Positive contribution: Vonovia’s share increases: thanks to Deutsche Wohnen, Vonovia achieves significant operational gains | news

The Group benefited from the positive contribution of the newly acquired majority stake in the Berlin-based residential real estate company Deutsche Wohnen. The DAX group was also able to significantly increase the FFO indicator, which is relevant for the dividend. There was a small loss after taxes and third parties, mainly due to an impairment by reversal of the value of the portfolio.

Vonovia SE confirmed its full-year guidance for sales, FFO and adjusted earnings before interest, tax, depreciation and amortization (Total Adjusted EBITDA). These should increase by at least 20% compared to the previous year.

During the period from January to March, the residential real estate group generated a total adjusted EBITDA of almost 730 million euros. Deutsche Wohnen contributed 172.3 million euros. Including Deutsche Wohnen the year-on-year increase was around 44%, excluding Deutsche Wohnen 10%.

The most important indicator FFO (funds from operations) increased from 391 million to 564 million euros; The FFO per share amounts to 0.73 EUR after 0.65 EUR. Deutsche Wohnen contributed 143.5 million to FFO.

After taxes and third parties, the loss amounted to 64.7 million euros, after a profit of 234.7 million the previous year. Total sales increased from 1.146 billion to 1.633 billion euros.

Over the full year, adjusted EBITDA should remain between 2.75 and 2.85 billion euros. In terms of FFO, the group wants to continue to reach 2.0 to 2.1 billion euros. Vonovia sees its total sales to be between 6.2 and 6.4 billion euros.

Boss of Vonovia – Adler Group must clearly break with the past

Adler’s main shareholder, Vonovia, is asking the struggling real estate investor to draw a line under his past.

“We expect the new chairman of the board to make it clear that Adler has broken with the past,” Vonovia CEO Rolf Buch told an analyst conference on Thursday. He currently has no reason to assume that the head of the board, Stefan Kirsten, will not succeed. Vonovia is watching developments at Adler closely, but sees no reason to make a quick decision on how to proceed. “We are not buying Adler shares,” Buch said.

Vonovia holds an approximate 20.5% stake in the Adler Group. A special investigation and the refusal to certify the balance sheet of KPMG’s auditors for the past year had destabilized Adler’s investors.

Rising material and construction costs and more expensive financing have also meant that the number of new buildings in the German market is falling, Buch said. It will be difficult for the federal government to reach its goal of building 400,000 apartments per year.

In XETRA trading, Vonovia shares temporarily rose 3.04% to 36.32 euros.

FRANKFURT (Dow Jones) / Dusseldorf (Reuters)

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