Listed German residential group Deutsche Wohnen has raised its forecast for funds from operations in 2015 after boosting FFO by 25% in the first half of the year.
Listed German residential group Deutsche Wohnen has raised its forecast for funds from operations in 2015 after boosting FFO by 25% in the first half of the year.
The company, one of Germany’s largest residential landlords, now expects FFO to come out at between €285 mln and €290 mln for the full year after posting a figure of €142.7 mln in the first half.
Group profit increased to €542.8 mln compared with €94.6 mln a year ago, mainly reflecting strong portfolio appreciation. The value of the portfolio, comprising around 144,000 residential and commercial properties, increased by more than €700 mln to around €10.3 bn at end-June, or by around €80 to €1,160 per m2.
‘We have seen the greatest increase in value of €103 per m2 in the Berlin portfolio,’ said Deutsche Wohnen CEO Michael Zahn. ‘Also our core regions, such as Magdeburg or Halle/Leipzig, have developed positively. This confirms our focused portfolio strategy, on whose basis we expect further growth potential in the future,’ he added.
Despite disposals, gross rental income remained unchanged at €313.3 mln compared with the year-earlier period. Net operating income (NOI) slipped to €236.8 mln from €238.8 mln a year earlier. On a like-for-like basis, Deutsche Wohnen achieved rental growth in the strategic core and growth regions of 2.5%.
