Deutsche Wohnen (DWNI) Q4 2024 earnings summary

Executive summary

• 2024 marked a return to stability, with property values bottoming out and strong demand in core rental markets, especially in major cities, leading to high occupancy and rising rents.

• The sale of the Care segment was completed, and development activities were merged with Vonovia, enhancing efficiency and focus.

• A control and profit-transfer agreement with Vonovia was approved, aligning future results and providing shareholders with a guaranteed dividend or share exchange option.

Financial highlights

• Adjusted EBITDA Total (continuing operations) rose 1.4% year-over-year to €643.8 million.

• Adjusted EBT (continuing operations) declined 7.7% to €504.2 million, mainly due to higher borrowing costs.

• Profit for the period improved to a loss of €-591.0 million from €-2,761.1 million, reflecting a smaller negative fair value adjustment on investment properties.

• Operating Free Cash Flow more than doubled to €552.6 million.

• NAV per share decreased 2.4% to €41.76.

• LTV improved to 29.3% from 30.4% year-over-year.

Outlook and guidance

• 2025 is expected to see stable business development, with Adjusted EBITDA Total forecasted to rise considerably, driven by rental growth and improved development segment performance.

• Adjusted EBT is projected to be moderately higher, and NAV per share is expected to increase slightly, barring market-related changes.