Nov. 6 (Bloomberg) -- Deutsche Annington Immobilien SE, the German residential landlord that sold shares to the public for the first time in July, said nine-month profit rose 41 percent after interest payments fell.
Funds from operations excluding divestments, a measure of a property company’s ability to generate cash, climbed to 163.4 million euros ($221 million) from 115.7 million euros a year earlier, the Bochum-based company said in a statement today. The company plans to make acquisitions to boost its profitability, Chief Executive Officer Rolf Buch said on a conference call with reporters today.
“Annington is very active in this market again, and we’re happy to buy portfolios bigger than 5,000 units,” Buch said. The company will only make acquisitions if they don’t hurt its credit rating and enhance its FFO and net asset value, he said.
Borrowing costs declined in the quarter after Deutsche Annington restructured its GRAND commercial mortgage-backed security. The company owns 180,000 apartments in cities including Berlin and Cologne, making it Germany’s largest residential landlord.
Interest payments on Deutsche Annington’s debt fell to 166.3 million euros from 201.9 million euros a year earlier.
Net income more than doubled in the first nine months to 469.2 million euros, or 2.25 euros a share, from 183.2 million euros, or 92 cents, a year earlier, Deutsche Annington said. Rental income was little changed at 546.1 million euros.
The landlord repeated that its FFO for the whole year will be at the upper range of 210 million euros to 220 million euros.
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