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1. Company Snapshot

1.a. Company Description

TAG Immobilien AG, a real estate company, acquires, develops, and manages residential real estate properties in Germany.The company also rents commercial real estate properties, as well as operates serviced apartments.As of December 31, 2021, it managed approximately 87,600 residential units.


The company was formerly known as TAG Tegernsee Immobilien-und Beteiligungs-Aktiengesellschaft and changed its name to TAG Immobilien AG in September 2008.TAG Immobilien AG was founded in 1882 and is headquartered in Hamburg, Germany.

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1.b. Last Insights on TEG

TAG Immobilien AG's recent performance was driven by a solid earnings report, with shareholders expressing satisfaction with the company's financials. The quality of earnings was a key positive factor, with a decent share price growth of 18% in the past month. Additionally, the company's upcoming dividend payment is a significant event, although investors are advised to exercise caution due to the ex-dividend date. The recent earnings release showed a revenue decline of 14% year-over-year, but the company's ability to maintain profitability is a positive sign.

1.c. Company Highlights

2. TAG Immobilien's Q3 2025 Earnings: A Strong Performance

TAG Immobilien reported a 4% increase in FFO I to EUR 136 million in the first nine months of 2025, driven by higher EBITDA contributions from its German and Polish rental businesses. The company's sales result in Poland was lower than the previous year at EUR 34 million, but is expected to increase in the fourth quarter due to high apartment handovers. The LTV ratio decreased to 42.3% mainly due to a capital increase in August 2025 and operational development.

Publication Date: Nov -15

📋 Highlights
  • FFO I Guidance Raised: 2025 FFO I projected at €174–179 million (up 4% YoY from €136 million in Q3 2025 first nine months)
  • LTV Ratio Improved: Current LTV at 42.3% (vs. 46.1% pro forma post-Resi4Rent acquisition), targeting 45% by 2026
  • Polish Growth Momentum: €1.35 billion cash reserves to fund 2,300 new build-to-rent units in 2026, with 80% presale ratio for 2026 handovers
  • Dividend Expansion: 2026 payout to rise 30% (50% of FFO I ratio), supported by 14% FFO II per-share growth to €279–295 million
  • Resi4Rent Acquisition: €119m+ shareholder loans and €190m bank financing will fund portfolio, closing expected by Q1 2026

Financial Guidance

The company increased its FFO I guidance for 2025 to EUR 174-179 million and expects a 9% increase in absolute terms and 4% on a per share basis for 2026. The FFO II guidance was also increased to EUR 279-295 million, with a 19% increase in absolute terms and 14% on a per share basis. As Martin Thiel, CFO, noted, "the company is confident about its growth prospects, driven by its Polish business and the upcoming Resi4Rent acquisition."

Dividend and Capital Allocation

TAG Immobilien aims to increase its dividend payout ratio to 50% of FFO I for the financial year 2026, resulting in a nearly 30% growth in the dividend. The company plans to use its strong cash position to finance further growth in its Polish rental portfolio and repay a convertible bond maturing in August 2026.

Valuation

With a P/E Ratio of 8.78 and a Dividend Yield of 2.86%, TAG Immobilien's valuation appears reasonable. The company's ROE is 9.07%, indicating a decent return on equity. Analysts estimate next year's revenue growth at 15.6%, which is higher than the current valuation multiples, suggesting that the stock may have further upside potential.

Growth Prospects

The company's Polish business is expected to continue growing, driven by high apartment handovers and a strong cash position of EUR 1.35 billion. The Resi4Rent acquisition is expected to close by the end of the first quarter 2026, and the company plans to start constructing an additional 2,300 units in the course of 2026.

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (5.46%)

6. Segments

Activities in Poland

Expected Growth: 5.83%

TAG Immobilien AG's 5.83% growth in Poland is driven by increasing demand for residential rentals, fueled by urbanization and a growing expat community. Additionally, Poland's economic growth, low unemployment, and government support for the housing market contribute to the segment's expansion.

