DGAP-News: HOWOGE Wohnungsbaugesellschaft mit beschränkter Haftung / Key word(s): Half-yearly report
HOWOGE Wohnungsbaugesellschaft mit beschränkter Haftung: Solid capital structure: HOWOGE Wohnungsbaugesellschaft mbH continues to grow and invest in achieving a climate-neutral portfolio
29.08.2022 / 14:00
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Solid capital structure: HOWOGE Wohnungsbaugesellschaft mbH continues to grow and invest in achieving a climate-neutral portfolio
Berlin, August 29, 2022. HOWOGE Wohnungsbaugesellschaft mbH can look back on a successful first half. As of June 30, 2022, the public company’s portfolio had grown to approximately 74,500 apartments and 1,100 commercial units following acquisitions and new construction. Compared to the previous year, funds from operations (FFO) increased from €89.7 million to €95.4 million. The loan-to-value (LTV) ratio of 27.2% and a solid capital structure allow the company to continue both to grow and to invest in its investments despite the profound changes in general business conditions due to the circumstances geopolitics. As General Manager of HOWOGE Ulrich Schiller explains: “The market is changing rapidly at the moment. Rising construction costs, current interest rate policy, inflation and the energy crisis are not only impacting us as a company, but also our tenants. We want to tackle these challenges together, for example by adjusting down payments on operating costs and actively saving energy. At the same time, we are in dialogue with our construction partners to find ways to continue to pursue our new construction goals despite rising construction and financing costs. General Manager HOWOGE Thomas Felgenhauer adds: “HOWOGE is in a very stable financial situation. The increase in FFO, EBITDA and a strong LTV clearly show that we have positioned the business well and that we can hold up even in a difficult economic environment.
The financial results for the first half of 2022 were positive. Thanks to our larger apartment portfolio, rental and rental income increased by 20% to EUR 184.4 million (H1 2021: EUR 153.4 million). Despite increased expenses due to acquisitions, HOWOGE was able to achieve an adjusted EBITDA of EUR 120.3 million (H1 2021: EUR 106.4 million). The interest charges of the treasury item increased due to the acquisitions to approximately 21 million euros (H1 2021: 14.6 million euros). Taking into account the tax to be paid, the FFO of 95.4 million euros represents an increase of approximately 6%. The valuation of our holdings confirmed the fair value of the portfolio at 13.6 billion euros. Due to this higher value, the LTV was around 27% as of June 30, 2022 and is therefore comfortably within the target corridor of less than 50%.
Thomas Felgenhauer“HOWOGE has a solid capital structure with a balanced maturity profile. In other words, there is no major short-term refinancing. HOWOGE’s top-notch creditworthiness was confirmed recently by rating agencies S&P (A) and Fitch (AA-), both of which gave HOWOGE a stable outlook.
Portfolio growth and development
As a result of acquisitions and new construction, HOWOGE’s total portfolio has grown from 65,131 apartments and 874 commercial units (closing date: December 31, 2021) to 74,493 residential units and 1,140 commercial units (closing date: June 30, 2022). A key driver of this increase was the acquisition in 2021 of approximately 8,300 apartments and over 200 commercial units from Deutsche Wohnen and Vonovia. This transaction was finalized in January 2022. In addition to this acquisition, HOWOGE has expanded its portfolio by completing 734 new apartments. A particular flagship project was LIESE, a 22-storey residential tower with 394 apartments in Frankfurter Allee, in which 50% of the apartments are let at subsidized rents. HOWOGE plans to build its first-ever wind farm on the roof of the building. Ulrich Schiller“The current situation demands that we work with greater intensity to stimulate the expansion of alternative energy production. It’s part of our DNA as a public company. In this context, we will continue to systematically develop solar energy in our holdings and maintain our commitment to achieving a climate-neutral portfolio.
At 1.6% as of June 30, 2022, the vacancy rate remains low and the average rent of EUR 6.37 per square meter is significantly lower than market rents. The slight increase in average rents of 1.6% compared to the end of the previous year results on the one hand from the adjustment of rents to their level prior to the Berlin rent freeze and on the other hand from the addition of acquisitions to our portfolio . As a result of the growth of our portfolio, HOWOGE’s workforce has grown to just under 1,000 employees.
HOWOGE is on track to create a total of around 1,700 new climate-friendly apartments in Berlin with socially responsible rents by the end of the year. This means that the overall size of our portfolio will increase to approximately 75,500 apartments. At the same time, HOWOGE continues to seek all opportunities in the market to make acquisitions. After a successful semester, HOWOGE confirms its forecasts and anticipates an FFO of around 200 million euros for the 2022 financial year.
HOWOGE Wohnungsbaugesellschaft mbH is one of six public housing companies belonging to the Land of Berlin. With a housing portfolio of approximately 74,500 apartments, the company is one of the largest landlords in Germany. In the medium and long term, HOWOGE intends to expand its housing portfolio, in particular through new construction, to around 100,000 apartments. As part of the Berlin school building campaign, HOWOGE also supports the renovation of existing schools and the construction of new ones for the Land of Berlin.
“Designing a livable Berlin of tomorrow – more than just a place to live”
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To the extent that this announcement contains forward-looking statements, such statements do not represent facts and are characterized by the words “expect”, “believe”, “estimate”, “intend”, “aim”. , “assume” or similar expressions. . These statements express the current intentions, opinions or expectations and assumptions of HOWOGE Wohnungsbaugesellschaft mbH and are based on current plans, estimates and forecasts which HOWOGE Wohnungsbaugesellschaft mbH has made to the best of its knowledge, but which do not claim to be correct in the future. . . Forward-looking statements are subject to risks and uncertainties that are difficult to predict and generally cannot be influenced by HOWOGE Wohnungsbaugesellschaft mbH. It should be kept in mind that actual events or developments may differ materially from those contained or expressed in such forward-looking statements.
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