Anyone who plays in the first German stock exchange league also attracts international attention. Now the second largest German landlord is about to take the plunge. Tenants don't expect anything good.
Berlin (dpa) - The foreseeable stock market rise of the real estate group Deutsche Wohnen in the leading index Dax fills tenant representatives with concern. The company with 160,000 apartments nationwide will become even more of a focus of international investors, the German Tenants' Association said.
These also expected high dividends from the second largest private landlord in the country. "The pressure to increase rents will therefore increase," said spokeswoman Jutta Hartmann. "It is therefore no reason for joy for tenants."
Capital market observers expect the Berlin-based company with around 116,000 apartments in the capital to be included in the first stock exchange league in the coming week. According to analysts, Deutsche Wohnen could replace Deutsche Wohnen in the list of the 30 top values, the course of which, despite the recovery, is still below the pre-corona level.
The next extraordinary Dax review is due this Thursday (June 4th). The exchange would take place on June 22. Criteria include the stock exchange turnover and the amount of the free float. The largest German landlord, Bochumer Vonovia, has been in the Dax for five years. The capital would have a Dax group again 14 years after Bayer took over Schering.
"It would be an asset for the Berlin stock exchange landscape," said shareholder representative Michael Kunert. For the protection community of investors, he demands that Deutsche Wohnen also hold its general meetings on the Spree - even if there are protests. "It's part of democracy."
So far, Deutsche Wohnen's annual shareholders' meeting has taken place in Frankfurt am Main, where the former Deutsche Bank subsidiary was based until three years ago. This year's Annual General Meeting this Friday will be held as a video conference.
The largest single shareholder is Blackrock, the largest asset manager in the world. He is involved in all DAX companies.
From the investors' point of view, Deutsche Wohnen is experiencing an appreciation, says the managing director of the Berlin tenant association, Reiner Wild. "The success of Deutsche Wohnen from an investor's perspective is the suffering of the tenants," he said.
Wild criticized high rents for re-letting, operating cost gains from internal subsidiaries, low maintenance investments and savings in staff. "Minimizing services, increasing income may be successful on the stock exchange, but this motto is deficient for the users of the apartments."
Deutsche Wohnen has always rejected such allegations and referred to higher expenditure, for example for personnel and maintenance. Rising burdens on tenants in their most important market, Berlin, caused the Senate to freeze rents in the city in February. In the first quarter, the group was able to increase its rental income in the city by 2.3 percent.
History of Deutsche Wohnen
Investor side Deutsche Wohnen