| Valuation method | Value, € | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | n/a | n/a |
| Intrinsic value (DCF) | n/a | |
| Graham-Dodd Method | 41.61 | 39 |
| Graham Formula | 17.92 | -40 |
TLG Immobilien AG is a leading German commercial real estate company specializing in office, retail, hotel, and mixed-use properties. Headquartered in Berlin, the company focuses on prime locations in Germany, offering a diversified portfolio that includes high-quality assets in major cities. As a subsidiary of Aroundtown SA, TLG benefits from strong financial backing and strategic synergies within the real estate sector. The company's core activities encompass property leasing, management, acquisition, development, and sales, ensuring a steady revenue stream from rental income and capital appreciation. With a portfolio that includes seven hotels, TLG caters to both corporate and leisure markets, enhancing its resilience to economic fluctuations. Operating in the competitive German real estate market, TLG Immobilien AG stands out for its prime locations, strong tenant relationships, and disciplined asset management. Investors looking for exposure to Germany's stable commercial real estate market will find TLG an attractive option due to its solid fundamentals and strategic positioning.
TLG Immobilien AG presents a compelling investment case due to its strong portfolio of prime German commercial real estate assets and stable rental income streams. The company reported robust financials for FY 2020, with revenue of €269.8 million and net income of €491 million, reflecting strong profitability. A diluted EPS of €4.8 and a dividend payout of €5.48 per share indicate shareholder-friendly policies. However, investors should note the company's high beta (1.5), suggesting higher volatility compared to the broader market. The real estate sector is sensitive to interest rate fluctuations and economic cycles, which could impact TLG's performance. Additionally, while the company maintains a healthy cash position (€524 million), its total debt of €898 million warrants careful monitoring. Overall, TLG is well-positioned in Germany's stable commercial real estate market but carries sector-specific risks.
TLG Immobilien AG competes in Germany's highly fragmented commercial real estate market, where prime location assets and tenant diversification are key differentiators. The company's competitive advantage lies in its strategic focus on high-demand urban centers, ensuring stable occupancy rates and rental income. As a subsidiary of Aroundtown SA, TLG benefits from economies of scale and access to capital, enabling it to pursue value-accretive acquisitions. However, the German real estate market is crowded with both domestic and international players, increasing competition for prime assets. TLG's hotel segment adds diversification but also exposes it to cyclical hospitality industry risks. The company's disciplined asset management and strong balance sheet provide resilience, but it must continuously adapt to evolving tenant demands, particularly in the post-pandemic office and retail sectors. Compared to peers, TLG's mid-sized portfolio may limit its bargaining power with large institutional tenants, though its focus on quality over quantity mitigates this risk. Sustainability and ESG compliance are becoming critical in real estate, and TLG must invest in green building initiatives to remain competitive.