Deutsche Wohnen News

Investments
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This topic is centered around Deutsche Wohnen and our investment in it.

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  • Konstantina Kanellopoulos, Deutsche Wohnen co-CEO steps down at her own request and upon mutual agreement.
  • She was appointed as co-CEO in January 2022 after the take over by Vonovia.
  • She was appointed alongside Lars Urbansky, who will become the sole CEO, effective immediately.
  • Kanellopoulos will join GOLDBECK in November 2023 as a member of the management board.
    Deutsche Wohnen - InvestmentWiki
    My assessment:
    I think she may have been displeased with being side-step for the sole CEO position. But I believe that the choice of Urbansky for the sole CEO position was the right move given that he was previously responsible for the operational business of Deutsche Wohnen.
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  • German Economic and Climate Protection Minister Robert Habeck wants to suspend the upcoming stricter energy standards for new buildings.

    “The introduction of the Building Energy Act ensures that new buildings will have climate-friendly heating from 2024. That’s why I no longer think it is necessary to quickly introduce the new EH 40 standard,” he said.

  • This means the new energy requirements may not come until the end of 2025.

  • Houses build according to the EH-40 standard will require only 40% of primary energy when compared to a standard building.

  • On the other hand, houses build under the existing EH 55 standard are 45% more economical compared to a standard building.

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  • Deutsche Wohnen is looking for a buyer for its 842 apartments in Hanover, Spiegel reported.

  • Renovations on these apartments, which were built 40 years ago, began in 2015.

  • Deutsche Wohnen said 600 of these apartments have been renovated to make them energy efficient.

    “We continually examine our buildings to see whether another actor could be a better owner,” said a spokesman for Deutsche Wohnen. “The stocks mentioned are also for sale.”

  • The value of the 800 apartments has not been given.

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  • Elliott Investment Management asks a Berlin court to appoint a special auditor to look into the €2 billion loan that Deutsche Wohnen advanced to Vonovia in 2021.
  • According to Elliot, Vonovia used the loan to service some of the loans it took to finance its acquisition of Deutsche Wohnen; hence the loan amounted to illicit financial assistance.

https://www.bloomberg.com/news/articles/2023-10-18/elliott-asks-court-to-audit-deutsche-wohnen-over-vonovia-loan

  • In May 2023, Elliott asked shareholders to appoint an auditor to examine the loan, but the suggestion was voted out.
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Deutsche Bank Research lowered their price target on Deutsche Wohnen from 23 euros to 19 and kept their "hold "rating following a study on the company’s shares.

https://www.boerse.de/nachrichten/DEUTSCHE-BANK-RESEARCH-Deutsche-Wohnen-hold/35953618

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Deutsche Wohnen CEO, Lars Urbansky said in a statement preceeding the AGM that the rental environment continues to be challenging but they are seeing some recovery.

“The environment of the real estate sector has been challenging over the past
year – and remains so for the time being. Although we are seeing some recovery,
the economic outlook remains gloomy; interest rates and construction costs are
still high. We are proud to have nevertheless exceeded expectations in our core
rental business. In particular, continued strong demand for residential property
has driven our core business.”

“Our rental business in the residential segment has continued to develop steadily.
Particularly in Berlin, where around 75% of our portfolio is located, apartments
that become vacant are immediately re-let. The strong demand for residential
space is reflected in the high occupancy rate of our portfolio. At 1.5%, the
vacancy rate remains at a very low level.”

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Sale agreement for the nursing segment is expected to be completed this summer, Handelsblatt reported

  • Handelsblatt reported that Vonovia is close to selling Deutsche Wohnen’s nursing segment, citing people familiar with the matter.
  • It said that the segment won’t be sold as a package but in pieces and added that the sales agreement is expected to be completed this summer.
  • Vonovia recently sold six properties in the nursing segment worth 90 million euros, hence nursing property worth 800 million euros was still in its books.
  • Spokesmen of Vonovia and Deutsche Wohnen declined to comment on Handelsblatt report but they had said in their first-half report that the sale is expected to be completed by the end of this year.
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A post was split to a new topic: Deutsche Wohnen minority shareholder buyout (DPLTA )

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Hold->Buy, €19-> €28: Analyst Thomas Rothäusler of Deutsche Bank said Deutsche Wohnen is entering 2025 with better prospects compared to a year ago. Tailwinds include lower interest rates, robust credit markets, a recovery in transaction activity and and more stable returns.

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