| Deutsche Wohnen SE (DE000A0HN5C6) | |||
24,10 EURStand (close): 30.06.25 |
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| 19.09.24 08:35:53 | Vonovia Deal Offers Way Out for Elliott’s Deutsche Wohnen Bet |  |
| (Bloomberg) -- German residential landlord Vonovia SE said it’s prepared to offer sweeteners to minority shareholders of a subsidiary in exchange for tighter control, following a yearslong campaign by activist shareholder Elliott Investment Management LP. Most Read from Bloomberg AOC Proposes $30 Billion Social Housing Authority California’s Anti-Speeding Bill Can Be a Traffic Safety Breakthrough New York City’s Transit System Plans $65.4 Billion of Upgrades for Grand Central, Subways To Build a Happier City, Design for Density Pipe Fire Near Houston Forces Residents to Evacuate Vonovia agreed to enter discussions to conclude a so-called domination and profit and loss transfer agreement involving its Deutsche Wohnen SE unit, according to a statement late on Wednesday. Under such a deal, minority investors of Deutsche Wohnen — including Elliott — could sell their shares in exchange for newly issued Vonovia stock and receive an annual compensation payment. Usually in German domination agreements, this annual payout is set at 5%. The final details of offer are still to be determined, Vonovia said. Deutsche Wohnen shares surged as much as 25% in early trading in Frankfurt. The stock was up 22% at €27.65 as of 9:56 CET. To be sure: the deal hardly represents a huge success for minority shareholders. Paul Singer’s Elliott filed a stake of 3% in Deutsche Wohnen mid-2021, when the stock was trading at above €50, almost double today’s share price. Still, the decision does at least offer Elliott a possible way out of its investment. In the past the fund manager refused offers by Vonovia to buy its Deutsche Wohnen holding. A spokesperson for Elliott declined to comment. Last year, Elliott asked a Berlin court to order a special audit into Deutsche Wohnen over a large loan it made to Vonovia, arguing that the decision amounted to illicit financial assistance and was approved too quickly, Bloomberg reported at the time. Elliott said the money helped Vonovia repay some of the bridge loans that the real estate group took up to finance its multibillion-euro acquisition of Deutsche Wohnen in 2021. Shareholders of both companies will vote in December on whether to implement the domination and profit and loss transfer agreement, according to Wednesday’s statement. Most Read from Bloomberg Businessweek Trump’s Pet-Eating Rant Was an Effective Act of Misdirection The Man Who Made Nike Uncool Who Loses in Trump’s Endless Trade War? Not Just China How an Unknown Chinese Phonemaker Took Over Africa Business Schools Are Undergoing Unusual Change ©2024 Bloomberg L.P. View comments |
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| 08.08.24 04:17:16 | A Look At The Fair Value Of Deutsche Wohnen SE (ETR:DWNI) |  |
| Key Insights Deutsche Wohnen's estimated fair value is €22.73 based on 2 Stage Free Cash Flow to Equity With €19.36 share price, Deutsche Wohnen appears to be trading close to its estimated fair value The average premium for Deutsche Wohnen's competitorsis currently 16% Today we will run through one way of estimating the intrinsic value of Deutsche Wohnen SE (ETR:DWNI) by taking the expected future cash flows and discounting them to today's value. We will use the Discounted Cash Flow (DCF) model on this occasion. Believe it or not, it's not too difficult to follow, as you'll see from our example! We would caution that there are many ways of valuing a company and, like the DCF, each technique has advantages and disadvantages in certain scenarios. Anyone interested in learning a bit more about intrinsic value should have a read of the Simply Wall St analysis model. View our latest analysis for Deutsche Wohnen The Calculation We are going to use a two-stage DCF model, which, as the name states, takes into account two stages of growth. The first stage is generally a higher growth period which levels off heading towards the terminal value, captured in the second 'steady growth' period. To begin with, we have to get estimates of the next ten years of cash flows. Seeing as no analyst estimates of free cash flow are available to us, we have extrapolate the previous free cash flow (FCF) from the company's last reported value. We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. We do this to reflect that growth tends to slow more in the early years than it does in later years. Generally we assume that a dollar today is more valuable than a dollar in the future, so we need to discount the sum of these future cash flows to arrive at a present value estimate: 10-year free cash flow (FCF) estimate 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 Levered FCF (€, Millions) €584.6m €597.7m €608.6m €617.8m €625.8m €633.1m €639.7m €646.0m €652.0m €657.8m Growth Rate Estimate Source Est @ 2.86% Est @ 2.25% Est @ 1.82% Est @ 1.51% Est @ 1.30% Est @ 1.16% Est @ 1.05% Est @ 0.98% Est @ 0.93% Est @ 0.89% Present Value (€, Millions) Discounted @ 7.5% €544 €517 €489 €462 €435 €409 €385 €361 €339 €318 ("Est" = FCF growth rate estimated by Simply Wall St) Present Value of 10-year Cash Flow (PVCF) = €4.3b The second stage is also known as Terminal Value, this is the business's cash flow after the first stage. The Gordon Growth formula is used to calculate Terminal Value at a future annual growth rate equal to the 5-year average of the 10-year government bond yield of 0.8%. We discount the terminal cash flows to today's value at a cost of equity of 7.5%. Story continues Terminal Value (TV)= FCF2034 × (1 + g) ÷ (r – g) = €658m× (1 + 0.8%) ÷ (7.5%– 0.8%) = €9.9b Present Value of Terminal Value (PVTV)= TV / (1 + r)10= €9.9b÷ ( 1 + 7.5%)10= €4.8b The total value, or equity value, is then the sum of the present value of the future cash flows, which in this case is €9.0b. In the final step we divide the equity value by the number of shares outstanding. Compared to the current share price of €19.4, the company appears about fair value at a 15% discount to where the stock price trades currently. The assumptions in any calculation have a big impact on the valuation, so it is better to view this as a rough estimate, not precise down to the last cent. dcf The Assumptions We would point out that the most important inputs to a discounted cash flow are the discount rate and of course the actual cash flows. Part of investing is coming up with your own evaluation of a company's future performance, so try the calculation yourself and check your own assumptions. The DCF also does not consider the possible cyclicality of an industry, or a company's future capital requirements, so it does not give a full picture of a company's potential performance. Given that we are looking at Deutsche Wohnen as potential shareholders, the cost of equity is used as the discount rate, rather than the cost of capital (or weighted average cost of capital, WACC) which accounts for debt. In this calculation we've used 7.5%, which is based on a levered beta of 1.633. Beta is a measure of a stock's volatility, compared to the market as a whole. We get our beta from the industry average beta of globally comparable companies, with an imposed limit between 0.8 and 2.0, which is a reasonable range for a stable business. SWOT Analysis for Deutsche Wohnen Strength Debt is well covered by earnings. Weakness Dividend is low compared to the top 25% of dividend payers in the Real Estate market. Opportunity Expected to breakeven next year. Has sufficient cash runway for more than 3 years based on current free cash flows. Current share price is below our estimate of fair value. Threat Debt is not well covered by operating cash flow. Next Steps: Whilst important, the DCF calculation shouldn't be the only metric you look at when researching a company. It's not possible to obtain a foolproof valuation with a DCF model. Rather it should be seen as a guide to "what assumptions need to be true for this stock to be under/overvalued?" If a company grows at a different rate, or if its cost of equity or risk free rate changes sharply, the output can look very different. For Deutsche Wohnen, there are three fundamental elements you should consider: Risks: Every company has them, and we've spotted 1 warning sign for Deutsche Wohnen you should know about. Future Earnings: How does DWNI's growth rate compare to its peers and the wider market? Dig deeper into the analyst consensus number for the upcoming years by interacting with our free analyst growth expectation chart. Other High Quality Alternatives: Do you like a good all-rounder? Explore our interactive list of high quality stocks to get an idea of what else is out there you may be missing! PS. Simply Wall St updates its DCF calculation for every German stock every day, so if you want to find the intrinsic value of any other stock just search here. Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com View comments |
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| 17.06.24 11:13:35 | Shareholders in Deutsche Wohnen (ETR:DWNI) are in the red if they invested three years ago | |
| If you are building a properly diversified stock portfolio, the chances are some of your picks will perform badly. Long term Deutsche Wohnen SE (ETR:DWNI) shareholders know that all too well, since the share price is down considerably over three years. Unfortunately, they have held through a 66% decline in the share price in that time. With that in mind, it's worth seeing if the company's underlying fundamentals have been the driver of long term performance, or if there are some discrepancies. View our latest analysis for Deutsche Wohnen To paraphrase Benjamin Graham: Over the short term the market is a voting machine, but over the long term it's a weighing machine. One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement. We know that Deutsche Wohnen has been profitable in the past. However, it made a loss in the last twelve months, suggesting profit may be an unreliable metric at this stage. Other metrics may better explain the share price move. With a rather small yield of just 0.2% we doubt that the stock's share price is based on its dividend. We think that the revenue