Vonovia cuts back renovation program after tenant protests
Vonovia will not carry out energy efficiency improvements over the next two years as planned. The housing company is cutting back the planned investments by 40%, citing growing resistance to the associated rent increases as the reason in its nine-month report. After modernization, Vonovia rents will now rise by no more than €2/sqm. The association GdW welcomed the announcement in a statement, calling for greater government involvement in climate protection investment. The industry is also considering an “ombudsman system” to mediate between property owners and tenants. However, Vonovia is keeping to its plans to increase its investment from an expected €1bn in 2018 to up to €1.6bn in 2019. Properties in Sweden will now be the focus of energy modernization, while more money will be invested in new buildings and the conversions of existing apartments in Germany. Rental income from a scaled-down portfolio rose by 3.1% to around €1.3bn from January to September. Both FFO 1 and profit increased significantly by double digits to around €778mn and just under €1.4bn, respectively.
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