TAG raises rents by 3% and profit by 7%
The real estate company TAG increased its FFO by 12.7% to €80.3mn and its consolidated net profit by 7% to €233.7mn in H1. This was helped by a improved financial result (resulting from new promissory note loans) and a 4.4% increase in rental income to €157.3mn. Like-for-like, rental growth amounted to 3.0% (2.5% excluding the effects of vacancy reduction). CBRE carried out a mid-year revaluation of the 84,300 unit real estate portfolio, resulting in a €211.4mn valuation gain to €5.06bn. TAG has closed four deals since April, acquiring 972 apartments in Mecklenburg-Western Pomerania, Saxony-Anhalt and Thuringia (predominantly in Greifswald, Halle and Stralsund). These have an average vacancy rate of 11%. The total purchase price was €36.2mn, corresponding to a multiplier of 11.8. The company sold no assets in the first half of the year.
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