TAG Immobilien’s results are continuing to improve thanks to rising rents in Germany’s cities. The company’s operating result rose year-on-year for the first half of the year by 8 percent to €86.5 million. For the entire year, its current forecast projects an increase of between €168 million to €170 million. This increased profit target was well received by investors, which sent the company’s share price 5 percent on the news. Falling share prices during the pandemic have been relegated to the past, as the company recently acquired around 4.200 apartments in Merseburg, Plauen, Gotha and Magdeburg. Rents rose 1.5 percent during the first six months of 2020 to €159.7 million, though the group’s overall result fell 9 percent to €212.8 million due to a lower valuation gain. There’s also concern over the rising wave of protests against rental increases as political pressure is forcing elected bodies to make the environment more difficult to operate in.
