The takeover of Deutsche Wohnen gave Germany’s largest real estate group Vonovia a further boost: in the first half of the year, the group made a profit of 1.06 billion euros. Nevertheless, Vonovia wants to sell apartments worth 13 billion euros.
Vonovia, Germany’s largest real estate group, has increased its profits so far this year. In the first half of 2022, operating profit (FFO) increased by 36 percent year-on-year to EUR 1.06 billion, mainly thanks to the takeover of Deutsche Wohnen. At the end of June, the average rent rose to EUR 7.44 per square meter – that was two percent more than a year earlier. Vonovia confirmed its annual sales and earnings targets on Wednesday in Bochum.
Modernized apartments in particular contributed to the growth. The companies can partially pass on the costs of energy-related renovations such as thermal insulation and the replacement of old heating systems and windows to the rent. Sales climbed in the first six months by almost 35 percent to 3.1 billion euros.
Read here: Because of inflation – Germany’s largest housing group announces significant rent increases
At the same time, the group announced that it intends to sell apartments worth around 13 billion euros in the coming years. This is a reaction to the turnaround in interest rates and rising capital costs, according to Vonovia. In total, the company has a good half a million apartments in its portfolio, most of them in Germany.
Many people are very concerned that they will no longer be able to bear the increased costs for heating due to the current energy crisis, said company boss Rolf Buch when the quarterly figures were presented. Vonovia will find a solution together with the tenants if someone can no longer afford their apartment due to increased heating and hot water costs. The company has found similar solutions since the beginning of the corona pandemic.
In order to save as much natural gas as possible in the stocks, Vonovia has decided to lower the heating temperature for gas central heating at night within the legally prescribed framework, the company announced. In this way, the real estate group relieves tenants of the foreseeable sharp rise in energy costs and the environment. In addition, Vonovia adjusts the advance payments in order to avoid high additional claims at the end of the year.
