22.01.2010

Recovery for former whipping boys

In 2009, most of the major German real estate shares appreciated in value. Shares, which had gone to rack and ruin in 2007 and 2008, performed particularly well.

“Rolfinator will put things straight” was the word on the street when Rolf Elgeti took the helm at Hamburg-based TAG Immobilien AG in mid-2009. Like many others in the sector, the company had hit troubled waters in the wake of the financial crisis. Write-downs on its property portfolio and concerns regarding the viability of its financing structure dominated discussions about the company.
If one takes the performance of the share price in 2009 as an indicator, “Rolfinator” seems actually to have made a good job of it. With growth of 126.1 per cent, shares in TAG Immobilien top the performance rankings of major German real estate shares (shares listed in the M- and S-DAX as well as the two German REIT-AGs).
The two stock exchange heavyweights IVG Immobilien and Deutsche Euroshop rank at the bottom end of the scale. While the sector’s former No. 1 IVG is still in the midst of restructuring and refocusing its strategy, operations at Deutsche Euroshop are largely stable. Unlike most real estate shares, shares in the shopping centre specialist did not lose quite so much in value in 2007 and 2008. In the light of the massive losses during the previous two years, shares have risen in most companies.

Movement in share prices in 2009
(Closing price 2009 compared with closing price 2008)

Alstria Office REIT-AG    +51.5 %
Colonia Real Estate       +52.1 %
Deutsche Euroshop:      -2.6 %
Deutsche Wohnen:       +20.7 %
DIC Asset:                     +31.0 %
Fair Value REIT-AG        +12.4 %
Gagfah                          +58.5 %
Patrizia Immobilien:      +87.7 %
TAG Immobilien:            +126.1 %

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