Gagfah SA (GFJ) rose the most in a year after the second-largest owner of German homes said it had completed most of the refinancing on a 2.1 billion euro ($2.7 billion) loan due in August.
Gagfah climbed as much as 6.5 percent in Frankfurt trading, the most since March 28, 2012. The shares were up about 4.9 percent at 9.46 euros at 1:22 p.m. in Frankfurt trading, lifting its market value to 1.95 billion euros.
The company has signed term sheets for five of six portions of its German residential funding loan, according to an analyst presentation posted today on its website. The final part will probably be a 700-million euro commercial mortgage-backed security with a weighted average maturity of seven years, Gagfah Chief Financial Officer Gerald Klinck said on a conference call today.
“A successful refinancing will drive the share price in the short term,” Kai Klose, an analyst at Berenberg Bank, said in a note today. “Gagfah is making good progress in its efforts to reposition the company.”
Gagfah in the past year has focused on reducing its debt, with 3.4 billion euros of debt maturing in 2013. In February, Gagfah got a five-year, 1 billion-euro loan from Bank of America Corp. to refinance debt that would have matured in May.
Gagfah has gained about 60 percent in the past 12 months, making it the second-best performer on the FTSE EPRA NAREIT Index of German property stocks, which has gained 21 percent.
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