TAG: Best Idea 3Q26 - Superior growth prospects yet to be reflected; Outperform

研报英文原文证据摘录

TAG: Best Idea 3Q26 - Superior growth prospects yet to be reflected; Outperform

Marios Pastou +44 20 7676 6881 marios.pastou@bernsteinsg.com 17 July 2026

DETAILS

TAG - INVESTMENT SUMMARY

TAG’s core German residential portfolio is complemented by compelling growth opportunities in Poland, where it has established

itself as the leading Private Rented Sector (‘PRS’) landlord through a combination of development activity and acquisitions. The

recent re-IPO of its Polish housebuilding business, ROBYG, will accelerate growth and the crystallisation of the attractive returns

embedded within its extended landbank. We view TAG as more than just a bond proxy, offering an above-average earnings and

total return profile supported by both organic and inorganic growth as management deploys excess liquidity now that leverage

has returned to target levels. We think the group is well positioned across both of its key markets: affordable rental housing in East

Germany, where acute supply-demand imbalances and rent controls provide a runway for multi-year rental growth, and Poland’s

largest cities, which offer attractive growth dynamics. While TAG has outperformed peers in recent years, we believe the

recent share price weakness is unwarranted given the strength of its growth prospects. Reiterate Outperform.

Firing on all cylinders - three levers of growth (beyond the existing portfolio)

While many peers remain focused on disposals to reduce leverage, TAG has returned to growth mode across all business segments

creating multiple avenues for earnings expansion and value creation: 1) Net acquisitions in Germany: TAG resumed acquisitions

last year at double-digit yields, targeting smaller bolt-on portfolios with asset management potential. We expect further