Tag Immobilien Ag

Ladies and gentlemen, welcome to the TAG Immobilien Publication of Interim Report Q2-2026 Conference Call. I am Valentina, the Chorus Call Operator. I would like to remind you that all participants will be listen-only mode and the conference is being recorded. The presentation will be followed by Q&A session. You can register for questions at any time by pressing star and 1 on your telephone. For operator assistance, please press star and 0. The conference must not be recorded for publication or broadcast. At this time, it's my pleasure to hand over to Martin Thiel, CFO and Co-CEO.

Please go ahead. Good morning, everyone. This is Martin from TAG. Thank you for dialing in for our H1 2026 conference call. Let's start right away with the highlight slide, and I'm on page three of the presentation. I think it's fair to say that H1 2026 was a very strong half year with results strongly up. So in absolute terms FFO1 was 9% above the previous year level, came out at 100.2 million euros. Also our net income from sales in Poland was strongly up by 12% and FFO2 consisting of the FFO1 and the net income from sales in Poland saw quite strong growth at an 11% increase year-on-year. And perhaps you've already seen it in our press release, that led us to narrow the guidance for FFO1-2026 at the upper end of the guidance range, so therefore we expect FFO1 more to come up at the upper end of the previously announced range. Operations were well on track, and we saw increasing portfolio values with the half-year valuation, So like for sequential growth in Germany was quite strong at 3%, in Poland was 2.4%, excluding the newly acquired S4N portfolio, so just for the existing portfolio that we even owned before. Sales numbers were quite good in Poland. We sold 1,350 units in the first half of 2026 compared to a bit more than 1,150 in the previous year. Value increase in H1 in the German portfolio was at 1.5%, so that's quite similar to what we've seen in the two previous relations, which were 1.4% in H2 2026 and 1.7% in H1 2025. So a trend or a continuation of the positive trend we've seen in the two previous semi-annual relations. As we've already announced, the Versiforent transaction closed on 27th of May, 2026, after an antitrust approval without any conditions. So we had to wait for this, as you know, for quite a long time, but finally it came without any conditions. And therefore, we are right now in the process of integrating this portfolio into our platform, into the Vantage platform, and we can tell you that this process is proceeding quite smoothly and will be completed shortly. The final purchase price came out at $575 million. That is a 7.5% implied gross yield based on the expected net actual range in 2026. And the portfolio was for the first time valued also like the remaining part of the portfolio at the end of the half year. And we saw a 7% value uplift compared to the original purchase price. So that means the Polish rental portfolio after this completion of the Reservoir Rent Transaction has now materialized with more than 9,100 units, which was, of course, then an important strategic step for us. Another important strategic step was for sure the Robic IPO, completed to the largest part after the balance sheet date, so in July 2026, so therefore please be aware that most of the impact from this IPO is not in the H1 numbers, but we will give you some performer numbers. As a short overview, after stabilization measures, we had total cross proceeds for the group of 282 million euros, Out of which 188 million was cross proceeds on TARG level and the remaining 94 million was a cross proceeds on HOBIC level. We still are a majority shareholder of HOBIC, so we are retaining a 67% stake and we are clearly committed to hold this stake also for a longer time. As I already said, the IPO transactions are not reflected in the H1 numbers because most of that was effective after the balance sheet date. But just as a quick overview, we're expecting an NTA uplift of around $55 million, so roughly $0.30 per share, and a quite strong ATV reduction through the inflow of the gross proceeds from the IPO by around 320 basis points. That means on a performer level, including the OVIC IPO, the ATV to present. Yeah, these cross proceeds are clearly now something that we will use for further investments. And if you ask us about our capital allocation strategy for this year, the main focus, and that's basically unchanged, will be on the further growth of the rental business. We have now not only the liquidity, but also the equity basis to invest. And we have basically two markets where we're investing, as in the past, Poland and Germany. As you know, we have a kind of natural growth by construction of rental apartments in Poland via our own platform, Robic, on the own land bank that we