* Now sees 2017 FFO I of 900-920 mln euros incl Conwert
* Previously saw FFO I of 890-910 mln euros incl Conwert
* Q1 FFO I up 17 pct at 218.2 mln euros
* Shares indicated 1.2 pct higher at top of DAX index
(Adds CEO comment, share price indication, further details of
FRANKFURT, May 24 Germany's biggest residential
real estate company Vonovia lifted its core profit
guidance for 2017 as it filled more of the flats it rents out
and after it agreed to buy Austrian property group Conwert
Demand for German real estate has risen in recent years,
with investors seeking safe havens and interest rates remaining
low. The arrival of more than 1 million migrants in 2015 and
2016 combined has added to increased demand for housing.
Vonovia manages around 356,000 flats, of which only 2.7
percent were vacant at the end of the first quarter, 0.1
percentage points fewer than a year earlier.
At the same time, its financing costs fell, helping to lift
core profit (FFO I) for the three months through March by 17
percent to 218.2 million euros.
The group now sees its 2017 core profit coming to 900 to 920
million euros ($1.01-1.03 billion), including earnings from
Conwert, compared with previous guidance for 890 to 910 million
The group plans to invest around 730 million euros this year
to build around 2,000 additional flats. Chief Executive Rolf
Buch said Vonovia would like to build even more flats but was
limited by the slow process of obtaining construction permits.
Shares in Vonovia were indicated to rise 1.2 percent to the
top of Germany's blue-chip DAX index in pre-market
($1 = 0.8946 euros)
(Reporting by Maria Sheahan; Editing by Victoria Bryan)