Gagfah FFO Falls After Company Raises Less From Property Sales

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), 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.

To contact the reporter on this story: Dalia Fahmy in Berlin dfahmy1@bloomberg.net

To contact the editor responsible for this story: Andrew Blackman at ablackman@bloomberg.net.

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