decline over three years, at a rate of 9.4% per year, probably had some shareholders looking to sell. And that's not surprising, since it seems unlikely that EPS growth can continue for long in the absence of revenue growth. The company's revenue and earnings (over time) are depicted in the image below (click to see the exact numbers). earnings-and-revenue-growth It's probably worth noting that the CEO is paid less than the median at similar sized companies. But while CEO remuneration is always worth checking, the really important question is whether the company can grow earnings going forward. So it makes a lot of sense to check out what analysts think Deutsche Wohnen will earn in the future (free profit forecasts). A Different Perspective While the broader market gained around 3.7% in the last year, Deutsche Wohnen shareholders lost 16% (even including dividends). However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. Regrettably, last year's performance caps off a bad run, with the shareholders facing a total loss of 8% per year over five years. Generally speaking long term share price weakness can be a bad sign, though contrarian investors might want to research the stock in hope of a turnaround. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. Case in point: We've spotted 1 warning sign for Deutsche Wohnen you should be aware of. Story continues Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this freelist of companies we expect will grow earnings. Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on German exchanges. Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com View comments |
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| 09.01.24 09:59:42 | Shareholders in Deutsche Wohnen (ETR:DWNI) have lost 45%, as stock drops 6.0% this past week | |
| In order to justify the effort of selecting individual stocks, it's worth striving to beat the returns from a market index fund. But its virtually certain that sometimes you will buy stocks that fall short of the market average returns. Unfortunately, that's been the case for longer term Deutsche Wohnen SE (ETR:DWNI) shareholders, since the share price is down 46% in the last three years, falling well short of the market decline of around 3.6%. And the share price decline continued over the last week, dropping some 6.0%. With the stock having lost 6.0% in the past week, it's worth taking a look at business performance and seeing if there's any red flags. Check out our latest analysis for Deutsche Wohnen In his essay The Superinvestors of Graham-and-Doddsville Warren Buffett described how share prices do not always rationally reflect the value of a business. One flawed but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share (EPS) with the share price. Over the three years that the share price declined, Deutsche Wohnen's earnings per share (EPS) dropped significantly, falling to a loss. This was, in part, due to extraordinary items impacting earnings. Since the company has fallen to a loss making position, it's hard to compare the change in EPS with the share price change. However, we can say we'd expect to see a falling share price in this scenario. You can see how EPS has changed over time in the image below (click on the chart to see the exact values). XTRA:DWNI Earnings Per Share Growth January 9th 2024 It's probably worth noting that the CEO is paid less than the median at similar sized companies. But while CEO remuneration is always worth checking, the really important question is whether the company can grow earnings going forward. Dive deeper into the earnings by checking this interactive graph of Deutsche Wohnen's earnings, revenue and cash flow. A Different Perspective Deutsche Wohnen provided a TSR of 6.3% over the year (including dividends). That's fairly close to the broader market return. The silver lining is that the share price is up in the short term, which flies in the face of the annualised loss of 7% over the last five years. We're pretty skeptical of turnaround stories, but it's good to see the recent share price recovery. I find it very interesting to look at share price over the long term as a proxy for business performance. But to truly gain insight, we need to consider other information, too. To that end, you should be aware of the 1 warning sign we've spotted with Deutsche Wohnen . Story continues If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this freelist of companies that have proven they can grow earnings. Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on German exchanges. Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. |
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| 14.11.23 06:00:00 | Berlin’s great housing mistake – and what Britain can learn from it | |
