In This Article:
-
FFO1: Unchanged compared to the previous year.
-
Net Income from Poland: Increased by nearly 40% to EUR39 million.
-
Like-for-Like Rental Growth (Germany): Increased to 2.8% as of September 30, 2024, from 2.2% the previous year.
-
Vacancy Rate (Germany): Reduced to 3.9% from 4.6% one year ago.
-
Corporate Bond Issuance: EUR500 million issued in August 2024.
-
Liquidity Position: Approximately EUR670 million.
-
NTA Growth: Increased by EUR0.2 to EUR18.61 per share.
-
LTV Ratio: Reduced to 46.1%.
-
Dividend Proposal: EUR0.40 per share based on a 40% payout ratio of FFO1.
-
FFO2 Guidance for 2025: Expected to grow by 8% to EUR233 million to EUR243 million.
-
Disposals (Germany): 915 units sold for EUR81 million, with a slight loss of EUR1.8 million.
-
Average Total Financial Debt Interest Rate: 2.5%.
-
Like-for-Like Rental Growth (Poland): 3.7% year-on-year.
-
Polish Portfolio Units: Over 3,000 units completed, with a vacancy rate of 3.2%.
-
Sales Volume (Poland): Sales price increase of 10% to 15% year-on-year.
-
FFO1 Guidance for 2025: Slightly up by 1% to EUR172 million to EUR176 million.
Release Date: November 13, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
-
TAG Immobilien AG (TAGOF) reported a strong increase in net income from its operations in Poland, exceeding expectations.
-
The company achieved a significant reduction in the vacancy rate of its German portfolio, now below 4% for the first time.
-
TAG Immobilien AG (TAGOF) successfully issued a EUR500 million corporate bond, enhancing its liquidity position to EUR670 million.
-
The company reinstated its dividend, proposing a payout of EUR0.40 per share, based on a 40% payout ratio of FFO1.
-
TAG Immobilien AG (TAGOF) expects a 25% increase in rental EBITDA from its Polish portfolio by 2028, indicating strong future growth potential.
Negative Points
-
The company experienced a slight loss of EUR1.8 million from the sale of 915 units in Germany, selling them around book value.
-
Higher maintenance costs in the German portfolio impacted the ABR from the rental business, reducing it by EUR0.3 million.
-
TAG Immobilien AG (TAGOF) anticipates stable FFO1 for 2025, indicating limited immediate growth in this metric.
-
The company faces cost inflation pressures, particularly in property management costs.
-
TAG Immobilien AG (TAGOF) reported a slight negative rent growth in its Polish portfolio in ?od?, though not seen as a long-term trend.
Q & A Highlights
Q: Can you explain the rationale behind the 40% payout ratio and how it was decided? A: The 40% payout ratio of FFO1 means not paying out the full cash available from the rental business. This allows us to retain some cash in the company, which, combined with surplus from the sales business, provides enough equity to grow the Polish rental portfolio. The aim is to balance paying a reasonable dividend with maintaining a solid equity position for future growth. - Martin Thiel, CFO