BERLIN, Aug. 4 (Xinhua) -- German real estate giant Vonovia on Friday posted losses of 2 billion euros (2.18 billion U.S. dollars) in the second quarter of 2023 after further devaluation of its real estate portfolio.
In the same period last year, the company made a profit of 1.8 billion euros.
Nevertheless, the development of key corporate figures exceeded analysts' estimates. "It's a major achievement that we performed so well in this challenging market environment," Rolf Buch, CEO of Vonovia SE, said in a statement.
Vonovia's core business apartment rentals "developed very positively," the company said. Also due to synergies from the integration of Deutsche Wohnen, earnings before interest, taxes, depreciation, and amortization (EBITDA) grew 10.3 percent year-on-year to 618.5 million euros in Q2.
Back in 2021, Vonovia acquired its largest competitor, Deutsche Wohnen, and saw the first positive effects on its balance sheets last year. The company owns a total of 550,000 apartments across Sweden, Austria and Germany.
For the full fiscal year 2023, Vonovia expects funds from operations to decline slightly to between 1.75 and 1.95 billion euros.
Following the announcement of its Q2 results, shares of Vonovia fell by more than 2 percent, making the real estate giant one of the biggest losers in Germany's blue chip DAX index during late trading on Friday. (1 euro = 1.09 U.S. dollars) ■