FRANKFURT (dpa-AFX) - Shares in German real estate companies failed to defend their initially clear gains on Friday. The papers of LEG, which had risen by up to 1.6 percent following an "outperform" recommendation by investment bank Oddo BHF, were last just able to hold on to a gain of 0.1 percent. At the same time, the MDax fell by almost one percent.

In his study, Oddo BHF expert Manuel Martin was encouraging about developments in the German residential real estate market. Although the interest rate environment continues to create headwinds, prices appear to be stabilizing. This should support LEG's efforts to reduce debt levels via disposals. In his view, price gains should be in the cards for investors in the medium term.

With some exceptions, the fluctuations as with LEG at the end of the week also applied to other residential real estate stocks. Vonovia from the Dax had slipped on Friday after comparatively good price performance this week with a minus of one percent, but the papers of TAG Immobilien held just as LEG in the plus.

Also conspicuous on Friday, the shares of commercial real estate specialist Aroundtown. In the summer, they had temporarily become a penny stock, but now they continued their recovery with plus two percent to 2.10 euros. Here, too, an analyst was active on Friday: with a new rating of "Neutral", the French investment bank Exane BNP abandoned its previously negative assessment.

Aroundtown is among the mentioned shares the only one for which in the year to date a minus of about four percent is still on the books. LEG and Vonovia have recently been posting moderate positive gains of up to 2.4 percent, while TAG Immobilien has been the big seller this year with a 64 percent annual increase./tih/ag/ngu/men