DÜSSELDORF (dpa-AFX) - Real estate group LEG benefited from increased rents in the first quarter, with income from them climbing more than targeted for the full year. In the three months from January to March, rental income on a like-for-like basis was 3.8 percent up on the same period last year at 6.43 euros per square meter, the MDax-listed company announced in Düsseldorf on Wednesday. For the full year, a 3.3 to 3.7 percent increase is included in the plans of company CEO Lars von Lackum.

In the morning, the share price rose by almost one percent to 52.82 euros, making it one of the strongest performers in the MDax. However, like other real estate stocks, the share was one of the biggest losers on the German stock market in recent months due to the turnaround in interest rates. For example, LEG real estate shares have plummeted by more than 60 percent since their record high of almost 140 euros in the summer of 2021.

The company's key earnings indicator AFFO (cash flow from operating activities adjusted for capitalized investments) climbed 7.6 percent to EUR 54.9 million. However, the figure cannot be extrapolated on a one-to-one basis for the year due to seasonal effects, it said. LEG is aiming for AFFO of between 125 and 140 million euros for the year as a whole. Management thus confirmed its forecast for the year.

Net rental income rose by a total of 4.5 percent to a good 206 million euros. However, profit from letting and leasing fell by 10.3 percent to 135.4 million euros. The main reasons for this were, among others, the decline in value-added services and higher maintenance expenses. Higher interest rates and lower earnings from financial transactions caused net profit to plummet by almost 38 percent to 96.3 million euros.

Meanwhile, the real estate group is making progress with its planned sale of apartments. Despite the pronounced buying restraint in the residential real estate market, LEG sold an average of 434 units in eastern Germany at book value in the first quarter, the company said. LEG plans to sell a total of more than 5,000 apartments. This includes around 1300 units from the Adler portfolio purchased in 2021. Like other companies in the sector, LEG intends to use the proceeds from the property sales to reduce its debt./mne/men/tav