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.

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.