own, and therefore we'll have natural growth from simply carrying out this construction of apartments in Poland. But we're also looking for acquisitions of rental portfolio in Germany and in Poland, so that will provide us additional growth. So that's the rental business, but now Moreless for the first time, also the Polish bridge to sell business, meaning Robic, has more opportunities to grow through the IPO proceeds. So that means even though we saw the stake in Robic, we expect that quite shortly we will have higher results from Robic through the growth, through the IPO proceeds, So that bottom line, our proportionate result from Orbic will also grow despite this partial, this board of shares. So therefore, the Orbic IPO, to make it short, from our point of view, a win-win outcome for all segments at TRG. That's the overview. Let's look a little bit more into the details. That's just one short comment on page number four, and you see all the detailed figures. But what I want to mention is the acquisitions in Germany. We acquired basically until the last days roughly 900 units in Germany at a quite good pricing, so a gross yield of around 7.1%. There's some vacancy reaction. Potential to the average vacancy rate in these portfolios around 4.3%. Nearly all units are located in East Germany in regions that we know very well. And these acquisitions will close perhaps more towards the end of the year. So we will continue also to acquire in Germany. We are clearly a buyer of apartments, but please be aware we will be here selective and disciplined. So we will not look for growth at any price. But here we see opportunities of selective acquisitions in Germany will be part of the future growth. And now on page number seven, it shows a bridge from net actual rent to FFO1. As I already mentioned, FFO1 in H1 2026 was up by 9% compared to the previous year. APDR, so the operational result, was up by 5% year-on-year. That means we also had a positive impact from the net financial result, which was roughly 1.4 million euros better, as we had for a longer time a quite strong cash position. where we have been waiting for the closing of the HESIFORENT acquisition so we had the cash already in the balance sheet so therefore you see some interest income so perhaps in H2 you will see a contrary picture so more stronger EBITDA growth whereas perhaps then the net financial result is a little bit weaker but that's then a natural change because of the closing of the HESIFORENT transaction. Next page, page number eight, shows you the development of our build-to-sale business of the Polish sales results. It was quite strongly up year on year. We came out at 18.6 million euros. If you compare it with the full year guidance, which stands at 92 to 98 million, please don't be concerned that this is On a proportionate basis, quite low, but this is the very normal course of the business. So as last year, as basically all years before, you should expect that the main result is coming towards the end of the year, especially in the fourth quarter, when we hand over the largest part of our apartments. So therefore, we confirm also the guidance for FFO2 for this year, because you should expect a strongly growing sales result, especially towards the end of the year. Page number 9 shows the APRA NTA development. As said, the positive impact from the Robic IPO, which is roughly $0.30 per share, is not included yet. And still, we have a 6% growth year-on-year compared to H1 2025, even after the dividend payment, which was completely carried out in June 2026. So that's fully reflected. And after the capital increase in August 2025, which we carried out for the reservoir and acquisition. So therefore also the APRA NTA development should be on a good way. Let's take a quick look at page number 10 which shows the finance structure. Average cost of debt now at 2.7%. We're very happy that we received two upgrades in rating in the last month. Firstly in May 2026 we received an upgrade from Moody's from BA3 to BA2. and following the successful Robic IPO also from S&P Global, which upgraded us from triple B minus to triple B. Both upgrades should be a good proof for our very stable and very strong financial structure with, just to repeat this again, in the meanwhile, a quite low leverage. So pro forma, after the Robic IPO, the LTV stands, as said, at 42.2% only. Page number 11 shows the maturity profile looking into 2026. Basically, everything is refinanced already, so we will have a larger repayment at the end of this month of €470 million from a convertible bond that is becoming due. But the performer cash position is quite strong right now, so more than €1 billion So we had roughly half a billion euros in the balance sheet at the end of the second quarter, plus still an inflow net after our costs of around 255 million from the OBIG IPO, plus some bank loan refinances that we did after the balance sheet date. So one point. 