GSW Immobilien AG (GIB), Germany’s fourth-largest residential landlord by market value, said funds from operations rose 13.4 percent after the company added apartments and rents in Berlin climbed.
FFO excluding sales, a measure of a property company’s ability to generate cash, increased to 64.2 million euros ($83 million) or 1.35 euros per share, from 56.6 million euros or 1.44 euros a share a year earlier, the Berlin-based company said in a statement today. The company had forecast FFO of 61 million to 64 million euros. An average of 5 analysts surveyed by Bloomberg forecast FFO of 1.28 euros a share.
GSW owns 60,000 apartments, mainly in Berlin, and is benefiting from rising rents as the population in the German capital grows. The company added 7,000 apartments this year.
The number of households in Berlin rose 13 percent to almost 2 million in the 10 years through 2011, according to the latest census. Rents gained about 8 percent in 2012 and 26 percent in the past five years, according to online broker ImmobilienScout 24.
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