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Vonovia FY19 Group FFO Rises; Sees Favorable Outlook For FY20 - Quick Facts

Vonovia SE (DAIMF) reported Thursday that its Group FFO or operating earnings for fiscal year 2019 increased by about 8 percent to 1.22 billion euros from 1.13 billion euros last year. Group FFO per share rose to 2.25 euros from 2.18 euros a year ago.

According to the company, the FFO slightly exceeded the forecast of between 1.165 billion euros and 1.215 billion euros. The integration of BUWOG and Victoria Park as well as the volume of new construction in particular had a positive impact.

Adjusted EBITDA for the year increased 13.2 percent to 1.76 billion euros from 1.55 billion euros last year.

Rental income in the Rental segment rose to 2.07 billion euros from 1.89 billion euros last year. This increase is likewise chiefly attributable to the full integration of BUWOG and Victoria Park.

Adjusted NAV per share rose 15.7 percent to 51.93 euros from 44.90 euros last year.

The company said its Management Board and the Supervisory Board will propose a 9 percent dividend increase year-over-year to 1.57 euro per share to the Annual General Meeting in May 2020.

Looking ahead, Vonovia said that the positive business trend points to a favorable outlook for 2020.

For fiscal 2020, Vonovia expects a further increase in its Group FFO (incl. BUWOG, Victoria Park and Hembla) of between around 1.275 billion euros and 1.325 billion euros.

Vonovia said it continues to stand by the target it set in 2017 of completing energy-efficient refurbishment measures for at least 3 percent of its own portfolio every year in Germany.

The company also noted that since launching its modernization program in 2015, it has improved the CO2 profile of its portfolio by around 100,000 metric tons of CO2, or 9.2 percent. Without these energy efficiency modernizations, emissions in 2019 would have amounted to around 1.1 million metric tons of CO2, instead of a provisional figure of roughly 1 million.

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