0,5 billion euros roughly is the cash position deducting the maturities that we have this year of around 578 million that leaves us with more than 450 million euros of free cash that we can use for the investments as I mentioned at the beginning into our rental portfolio and on the public level to grow the birth to services in Poland as well. Page number 13 shows you the development of operational data in the German portfolio. So our vacancy rate in the portfolio stood at 3.8%. That's higher than the beginning of the year, but basically as it is before, we expect a further reduction in vacancy rate. If you compare that with the same period one year before, we are already lower. So we've been 10 basis points below H1 2025, and therefore we are optimistic that we can improve the vacancy rate as in last year's in the remaining part of the year. Like-for-like rental growth, including vacancy reduction, more or less unchanged at 3%, But quite strong was the like-for-like rental growth without a vacant reduction, which came out at 2.9%. And please be aware, as always, just a very small part, 0.3% monetization revenue. So that means we have a quite strong underlying like-for-like rental growth from rent increases for existing tenants and from tenant turnover without any cap expanding. And that should be definitely a good sign. Page number 14 shows the portfolio valuation. As I said, a total value increase of 1.5%. And just to make this clear, this is including CapEx, so that should be very much in line with what you have seen in the peer group. Without the CapEx, this value increase was around 0.7, 0.8%. And that's basically more or less the same valuation result that we had in the two Semi-annual variations before. Positive trend continues. We have no outlook yet for the full-year variation, so no indications from the valuers yet, but currently we expect a more or less perhaps unchanged variation at year-end. because our gross yield is already on a quite, let's say, reasonable level. So 6.6%, which has been now quite stable for the last valuations, should be a gross yield that is, even in this world of higher interest rate, something that still leads to positive cash flows. So therefore, from our point of view, that should be a quite resilient valuation despite the increasing interest rate levels in the past months. Page number 15 shows you more details on the portfolio valuation, but let's go more to page number 17, which shows you operational data from the Polish portfolio. Here on this slide you see the development in the vacancy rate and the like-for-like rental growth. Again, please be aware that this is the data for the like-for-like portfolio, meaning without the resi-for-rent transaction. saw the portfolio that we owned before, which comprises a little bit more than 3,500 units. Still quite low vacancy level, 2.1% for all the units that have been on the market for at least one year, so which are stabilized. Like for our rental growth, was a bit lower, 2.4% in H1 2026, compared to 3.4% in 2025. What we observe in the portfolio is that we have more longer-term rental contracts, that are linked to inflation, so more and more tenants are choosing a two- or three-year contract. As Polish inflation rates came down in the last month, also the rental growth therefore was a bit lower, So, yes, lower rental growth, but, of course, lower turnover also leads to a lower cost base and less vacancy between tenant changes. So, therefore, we are not concerned that the Polish rental growth is now going in the wrong direction. So, we will have also more volatility or more ups and downs in the vacancy rate, sorry, in the black-collar rental growth in the future. But still, we are very much convinced that we will see sustainable growth also in the coming years. Page number 18 shows you more data on the visit for rent acquisition. I think I already touched the most important points. So now also our rental portfolio in Poland has a significant size, 9,100 units. already in the portfolio. More than 1,000 units under construction. More will follow in the next months. So you should expect that in the next two to three years, we will definitely start construction of between 1,500 and 2,000 apartments a year. So the portfolio will grow step by step over the next years. This comes to page number 20, which shows the Polish sales business. As I said, quite good sales results in the first six months of 2026. So 1,350 units sold after 1,158 units in the same period of the previous year. And as you see in the slide, knowing that the third and the fourth quarter of the year, also regarding the sales, normally stronger than the first half We are very much convinced that we are coming out to the sales