BERLIN, May 5 (Xinhua) -- Operating earnings of Vonovia increased by 10.5 percent year-on-year to 335.5 million euros (363.4 million U.S. dollars) in the first quarter (Q1) 2020, the German housing company announced on Tuesday.
At the same time, adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) increased by 6.1 percent to 456.1 million euros year-on-year, according to Vonovia.
The economic strength of Vonovia was "largely unaffected" by the coronavirus crisis and it would remain well positioned in terms of financial stability, the company noted.
"We stand by our responsibility as a large residential real estate company. Our economic stability forms the basis for us to assume social responsibility during the coronavirus crisis and to use our strength and capabilities to help," said Rolf Buch, Chief Executive Officer (CEO) of Vonovia.
So far, just over one percent of Vonovia's tenants have had reported "financial hardship" caused by the coronavirus crisis and the company expected "only a very low" temporary reduction in rental payments.
Rental income in the first quarter increased to 564.0 million euros, up from 502.2 million euros in the first quarter 2019, according to Vonovia.
"We are continuing to conduct a moderate rental policy. Our average rent of 6.94 euros per square meter is no luxury rent and rather reflects our good price-performance ratio," said Buch.
Vonovia confirmed its forecast for the financial year 2020, stressing that "the positive financial start to the year will continue despite the effects of the coronavirus on public life."
For 2020, Vonovia is expecting an adjusted EBITDA between 1.87 billion and 1.92 billion euros with operating earnings between 1.27 billion euros and 1.32 billion euros.
"The conversion and new construction of apartments must proceed so that Germany will have access to sufficient suitable housing over the long term," said Buch. Enditem
