Deutsche Wohnen (DWNI) Q2 2025 earnings summary

Executive summary

• Positive business development in H1 2025, driven by high demand for rental apartments and increased real estate investments.

• Ownership of 19 nursing care properties and the Katharinenhof businesses transferred; further disposals in Care segment ongoing.

• Control and profit transfer agreement with Vonovia SE approved, pending commercial register entry.

• Dividend of €0.04 per share for 2024 paid; main shareholder Vonovia SE holds nearly 87%.

Financial highlights

• Adjusted EBITDA Total (continuing operations) rose 21.5% to €394.8m in H1 2025 year-over-year.

• Adjusted EBT (continuing operations) increased 15.5% to €325.1m year-over-year.

• Profit for the period improved to €-53.5m from €-202.8m year-over-year, mainly due to lower negative fair value adjustments.

• Operating free cash flow nearly doubled to €503.0m year-over-year.

• Cash flow from operating activities up 77.7% to €581.6m year-over-year.

Outlook and guidance

• Expectation of significantly higher Adjusted EBITDA Total for FY 2025, driven by rent growth and Development segment earnings.

• Slight improvement in Adjusted EBT forecasted, with stable depreciation and a slight increase in NAV per share anticipated.

• Continued moderate impact from construction and commodity price increases; high interest rates and inflation to persist.