Gagfah Gains Most Since August on Debt Finance: Frankfurt Mover

Gagfah SA (GFJ) rose the most in almost two months in Frankfurt trading after the company said it will repay most of its debts due in 2014 after obtaining more than 1 billion euros ($1.35 billion) of financing.

Gagfah was up 4.1 percent to 10 euros at the 5:30 p.m. close of trading in Frankfurt, the fourth-biggest gain in the 50-member MDAX Index for medium-sized companies.

Gagfah, which faced more than 1.5 billion euros of debt repayments in 2014, said in a statement yesterday that it had issued a 700 million-euro commercial mortgage-backed security, extended an existing 200 million-euro credit and obtained a 145 million-euro loan. The measures help reduce the debt due next year to 445 million euros.

Deutsche Bank AG (DBK) raised its profit forecast for Gagfah because of the refinancing in a report published today and predicted the company would raise its guidance “shortly.” Analysts Markus Scheufler and Martin Allen increased their estimate for funds from operations, a measure of a property company’s ability to raise cash, to 86 cents in 2014 from 81 cents.

Deutsche Bank, which owns about 1 percent of Gagfah shares according to data compiled by Bloomberg, has a buy rating on the German landlord.

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

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

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