Â鶹ӳ»­

Listed German housing landlord LEG Immobilien has increased its earnings outlook for 2015 and 2016 following a ‘continued strong operating performance’ in the second quarter.

The acquisitive Dusseldorf-based group has raised its funds from operations (FFO) outlook to a range of €200 mln to €204 mln for 2015 (previously €195 mln to €200 mln) and to a range of €233 mln to €238 mln for 2016 (previously €223 mln to €227 mln). FFO rose by 24.3% to €101.4 mln in the first half compared with the year-earlier period.

LEG, which has acquired around 6,300 housing units so far this year, said the revised prognosis does not yet factor in any positive effects anticipated from future acquisitions.

Rental income increased by 13.7% year-on-year to €214.8 mln in the first half, reflecting positive effects from the acquisitions concluded and organic rent growth. Rents per square metre rose 2.6% on a like-for-like basis, with the free-financed property portfolio recording growth of 3.5%.

‘Our strategy of value-oriented growth is again proving successful, with our operating performance continuing to outperform the market,’ commented Thomas Hegel, CEO of LEG Immobilien. ‘Following the purchase of around 6,300 residential units this year, we are working on further acquisitions. In addition, the financing we have secured for the long term has also strengthened our basis for generating further attractive earnings and dividend growth.’

In July 2015, LEG refinanced around €900 mln of loans, securing an average loan maturity of around 10 years and average financing costs of less than 2.1%. ‘Very attractive margins for the long loan maturity of less than 100 basis points on average were negotiated with the banks, demonstrating LEG’s good positioning on the financing market,’ the company said.

LEG is one of Germany’s leading housing companies with around 110,000 rental properties and 300,000 tenants located primarily in the North Rhine Westphalia region.