Profit from operations (Group FFO) fell by 17.8 percent to EUR 462.6 million in the first quarter.
(Photo: dpa)
Dusseldorf Germany’s largest real estate group Vonovia is reacting to the consequences of higher interest rates, skyrocketing construction costs, high energy prices and falling profits by selling apartments. Vonovia sold a real estate package with 1,350 apartments for around 560 million euros to the investor CBRE Investment Management, as the group announced on Thursday.
The selling price is just under the book value. The transaction “underpins the intrinsic value of our portfolio,” said Vonovia CEO Rolf Buch. But its value is falling because of the crisis in the industry: At the end of the first quarter, Vonovia had carried out an unscheduled revaluation of the entire portfolio.
The market value of the real estate portfolio then fell to 91.2 (end of 2022: 94.7) billion euros. Buch spoke of a “snapshot”. The bottom line is that Vonovia made a loss of around two billion euros as a result of the devaluation.
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