TAG Immobilien AG (TEG) said first-quarter profit soared and raised its forecasts for 2012 after the German real-estate company bought a Bayerische Landesbank real-estate unit.
Net income rose to 88.3 million euros ($114 million), or 95 cents a share, from 10.6 million euros, or 16 cents, a year earlier, the Hamburg-based company said in a statement today. TAG increased its pretax profit forecast to 140 million euros from 75 million euros.
In March, TAG agreed to buy DKB AG Immobilien from Bayerische Landesbank for 160 million euros and said the deal would more than double its portfolio to about 56,000 homes. Rental income for the first quarter rose to 34.4 million euros from 24.4 million euros, TAG said today.
“Enlarging our portfolio will help us to realize additional economies of scale,” the company said in the statement.
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