TAG: Profit sinks despite more FFO


TAG Immobilien had good operating results for the first half of the year. Total rental revenues rose from €125.6mn to €130.5mn, and with respect to continuing operations, rental income increased from €115.1mn to €122.0mn. Earnings before taxes (EBT) from continued residential real-estate business rose from €21.7mn to €26.0mn. FFO excluding sales also grew from €31.5mn to €41.7mn, allowing the managing board to reconfirm its €90mn forecast for the full year. Nevertheless, the company’s net profit fell from €26.4mn to €14.2mn in view of higher income taxes and discontinued commercial property operations that generated a net loss of €3.3mn. Causes are impairment losses on derivatives, while the deconsolidation of TAG Gewerbeimmobilien GmbH brought in a profit of €1.0mn. Through this sale and the newest corporate bond, TAG has €250mn available for purchases. On the other hand, CEO Rolf Elgeti wrote that “we do not rule out the possibility that we will seize more opportunities to sell residential inventory.” Reports suggest he even wants to sell the whole company.

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