numbers that we predicted. So something between 2,800 and 3,000 units for a full year should be absolutely realistic. So we still see healthy demand in the Polish sales market. Sales prices remain on a high level, and that gives us confidence for the future results. Pitch number 21 shows the revenue recognition. As said, you should expect, as in the previous years, that in the fourth quarter, we will have the largest part of our handovers. So therefore, the revenue recognition will pick up more and more as we progress throughout the year. Let's talk a little bit more about the Robic IPO. And I'm now on slide 22 of the presentation. Again, quick summary. Robic is listed on the Warsaw Stock Exchange since the 2nd of July, 2026. and on this date Robic had a post IPO market capitalization of around 860 million. We own still 67.1% of the Robic shares so therefore our remaining stake is valued at currently or at the IPO price 580 million euros. Total cross proceeds of 282 million for the group out of which roughly 94 million through capital increases on Robic level and through the sale of Robic shares that we conducted from the TARC side we received on TARC level around 188 million gross proceeds. And that means both segments, so the build to sell segment meaning Robic and the rental segment meaning the German business and the Polish rental business have now the possibility to grow. So Roebuck has now significant equity from the cross proceeds from the IPO, is able to buy further land plots, is able to grow stronger than in the past. And as already mentioned from the sale proceeds from the Roebuck shares that we received on target level, we can increase our German and Polish rental portfolio based not on the liquidity, but also based on the equity that we have from the sale of the shares now in the balance sheet. as said before, the LCV will be reduced quite significantly after the IPO. Page number 23 shows you again the performer data, so the main impact on the balance sheet as said, roughly 55 million with the NTA accretion translating into roughly 30 cents per share And if we look at our total investment that we have done at the value appreciation since we acquired Robic in 2022, meaning the cash proceeds that we now realized, the remaining stake that we still own of 67%, where the value is even higher than the total acquisition cost for the 100% stake, we achieved a value appreciation for a total investment of more than 40%, which would be a quite strong result. One comment on the FFO guidance or FFO2 guidance for 2026, so this remains unchanged. So far we have only deducted minority interests on project level and this will be unchanged for 2026. For 2027 onwards we will change the reporting, so we will deduct the object minorities from our FFO2 or from our Polish sales results. But this will then lead, on the one side, to a reduction in our Polish sales results next year. But as we expect, based on the IPO proceeds, on the Robic level, a quite strong growth. We think that this dilutive impact only lasts one year. So that means from 2028 onwards, based on stronger growths, even based on a lower stake in Robic, we should have again higher results on our Polish sales business. So therefore, as said, that should be a win-win situation for all the other segments. Page number 24, and that's the final conclusion from the Robic IPO, shows you that now based on a market relation of Robic and of our stake in Robic, We are able also to value as a kind of sum of the parts relation that is the implied market relation for our rental business. So just another example here shown based on the market capitalization at the end of last month. We had a total market capitalization of around 2.6 billion euros deducting the value of our stake at the end of July 2026 in Robic. That's an implied market valuation for our rental business of a little bit more than 2 billion euros only and then comparing that with the upper end of our financial year 2026 guidance for FFO1 that we published today as the more precise outcome of the guidance. We're ending up at a nearly 10% FFO1 yield. So therefore, that should be still a valuation level where an improvement should be possible. So the Robic IPO also makes more visible what our value in this Polish built-to-sell business is and also what then at least the implied market value on the rental business is. So we're operating still on a very high FFO1 yield. And then finally, guidance on page 26. As I said, all guidance for financial year 2026 is confirmed. And after the strong H1 2026 results, we expect now that FFO1 for this financial year is coming up now at the upper end of the guidance range, so more towards the 197 million euros. That's it for me as an overview for the H1 results. Thank you so far for listening, but I'm now very happy to take your questions.

