LEG increases FFO by 9.3%, intends more new construction
The North Rhine-Westphalia-based residential investor LEG earned €171.0mn in operating income in the first six months of the year, increasing FFO 1 by 9.3% year-on-year. The FFO full-year forecast of €338mn to €344mn is confirmed. Actual rent on comparable space increased by 2.9% to an average of €5.77/sqm in H1 with hardly any change in vacancy levels. The revaluation of the real estate portfolio, worth €11bn, yielded a profit of €550mn. As part of portfolio optimization, 2,700 residential units at locations with higher investment needs were sold to Velero for just under €150mn. The funds released are to be reinvested in acquisitions, such as the very recent purchase of more than 1,000 residential units. LEG CEO Lars von Lackum affirms that acquisitions will continue to be an important component of the business model. However, the company plans to increase new construction activity in the future.
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