The Berlin-based real estate group Deutsche Wohnen started the new year with higher profits due to higher rents. However, they would like to forgo rent increases this year. The forecast for 2021 was nevertheless confirmed.
Contract rents increased by 3.5 per cent year-on-year in the first quarter. Contract rents in the overall portfolio rose by 2.9 percent to an average of 7.12 euros per square metre, as the company announced in Berlin on Wednesday. Even in Berlin, rents increased.
Operating profit grew by 8.8 percent to 154.8 million euros in the first three months. The result for the period amounted to 199.7 million euros. That was almost 60 per cent more than in the previous year, partly due to valuation effects. For the current year, Deutsche Wohnen continues to expect an operating profit at around the same level as the previous year.
Analysts are almost all positive about the quarterly figures. Berenberg Jefferies and Kepler Cheuvreux have left the stock at “Buy”. Morgan Stanley and JPMorgan continue to assign an “Overweight” rating. The price targets range up to 56 euros.
Technically, the next resistance is at 46.50 euros.
For more updates, follow us on Twitter: @JRC_Capital