We will now begin the question and answer session. Anyone who wishes to ask a question may press STA and 1 on the touchstone telephone. You will hear a tone to confirm that you have entered the queue. If you wish to remove yourself from the question queue, you may press STA and 2. Participants are requested to use only handset while asking a question. Anyone who has a question may press STA and 1 at this time. The first question comes from Mario Pasto from Bernstein. Please go ahead.

Hi, good morning. Thank you for the presentation and for taking my questions. I've got two from my side. I lost them one by one. Firstly, I think you've allocated, sorry, outlined a few allocation of capital, reallocation options post-Robic. Of course, German Resi acquisitions, they've started, but what are you currently tracking in Poland on the acquisitions front and how should we think about timing here? And then similarly, what about the ramp up of potential build to hold developments now you've got that enhanced capital? I think you were previously ramping this up to around 2,000 unit completions in 2028. Could you, in fact, go faster now?

Yeah, good morning, Marius, and thank you for your questions. That is indeed an option also to ramp up the own constructions and to build the whole segment in Poland. To be honest, the biggest obstacle there is to receive the bidding permits quickly, so that's a kind of pain which is not completely new, so... you should assume that I think we have a land bank for further 6,000 units. As soon as you get the building permits, we will start construction. And therefore we have also more flexibility. So meaning if we get building permits in the next months and quarters faster, I guess we are also happy to start with the construction of more than 2,000 units if possible. So therefore that's the and I said the focus of the future growth clearly building apartments on your own land bank and regarding potential acquisitions in Poland yes of course we keep our eyes open and you can assume that we are in the market and there will be also acquisition opportunities in the future we are hesitating to guiding you or the market towards timing so you should not perhaps expect something in the short term but As we said in the previous course of discussions, if we look at the market, we know that a lot of market participants are on the market with an exit horizon that perhaps is ending 2027, not 2028. So there will be opportunities and we are clearly a natural buyer of these assets. And if we achieve reasonable prices, we are also happy to buy in Poland existing portfolios. Just to make this clear again, the base case, the natural growth is coming from building apartments on your own land bank.

Thank you, that's very clear. And then just switching slightly to the rental growth in Poland, you mentioned some fluctuation here. Can I just double check what caused that reduction quarter to quarter in terms of the actual growth level? and whether we should actually anticipate this trending more in line with that three and a half percent expectation over this year with maybe a bit of a stronger H2 or what are your expectations here?

Yeah, I'm happy to explain this a bit more. So firstly, in Poland we are in an unregulated market. So that means if we need to make estimates about rental growth, Martin Thiel, Dominique Mann A very strong and good rental growth in Poland in the future. So when we look at the average rental growth in the past years, it was perhaps between 3% and 4%. And that should also be a good estimate, good expectation for next two or three years. And now what we have seen, and that's what I tried to explain some minutes ago, that we have more tenants in our Polish portfolio that choose a longer time rental contract, which is good, right? So they're going for a two or three year contract, not only a 12 month contract. And that means the turnover is going down. So we have not any vacancy between tenants. So we're not losing normally a monthly rent for tenant changes. So a very constant rental income. But on the other side, these rental contracts are then normally linked to inflation rates, which are then in Poland below 3% currently, which is also good, but then also, you know, leads to a somewhat lower like for like rental growth in Poland. But again, we are not concerned that we now enter a weaker market phase in the Polish Rental Portfolio, just look at the vacancy rate for all apartments that are on the market since more than 12 months, which is still very, very low at around 2%.

Okay, thank you for the call. Thank you.

The next question comes from Andrew McCrease from Green Street. Please go ahead.

Yeah, hi, Martin. Thank you for the presentation. I also have two questions, please. I'll ask one by one. Firstly, just coming back to capital allocation and as a follow-up from Marius' question, I appreciate your comment at the beginning, Martin, but I just want to follow up here. So as you lay out on page 24, the rental business is trading at a 10% implied FFO1 yield. Would it therefore not just be a better use of capital on an equity return basis to instead just buy back your own shares rather than acquiring in Germany at a gross seven or building in Poland?

Yeah, good morning, Andrew. A share buyback, I would say, is not yet on the table. You're right if you look at current implied valuation, 10%, would point toward a share buyback. But let's look at the next three, four, five years. Yes, perhaps the initial yield from a portfolio acquisition in Germany or from a finished construction of a Polish rental portfolio is lower, but we are convinced that these portfolios provide strong cash flow growth, meaning we will have good rental growth. We will have, perhaps in Germany, from the portfolios that we are acquiring, also a vacancy reduction of the potential. We will also have, especially in Poland, a good value growth. So we're constructing this apartment at a 7% to 8% gross yield. The apartments afterwards valued at a 5.5% or 6% gross yield. So right now, we think carrying out these investments is something that makes sense. Let's hope that the share price is going in the right direction. But as you know, When we have done share buybacks in the past, so that's not excluded. Currently, as you see from my quite long answer, it's not the first strategy we have. Let's observe this and perhaps something to follow up in the next quarters. But, you know, hopefully our current capital allocation strategy is something that can really also lead to a better share price development.

Okay. That's helpful, Carlo. Thank you. And then my second question is just on vacancy in the German business on page 13. You had a reduction contribution of 10 bps to like for like in 1H against the 30 to 50 bps guide for the full year with vacancy itself up 60 bps since year end and 20 quarter and quarter. Correct me if I'm wrong, but I believe vacancy is typically flat between 1 and 2Q in the portfolio. So it would just be helpful, I guess, to understand what the main driver is here. Is it mostly from acquisitions? And then also, are you still confident with the guidance on this line? Thank you.

