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HomeBusiness"Positive development": Deutsche Wohnen continues to benefit from property boom

“Positive development”: Deutsche Wohnen continues to benefit from property boom

“Positive Development”
Deutsche Wohnen continues to benefit from property boom

Facade of the Headquarters of the publicly-listed housing company Deutsche Wohnen SE in Berlin. Photo: Christoph Soeder/dpa

© dpa-infocom GmbH

There are areas of the economy, the benefit of the Corona-crisis vigorously. The real estate industry is clearly one. The Dax-listed company Deutsche Wohnen continues to be in high demand.

The real estate group, Deutsche Wohnen can be expected in 2020 as in previous years, with a high level of extraordinary income from the revaluation of its real estate.

The Board of Directors of since June in the Dax-listed company expects that the valuation of the residential property portfolio as of 31. December is expected to lead to an appreciation of about six percent of to date balance sheet values. “The positive development is due primarily to the continuing high demand and price momentum in the transaction market for residential real estate in German Metropolitan regions,” said the Vonovia competitor on Thursday evening in Berlin.

The real estate portfolio of the group comprises of around 162.000 apartments and 2900 commercial units. In the past year, the value of the real estate was revalued by € 1.4 billion to about € 25.4 billion. Starting from this value, the appreciation would in the current year to around 1.5 billion euros.

Meanwhile, Deutsche Wohnen continues to benefit from rising Rents. However, higher interest, expressed, among other things, expenses on the operating result. The target for the year confirmed the Dax-listed company on Friday in Berlin at the presentation of nine-month figures. Therefore, the competitor of Vonovia, LEG Immobilien and TAG Immobilien expects an operating profit of around 540 million Euro and thus approximately at the level of the previous year.

In the first nine months of the contract rents rose by 1.9 per cent to 634,5 million euros. Rents rose on average by 1.6 percent to 6.93 euros per square meter. In Berlin, Rents increased due to the rent cap of 0.4 percent to 6.90 euros less. Operating profit fell due to higher interest expenses of 1.2% to 422,4 million euros.

dpa
Matthew Velterhttps://etrendystock.com/
With 5 years of experience as an editor, Matthew has been a crucial part of eTrendy Stock since its inception. He looks after the editing of news content published on eTrendy Stock. Apart from investing his time in editing, he also provides well-researched news articles for the U.S. niche. Mathew studied at University of central Florida.

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