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The Group benefited from the positive contribution of the newly acquired majority in the Berlin 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 a write-down through a reversal of the portfolio value.
Vonovia SE confirmed its forecast for the year as a whole for sales, FFO and adjusted earnings before interest, taxes, depreciation and amortization (adjusted EBITDA total). These should rise at least 20 percent over the previous year.
In the period from January to March, the residential property group generated total adjusted EBITDA of almost EUR 730 million. Deutsche Wohnen contributed EUR 172.3 million to this. Including Deutsche Wohnen, the increase compared to the previous year was around 44 percent, excluding Deutsche Wohnen 10 percent.
The most important indicator FFO (funds from operations) rose to 564 million euros from 391 million; FFO per share was EUR 0.73 after EUR 0.65. Deutsche Wohnen contributed 143.5 million to FFO.
After taxes and third parties, the loss was 64.7 million euros, after a profit of 234.7 million in the previous year. Total sales rose to 1.633 billion euros from 1.146 billion.
For the year as a whole, adjusted EBITDA should continue to total between EUR 2.75 and 2.85 billion. In terms of FFO, the group wants to continue to reach 2.0 to 2.1 billion euros. Vonovia sees total sales at EUR 6.2 to 6.4 billion.
Vonovia boss – Adler Group must clearly break with the past
Adler’s major shareholder Vonovia is asking the troubled real estate investor to draw a clear line under his past.
“We expect the new chairman of the board to clearly show that Adler has broken with the past,” said Vonovia CEO Rolf Buch at an analysts’ conference on Thursday. He currently has no reason to assume that the head of the board of directors, Stefan Kirsten, will not succeed. Vonovia is closely monitoring developments at Adler, but sees no reason for a quick decision on how to proceed. “We are not buyers of Adler shares,” assured Buch.
Vonovia holds a stake of around 20.5 percent in the Adler Group. A special investigation and the refusal to attest the balance sheet by the auditors of KPMG for the past year had unsettled Adler investors.
Increasing material and construction costs and more expensive financing also ensured that the number of new buildings on the German market was falling, Buch said. It will be difficult for the federal government to achieve its goal of building 400,000 apartments per year.
In XETRA trading, the Vonovia share temporarily rose by 3.04 percent to EUR 36.32.
FRANKFURT (Dow Jones) / Dusseldorf (Reuters)
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