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Vonovia: Real estate group wants to sell apartments worth 13 billion euros and massively increases profits


The real estate group Vonovia benefits from the takeover of Deutsche Wohnen: In the first half of the year, the group increased its profits massively. Vonovia is still increasing the rents – and wants to get rid of many apartments.

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Rental apartments from Vonovia in Berlin: 36 percent more profit

Photo: Sabine Gudath / IMAGO

Germany's largest real estate group is increasing its profits: In the first half of 2022, operating profit increased by 36 percent year-on-year to 1.06 billion euros.

The profit increases are said to be primarily due to the takeover of Deutsche Wohnen last year.

The company also benefits from its new buildings.

Sales climbed in the first six months by almost 35 percent to 3.1 billion euros.

The company increased rents by the end of June to EUR 7.44 per square meter, two percent more than in the previous year.

In June, company boss Rolf Buch announced that rents would be increased further.

Inflation does not go unnoticed »by the rents«.

The announcement and its justification had caused a lot of criticism, also because the Vonovia boss had proposed a record dividend for shareholders.

Because of the energy crisis, company boss Buch was concerned about the tenants.

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 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.

At night, the heating temperature is lowered

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 is also protected.

However, the tenants will initially face more costs: the group plans to increase the advance payments.

One wants to avoid high additional claims at the end of the year.

The group also announced that it intends to sell apartments worth around 13 billion euros in the next few years.

This is a reaction to the turnaround in interest rates and the rising cost of capital.

The group owns a total of around 500,000 apartments, most of them in Germany.


Source: spiegel

All business articles on 2022-08-03

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