Berlin is a "dynamic growth story". If a landlord says this, it can make tenants nervous. It protects the rent cover. But new leases also state how expensive it will be if it should tip over.
Berlin (dpa) - Despite strong headwinds and the economic crisis, Deutsche Wohnen continues to earn from increasing rental income. At the end of June they were nationwide at an average of 6.93 euros per square meter and thus 2.6 percent higher than a year earlier.
In Berlin, the most important market, rents were also higher than a year ago, but they have not increased since the beginning of the year because of the rent cap. The residents there paid an average of 6.91 euros per square meter.
The company, on the other hand, has not felt any significant consequences of the corona crisis. "The economic effect is small," said CEO Michael Zahn on Thursday. Only around one percent of tenant households have reported with inquiries and specific help needs. "We can look to the future with confidence."
Around 116,000 of the 160,000 apartments in Germany are located in the Berlin area. Anyone who takes a new apartment with Deutsche Wohnen in the capital now pays an average of 7.51 euros per square meter. Without the rent cap it would be two euros more.
In the contracts of new tenants there is a so-called shadow rent: The rent that can be achieved according to the German Civil Code is agreed, but only the amount allowed by the rent cap is requested. If Karlsruhe lifts the rent cap, tenants have to pay back, so the calculation.
And Deutsche Wohnen assumes that the Federal Constitutional Court will overturn the law that has been in force in the capital since February. "We firmly believe that Berlin will remain a very dynamic growth story," said Zahn. In the city, the vacancy rate fell more sharply than nationwide.
There is a lot of movement at Deutsche Wohnen. Around 6,400 apartments and commercial units will be sold to competitor LEG Immobilien. 450 apartments and commercial units in Berlin, Potsdam and Dresden were added to the portfolio.
In addition, the Berliners took over a minority stake of 40 percent in Quarterback Immobilien AG. This means that Deutsche Wohnen has secured access to a large number of new construction projects, particularly in the Dresden and Leipzig regions. Most recently, the company agreed with the Munich project developer Isaria Wohnbau on the acquisition of a platform for project developments and key real estate projects.
However, because of rising rents, the wind is blowing ever stronger towards the large German apartment rental companies. In view of the continuing housing shortage, the Bundestag recently extended the rent brake by five years and also tightened it. In future, tenants can claim back rent that has been overpaid for up to two and a half years retrospectively. In Berlin, the law on the rent cap came into force in February.
The operating profit (Funds from Operations 1, FFO1 for short) fell by 1.8 percent to EUR 282.9 million in the first half of the year, due to higher interest expenses. The period result fell due to a significantly lower valuation result from 603.1 million in the previous year to 216.7 million euros. In the current year, Deutsche Wohnen continues to expect an operating profit at the previous year's level of 538 million euros.
© dpa-infocom, dpa: 200813-99-154596 / 3
