Deutsche Wohnen: Turnover and earnings more than double in second quarter
In the second quarter, Deutsche Wohnen AG, based in Frankfurt, more than doubled its sales volume and earnings, attaining a net profit of €23.2mn (Q2 2007: €11.6mn). The property company listed on the S-DAX announced that the second quarter was characterized by two one-time effects—restructuring expenses and positive development of interest rate swaps. Due to the personnel restructuring expenses, EBIT (earnings before interest and taxes), at €16.8mn, was way below that of the same period in the previous year. At the end of the quarter, Deutsche Wohnen was managing a total of 51,836 residential units. The largest location by far is still Berlin, with a portfolio share of nearly 50%; in the core stock, the share even reaches 67%. The firm quoted the average rent for the core stock as of June 30, 2008 at €5.19/sqm, meaning that rents were up by €0.05/sqm, or 1% over those of the previous quarter. It was also reported that the vacancy rate, compared to the end of 2007, was down from 4.8% to 4.5%. Deutsche Wohnen quotes its net asset value as of June 30, 2008 at €986mn, or €37.35 per share.