Vonovia half-year figures: Good business, commentary on ban in Berlin

The Vonovia half-year figures were published today. Here are the key figures.

Turnover amounted to 1.01 billion euros (1st half of 2018 891 million euros). Earnings (operating result after interest and taxes FFO) amounted to EUR 609.1 million (first half of 2018: EUR 539.4 million). The Vonovia share reacted slightly positively to the figures with +1.5%.

Vonovia has made extensive comments on the statutory ban on rising rents in the federal state of Berlin. A brief summary: This ban is considered illegal. Vonovia demands an average rent of only 6.68 Euros per square meter from its tenants in Berlin. This ban is also considered counterproductive. It would reduce investments in new apartments. Other property developers in Berlin would see it the same way. Vonovia also says that companies do not fear any significant negative effects. In addition, there are indications of a “reallocation” of investment funds to other locations. Vonovia responds to the Berlin law, in which considerably fewer new apartments will be built in Berlin. This is what we suspected immediately after this law was passed.

Vonovia’s business seems to be going well. Vonovia intends to increase its profit from 1.13 billion Euros in 2018 to 1.17-1.22 billion Euros in the current fiscal year.

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