Vonovia Sells Five Real-Estate Portfolios for $620 Million; Backs 2023 Guidance
May 04 2023 - 12:30AM
Dow Jones News
By Adria Calatayud
Vonovia said Thursday that it agreed to sell five real-estate
portfolios in Germany CBRE Investment Management for around 560
million euros ($619.6 million) and confirmed its guidance for 2023
after reporting a swing to a first-quarter net loss.
The German real-estate company said the five portfolios it is
selling comprise properties with 1,350 residential units in
Frankfurt, Berlin and Munich. The sale is expected to be completed
during the second and third quarters and, coupled with recent
transactions, means the company is able to cover its refinancing
needs for this year and the main part of its refinancing due for
2024, Vonovia said.
The company posted net loss of EUR1.96 billion for the first
quarter compared with profit of EUR22.7 million for the
year-earlier period. It booked a loss of EUR3.61 billion from
fair-value adjustments of its investment properties.
Total segment revenue for the quarter fell 12% to EUR1.43
billion.
Group funds from operations--the company's key figure for
operational profitability also called FFO--was EUR462.6 million in
the quarter, down 18% on year.
The company said it continues to expect segment revenue of
EUR6.4 billion to EUR7.2 billion and FFO of between EUR1.75 billion
and EUR1.95 billion in 2023.
Write to Adria Calatayud at adria.calatayud@dowjones.com
(END) Dow Jones Newswires
May 04, 2023 01:15 ET (05:15 GMT)
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