The Germany's largest residential real estate group, Vonovia, published losses of roughly €2 billion ($2.2 billion) in the second quarter as the value of the company's holdings continued to tumble.
The Bochum-based firm announced that it was again
marking down the value of its real estate portfolio in its quarterly report, which was released on Friday morning. The major loss contrasts with a profit of €1.8 billion that the company reported in the second quarter of 2022.Vonovia valued its portfolio of rental properties at around €88.2 billion as of the end of June. At the end of March, those same properties had been valued at €91.2 billion - and at the end of 2022 at €94.7 billion.
While project development and additional services business for the company weakened in particular, Vonovia's rental business performed significantly better in the second quarter due to the continued high demand for affordable housing in metropolitan areas.
In Germany, Vonovia's average rent as at the end of June was €7.51 per square metre. Sales increased by 1.5% to just under €1.5 billion for the quarter, which ran until the end of June.
The company confirmed its financial targets for the full year.
Meanwhile, day-to-day business for Vonovia improved somehow.
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