| Renters make up 85pc of all residents in Berlin - Craig Stennett Mortgage arrears are piling up fast for Britain’s private landlords, having climbed 174pc over the past year. Despite London’s average rent tipping over £1,000, those letting a couple of mortgaged properties can no longer make the numbers work. With a quarter of landlords planning to sell up over the next year, according to insurer Simply Business – and many having already exited their portfolios – demand for rental properties is only continuing to rise. One group is trying to cash in on the opportunity. Household names such as Lloyds Banking Group and John Lewis have published their plans to become “corporate landlords”. In 2021, Lloyds launched Citra Living – a subsidiary which bought 604 new homes for £168m from Barratt earlier this year. John Lewis has also said it wants to build 10,000 new homes in and around London as part of efforts to make 40pc of its profits from outside the retail sector by 2030. But as Berliners will tell you, landlords with deep pockets and boards of investors aren’t necessarily the antidote to a saturated rental market. In fact, Berliners rue the day their city decided to sell hundreds of thousands of homes to private equity-backed “corporate” landlords to make a quick buck. The city’s largest renter association has since said that while individual landlords typically raise rents by around 20pc, corporate ones will raise them by as much as 50pc all the while their residents, laden with maintenance issues, are left to feel like numbers on a spreadsheet. Now, Berlin state officials are struggling to return the properties back to social ownership. Renter Chris Anders is a spokeperson for 'Deutsche Wohnen & Co Enteignen', a group campaigning for privately-owned homes to be put back into social ownership - Craig Stennett Chris Anders, 35, has lived in a Deutsche Wohnen-owned apartment in Neukölln for four years, and currently pays around €800-a-month – or £700 – for it. “Their shareholders have nothing to do with the provision of my home. And yet, hundreds of euros of my rent goes straight into their pockets each month,” he explains. Other corporate landlords with a stronghold in Berlin include Vonovia – Deutsche Wohnen’s new owner – as well as Adler, Heimstaden, Grand City Properties and Covivio. Story continues Their shareholders benefit from around 41 cents of every euro tenants pay in rent on average, according to the research arm of consumer lobby group Finanzwende. This, among other discoveries, is why Mr Anders became a member of “Deutsche Wohnen & Co Enteignen” (“Expropriate Deutsche Wohnen & Co”) – a campaign group born out of Kreuzberg’s underworld to topple Berlin’s corporate landlords for good. Two years after gaining a majority in a referendum to put 250,000 privately-owned homes back into social ownership, renters are still campaigning. Some say the state should force the companies to sell the homes back at below market prices – but the fight to remove them is proving difficult. ‘Privatising our housing was a mistake – we’re struggling to undo it’ Everyone, even Berlin state officials, admit the sale of social homes to private corporations was a grave mistake. Unlike London, around half of Berlin’s population has traditionally qualified for social housing. Now, in the city of renters – who make up 85pc of all residents – there is less social housing than council houses in London. Renters dominate in Berlin, partly because Germany’s pension system is much more generous than Britain’s. This means retirees don’t necessarily need to own a property to make ends meet when they leave the workforce. Dr Jochen Lang says renters do not currently get good prices - Craig Stennett Dr Jochen Lang, head of the housing, urban renewal and urban development funding division at the Senate, says: “Of course, privatisation of municipal housing was a mistake. “But at the time, many other cities across Europe were selling their housing stock too. “Back then [in the 1990s], Berlin was broke and around 10pc of our apartments weren’t being used. Thousands were also being demolished.” With a surplus of social housing at the time, the state decided to sell off some of its apartments to shrink a growing, multi-billion-euro debt. Over the past twenty years, landlords listed on Germany’s stock exchange have grown their market share in Berlin from zero to just under 20pc – give or take, because no-one actually knows exactly how much stock they own. It wasn’t until around 2010, after 15 years of shrinking then stagnation, that Berlin began to grow again – and housing supply came under strain. Up until two years ago, it would have been relatively easy for the city to buy these apartments back. But now, with inflated prices and high interest rates, it is no longer viable. “These days, we don’t get good prices,” says Dr Lang, a renter himself. The mid-term goal is to reach 500,000 state-owned apartments – currently, there are around 380,000 on its books. But the state is also struggling to build new properties. Price of construction isn’t falling, despite the cost of debt driving down demand. Environmental regulations and nimby neighbours are weighing heavy on developers’ timelines too, much like in the UK. In North East Berlin, a development of 5,000 new social apartments in 2014 was approved on agricultural land where grain is harvested. Two years later, a new coalition government decided against it after neighbours complained. Dr Lang says: “It’s okay to fight for your