Gagfah SA (GFJ), the biggest residential landlord in Germany, said first-quarter funds from operations fell after the company raised less money from property sales.
FFO declined to 26.4 million euros ($34 million), or 13 cents a share, from 54.1 million euros, or 24 cents, a year earlier, the Luxembourg-based company said in a statement after the market closed yesterday. Gagfah won’t pay a dividend for the quarter.
Gagfah, controlled by Fortress Investment Group LLC (FIG:US), sold about 4,800 apartments in Berlin to GSW Immobilien, another German real estate manager, in November. The company plans to sell as many as 38,000 apartments, about a quarter of its holdings, two people with knowledge of the matter said May 3. The homes are valued at about 1.8 billion euros.
First-quarter net income declined to 11.2 million euros, or 5 cents a share, from 24 million euros, or 11 cents, a year earlier. Rental income dropped to 198.9 million euros from 209.4 million euros.
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