Vonovia SE reported a 21% year-over-year increase in 2017 funds from operations 1, with its board intending to propose an increased dividend at its annual general meeting.
The company said FFO 1 for the full year came in at €1.90 per share, compared with the S&P Capital IQ consensus normalized EPS estimate of €1.82 per share and reflecting a gain of 16.6% from €1.63 in 2016.
FFO 1 totaled €920.8 million for the full year, an increase of 21% from €760.8 million in the previous year.
The European Public Real Estate Association-defined NAV increased 24.9% year over year to €21.28 billion, or €43.88 per share, from €17.05 billion, or €36.58 per share.
In 2017, Vonovia spent roughly €1.1 billion on new construction, improvements and maintenance. It commenced construction on more than 1,000 apartments during the year, some of which have already been completed.
Vonovia's real estate portfolio was valued at €33.4 billion as at 2017-end, compared to €27.1 billion at the end of 2016. The company had 346,644 apartment units at the end of the year, compared to 333,381 units as at Dec. 31, 2016.
The company said it expects FFO 1 for 2018 to range between roughly €960 million and roughly €980 million, affirming its previous guidance. Vonovia is earmarking up to €1.4 billion for new construction and portfolio improvements.
Vonovia's board plans to propose a dividend of €1.32 per share at its May 9 annual general meeting, up from the 2016 dividend of €1.12 per share.
The company recently announced that its CFO and chairman will step down at the conclusion of its annual general meeting. Their replacements have been named.
The first acceptance deadline for Vonovia's takeover offer for BUWOG AG, made in February, is March 12. BUWOG's management and supervisory boards recommended that shareholders accept the offer.
