LEG Immobilien increases FFO and makes acquisition
LEG Immobilien increased its FFO in H1 by 5.1% to €148.8mn. Excluding additional expenditures for higher maintenance measures brings the FFO increase to 7.6%. Actual rent on a like-for-like basis rose by 2.7% to €5.54/sqm. LEG expects rental growth to accelerate further and to reach 3.0% for the year overall. LEG is also benefiting from strong valuation gains: the portfolio was revalued mid-year by €383.9mn, or 4.1%. The company also announced that it is about to conclude a purchase agreement for 3,750 residential units located in various cities in North Rhine-Westphalia. Due to initial investments, the portfolio will not have a noticeably positive effect on earnings until 2020.
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