Yeah, firstly, we are still confident with the guidance on the vacancy reduction. And yes, you're right. Also, the acquisitions that we had had an impact of perhaps 10 basis points. So then perhaps it would not look too much on a less basis point. So that's excluding acquisitions. Vacancy rate is flat, which is, I would say, normal development between the two quarters. So therefore, we're not concerned that this is now going in a different direction. So H2, as in the past years, should also hopefully, in terms of vacancy reduction, be a good, good second half.

OK. That's helpful. Thank you.

The next question comes from John Wong from Van Lanschot Camping. Please go ahead.

Hi. Good morning, Martin. Thanks for taking my questions. I just want to follow up on your comments on potential reapplyment of proceeds. If I look into your acquisitions in Germany at a 7% yield, it comes in quite comparable to your acquisition yields in Poland. So how do you see the risk-adjusted returns from your opportunity set? Because the risk profile is quite different looking at how Germany is regulated and Poland is unregulated.

Good morning, John. You're right. So basically, we are acquiring or building at a quite similar cross-yield. So you can argue, well, Germany as a regulated market is even a lower risk, which is correct. But if you really look bottom line, after CapEx, of course, the Polish portfolio is very strong, right? So it's not only that we have a good EBITDA margin because maintenance costs are more or less zero. and also there's no capex needed. And we are buying in Germany nothing distressed, but as typical for buildings that are, you know, some years old, we have to invest from time to time. That's not needed in Poland. It's all new. So therefore the cash flow, bottom line, is very strong and that should be then something that outweighs the, let's say, a little bit higher risk because it's an unregulated market.

Okay, that's clear. Thank you. And then on your leverage, so the proceeds are going to lower your pro forma LTV to 42%. I appreciate that the target LTV is 45%, but given rate volatility in this market, could you talk about how much firepower you have and how you balance redeploying the proceeds with your leverage?

If I try to keep it really simple, so after the repayment of the debt that is now due in the next weeks, we have a remaining cash position of, call it around, perhaps a little bit more than 400 million euros, out of which, in round numbers, roughly 100 million are available on the OBIG level. That's basically the IPO proceeds, and roughly 300 million euros are available on TARP level. That's basically something that we can use for further investments in the rental portfolio. If we would fully redeploy this into new land bank, new portfolios, then we would end up again at an LCV, which is exactly our LCV target of 45%. So that's what I tried to explain that we have now really flexibility to acquire and to invest, not only from the cash perspective, also from the LCV perspective. but please be sure that we are not getting nervous and try to invest as fast as possible. We of course need to be disciplined and by the way the cash is currently working so most of that is in SlotE where we get 3.7% interest income. If we wait with further debt refinancing we are saving more than 4% interest costs so therefore I think we have some months and quarters to reinvest this into acquisitions that really make sense, into constructions, as I mentioned, on our own land bank for the Polish rental portfolio. But it's good to have this opportunity, that liquidity and equity is there for further investments.

Just to understand it correctly, we'd probably see LTV go back towards 45% in, say, 12 months from now.

That depends, John, on how fast we are reinvesting this. What I try to explain is if we would theoretically reinvest it tomorrow in full, we would still be at our LTV target. Perhaps that's a better way to explain it.

Okay, that's clear. Thank you.

The next question comes from Nicolas Veselier from BNP Paribas. Please go ahead.

Hi, good morning. Hopefully you can hear me. I have two questions. The first one is on your FFO guidance for the year. You've already achieved about 100 million in H1. Arguably, you will have more positive contributions in H2 from the R4R portfolio and potentially some positive contributions as well from your acquisition in Germany. Why not raising the full year guidance given the run rate pace? Then my second question would be on the Poland development to sell business. You are expecting an acceleration of handovers and therefore revenue recognition in H2. It seems like in Germany this has been a common feature of the result seasons across your peers to see some acceleration on on those businesses in H2, but the transactional environment remains difficult there. I was wondering what you're seeing in Poland in terms of health of the development markets and transactional environment this year and going into H2. Thank you.

