Deutsche Wohnen Reports Stable Financial Performance for 2023

In the backdrop of a challenging real estate sector, Deutsche Wohnen SE has maintained a stable performance throughout the fiscal year of 2023. With the Group FFO recorded at €521.8 million, approximately €1.31 per share, the company navigated through the year efficiently. However, notable is the decrease in NAV, which settled at €16,976.6 million, equating to €42.77 per share. The company's vacancy rate remained commendably low.

The strategic review of Deutsche Wohnen's nursing care activities has led to a pivotal shift, deciding against its inclusion in future corporate strategies, marking a significant redirection towards the sale of these activities. This aligns with a broader structural adjustment within the company, as it evolves its management system to more distinctly separate earnings and liquidity perspectives, especially under the current market conditions. This pivot underlines a move from Group FFO as a measure to Adjusted EBT, enhancing transparency and comparability across industries.

Despite slight declines in certain areas, like a reduction in Group FFO of continued operations by 3.3% to €521.8 million and a notable drop in Operating Free Cash-Flow by 25.1% to €267.2 million, the company has displayed resilience. The company's strategic adjustments and performance shifts indicate a nuanced approach to navigating financial and operational challenges, maintaining stability amid market fluctuations.