Hamburg-based TAG Immobilien said its revenues rose 37% to EUR 80 mln in the first nine months of 2008 compared to EUR 50 mln in the same period last year.
Hamburg-based TAG Immobilien said its revenues rose 37% to EUR 80 mln in the first nine months of 2008 compared to EUR 50 mln in the same period last year.
The firm said the revenue increase was accompanied by a 'disproportionately strong' 44% increase in rental income from EUR 26.5 mln to EUR 38.2 mln. This was largely due to the addition of the cashflow-heavy commercial portfolio from Siemens and a residential portfolio from VBL, as well as a reduction in vacancies and rental increases. At EUR 44.4 mln, gross profit for the period under review remained steady at the year-ago figure despite the reduced fair value remeasurement gains.
TAG said the banks' substantially more restrictive lending practices had started to affect potential buyers’ ability to arrange finance in the third quarter, causing delays in transactions. 'Given the crisis afflicting the financial markets and the fall-out for the real economy, the company is currently unable to issue any reliable forecasts for 2008,' said CEO Andreas Ibel.
TAG Immobilien is listed on the SDAX in Germany and has EUR 886 mln of assets under management.