Yeah, good morning, Niklas. Perhaps I'll start with the second question. An important fact is that from the handovers that we expect to come, especially in the fourth quarter, but also to a larger part in the third quarter already, Most apartments are already sold. So the only risk that we have for the balance sheet is that we really finish construction before the balance sheet date, hand it over, and can realize the profit. So I don't have the exact number in my head, but I assume that's something like 95% of the apartments that we're handing over this year is already sold. So we're not exposed to market risk. We simply need to carry out the construction and hand it over. And that was, by the way, the same situation in the last year or so. We have, regarding this Polish B2C business, always a high visibility. on results for the next, let's say, 12 months. And that's perhaps a difference to a business in Germany where selling apartments in a privatization program, we are really exposed to future sales. Here, these apartments are already sold. And regarding your comment on the FFO1 guidance for 2026, perhaps it's fair to say that it's not aggressive if we say we'll end up at the upper end of the guidance range. But firstly, the acquisitions in Germany, they will kick in mostly or to the very last part in 2027. So closing of these acquisitions will be mostly towards the end of the year. Secondly, it's always good to have a little bit buffer for perhaps higher maintenance costs that are more seasonal in H2. But again, your comment has also a point, so therefore we should be repositioned also for the guidance, even if we say we are coming up at the upper end of the range.

Okay, thank you very much. That's very clear. Have a good day. Thank you.

The next question comes from Thomas Reutheuser from Deutsche Bank. Please go ahead.

Hi, morning. I think I have three questions. The first one is on the Robic IPO proceeds. and Capital Deployment. You say the main focus is on rental business, both in Poland and Germany. Just wondering what's the targeted mix between both countries regarding capital allocation. And the second one is on the REZI for rent portfolio. The first time revaluation puts it at about 7% gross yield, I think, based on my calculations. While your Poland portfolio is valued at much lower yields, just wondering what's the reason for the valuation gap? And my last question is also on Robic. You expect an acceleration of the sales business with the IPO proceeds. So what's the sales run rate you expect compared basically to the previous levels?

Good morning, Thomas. Your first question was regarding the mix of investments in our rental portfolio, whether this is more Germany or Poland. We are really here completely focused on, let's say, the numbers. So we would also be happy to buy in Germany a larger portfolio if the numbers make sense. So if we have something in the size of the Resilfront portfolio in Germany, just as an example, on the market in regions that we know very well at a yield that is on the level that we had now in the last acquisitions of a reasonable construction quality, yes, very happy to buy it. But as I said, We will be selective here and we will be disciplined. And we can be disciplined because we have this natural growth plan from the units that we will construct in our own land banks. So even here, let's call it a theoretical case, we would acquire nothing. We would still grow because we will have these constructions on our own land bank. So we look at both markets. In the last years, investors in Poland have simply given us the better opportunities, like the Resilient for End portfolio, which was looking back for sure a good deal. So we have really now the opportunity to look at both markets, and that's what we will do also in the future. And then we've got the question on the yield for the relative foreign portfolio. Yes, it's correct. We acquired that at a 7.5% gross yield. Relation brings this now close to 7%. The remaining portfolio has a lower yield. Firstly, as I think we explained before, the relative foreign portfolio has also different structures, so smaller apartments, higher turnover, so this will naturally lead to a somewhat high yield. But also to be open, I think we've got also some potential for further valuation uplifts and the next, let's say, one or two valuations, because it's also clear that after you sign such a valuation, you know, you set a kind of market price, so therefore a huge valuation uplift would be something which could be a kind of contradiction to the price that you actually paid. So let's wait the next one or two valuations and let's see what a ready-for-end portfolio in terms of gross yield stands. So there should be further improvement possible. and we will give guidance basically with the next results and also on the sales numbers that we expect in Robic or for our sales business in Poland. For this year, in round numbers, we expect sales of around 3,000 units. There's definitely room to improve that. So Robic has sold, for example, in 2021 more than 4,000 apartments. So why not go back to this, at least in the midterm? So therefore, the market is there and the platform can do more. And that's also why we think that the sale of our stake in Robic will have, perhaps in 2027, just concerning the sales results in Poland, a small dilutive impact. But with the help of the IPO proceeds, the Hobbit business will grow faster and we will have then in absolute amounts a higher profit from our sales business in the future compared to the situation without the IPO. So we are still very much convinced that this sales business in Poland is going very well also in the future.

