Gagfah successfully refinanced a $1bn loan in January amid a move to sell off rental apartments to help pay down debt, Reuters said.
But that decision saw profit from its rental properties drop 2.5 per cent in the first quarter compared to the same period in 2012, Bloomberg added.
GAGFAH is the largest German listed owner-operator of residential real estate in Germany.
The company’s core business is the ownership and management of a geographically diversified apartment portfolio acquired from the German Government and other long term owners.
Fortress took the company public in 2006.
The firm itself posted strong results for the first quarter of 2013 thanks to the “outstanding performance” of its private equity business.
During the quarter, the value of Fortress’ private equity portfolio rose 5.2 per cent which was largely due to the performance of some publicly traded portfolio companies.
They included Nationstar and Brookdale, which saw their share price climb 19 per cent and 10 per cent respectively, as well as Penn National Gaming with growth of 8 per cent.
At the end of the period all of the firm’s private equity funds were valued at or above cost and had a combined multiple of 1.4 times.
Copyright © 2013 AltAssets