Aareal reports less new business and high margin

09/05/2019

Aareal Bank generated significantly less new business in the first quarter. Following €1.45bn in Q1 2018, in this year’s period the real estate financier granted loans for €812mn, €323mn of which were extensions. North America accounted for almost one third of the total, while Germany accounted for only 3%. The Wiesbaden-based company achieved a respectable pre currency hedge margin of 250 basis points. However, Aareal does not expect to be able to maintain this level for the entire year, and predicts an average margin of 180 to 190 basis points. The group operating result was €61mn, slightly below the previous year’s period (€67mn) but in line with planning. Aareal’s net interest income €135mn slightly exceeded last year’s figure. Aareal’s Management Board says that these figures are in line with guidance for the fiscal year.


TD Premium

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.