Rental

Expected Growth: 4.83%

TAG Immobilien AG's 4.83% rental growth is driven by strong demand for affordable housing in Germany, fueled by urbanization and a growing workforce. Additionally, the company's strategic focus on modernizing its portfolio and increasing its share of rent-indexed apartments has contributed to the growth. Furthermore, the German government's rental price brake has limited new supply, supporting rental growth.

Services

Expected Growth: 4.83%

TAG Immobilien AG's 4.83% growth is driven by increasing demand for rental apartments in Germany, fueled by urbanization and a shortage of affordable housing. The company's diversified portfolio, strategic acquisitions, and efficient cost management also contribute to its growth. Additionally, TAG's focus on value-added services, such as property management and maintenance, generates additional revenue streams.

7. Detailed Products

Residential Real Estate

TAG Immobilien AG offers a wide range of residential properties for rent and sale, including apartments, houses, and condominiums.

Commercial Real Estate

The company provides commercial properties for rent and sale, including office spaces, retail stores, and warehouses.

Property Management

TAG Immobilien AG offers property management services, including rental management, maintenance, and renovation services.

Real Estate Development

The company develops and renovates properties, creating new residential and commercial spaces.

Real Estate Investment

TAG Immobilien AG offers investment opportunities in real estate, including direct property investments and fund investments.

8. TAG Immobilien AG's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for TAG Immobilien AG is moderate, as there are alternative investment options available in the real estate market, but the company's diversified portfolio and strong brand presence mitigate this threat.

Bargaining Power Of Customers

The bargaining power of customers is low, as TAG Immobilien AG operates in a niche market with a strong brand presence, and customers have limited alternatives.

Bargaining Power Of Suppliers

The bargaining power of suppliers is moderate, as TAG Immobilien AG relies on a network of contractors and suppliers, but the company's scale and reputation mitigate this threat.

Threat Of New Entrants

The threat of new entrants is low, as TAG Immobilien AG operates in a highly regulated industry with significant barriers to entry, and the company's established brand and reputation make it difficult for new entrants to compete.

Intensity Of Rivalry

The intensity of rivalry is high, as TAG Immobilien AG operates in a competitive market with several established players, and the company must continually innovate and improve its offerings to maintain its market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 53.31%
Debt Cost 3.95%
Equity Weight 46.69%
Equity Cost 8.59%
WACC 6.11%
Leverage 114.18%

11. Quality Control: TAG Immobilien AG passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Shurgard

A-Score: 5.6/10

Value: 5.4

Growth: 4.9

Quality: 8.0

Yield: 5.6

Momentum: 2.0

Volatility: 7.7

1-Year Total Return ->

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Stock-Card
CPI Property Group

A-Score: 5.3/10

Value: 5.8

Growth: 6.0

Quality: 3.5

Yield: 0.0

Momentum: 6.5

Volatility: 10.0

1-Year Total Return ->

View Full Report
Stock-Card
LEG Immobilien

A-Score: 4.8/10

Value: 6.1

Growth: 4.0

Quality: 5.4

Yield: 5.6

Momentum: 1.5

Volatility: 6.3

1-Year Total Return ->

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Stock-Card
Grainger

A-Score: 4.8/10

Value: 5.4

Growth: 3.4

Quality: 5.7

Yield: 5.0

Momentum: 1.0

Volatility: 8.0

1-Year Total Return ->

View Full Report
Stock-Card
TAG Immobilien

A-Score: 4.6/10

Value: 5.1

Growth: 4.2

Quality: 5.1

Yield: 5.0

Momentum: 3.0

Volatility: 5.0

1-Year Total Return ->

View Full Report
Stock-Card
Fabege

A-Score: 4.0/10

Value: 2.8

Growth: 3.7

Quality: 4.9

Yield: 4.4

Momentum: 2.5

Volatility: 6.0

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

13.94$

Current Price

13.94$

Potential

-0.00%

Expected Cash-Flows