Despite a decline in profits in its operating business, Deutsche Wohnen is optimistic about the future. Thanks to the ongoing real estate boom, the Group expects its portfolio to increase in value further. The DAX company is also benefiting from rising rents.
The real estate group Deutsche Wohnen has hardly felt the effects of the Corona crisis so far. As before, just over one percent, only a few tenants had reported and asked for crisis-related support, the company said. The economic consequences for Deutsche Wohnen are also minor.
As in previous years, the real estate giant can expect high special income from the revaluation of its properties in 2020. The board of directors of the company, which has been listed in the DAX since June, assumes that the valuation of the residential property portfolio as of December 31 will likely lead to an appreciation of around six percent of the values ​​previously reported.
"The positive performance is primarily based on the sustained high demand and price dynamics on the transaction market for residential real estate in German metropolitan regions," the Vonovia competitor announced on Thursday evening in Berlin.
Deutsche Wohnen owns almost 163,000 apartments in Germany, 115,000 of them in Berlin. There are also around 3,000 commercial units. Last year, the value of the real estate was increased by 1.4 billion euros to around 25.4 billion euros. Based on this value, the revaluation in the current year would be around 1.5 billion euros.
Meanwhile, the group continues to benefit from rising rents. However, among other things, higher interest expenses put pressure on the operating result. The Dax Group confirmed the annual target in Berlin when the nine-month figures were presented. Accordingly, the group expects an operating profit of around 540 million euros and thus roughly on the level of the previous year.
In the first nine months, contract rents increased by 1.9 percent to 634.5 million euros. The rents rose on average by 1.6 percent to 6.93 euros per square meter. In Berlin, rents rose less sharply by 0.4 percent to 6.90 euros due to the rent cap. The operating profit fell by 1.2 percent to 422.4 million euros, partly due to higher interest expenses.
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