TAG increases FFO by 12%, existing tenants pay 1.3% more
The residential investor TAG Immobilien increased its operating profit (FFO I) in the first quarter by 12% year-on-year to €39.5mn. This was based on its acquisition of around 2,500 apartments which took effect at the end of 2018, in addition to ongoing rental growth and refinancing. Net rents of the 84,000 units in the portfolio experienced a 4% year-on-year increase to €78.6mn, or a like-for-like increase of 2.8%. This increase is the result of effects from reduced vacancies (0.5 percentage points), rent increases for existing tenants (1.3 percentage points) and higher rents for incoming tenants (0.9 percentage points). Rent increases for existing tenants due to the modernization surcharge contributed only 0.1% to rental growth. Bottom line: consolidated net income rose by 25% year-on-year to €33.3mn.
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