interests. It’s a democracy after all. But for the common welfare of the city, someone needs to make decisions even if some people disagree.” Berliner Mieterverein, where Dr Hamann-Onnertz is a managing director, often helps tenants issued with with rule-breaking rent hikes - Craig Stennett Corporate landlords don’t stick to rent controls In Berlin, landlords cannot raise rents on existing tenancies by more than 10pc. But this rule isn’t sanctioned, which means it is often broken, according to Dr Hamann-Onnertz, a managing director at Berliner Mieterverein. She says individual landlords typically won’t raise rents more than 20pc. But corporate landlords, she says, will run roughshod over these rules to the tune of 50pc. As well as repeatedly breaking rent cap rules, tenants have also accused corporate landlords of spending far less than other housing providers on maintenance. The city’s six largest corporate landlords have spent €10.93 per square metre on repairs and maintenance in recent years, according to an academic report commissioned by socialist lobby group Rosa-Luxemburg-Stiftung. This is compared to the €18.54 spent by state-owned housing companies. Dr Hamann-Onnertz says rule-breaking rent hikes are the most common reason tenants who live in corporate landlords’ properties reach out for support. After that, it is maintenance issues such as water pouring through the roof and repeatedly failing elevators. Corporate landlords, Dr Hamann-Onnertz says, tend to de-invest in their stock so shareholders can receive larger dividends. Renter Mr Anders says he has friends who say their “individual landlords are good and look after them”. But those in shareholder-owned property, he says, always struggle to get a reliable service. Every Christmas “just like clockwork”, he says the heating some of Deutsche Wohnen’s apartments will fail and not get fixed for weeks. “It’s not even a scandal any more because it’s so predictable.” A spokesperson for Deutsche Wohnen said some of its buildings are 50 to 60 years old and added that it distributes mobile radiators to tenants during periods of delays. Earlier this year, corporate housing giant Vonovia came under scrutiny following accusations that some of its staff had taken kickbacks from contractors in return for preferential treatment. Rolf Buch, the company’s chief executive, admitted in March: “It appears individual employees at our subsidiaries have accepted bribes to the detriment of Vonovia — that is not acceptable.” The findings of an internal investigation overseen by Deloitte are due imminently. A spokesperson declined to comment. ‘These rent increases make people angry’ High rents and a lack of social housing mean the city’s tenants are now petrified of moving. Until this year, Berlin’s social housing bands had been frozen. This summer, they were raised so those earning €2,000 a month – such as nurses and train drivers – could actually qualify. Though with the shortage in state-owned homes, many are still renting in the private sector where rents feel unaffordable. Andrej Holm says if he were to move into a smaller flat, he would find himself paying more rent - Craig Stennett Andrej Holm, a professor at Humboldt University, lives in a family-sized apartment with his partner. He has plenty of room to accommodate his piles of academic books, but with children on the cusp of flying the nest he will soon have more space than he needs. Mr Holm, one of the city’s ex-deputy housing ministers who was later reportedly dropped for his links to the Stasi, says: “No-one is willing to move into another apartment. If I was to move into a smaller flat, I’d still be paying more.” He pays around €1,500 for his apartment now, equating to €7 per square metre. If he were to move, he’d have to pay around €12 per square metre – taking his rent well over €2,000. As a result, families in need of more space simply aren’t getting it. “It’s the return of overcrowding. And it’s not just affecting the poor. Middle class families aren’t able to move into bigger homes. You’re often hearing of two or three child-families in two-bedroom apartments.” Mr Holm acknowledged that the drive towards expropriation “sounds a bit like a communist rebellion”, but he believes the reason why the first referendum was so successful was because it mobilised much of the middle-class. “This is not just a problem for low-income households. People with a lot of money didn’t expect rental prices to go up. Back in our days as students, we said we wouldn’t pay more than €200 a month. Now students are paying over triple that. “These rent increases make people angry and more open to radical demands.” A final attempt to restore social housing Members of Deutsche Wohnen & Enteignen are currently preparing for a second referendum to restore the city’s social housing. They want 250,000 privately-owned homes to be placed back into social ownership. There is much debate over how this would work in practice. The city’s most radical argue the stock should be sold for a nominal £1. Others say the state could force the companies to sell them back at a reasonable price below the market rate. The first referendum did not carry the legislation needed to make it count and so this time, the group has crowdfunded £100,000 and poured it into writing legal documents stipulating how it will work. If they win again, the law will have to be passed the next day. Recommended Is ‘posh renting’ a better choice than downsizing? Read more |
