Oct. 10 (Bloomberg) -- Gagfah SA 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 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 email@example.com
To contact the editor responsible for this story: Andrew Blackman at firstname.lastname@example.org