Aareal exceeds even raised target in new business
Aareal Bank had just raised its new business target for 2018 in November, from between €7bn and €8bn to between €8bn and €9bn. That mark was ultimately exceeded with €9.5bn, as the Wiesbaden-based real estate financier released this morning. A substantial portion of the new business (39 %) was transacted in the USA, while the German portion shrank from 15 to 9 %. The average gross margin of all new loans exceeded expectations at 210 basis points. The group’s operative earnings of €316mn were within the communicated target range, though at the lower end. For 2019 the bank is expecting operative group earnings of €240mn to €280mn, which would correspond to the previous year’s figures not including the one-off effect of the Düsseldorf Hyp takeover. New business is anticipated to drop back to between €7bn and €8bn in 2019, which is expected to be a more difficult year. The bank will “again focus in part on the US market with its strong margins.”
Subscribers to our premium service have access to this article in full as well as to an additional 510,000+ news items: all filterable by topic, company, asset class, city or keyword. In TD Premium you can search for investment deals, leases, current project developments and company news with pinpoint accuracy.
TD Premium is Germany’s leading property information tool that interconnects news, transactions, project data, market and company information in a unique and flexible system.