TAG Immobilien: First forecast for 2021 could be too conservative

After nine months, TAG Immobilien generated rental income of EUR 239.8 million. That is an increase of 1.7 percent. The pre-tax profit declined from 323.8 million euros to 238.2 million euros. The valuation result on the property portfolio is declining and causes the result to be negative. Earnings per share fell from 1.78 euros to 1.23 euros.

The Nord LB analysts continue to give a hold recommendation for the shares of TAG Immobilien. The price target remains at EUR 24.40.

TAG is becoming a little more confident for the year as a whole. An FFO of between EUR 170 million and EUR 173 million is now expected. Previously, it was assumed from 168 million euros to 170 million euros. The FFO per share should therefore be 1.17 euros (old: 1.16 euros). Accordingly, a dividend of EUR 0.88 (old: EUR 0.87) is expected.

For the first time, TAG is also looking to 2021. Here an FFO of 178 million euros to 182 million euros is forecast. This results in an FFO of 1.23 euros per share. With a planned payout ratio of 75 percent, the dividend is seen at 0.92 euros. That gives a return of 3.9 percent.

In the analysts’ model, the FFO per share is 1.17 euros (2020) and 1.24 euros (2021).

The shares of TAG Immobilien gain 0.7 percent to 24.18 euros.


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