(Corrects Charlton’s title in first paragraph of story published yesterday.)
Gagfah SA (GFJ), Germany’s biggest residential landlord, may sell its 38,000 apartments in Dresden to help pay debt due next year, Chief Executive Officer Stephen Charlton said.
“That’s a portfolio we clearly have to do something about, and that something could be refinancing or selling,” Charlton said on a conference call today. “We have not decided to sell, we’re just considering that as one of a number of possibilities.”
Dresden is Gagfah’s biggest market, accounting for about a quarter of the total portfolio value, or 1.8 billion euros ($2.3 billion), according to the company’s website. The properties belong to Gagfah’s Dresden Woba unit, which bought them from the local government in 2006.
Gagfah, controlled by Fortress Investment Group LLC (FIG:US), has about 3.3 billion euros of debt maturing next year. 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, the Luxembourg-based company said in a statement after the market closed yesterday.
Gagfah was down 0.8 percent at 6.73 euros at the close of trading in Frankfurt. The stock has fallen 14 percent over the last 12 months, giving company a market value of about 1.49 billion euros.
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