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EQS-News: TAG Immobilien AG
/ Key word(s): Quarter Results
PRESS RELEASE Rising rental and sales results in Q1 2024; LTV already close to target at 45.6%
Hamburg, 14 May 2024 Earnings increase in Q1 2024 – continuation of positive operating business performance from previous year In operational terms, the first three months of the financial year 2024 were a very successful quarter for TAG Immobilien AG (TAG). FFO I, which includes the German and Polish rental business, rose by 5% year-on-year to EUR 44.6m (EUR +2.0m). This result was initially driven by total like-for-like rental growth in the German portfolio of 2.4% p.a. (FY 2023: 2.3%). Vacancy in the Group’s c. 84,500 residential units in Germany increased slightly from 4.0% at the beginning of the year to 4.2% in March 2024 (compared to 4.7% in March 2023) due to seasonal factors. In the Polish rental portfolio, which comprised c. 2,600 residential units as of the reporting date, like-for-like rental growth amounted to 10.1% p.a. after 10.8% in FY 2023. As newly completed residential units were again let in the first quarter of 2024, vacancy increased to 9.8% as of the reporting date from 7.2% as of 31 December 2023. By contrast, the vacancy rate for units rented for more than one year in Poland was only 2.6%. The sales segment, which is an integral part of TAG’s business model in Poland, also performed very well. Compared to Q1 2023, the adjusted net income from sales in Poland more than doubled (+125%) to EUR 19.8m (Q1 2023: EUR 8.8m). This was mainly due to a year-on-year increase in the number of units handed over (821 residential units handed over in Q1 2024 compared to 583 units in Q1 2023). Although the number of residential units sold in Poland decreased year-on-year from 972 in Q1 2023 to 636 in Q1 2024, the strong increase in sales prices in recent quarters resulted in a higher total sales volume of EUR 118m compared to EUR 110m in Q1 2023. Consolidated net income increased to EUR 52.9m in Q1 2024 from EUR 33.1m in Q1 2023 (+60%) thanks to the good operating results. All guidance for the financial year 2024 remains unchanged and is confirmed. Sales of residential units in Germany continue to generate significant liquidity Since the beginning of the 2024 financial year until the publication of today’s interim statement, sales contracts have been signed for c. 780 residential units in Germany. The cumulative selling prices amount to c. EUR 67.6m. The expected net cash proceeds, after repayment of the corresponding bank loans, will amount to c. EUR 59.0m. The average gross yield on the units sold was around 5.3%. In the first quarter of 2024, 157 residential units were sold with cumulative selling prices of EUR 11.0m, net cash proceeds of c. EUR 6.9m and an approximately break-even sales result. The sales are expected to close during the second and third quarters of 2024. Lower LTV and strong financial ratios TAG’s loan-to-value (LTV) ratio stood at 45.6% as of 31 March 2024, well below the level of 47.0% as of 31 December 2023. In addition to the good performance of the rental business, this was mainly due to the liquidity inflow from the sales in Poland. Other financial ratios, such as the interest coverage ratio (ICR) and the ratio of net financial debt to adjusted EBITDA, were strong at 6.7x and 8.7x, respectively, at the end of the quarter (5.2x and 12.9x, respectively, excluding the Polish sales business). The average interest rate on financial debt remained constant at 2.2% compared to 2.2% at the end of 2023 and 2.1% at the end of 2022. Martin Thiel, CFO and Co-CEO of TAG, commented: “With an LTV ratio close to our target of c. 45%, we are very well positioned financially. The surplus liquidity generated in both the rental and the sales business will enable us to invest more in the expansion of our Polish rental portfolio and, at the same time, to counteract rising financing costs by reducing financial debt. In addition, with the write-downs already recognised in the past quarters, the majority of the value adjustments in the German portfolio should be behind us, so we expect only a minor negative impact on the LTV ratio in this respect.” Further improvement in the climate efficiency of the German portfolio and awards for TAG’s social commitment In line with the Paris Climate Agreement, TAG’s goal is to make its real estate portfolio largely carbon-neutral by 2045. With a property portfolio in Germany that currently emits around 29.4 kg CO2eq/m² (2022), TAG is already very well positioned. At present, c. 62% of all buildings in the German portfolio have Energy Performance Certificates in the four best categories Claudia Hoyer, COO and Co-CEO of TAG, said: “For years, we have been committed to promoting a good community spirit in our neighbourhoods. Together with partners from the social sector, we have expanded projects in several regions and launched new neighbourhood initiatives. In this way, we are helping to ensure that our neighbourhoods are good places to live and remain affordable. We are pleased that our social commitment has been rewarded with several excellent rating results and awards – not only nationally but also internationally.” Further details on the first quarter of 2024 can be found in the interim statement published today and in a summary presentation at . The Sustainability Report for the 2023 financial year is available under . Key financials at a glance
Contact: TAG Immobilien AG Dominique Mann Head of Investor & Public Relations Fon +49 (0) 40 380 32 305
14.05.2024 CET/CEST Dissemination of a Corporate News, transmitted by EQS News - a service of EQS Group AG. |
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| Language: | English |
| Company: | TAG Immobilien AG |
| Steckelhörn 5 | |
| 20457 Hamburg | |
| Germany | |
| Phone: | 040 380 32 0 |
| Fax: | 040 380 32 388 |
| E-mail: | |
| Internet: | -ag.com |
| ISIN: | DE0008303504 |
| WKN: | 830350 |
| Indices: | MDAX |
| Listed: | Regulated Market in Frankfurt (Prime Standard), Munich; Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover, Stuttgart, Tradegate Exchange |
| EQS News ID: | 1901881 |
| End of News | EQS News Service |
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1901881 14.05.2024 CET/CEST
