Vonovia Q1 dented by higher financing costs
Vonovia's First Quarter Financial Performance and Outlook
Impact of Geopolitical Events on Financing Costs
FRANKFURT, May 7 (Reuters) - Vonovia, Germany's largest real estate group, said on Thursday that adjusted earnings before tax fell 4.1% in the first quarter due to higher financing expenses against the backdrop of the war in the Middle East.
- The war in Iran has increased financing costs.
Financial Results Overview
- Adjusted earnings before tax were 462.2 million euros ($543.18 million), down from 482.1 million euros a year earlier.
Management Commentary
- "We are keeping a very close eye on the region and the knock-on effects," Chief Financial Officer Philip Grosse said of the Middle East.
Financing Costs and Rate Expectations
- Ten-year financing costs are 4.5%, an increase of half a percentage point.
- Rate levels of more than 5% or 6% would be above the property company's expected financing costs, Grosse said.
Future Outlook
- The company expects the value of its portfolio to rise this year.
Additional Information
($1 = 0.8509 euros)
(Reporting by Tom Sims and Mattias Inverardi, Editing by Friederike Heine)
