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UPDATE 1-Deutsche Wohnen says first-quarter FFO almost doubles
May 14, 2014 / 6:14 AM / 4 years ago

UPDATE 1-Deutsche Wohnen says first-quarter FFO almost doubles

* Says Q1 funds from operations increased to 59.1 mln euros

* Says Q1 group profit rose 74 percent to 45.5 mln euros

* Maintains full year outlook (Adds comment, detail, background)

FRANKFURT, May 14 (Reuters) - German property group Deutsche Wohnen reported a better than expected 91 percent rise in first-quarter funds from operations (FFO) on Wednesday on the back of high demand for residential space.

The group, which took over rival GSW for 1.8 billion euros ($2.47 billion) at the end of last year, manages more than 150,000 residential homes mainly in Berlin.

Funds from operations in the first three months of 2014 rose to 59.1 million euros, while analysts polled by Reuters had expected a result of 53.3 million euros. In the same period last year the company reported FFO of 30.9 million euros.

Group profit increased by 74 percent to 45.5 million euros following the GSW takeover, said Deutsche Wonen, Germany’s second biggest property company behind Deutsche Annington .

“The integration of the GSW Group is proceeding positively and therefore well on track,” the group said in a statement, maintaining its outlook for a full-year FFO excluding acquisitions and disposals of at least 210 million euros, up from 115 million euros in 2015.

Analysts view the German residential property sector as very attractive at a time of scarce alternatives for investment returns which are inflation proof.

In the first three months of the year the German residential property market’s transaction volume tripled to 5.6 billion euros, the highest quarterly sales level since the financial crisis took hold in 2008, according to data from real estate consulting firm CBRE. ($1=0.7296 euros) (Reporting by Kirsti Knolle; Editing by Noah Barkin and Greg Mahlich)

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