HAMBURG (dpa-AFX) — TAG Immobilien has benefited from continued high demand for housing in the first nine months of the year. The real estate group is now more optimistic for the current year, and expects its operating profit to increase again next year. "We are seeing consistently positive developments both in the rental and sales business in Poland," said Co-CEO Claudia Hoyer on Tuesday during the financial results presentation. The German portfolio has also shown value appreciation again since mid-2024. As a result, the group will continue to look for opportunities in Germany in addition to its investments in Poland.
The figures and forecasts were well received on the stock market. The MDax-listed share rose by just over three percent in early trading to EUR14.00. The real estate group delivered solid results, wrote Stephanie Dossmann from investment house Jefferies. Although the completion of the recently announced acquisition of a residential portfolio in Poland has been delayed, as approval from the country's antitrust authority is still pending, the expert viewed the outlook for 2026 positively.
For 2025, the Hamburg-based company is now targeting an operating profit (FFO1) of between EUR174 million and EUR179 million. Previously, TAG had planned for EUR172 million to EUR176 million. In 2026, the real estate group aims to increase operating profit to between EUR187 million and EUR197 million. In addition, the dividend is expected to rise by about 30 percent for 2026 due to a planned increase in the payout ratio.
In the first nine months of the current year, operating profit rose by around four percent year-on-year to EUR135.8 million, despite property sales in Germany, the company further reported. The increase was mainly driven by higher rental income in Germany. Overall, net rental income rose by 3.3 percent to just over EUR277 million. Net profit amounted to EUR306 million, compared to EUR30.2 million in the same period last year. The sharp year-on-year increase was mainly due to valuation losses in the German property portfolio last year, which have turned into gains this year.
In August, TAG announced the purchase of around 5,300 newly built apartments in Poland's six largest cities for the equivalent of approximately EUR565 million. According to the company, after the completion of this deal, TAG will own around 8,700 rental apartments in Poland. The value of the properties in the neighboring country is expected to rise from EUR1.46 billion at the end of June to about EUR2 billion. The company now expects the transaction to be finalized by the beginning of the second quarter of 2026 at the latest, due to the still pending approval from the Polish antitrust authority. Previously, management had expected to complete the purchase in the fourth quarter.
The base rents for new apartments in major cities such as Warsaw, Wroclaw, and Gdańsk range between EUR15 and EUR20 per square meter, Co-CEO Martin Thiel recently explained to financial news agency dpa-AFX, highlighting the attractiveness of the Polish residential market. In addition, the Polish housing market is, like in England, unregulated. This has allowed rents to rise more sharply than in Germany, where rent controls apply in many cities.
TAG entered the Polish market at the end of 2019 with the acquisition of project developer Vantage Development and expanded its business in 2022 by purchasing residential developer Robyg. Robyg is responsible for land acquisition, construction, and the sale of residential units. Some sales projects are also handled through joint ventures with financial investor Centerbridge.
The Hamburg-based group focuses in Germany on so-called B and C locations, which are in the wider catchment areas of metropolitan regions and in medium-sized cities. The majority of its nearly 83,000 residential properties are located in eastern Germany, in cities such as Gera, Leipzig, Chemnitz, Erfurt, and the Berlin area.