Thank you.

The next question comes from Ulrike Dauer from Dow Jones News Wires. Please go ahead.

Good morning. Thanks for taking my question. First of all, I would like to know the valuation result. Why did it have in the first half compared to the previous period? And also, are you able to specify net proceeds from the Roebuck IPO? And my last question would be, have you also experienced higher financing costs as some or probably most competitors do right now? Thank you.

Yeah, good morning. Of course, happy to answer the questions. With the valuation results, if you look in the P&L, it is indeed lower than in the first half of 2025, and that's not so much coming from the German portfolio, that's mostly coming from the Polish portfolio, where we saw a stronger valuation uplift of the existing like-for-like portfolio in 2024, 2025, on the back of strong sales price growth, which was important for some two or three years exceptional highs, or this also then was reflected in the valuation. So we have still a positive valuation result in Poland, but lower than that. SA's prices are still growing, but not in the double-digit numbers than in the years before. So that's the reason of the somewhat lower valuation results, which is, again, still positive. The IPO costs, we can give you a rough amount of the total IPO costs that we do. Bank fees, lawyer fees, and so on. You should, in total, so on the public level, on the target level, estimate it is around 10 million euros. So when you're talking about gross proceeds of 282 million, the net proceeds should be roughly around 272 million. And the final question was higher financing costs, and the answer is yes. Also, we see the higher financing costs. Not because of increased margins, to the contrary, if you look, for example, at the development of our bond margins, they're coming down, but the risk-free rates are higher. So we're currently financing for five years, I would say, slightly below 4%. For five years, it's slowly below 4%, and for 10 years, it's slowly above 4.5%. But we have a portfolio with high yields, so 6.6 gross yield and roughly the same yield in the meanwhile in Poland, where we really are able to achieve positive cash flows even in this high interest rate environment. So therefore, we think we're very well positioned even after the increase in interest rates.

Thank you very much. Much appreciated. Bye-bye.

The next question comes from Kai Klose from Burenburg. Please go ahead.

Yes, good morning. I've got a question on the capex investment. It's mentioned somewhere in the H1 report that for the first time you also had capitalized personal expenses in Germany. Could indicate for which segment this was and how much and how much we can expect going forward. Second question was, in general, the mobilization capex increased by about 10 million year-on-year. You mentioned also somewhere in the report it was for large-scale measures. May I also elaborate a bit more what... in which regions and what volumes we can expect going forward. And the last question would be on the LTV calculation. The contribution from joint ventures went down, was it because of the time projects were completed compared to previous year or was there other reasons behind it? Thanks.

Yeah, good morning, Kai. Firstly, perhaps on the capital as a person, because the amount from German business is quite small. So we are now... It's not completely new, but since I would say one or two years, are investing also a little bit more in large immunization measures. So therefore, we started now also to capitalize the cost for people, for our own workforce that are exclusively managing this. So from the technical department, I think in the first half of this year, it was around 500,000 euros. So the very large part of capitalized per se cost is still coming from Poland, where we have a large construction department, where we have the engineers and the architects who are purely working on the processes. So the German contribution is quite low compared to Poland. And then you need to help me regarding your question regarding the LCB. Perhaps you can repeat this again. Yes, sorry. It was something in connection with the joint ventures.

Yes, from JVs, I thought it was lower compared to last year. Was it that some projects you did together in Poland were completed or were there other issues?

In the relevant gross asset values for the ATV calculation, we also report our investments in joint ventures because they are completely project-based joint ventures. And when some investments are completed, so when apartments are handed over, Ladies and gentlemen that was the last question. I would now like to turn the conference back over to Martin Thiel for any closing remarks. Yeah, we can always say many thanks for your questions, many thanks for dialing in into our conference call. As always, if there's anything left, please feel free to contact us. We're very happy to answer additional questions. That's it from our side. Have a good day and looking forward to seeing and speaking to you soon. Bye-bye.

Ladies and gentlemen, the conference is now over. Thank you for choosing Colorado School and thank you for participating in the conference. You may now disconnect your lines. Goodbye.