|Bid||31.96 x N/A|
|Ask||31.98 x N/A|
|Day's Range||31.28 - 32.21|
|52 Week Range||28.59 - 44.83|
|Beta (3Y Monthly)||0.04|
|PE Ratio (TTM)||7.33|
|Earnings Date||Nov 13, 2019|
|Forward Dividend & Yield||0.87 (2.75%)|
|1y Target Est||44.86|
(Bloomberg) -- TLG Immobilien AG acquired nearly 10% of its larger German real estate rival Aroundtown AG and started talks to build one of Europe’s biggest property companies.A tie-up would bring together the deal-making acumen of Aroundtown, which has grown rapidly through capital raising in recent years, with the development expertise of TLG. Combining TLG’s German offices, stores and hotels with Aroundtown’s 16.2 billion euros ($17.8 billion) of European commercial real estate would create the largest publicly traded landlord of its kind in Europe.In addition to creating a “sector champion” with a combined 25.5 billion euros of assets, a merger could improve share liquidity and could lead to a potential inclusion in the DAX index that would lure new investors, JPMorgan Securities Plc analyst Tim Leckie wrote in a note to clients. A deal would also create savings and prevent rivals from scaling up through similar mergers, he wrote.“We welcome working with Aroundtown toward a future merger of the two companies and creating one of the largest commercial real estate firms in Europe with a focus on top tier cities in Germany and the Netherlands,” Sascha Hettrich, chairman of TLG’s supervisory board, said in a statement on Sunday.Stock RallyTLG said the price values the potential target at 8.3 euros a share, or 10.2 billion euros. It’s paying a 10% premium to Aroundtown’s closing price on Friday. The stock has rallied about 15% since mid-August.Aroundtown was trading up 2.5% at 10:45 a.m. in Frankfurt on Monday. TLG was down 1.3%.TLG bought the stake from Aroundtown’s largest investor, Avisco, which has an option to sell another 4.99% holding, according to a company statement.Aroundtown says it has a commercial property portfolio worth 16.2 billion euros. It also owns a stake in residential landlord Grand City Properties.TLG’s biggest shareholder is Israeli real estate investor Amir Dayan, who built up a 27% stake via his Ouram Holding vehicle. Ouram said Sunday it still backs the company’s supervisory board.Mall owner Unibail-Rodamco-Westfield is the largest publicly traded European landlord, followed by German residential companies Vonovia SE, and Deutsche Wohnen SE. TLG and Aroundtown would rank fourth in Europe by assets, if a merger is completed.(Updates with analyst comment in third paragraph.)\--With assistance from Virginia Van Natta.To contact the reporters on this story: James Ludden in New York at firstname.lastname@example.org;Jack Sidders in London at email@example.comTo contact the editors responsible for this story: Matthew G. Miller at firstname.lastname@example.org, Patrick Henry, Andrew BlackmanFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
European stocks on Friday extended gains from the previous session, helped by a surge in German real estate companies and on relief that trade tensions between the United States and China were easing. The pan-European STOXX 600 index rose 0.31% by 0715 GMT, after hitting near one-month highs on Thursday. The real estate sector sector jumped 1.71%, led by gains in shares of German real estate companies after a report that the rent freeze in Berlin could be less strict than previously planned.
To ward off rent hikes and evictions at the hands of new building owners, the city will purchase about 700 homes the much-coveted Karl Marx Allee neighborhood.
Moody's Investors Service ("Moody's") has completed a periodic review of the ratings of Deutsche Wohnen SE and other ratings that are associated with the same analytical unit. The review was conducted through a portfolio review in which Moody's reassessed the appropriateness of the ratings in the context of the relevant principal methodology(ies), recent developments, and a comparison of the financial and operating profile to similarly rated peers. This publication does not announce a credit rating action and is not an indication of whether or not a credit rating action is likely in the near future.
While some investors are already well versed in financial metrics (hat tip), this article is for those who would like...
Chancellor Angela Merkel said on Friday it was right to make pricing on Germany's booming rental market more transparent but warned that it had to remain attractive for private investors to build new housing stock. Merkel said the best way to tackle a housing shortage was to build new homes. Affordable housing has become a hot topic in Germany, with an influx of people to big cities pushing up costs.
