GSW's Zinnöcker to head Gagfah

Germany's largest listed residential property company Gagfah has appointed Thomas Zinnöcker as its new CEO.

He replaces Stephen Charlton who leaves Gagfah on 15 April. Zinnöcker recently stepped down from GSW, another listed specialist in German residential property.

The appointment coincided with Gagfah's earnings presentation. On Friday, Gagfah reported funds from operations fell 5.8% in 2012 as rental income fell to €385.5 mln in 2012 from €419.6 mln a year earlier. However, net income swung back into the black to €43.2 mln compared with a loss of €16.4 mln a year earlier.

Gagfah - which has €7.7 bn of property under management - is controlled by US-based Fortress Investment Group. In a statement, Gagfah chairman Jonathan Ashley said Charlton was leaving 'after bringing the company back on track and solving some key challenges'.

The residential property company faced €3 bn of debt maturities in 2013 and a legal wrangle with the City of Dresden. But during 2012 the company under Charlton settled the law suit with Dresden and refinanced its €1 bn WOBA portfolio. It also made 'substantial' progress on refinancing its German Residential Funding (GRF) loan by splitting it into separate pools that will be refinanced individually.

Ashley: 'For the next phase of Gagfah's development, however, the next logical step was to hire a CEO who is best in class in the German residential market. We are delighted we were able to attract an expert of the calibre of Thomas Zinnöcker. He is one of the most successful and respected leaders in the sector.'

Zinnöcker acknowledged that Gagfah has experienced some turbulence of late. 'But now the key issues are solved, and I see some headroom to create a sustainable business model,' he added.

Gagfah portfolio comprises over 145,000 rental units and an additional 13,000 apartments nationwide that are managed for third parties with a total value at €7.7 bn.

GSW is the fourth latest residential property company by market value in Germany. Its portfolio has a market value of €3.3 bn.

For 2012, GSW reported consolidated net income improved by 36.3% to €143.3 mln and net operating profit (EBIT) increased by 21% to €214.4 mln. Funds from operations increased by 13.5% to €64.2 mln. Net Asset Value (EPRA) increased from €29.72 to €30.21 per share.

Key events during 2012 included a capital increase, the placement of a convertible bond and the acquisition of 7,000 apartments.