TAG Immobilien, a German real-estate company, has reported a net loss of 329.8 million euros ($361 million) for the second quarter of this year. This comes as a result of a write-down in the valuation of its German property portfolio.
In contrast, the company had made a profit of EUR260.2 million in the same period last year. The loss is primarily attributed to property-valuation changes, with a loss of EUR451.0 million compared to a gain of EUR274.0 million in the previous year. These changes were caused by significantly increased interest rates, which led to a devaluation of TAG's German real-estate portfolio.
Despite the net loss, TAG's net rental income for the quarter saw growth, increasing from EUR69.0 million to EUR74.2 million.
However, funds from operations I, one of the company's preferred metrics, fell to EUR89.1 million for the first half of this year. This is a decrease from EUR96.2 million in the same period last year, primarily due to higher refinancing costs.
TAG Immobilien has stated that all its forecasts for 2023 remain unchanged.
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