BOCHUM (dpa-AFX) - Germany's largest residential real estate group Vonovia suffered a billion-euro loss in the first quarter. The bottom line was a loss of just under 2.1 billion euros due to a devaluation of the real estate portfolio, the DAX-listed group announced in Bochum on Thursday. In the same period last year, Vonovia had reported a profit of 58.3 million euros. The value of the rental portfolio stood at around 91.2 billion euros at the end of March, it said. At the end of 2022, the properties were still valued at 94.7 billion euros.

"Our valuation provides a great deal of transparency in view of the challenging situation in the first quarter of 2023," company CEO Rolf Buch said, according to the statement. However, he added, it is a snapshot. Especially since the Vonovia Management Board sees larger transactions again for the first time in the second quarter.

Things were also not going so well for Vonovia in its day-to-day business. Operating profit (FFO) fell by just under 18 percent year-on-year to € 462.6 million. In addition to higher interest expenses, business with project development and additional services in particular developed weaker.

Things went better for Vonovia in the rental business due to the continued high demand for affordable housing in metropolitan areas. Rents rose to an average of EUR 7.54 per square meter as of the end of March - 1.9 percent more than a year earlier. In Germany, Vonovia's average rent as of the end of March was 7.46 euros per square meter.

Sales contracted by a good 12 percent to € 1.43 billion in the first three months. Vonovia attributed the decline primarily to significantly lower income from the project development business and fewer residential sales. The company confirmed its targets for the year./mne/stk