LUXEMBOURG (dpa-AFX) - Aroundtown subsidiary Grand City Properties has benefited from strong demand for residential space in the first nine months of the year. Net rental income rose by four percent to 307.5 million euros by the end of September, as the SDax group announced in Luxembourg on Wednesday. However, higher financing costs weighed on the operating profit (FFO1) in the reporting period. The real estate group confirmed its targets for the year as a whole.

In the first nine months, the operating result (FFO 1) fell by two percent year-on-year to EUR 141 million. At the bottom line, the real estate group made a loss of almost 398 million euros due to a lower revaluation of the real estate portfolio. In the same period of the previous year, Grand City Properties reported a profit of just under 273 million euros./mne/stk