TAG Immobilien Joins German Mid-Cap Index After Value Climbs
TAG Immobilien AG (TEG), Germany’s third- largest publicly traded residential landlord, was admitted to the MDAX Mid-Cap Index after its market value rose 66 percent this year. The shares rose as much as 1.9 percent.
The residential and office landlord had been the largest German real-estate company not included in the index. The company expanded its market value to 769 million euros ($970 million) through the 160 million-euro purchase of DKB Immobilien AG in March and a share sale that raised 127 million euros.
“Being a member of the MDAX lets TAG address a bigger investor community, not just in Germany, but on a pan-European basis,” said Kai Klose, an analyst at Berenberg Bank. Joining the index will also make it easier for TAG to raise capital to finance future acquisitions, Klose said.
TAG rose about 21 cents, or 2.7 percent, to 7.98 euros at the 5:30 p.m. close in Frankfurt, giving the company a market value of 789 million euros. The shares have advanced more than 30 percent this year.
Deutsche Boerse decides which stocks to include in its indexes based on criteria such as market value and trading volume. TAG has the 35th highest market value among German medium-sized companies excluding technology firms and ranks 52nd in 12-month trading volume. The stock will begin trading on the MDAX on Sept. 24.
To contact the reporter on this story: Dalia Fahmy in Berlin at firstname.lastname@example.org