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| 18.10.23 08:32:48 | Hedge Fund Elliott Asks Court to Audit Deutsche Wohnen Over Vonovia Loan | |
| (Bloomberg) -- Elliott Investment Management wants a Berlin court to order a special audit into Deutsche Wohnen SE over a large loan the German landlord made to its controlling shareholder, people with knowledge of the matter said. Most Read from Bloomberg Hospital Blast Kills Hundreds as Israel, Hamas Trade Blame Israel Latest: Biden to Visit as Oil Climbs After Hospital Blast Treasury Yields Climb as Hot Data Fuel Fed Wagers: Markets Wrap Will Xi Jinping’s Gamble on Vladimir Putin Pay Off? UPenn Donors Pile Pressure on School as David Magerman Pulls Support The US hedge fund has asked Landgericht Berlin to appoint an auditor to look into its claim that Deutsche Wohnen’s supervisory board failed to act in the best interest of investors when it approved lending as much as €2 billion ($2.1 billion) to Vonovia SE last year, according to the people. Elliott said the money helped Vonovia repay some of the bridge loans that the real estate group took up to finance its multibillion-euro acquisition of Deutsche Wohnen in 2021. In its motion to the Berlin court, the hedge fund said the loan therefore amounted to illicit financial assistance and was approved too quickly. Elliott is one of a small number of Deutsche Wohnen investors that didn’t tender its shares in the sale to Vonovia, as it was holding out for a higher price. At its annual general meeting in June, Deutsche Wohnen said Vonovia already had ample funding in place for its takeover and had not required extra help. Deutsche Wohnen management said Vonovia only borrowed €1.45 billion of the maximum loan agreed. The full loan amount was approved by three Deutsche Wohnen supervisory board members in January 2022. Another three abstained from a vote on the loan as they were also executives at Vonovia. But Elliott said two of the board members who agreed — Simone Schumacher and Peter Hohlbein — were affiliated with Vonovia as well, according to the people, who asked not to be identified discussing confidential information. Story continues Schumacher worked as member of Vonovia Finance B.V.’s supervisory board at the time of the vote, according to her LinkedIn profile and a Deutsche Wohnen filing. Hohlbein was one of the representatives Vonovia elected to the supervisory board of Victoria Park AB after acquiring the Swedish landlord in 2019. Hohlbein left Victoria Park in 2020 according to a Deutsche Wohnen filing. A spokesperson for Deutsche Wohnen said the company is examining the contents of Elliott’s application to the Berlin court. Representatives for Landgericht Berlin, Elliott and Vonovia declined to comment. Earlier this year, the influential proxy advisory firm Institutional Shareholder Services Inc. backed Elliott’s call for a special audit of Deutsche Wohnen over the loan. Most Read from Bloomberg Businessweek The New Middle East Is an All-Too-Familiar Nightmare Wall Street’s Surprising Quest for Ways to Finance Coal Again Ad-Free Versions of Facebook and Instagram Have One Audience in Mind: Regulators The K-Pop Mogul Behind BTS Is Building the Next BTS Biden’s FCC Revives the Longest-Running Policy Fight in Tech ©2023 Bloomberg L.P. |
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| 10.08.23 04:02:46 | Deutsche Wohnen Second Quarter 2023 Earnings: €1.78 loss per share (vs €1.70 profit in 2Q 2022) | |
| Deutsche Wohnen (ETR:DWNI) Second Quarter 2023 Results Key Financial Results Revenue: €565.1m (up 15% from 2Q 2022). Net loss: €704.9m (down by 205% from €671.1m profit in 2Q 2022). €1.78 loss per share (down from €1.70 profit in 2Q 2022). earnings-and-revenue-history All figures shown in the chart above are for the trailing 12 month (TTM) period Deutsche Wohnen shares are down 3.0% from a week ago. Risk Analysis Before you take the next step you should know about the 1 warning sign for Deutsche Wohnen that we have uncovered. Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. |
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| 02.08.23 07:18:04 | Deutsche Wohnen (ETR:DWNI) shareholders have endured a 46% loss from investing in the stock three years ago | |
