property
Vonovia raises profit target for 2021 again
According to Vonovia, the operating result is expected to increase to between 1.52 and 1.54 billion euros in 2021. Photo: Marcel Kusch / dpa
© dpa-infocom GmbH
Germany’s largest real estate group can be satisfied with the company’s development so far this year. The company is even increasing its forecast for the year as a whole.
Business for Germany’s largest real estate group Vonovia continues to run smoothly thanks to higher rental income.
In addition, the Dax group benefits from its apartment sales and residential property services. “We can be satisfied with the company’s development so far this year and are again increasing our forecast for the year as a whole,” said company boss Rolf Buch when presenting the nine-month figures on Thursday in Bochum.
The operating result is now expected to rise to 1.52 to 1.54 billion euros in 2021, as the Dax company announced. Previously, the real estate company had a range of 1.465 to 1.515 billion euros in its sights. Deutsche Wohnen has not yet been taken into account in the forecast, it said. Last year, operating profit rose by eleven percent year-on-year to 1.35 billion euros.
In the first nine months of the year operating profit increased by 12.9 percent to 1.15 billion euros. The rent increased on average to 7.34 euros per square meter – that was 3.8 percent more than a year earlier. Modernized apartments in particular contributed to the growth. The corporations can partially allocate the costs for energy-efficient renovations such as thermal insulation and the replacement of old heating systems and windows to the rent. Sales climbed by almost ten percent to around 3.5 billion euros.
Just recently, the Bochum-based group successfully took over a majority stake in Germany’s second largest landlord. Vonovia now holds 87.6 percent of Deutsche Wohnen. This will create a real estate giant with around 568,000 apartments, most of them in Germany.