Four times in the year, the German stock exchange, of which 30 companies should belong to the Dax checks, the main stock index in the Republic. On Thursday evening it was time again – and it hit in the middle of the Corona-crisis, Lufthansa, Germany’s largest airline, will fly in two weeks from the Dax, the stock exchange. To very Lufthansa has lost in recent months, as a result of the Corona of a pandemic are unlikely to fly passengers.
Instead, Deutsche Wohnen rises in the Index. The second-largest landlord in Germany has more than 160 000 apartments, most of them in Berlin. The policy is also trying to curb the increase in Rents in local cities, so much so tenants protector of the business model of housing groups criticize: the rise of the Deutsche Wohnen on the stock exchange failed to stop the so far hardly. Just 42 euros a share, the Berlin-based company today is worth twice as much as five years ago.
The exchange is remarkable, because Deutsche Wohnen is now the second real estate group rises to the leading index. Since 2015, Germany’s largest landlord Vonovia is listed in the Dax. Both companies behind benefit from the fact that many young people are pulled in local cities, the Jobs and University places. Since then, the apartments of Deutsche Wohnen and Vonovia are hardly ever empty. In addition, the large landlords have increased Rents regularly, where it give up the demand, and local regulations.
In addition, real estate companies benefit from the historically low interest rates. You can borrow at low money – and at the same time, many investors want to invest in city apartments. This drives the prices: All of the real estate of Deutsche Wohnen together are now about 25 billion euros in value. The nine billion Euro debt to be good. As stated in the stock exchange value.
Tenant advocates: “No reason for joy”
Tenant pads, however, see the rise of the group’s critical. Deutsche Wohnen will in the future move even more into the focus of international investors, the fears of the German tenants ‘ Association. “The pressure to increases in rent will therefore rise,” said a spokeswoman. “For tenants, it is, therefore, no reason for joy.” However, Deutsche Wohnen has also now been well-known shareholders from abroad. For example, the world’s largest asset Manager, Blackrock, and the government pension Fund from Norway in aggregate are 17 per cent of the shares.
Also, the Berlin tenants ‘ Association criticised the fact that Deutsche Wohnen face high Rents course, if the company rent the vacant apartments. “Services minimize, increase revenue, that may be successful in the stock market,” said managing Director Reiner Wild, “for users of the dwellings, this foreign exchange, however, is deficient.”
The company itself sees it quite differently. Deutsche Wohnen offer real estate in medium-quality, affordable be countered CEO Michael Zahn. On average, tenants of the group paid last 7,01 Euro cold rent per square meter. Also, you’ve increased spending for staff and maintenance in the past few years.
Michael Zahn, CEO of Deutsche Wohnen, said: “We take our responsibilities seriously and will continue to make our contribution to overcoming the great challenges in the housing sector. The development of affordable and lebenswertem housing remains our top priority. Thus, the clear commitment to investment in climate protection, and new construction is connected to.”
How much Deutsche Wohnen image of the enemy is critical to become a tenant representative, showed last year in Berlin, as a protest Alliance was formed. It is a people calls for desire, to socialise, to large apartment companies. His Name: “Deutsche Wohnen & Co expropriate”.
The Berlin Senate has reacted to cost in February to the criticism of rising residential and a majority of apartment rents in the capital are frozen. Rent increases should only be from next year again allowed – and then only to a limited extent. The CDU and the FDP want to bring the law before the court case. German-Living-in-chief of the Tooth keeps the rent cover by his own admission unconstitutional. Be lucky: in addition to the apartment houses in Berlin, his company rents out tens of thousands of apartments in the Rhine-Main area, Dresden or Leipzig. Add to that nursing homes with more than 12,000 seats, as well as small commercial properties.
Critics also resent, therefore, about the rise of the group, because he is, in their view, a result of a failed housing policy: Without the many privatisations around the turn of the Millennium, Deutsche Wohnen would have grown probably never present size. The company, founded in 1998 as a residential real estate subsidiary of Deutsche Bank, has taken on two former municipal housing companies in Berlin: in 2007, sites, Gehag, once established as a “non-profit home-, Spar – und Bau-AG”. And in 2013, GSW Immobilien, once also a “urban Housing-assistance-company”, Berlin 2004 privatised.
While the Dax-Relegated Lufthansa suffers so much under the Corona of a pandemic that the state gets billions to the airline, apartment corporations, so far relatively well through the crisis. Although Deutsche Wohnen is now missing, according to his own admission on termination, if the tenant is stuck as a result of the pandemic in financial distress. Also, the company has set up a relief Fund for tenants and increased in the meantime, no Rent. Nevertheless, the shareholders are to receive this year a dividend of 90 cents per share. Since the beginning of the year Deutsche Wohnen has won on the stock market, a further 14 per cent in value.
What are the companies belonging to the Dax, the German stock exchange regularly on the basis of two criteria: how much money investors have bought in the past few months, shares of individual companies? And how much trade goods, all freely tradable shares of the company in the past few weeks worth it? Lufthansa is not the first well-known company, which is no longer in these criteria far enough in the front: Already in the previous autumn to the tradition group, Thyssenkrupp had to leave the Index. A year earlier, Commerzbank had made for the much younger payment processor Wirecard place.
The changes are significant, as many investors invest in companies that certain equity indices belong to. For example, index funds and ETFs, which replicate the Dax exactly, soon the Lufthansa share sale and Deutsche Wohnen need to invest. For this, you now have a good two weeks: On 22. June is supposed to make Lufthansa of the Dax Board in Frankfurt for departure.