This is not good news for Berlin, because so far Deutsche Wohnen has been mainly active in the capital. According to the company, the around 2,500 new apartments planned before the rental cover was approved are to be built. Deutsche Wohnen plans to invest a total of over three billion euros in the construction of new residential, nursing and office properties.
“The lack of affordable living space in our cities is a social challenge,” said CEO Michael Zahn. Up to 400,000 apartments would have to be built in German cities every year. “With Isaria, we have won an excellent project developer and are now implementing projects across Germany that perfectly match our focus on metropolitan regions and quality, sustainable construction,” he said.
Dividend increases less
The large German apartment rental companies are experiencing growing political pressure due to steadily rising rents. Only recently, the Bundestag extended and tightened the rent brake by five years in view of the persistent housing shortage. In future, tenants can retrospectively reclaim overpaid rent for up to two and a half years.
The management wants to increase the dividend for 2019 from 87 to 90 cents per share and thus not as much as planned based on the previously planned payout ratio. The adjustment serves to finance an aid fund in the amount of 30 million euros, with which the company wants to help its tenants in the course of the Corona crisis in cases of hardship.
Deutsche Wohnen rents around 161,000 apartments and commercial units nationwide, the majority of which are in Berlin. The portfolio also includes nursing homes.