The average rents at the real estate giant are rising. At the same time, a revaluation of the real estate portfolio ensures an increase in value worth billions.
The real estate group LEG continues to benefit from the housing shortage in many German cities. Increased net cold rents and a significantly lower vacancy rate made it possible for the group to significantly increase earnings again in the first half of the year, as LEG boss Lars von Lackum reported on Wednesday.
In addition, a revaluation of the real estate portfolio in the first half of the year resulted in an increase in value of 1.1 billion euros or 7.5 percent.
In the second quarter, LEG’s operating profit grew by 13.4 percent year-on-year to 114.1 million euros. The rent on a like-for-like basis rose by 3.5 percent to an average of EUR 6.09 per square meter in the reporting period. Rents have been rising for years, especially in large cities, but many medium-sized cities are also catching up strongly. For the full year, the group now expects operating profit from ongoing business to be at the upper end of the forecast range of 410 to 420 million euros. In the previous year, LEG had achieved an operating profit of around 383 million euros.
According to the company, around 200 of the Group’s 145,000 rental apartments were damaged by the catastrophic floods in Rhineland-Palatinate and North Rhine-Westphalia – especially in Bad Neuenahr / Ahrweiler. A total of 35 residential units are not yet habitable again. “The financial burdens on LEG from the flood are low, as we are fully insured against natural hazards,” said Lackum.
The group is currently doing everything it can to soon be able to offer the tenants in the affected locations a home worth living in again. The LEG foundations have also set up a flood emergency aid fund for those affected who lost their belongings in the floods, initially amounting to 250,000 euros.
Jane Stock is a technology author, who has written for 24 Hours World. She writes about the latest in technology news and trends, and is always on the lookout for new and innovative ways to improve his audience’s experience.
