TAG Immobilien AG
Predictable German rental business and strong growth in Poland

High-yielding interest-rate-resilient residential portfolio
Our German rental portfolio stands for affordable housing and stable, predictable rental cash flows in regulated markets. We are deliberately positioned in the affordable housing segment and benefit from a structural demand surplus and the persistent housing shortage. The regulated rental structure and our long-term portfolio management ensure strong interest rate resilience and a reliable, sustainably generated earnings profile with a gross initial yield of around 6.6%, with a clear focus on recurring cash flows. At the same time, we manage a high-quality ESG portfolio in Germany with a clear path to decarbonisation, consistently combining economic and environmental objectives and creating an attractive risk-return profile for our shareholders.

Growth with moderate leverage
Our growth is driven from a position of financial strength and is based on strict capital discipline and moderate leverage. In Germany, we are net buyers of residential units and expand our rental portfolio through targeted, high-yielding acquisitions. At the same time, we maintain a low loan-to-value ratio, currently at around 42% on a pro forma basis following the ROBYG IPO. This combination of growth-oriented portfolio expansion and prudent balance sheet management enables us to seize attractive market opportunities. In this way, we safeguard the sustainability of our earnings and dividend capacity and lay the foundation for long-term value creation.

Investing in one of the fastest-growing European economies
With our commitment in Poland, we invest in one of Europe’s most dynamic economies and complement our business model with a strong growth pillar. We are among the first institutional landlords of modern rental apartments in Poland’s metropolitan areas. In addition to our established German standing portfolio, this enables us to unlock additional earnings and value creation potential in Poland from a high-yielding rental residential portfolio and a successful sales business, positioning TAG’s overall profile in a balanced way between stable, growing cash flows in Germany and attractive growth opportunities in Poland.

High-yields from new-build rental apartments in Poland
In Poland, our newly built rental apartments in the major cities generate attractive gross initial yields of around 7-8%. The modern and efficient buildings require only limited maintenance and no additional CapEx. By focusing on prime urban locations, we combine high-quality assets with strong profitability.

High-margin cash flow generative sales business in Poland
In addition to our rental business, we operate a high-margin, cash-generative sales business in Poland. Our project developments achieve gross margins of more than 30% and make a significant contribution to the Group’s cash generation. Thanks to our fully integrated development and construction execution, the entire value chain remains within the Company, enabling us to deliver projects efficiently, with cost discipline and a high quality of earnings. This strong earnings and cash flow component complements our rental portfolio in both countries and provides us with additional financial resources to continue investing in both Germany and Poland and to grow in a value-accretive manner. In addition, the sales business is largely self-financed through customer prepayments.