EQS-News: TAG Immobilien AG increases guidance for the 2025 financial year and publishes initial guidance for 2026: strong growth in FFO I and FFO II as well as dividends expected for 2026

PRESS RELEASE

TAG increases guidance for the 2025 financial year and publishes initial guidance for 2026: strong growth in FFO I and FFO II as well as dividends expected for 2026

• FFO I rises to EUR 135.8m (+4%) as of 30 September 2025; EBITDA from the rental business increases by 6% year-on-year
• Net income from sales Poland in the first nine months of 2025 at EUR 34.2m after EUR 38.8m in the same period of the previous year; significant increase expected in Q4 2025 due to increased apartment handovers
• LTV reduced to 42.3% in Q3 2025 after 46.9% at the end of the previous year; pro forma LTV after the expected closing of the acquisition of c. 5,300 rental units in Poland at the end of Q1/beginning of Q2 2026 at c. 46.1%
• FFO I guidance for 2025 increased to EUR 174-179m (previously: EUR 172-176m) and FFO II guidance for 2025 increased to EUR 235-246m (previously: EUR 233-243m)
• Initial guidance for 2026 shows significant increases in results:
  • FFO I: EUR 187-197m (+9%)
  • Net income from sales Poland: EUR 92-98m (+48%)
  • FFO II: EUR 279-295m (+19%)
• Planned payout ratio for 2026 of 50% of FFO I is expected to lead to an increase in the dividend by c. 30%

Hamburg, 11 November 2025

Rising result in the rental business and increased sales figures in Poland in the nine-month period of 2025

TAG Immobilien AG (TAG) can look back on a successful first nine months in 2025. With FFO I of EUR 135.8m (+4% compared to the previous year) and FFO II of EUR 169.3m (9M 2024: EUR 167.5m), which was also above the previous year's level, the company once again demonstrated its operational strength. Particularly noteworthy is the 6% year-on-year increase in EBITDA from the rental business, from EUR 178.3m to EUR 188.4m.

On a like-for-like portfolio basis, rental growth of 2.6% (9M 2024: 2.8%) p.a. was achieved in Germany, including the effects of vacancy reduction. The vacancy rate in the Group's residential units in Germany fell to 3.8% at the end of the third quarter of 2025, compared to 4.1% as of 30 September 2024; in October 2025, the vacancy rate fell further to 3.6%.

TAG also looks back on a successful development in Poland. The vacancy rate for the entire Polish rental portfolio amounted to 2.9% as of the reporting date, compared to 3.9% as of 30 September 2024. Like-for-like rental growth for residential units that have been on the market for more than a year remained at a high level of 3.4% p.a. as of 30 September 2025, compared to 3.7% in the first nine months of 2024.

In the first nine months of the year, 1,973 residential units were sold in Poland (previous year: 1,435), generating a sales volume of EUR 327m (previous year: EUR 261m). 1,063 residential units (previous year: 1,581) were handed over to buyers after completion. Net income from sales Poland, which is calculated on the basis of the residential units handed over and is part of FFO II, amounted to EUR 34.2m in the first nine months of 2025, compared to EUR 38.8m in the same period of the previous year. A significant increase in net income from sales in Poland is expected in the fourth quarter of 2025, as the majority of the handovers planned for 2025 will take place in the fourth quarter of 2025.

Reduction in LTV in the nine-month period of 2025; EPRA NTA per share increases by 5%

The capital increase of EUR 186m carried out in Q3 2025 and TAG's strong operating cash flow led to a reduction in LTV to 42.3% from 46.9% at the end of 2024. Following the pending closing of the acquisition of c. 5,300 rental units in Poland, the LTV will be around 46.1% on a pro forma basis, close to the target value of c. 45%, which should then be achieved again in the 2026 financial year. Other financing metrics such as the interest coverage ratio (ICR) and the ratio of net financial debt to adjusted EBITDA remain strong at 5.9x and 9.3x, respectively.

EPRA NTA per share amounted to EUR 20.19 as of 30 September 2025, up from EUR 19.15 at the end of 2024, representing a growth of 5% during the first nine months of 2025 despite a slight dilution effect from the capital increase (c. EUR 0.35 per share). The next regular portfolio valuation for the second half of 2025 should also ensure a further increase in the EPRA NTA, supported by good operating results. With regards to the German portfolio, which continues to account for the largest share of TAG's GAV, a positive performance is expected roughly on the same level as in the first half of 2025 (value increase of c. +1.4%).

Claudia Hoyer, COO and Co-CEO of TAG, comments on the development as follows: "We can be very satisfied with the course of the 2025 financial year so far. We are seeing consistently positive developments in both the rental business and the Polish sales business. The German portfolio has been showing value growth again since mid-2024, which illustrates the strong fundamentals of the German residential market. In this respect, in addition to our investments in Poland, we will continue to look for opportunities for value-creating growth in Germany as well.”

Guidance for 2025 and 2026 shows strong growth

Based on the positive developments in the first nine months, the guidance for the 2025 financial year has been raised as follows:

• FFO I: EUR 174-179m (previously: EUR 172-176m) or EUR 0.96-0.99 per share
• FFO II: EUR 235-246m (previously: EUR 233-243m) or EUR 1.30-1.36 per share

The guidance for net income from sales Poland for the 2025 financial year remains unchanged at EUR 61-67m.

The following guidance is being published for the first time for the 2026 financial year:

• FFO I: EUR 187-197m (+9%) or EUR 0.99-1.04 per share (+4%)
• Net income from sales Poland: EUR 92-98m (+48%)
• FFO II: EUR 279-295m (+19%) or EUR 1.48-1.56 per share (+14%)

The FFO I guidance for 2026 covers TAG's rental business in Germany and Poland. The acquisition of c. 5,300 rental units from R4R Poland sp. z o.o., announced in August 2025, is now expected to be completed at the end of the first quarter or the beginning of the second quarter of 2026. The Polish antitrust authority has extended the approval process in order to conduct its own market research. As a result, this acquisition has not been included in the guidance for the full twelve months of 2026. The midpoint of the guidance range assumes a closing on 31 March 2026 and therefore includes the FFO I contribution from this portfolio for nine months.

The expected strong increase in net income from sales in Poland of almost 50% is a result of the significant rise in sales prices in recent years. An attractive gross margin of more than 30% and rising income from joint ventures are further reasons for the growth. As a result, a significant increase is also expected for FFO II.

For the 2026 financial year, the plan is to increase the payout ratio for the dividend to 50% of FFO I. This will result in an expected increase in the dividend per share for the 2026 financial year of c. 30% compared to the dividend per share for the 2025 financial year (payout ratio of 40% of FFO I), subject to the approval of the Annual General Meeting.

Martin Thiel, CFO and Co-CEO of TAG, adds: "Our guidance for the 2026 financial year shows strong earnings growth. The Polish business in particular is driving further increases in both the rental and sales portfolios. We are also very pleased that we are likely to be able to offer our shareholders a significantly increased dividend for the 2026 financial year. The strong cash flow from our portfolios in Germany and Poland makes this possible without affecting our LTV and future growth.”

Further details on the first nine month of 2025 can be found in the interim statement published today and in the presentation at https://www.tag-ag.com/en/investor-relations/financial-statements/quarterly-reports/.

Key financials at a glance

Contact

TAG Immobilien AG

Dominique Mann

Head of Investor & Public Relations

Fon +49 (0) 40 380 32 305

ir@tag-ag.com