TAGOF - TAG Immobilien AG (TAGOF) Q4 2023 Earnings Call Transcript
2024-03-12 15:09:02 ET
TAG Immobilien AG (TAGOF)
Q4 2023 Earnings Conference Call
March 12, 2024 5:00 AM ET
Company Participants
Martin Thiel – Co-Chief Executive Officer and Chief Financial Officer
Conference Call Participants
John Vuong – Kempen
Thomas Neuhold – Kepler Cheuvreux
Thomas Rothaeusler – Deutsche Bank AG
Kai Klose – Berenberg
Simon Stippig – Warburg Research
Manuel Martin – Oddo BHF
Markus Schmitt – Oddo BHF
Stephanie Dossmann – Jefferies
Daniela Lungu – First Sentier Investors
Presentation
Martin Thiel
Gentlemen, thanks and good morning all. This is Martin from TAG and many thanks for dialing into our Full Year 2023 Conference Call. As always, I will try to give you a short presentation, point out the main messages from our side and then afterwards, of course, we have plenty of time to discuss the results.
So let's start with Page 4, which is a comprehensive summary of the, from our point of view, main messages we want to give today.
Firstly, we have achieved our FFO I guidance. So FFO I came out basically exactly in the middle of the guidance range at around €172 million. This corresponds to a reduction of 9% year-on-year. But this reduction is purely due to higher financing cost. So analyzing this a little bit more in detail, the EBITDA for the operational results was even better than in the previous year.
On the one side in Germany, a little bit lower EBITDA due to disposals that we had not only in 2023, but also in 2022. But the Polish EBITDA from the rental business kicked in now stronger. So therefore, operationally, in terms of EBITDA, we've been better than in the previous year. But also the German portfolio performed quite well. Just to give some highlights, the vacancy rate in the residential units was down to 4.0%, so down by 50 basis points in the course of the year and we achieved a total like-for-like rental growth in Germany of 2.3%.
Secondly, we have upbeat our FFO II guidance due to a very strong sales result in Poland. So FFO II came out at €255.6 million. This is even more than last year so 3% increase year-on-year and also quite significantly above the guidance that we have given, which was between €240 million to €246 million.
The EBITDA from our sales business in Poland reached more than €100 million and the adjusted net income from this Polish sales business came out at €82.8 million compared to €59.3 million in the previous year. So a quite strong increase in our sales result in Poland and even a little bit better than we expected.
So Poland in general performed very well. You see this in the third point of the slide. The rental portfolio in Poland comprises in the meanwhile, at year end 2023, 2,400 finished units, so units under operation. Further 1,400 units are under construction like-for-like rental growth was still at 11%, which is from our point of view very strong. And the vacancy rate for the units, which were in operation for more than one year, was down to a very low 2.2%....
TAG Immobilien AG (TAGOF) Q4 2023 Earnings Call Transcript