| Deutsche Wohnen SE (ETR:DWNI) shareholders should be happy to see the share price up 12% in the last quarter. But that doesn't change the fact that the returns over the last three years have been less than pleasing. After all, the share price is down 47% in the last three years, significantly under-performing the market. So let's have a look and see if the longer term performance of the company has been in line with the underlying business' progress. View our latest analysis for Deutsche Wohnen While the efficient markets hypothesis continues to be taught by some, it has been proven that markets are over-reactive dynamic systems, and investors are not always rational. By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time. Over the three years that the share price declined, Deutsche Wohnen's earnings per share (EPS) dropped significantly, falling to a loss. This was, in part, due to extraordinary items impacting earnings. Since the company has fallen to a loss making position, it's hard to compare the change in EPS with the share price change. However, we can say we'd expect to see a falling share price in this scenario. You can see below how EPS has changed over time (discover the exact values by clicking on the image). earnings-per-share-growth It might be well worthwhile taking a look at our freereport on Deutsche Wohnen's earnings, revenue and cash flow. A Different Perspective Deutsche Wohnen shareholders are down 7.6% for the year (even including dividends), but the market itself is up 11%. Even the share prices of good stocks drop sometimes, but we want to see improvements in the fundamental metrics of a business, before getting too interested. Unfortunately, longer term shareholders are suffering worse, given the loss of 7% doled out over the last five years. We'd need to see some sustained improvements in the key metrics before we could muster much enthusiasm. I find it very interesting to look at share price over the long term as a proxy for business performance. But to truly gain insight, we need to consider other information, too. Even so, be aware that Deutsche Wohnen is showing 1 warning sign in our investment analysis, you should know about... Story continues But note: Deutsche Wohnen may not be the best stock to buy. So take a peek at this freelist of interesting companies with past earnings growth (and further growth forecast). Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on German exchanges. Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. |
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| 13.06.23 10:45:00 | How a Housing Bet Went Wrong for Activist Investor Elliott | |
| The hedge fund’s strategy of buying into takeovers and pushing for a higher price has misfired with two of Europe’s largest property companies. | ||
| 30.05.23 15:44:34 | ISS Backs Elliott Push for Special Audit on Deutsche Wohnen Loan | |
| (Bloomberg) -- Institutional Shareholder Services Inc. is backing Elliott Investment Management’s call for a special audit of real estate firm Deutsche Wohnen SE’s loan to its controlling shareholder, its second recent move to support activist proposals in Germany. Most Read from Bloomberg Winklevoss Twins Attempt Pivot After Gemini Loses Money and Employees Putin Orders Tighter Defenses After Drone Strikes on Moscow McCarthy Confident on Debt Vote Despite Hard-Line Ouster Threat Stock Rally Loses Steam After AI-Fueled Euphoria: Markets Wrap Nvidia Touches $1 Trillion Mark After Beating Rivals to AI Deutsche Wohnen’s loan of as much as €2 billion to Vonovia SE “raises legitimate concerns about potential conflicts of interest and breach of fiduciary responsibilities,” ISS said in a note. Vonovia took control of Deutsche Wohnen in a 2021 deal. While there’s no irrefutable evidence of wrongdoing, an independent investigation by a third-party special auditor would merit shareholder support, it said. Elliott, which owns a stake in Deutsche Wohnen, argues that the company could have put the money to better use by buying back stock or acquiring more properties. Deutsche Wohnen’s supervisory board has said its review of investment options showed the loan was the most attractive opportunity for the capital. ISS said a special audit should examine whether the Vonovia takeover was a factor in granting the loan and whether management took measures to ensure the transaction followed regulations. “We believe that the company and its shareholders would benefit from the special audit, which will provide additional transparency into the decision-making at board level,” it said. “There are legitimate concerns about the board’s actions in the context of the Vonovia takeover, which have not been sufficiently addressed by the company.” Deutsche Wohnen investors will likely vote against the special audit at the upcoming annual general meeting, since Vonovia controls nearly 90% of the Berlin-based landlord’s shares. Still, having a vote is a prerequisite if Elliott wants to eventually ask a German court to appoint a special auditor. Spokespeople for Elliott and Vonovia declined to comment, while a representative for Deutsche Wohnen didn’t immediately respond to a request for comment. In recent weeks, ISS also backed PrimeStone Capital’s call for a board shakeup at Brenntag SE, saying the German chemical company’s strategy doesn’t appear to be working. Most Read from Bloomberg Businessweek Assault Allegations Plague a $1.4 Billion Home Eldercare Startup Sergey Brin Has a Secret Plan to Put Airships Back in the Skies Adidas After Yeezy You’re the CEO and Your Company Got Hacked—What Now? There’s Still Scary Stuff in Sunscreen ©2023 Bloomberg L.P. |
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