Real estate giant Vonovia increases earnings – and anticipates interest rate increases

Dsseldorf (Reuters) – The real estate giant Vonovia posted a significant increase in profits in the first half of the year.

The Bochum-based group also confirmed its forecast for 2022. In order to reduce debt, Vonovia intends to sell more of its apartments in the future.

Profit from operations (Group FFO) – the key figure for real estate companies – increased by 36.3 percent to EUR 1.06 billion in the first six months as a result of the takeover of smaller competitor Deutsche Wohnen, rising rents and a low vacancy rate , as the Bochum Dax group announced on Wednesday. Vonovia swallowed up Deutsche Wohnen last year. Vonovia had put around 17 billion euros on the table for the acquisition.

Vonovia boss Rolf Buch had announced that he wanted to part with apartments again. Vonovia has now “identified various portfolios that are suitable for sale,” it said. At the subsidiary Deutsche Wohnen, the nursing home division is also under scrutiny. Vonovia is also aiming for partnerships with investors for individual projects. Rising interest rates and the resulting increase in capital and construction costs are not leaving the German industry leader untouched.

The Bochum-based company confirmed its forecasts: Vonovia expects key figures to grow by more than 20 percent in the current year. The profit from the operating business (Group FFO) should therefore be in a range of around EUR 2.0 to 2.1 billion.

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