(Bloomberg Opinion) -- The high cost of urban housing is one of the most divisive issues of our times. Rising prices have created entrenched cadres of haves and have nots, but because property owners tend to be in the majority, renters are often the ones left shortchanged.That’s emphatically not the case in Berlin, where owner-occupiers make up just 15 percent of the market. Once a famously cheap place to live, Berlin rents have doubled over the past decade and house prices have gone through the roof. Berlin’s “cool” reputation, burgeoning startup scene, and rock-bottom interest rates have all contributed to the boom. Because rent increases have outstripped pay rises, residents feel worse off.Now the city’s leftist coalition government has proposed a restriction of private property rights that would be unthinkable in most places: For the next five years, it wants to bar landlords from increasing rents at all.Such heavy-handed intervention will alarm foreign investors, for whom Berlin’s real estate sector has become a favorite place to deploy capital. It’s also a wake-up call for landlords in other countries, where falling home ownership rates have buttressed support for greater intervention in the housing market. In London, Jeremy Corbyn’s left-wing Labour Party will be looking on with interest.It’s not clear whether Berlin’s proposal is even legal but property investors clearly expect some kind of reckoning. Shares in the listed German real estate firm Deutsche Wohnen SE have tumbled 17 percent since the first details of the new measure were unveiled last week, erasing about 2.5 billion euros ($2.8 billion) of its market value. The company owns more than 115,000 residential units in the city, or 70 percent of its portfolio. (Investors who bought the stock in 2008 are still doing okay, though. It’s up about 1,300% since then).Berlin’s rents and property prices are actually pretty reasonable by international standards, and by comparison to local incomes. Still, there’s no question the housing market has become dysfunctional.The local population has jumped by about 300,000 since 2011 and new construction has failed to keep up. Building firms are working flat out, but permitting is notoriously slow. Some landowners hold back development plots in the hope that prices will continue rising, while obstructive local residents have blocked new developments. At the same time, older tenants in large apartments with cheap long-term leases can’t move somewhere smaller because of the higher rents, so young families struggle to find anywhere suitable.Capping rents – or seizing buildings from big owners, as has also been mooted – won’t do anything to ease the shortage. While the new law won’t apply to new properties, it will deter much-needed investment nonetheless. Berlin might as well pin a sign on top of its famous TV tower saying owners aren’t welcome.The German real estate market is already heavily regulated when compared with most places. Tenants have extensive rights ( a good thing in my book) and in 2015 the federal government legislated to prevent rents rising more than 10 percent annually above the local average. That law has been widely ignored, though, if online property listings are a good guide. To prevent this happening again, Berlin is threatening 500,000 euro ($566,000) fines for noncompliance with its new rent cap. Landlords complain of “class warfare” and are threatening to hike rents ahead of the proposal coming into force in 2020, which doesn’t seem a good way to win friends. The policy will probably stop them spending on property upkeep, yet I wonder whether most Berliners will care.Gentrification has long been a dirty word here – dilapidated buildings were all part of the city’s “poor but sexy” charm. And one mustn’t forget that 30 years ago half the city still lived under communist rule. Buying a home in Germany is prohibitively expensive: Taxes and estate agency fees can amount to 15 percent of the purchase price. Unlike in the U.K. (ISAs) or the U.S. (IRAs), the federal government does little to incentivize investing in the stock market, which might help the public build up more wealth for a deposit. For these reasons Berlin might be considered an outlier, but perhaps it’s simply ahead of the curve. Home ownership is well below historic highs in the U.K and U.S. and socialism is suddenly en vogue. Berlin’s assault on private property rights shows what happens when you let the capitalist pendulum swing too far in one direction.To contact the author of this story: Chris Bryant at email@example.comTo contact the editor responsible for this story: James Boxell at firstname.lastname@example.orgThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Chris Bryant is a Bloomberg Opinion columnist covering industrial companies. He previously worked for the Financial Times.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
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The most recent earnings release Deutsche Wohnen SE's (ETR:DWNI) announced in December 2018 confirmed that the business benefited from a slight tailwind...
German Chancellor Angela Merkel does not think expropriating apartments sold off to big private landlords is appropriate, her spokesman said on Monday, after thousands of Berlin residents demanded the ...
Thousands of Berlin residents took to the streets on Saturday to vent anger over surging rents and demand the expropriation of more than 200,000 apartments sold off to big private landlords, which they blame for changing the character of the city. The Berlin Senate estimates the cost of buying back property at up to 36 billion euros ($41 billion).
On Saturday, signature collection begins for a citywide referendum in the German capital on whether to nationalize the residential properties owned by big landlords. The initiators of the “Expropriate Deutsche Wohnen & Co.” are relying on Article 15 of the German Constitution, which has never been applied. The activists argue that the big landlords are driving up rents and, because of their market power – “big rental sharks serve as an example to big rental sharks” – making housing unaffordable for ordinary Berliners.
Want to participate in a research study? Help shape the future of investing tools and earn a $60 gift card! The size of Deutsche Wohnen SE (ETR:DWNI), a €16b large-cap, often attracts investors seeking a reliable investment in the st...
The proposals might seem radical—from banning huge corporate landlords to freezing rents for five years—but polls show the public is ready for something dramatic.
In September 2018, Deutsche Wohnen SE (ETR:DWNI) released its earnings update. Generally, analyst consensus outlook appear pessimistic, with earnings expected to decline by -16% in the upcoming year compared with Read More...