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Vonovia said Thursday that it agreed to sell five real-estate portfolios in Germany CBRE Investment Management for around 560 million euros ($619.6 million) and confirmed its guidance for 2023 after reporting a swing to a first-quarter net loss.
The German real-estate company
VNA,
said the five portfolios it is selling comprise properties with 1,350 residential units in Frankfurt, Berlin and Munich. The sale is expected to be completed during the second and third quarters and, coupled with recent transactions, means the company is able to cover its refinancing needs for this year and the main part of its refinancing due for 2024, Vonovia said.
The company posted net loss of EUR1.96 billion for the first quarter compared with profit of EUR22.7 million for the year-earlier period. It booked a loss of EUR3.61 billion from fair-value adjustments of its investment properties.
Total segment revenue for the quarter fell 12% to EUR1.43 billion.
Group funds from operations–the company’s key figure for operational profitability also called FFO–was EUR462.6 million in the quarter, down 18% on year.
The company said it continues to expect segment revenue of EUR6.4 billion to EUR7.2 billion and FFO of between EUR1.75 billion and EUR1.95 billion in 2023.
Write to Adria Calatayud at adria.calatayud@dowjones.com
