FRANKFURT (Reuters) - Vonovia (VNAn.DE), Germany’s biggest residential property company, on Friday reaffirmed its guidance for a gain in full-year profit, after reporting a 12.9% increase in operating income in the first half.
Vonovia, which owns around 395,000 properties in Germany, Sweden and Austria, said it still expected 2019 funds from operations (FFO) to increase to between 1.17 billion and 1.22 billion euros (1.07 billion pounds - 1.12 billion pounds), up from 1.13 billion last year.
FFO rose 12.9% to 609.1 million euros in the first six months, boosted by the acquisition of Buwog and Victoria Park, with further gains from construction activity, property development and cost cuts.
Rental income rose 13.9% to 1.015 billion euros during the first half, helped by an increase in average monthly net rent of 4.4% to 6.64 euros per square metre as well as by new construction and modernisation.
Since going public in 2013, Vonovia has grown by swallowing up smaller rivals, and has expanded outside its home market, snapping up Austria’s Conwert and Buwog, and last year buying Sweden’s Victoria Park for $1.1 billion.
Reporting by Ludwig Burger; Editing by Michelle Martin