units to generate net actual rent (NAR) of c. PLN 175-180m (c. EUR 41-43m), net rental income (NRI) of c. PLN 163-167m (c. EUR 38-40m) and a contribution to adjusted EBITDA of c. PLN 140-145m (c. EUR 32-34m). The purchase price thus corresponds to an expected gross initial yield (NAR yield) by TAG of c. 7.5% and an expected yield on net rental income (NRI yield) by TAG of c. 6.8% in 2026. Further details on the impact on TAG's financial KPIs will be available after the transaction has been completed. They are expected to be announced with the forecast for the 2026 financial year, which will be published with the interim statement for the third quarter of 2025. Assuming successful closing of the transaction, the total Polish Gross Asset Value (GAV) would increase to c. EUR 2,000m (30 June 2025: EUR 1,464m). The GAV in Germany, TAG's core market, amounted to EUR 5,318m as of 30 June 2025, based on c. 83,000 apartments there. Claudia Hoyer, COO and Co-CEO of TAG, explains: "With this acquisition, we will achieve our strategic goal of having c. 10,000 rental apartments in Poland by the end of 2028 significantly earlier than planned. We will therefore very soon have a high-quality, high-yield portfolio of new-build properties in the six largest cities of a country with excellent fundamentals, both in terms of the overall economy and the housing market. At the same time, we continue to see growth opportunities in Poland. We will therefore be able to continue expanding our rental portfolio step by step over the next few years, focusing on the most attractive projects." Poland’s economy has demonstrated remarkable resilience in recent years, consistently outperforming EU-27 peers in GDP growth, even during economic downturns such as the pandemic. This underscores its strong domestic demand. The persistent decline in Poland’s unemployment rate reflects robust job creation and labor market flexibility. This trend is further supported by favorable demographics and increased labor force participation among younger generations. The Polish housing market continues to experience a significant shortage of housing. Poland has one of the smallest living space per inhabitant and one of the highest average number of persons per household in the European Union. In addition to that, almost 50% of the inhabited apartments was built between 1945 and 1988 already, not meeting the quality requirements of today’s residents. Based on these strong fundamentals and trends, Poland has seen a significant increase in sales prices (c. +40% to +60%, depending on location) and rents (c. +25% to +40%, depending on location) for newly built apartments in the country's six largest cities since the beginning of 2022. As already reported on 12 August 2025, the first half of the 2025 financial year was very successful for TAG. With FFO I of EUR 91.6m, an increase of 4% was achieved compared to the same period of the previous year. The Polish sales business also recorded an increase in net income in the second quarter of 2025, reaching EUR 11.6m (Q1 2025: EUR 5.0m). The German portfolio saw a continuation of the positive valuation trend already observed at the end of 2024 in the first half of 2025. The portfolio's value increased by c. 1.4%, compared to c. 0.9% in H2 2024. Supported by strong valuation performance in the Polish rental portfolio, this, in addition to the positive operating performance, led to an increase in NTA per share to EUR 20.18 (31 December 2024: EUR 19.15) and a further decrease in LTV to 45.3% (31 December 2024: 46.9%), despite the dividend of EUR 0.40 per share distributed in June. On this basis and as a result of the strong growth in the Polish rental portfolio following closing of the transaction, TAG's operating cash flow will increase significantly. Against this backdrop, the plan is to increase the dividend payout ratio to at least 50% of FFO I. This is to apply for the first time to the dividend for the 2026 financial year. The previous payout ratio of 40% of FFO I will continue to apply to the dividend for the current 2025 financial year. Martin Thiel, Chief Financial Officer and Co-CEO of TAG, adds: ‘With the acquisition of this portfolio, we have taken a major step in bringing forward the growth planned for the coming years. This means that we can now, supported by a very successful first half of 2025, increase the dividend payout ratio earlier than planned. Nevertheless, we will not lose sight of the conservative and disciplined financing policy we have pursued over the past few years. This latest acquisition demonstrates that TAG, from a position of financial strength, can take advantage of attractive market opportunities to achieve sustainable economic growth.’ Contact TAG Immobilien AG Dominique Mann Head of Investor & Public Relations +49 (0) 40 380 32 305 16.08.2025 CET/CEST Dissemination of a Corporate News, transmitted by EQS News - a service of EQS Group. |
Language: | English |
Company: | TAG Immobilien AG |
Steckelhörn 5 | |
20457 Hamburg | |
Germany | |
Phone: | 040 380 32 0 |
Fax: | 040 380 32 388 |
E-mail: | ir@tag-ag.com |
Internet: | https://www.tag-ag.com |
ISIN: | DE0008303504 |
WKN: | 830350 |
Indices: | MDAX |
Listed: | Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover, Munich, Stuttgart, Tradegate Exchange |
EQS News ID: | 2184798 |
End of News | EQS News Service |
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