Deutsche Wohnen

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Management

July 27, 2023: Konstantina Kanellopoulos, Deutsche Wohnen co-CEO steps down at her own request and upon mutual agreement. She was appointed as co-CEO in January 2022 after the take over by Vonovia. She was appointed alongside Lars Urbansky, who will become the sole CEO, effective immediately. Kanellopoulos will join GOLDBECK in November 2023 as a member of the management board. At Vonovia, she held Value-Add roles since 2013. In 2019, she became General representative of Vonovia. Her roles in Deutsche Wohnen included technical infrastructure, IT, law & compliance, sustainability and public affairs. The supervisory board said Kanellopoulos sucessor will be decided later. Urbansky, on the other hand, was previously responsible for the operational business of Deutsche Wohnen.

Irregularities

May 30, 2023: Proxy adviser Institutional Shareholder Services (ISS) now backs the call by Elliot to have the loan investigated. "While there is currently no clear and irrefutable evidence of wrongdoing by members of the management and supervisory boards in connection with the loan agreement, the conduct of the boards in the context of Vonovia's takeover raises legitimate concerns about potential conflicts of interest and breach of fiduciary responsibilities," ISS said in a research report.

May 23, 2023: Activist investor Elliott wants shareholders to install an independent investigator to look into the 2 billion euros loan that Deutsche Wohnen advanced to Vonovia in January 2022. Elliot wants to find out if the loan was in the best interest of shareholders.

Control by Vonovia

On October 2021, Vonovia acquired 87.6% of the voting rights of Deutsche Wohnen. Here is what it implies.

According to Moody's

• Deutsche Wohnen's credit profile will be affected by changes in Vonovia's credit profile due to "control by and operational integration into Vonovia."
• Financial metrics will be stronger for Deutsche Wohnen

Regulations

September 25, 2023: German Economic and Climate Protection Minister Robert Habeck wants to suspend the upcoming stricter energy standards for new buildings. "The introduction of the Building Energy Act ensures that new buildings will have climate-friendly heating from 2024. That's why I no longer think it is necessary to quickly introduce the new EH 40 standard," he said. This means the new energy requirements may not come until the end of 2025. Instead, Habeck wants to ensure that the building materials are climate-friendly. Houses build according to the EH-40 standard will require only 40% of primary energy when compared to a standard building. On the other hand, houses build under the existing EH 55 standard are 45% more economical compared to a standard building.

Disposals

October 6, 2023: Deutsche Wohnen is looking for a buyer for its 842 apartments in Hanover, Spiegel reported. Renovations on these apartments, which were built 40 years ago, began in 2015. Deutsche Wohnen said 600 of these apartments have been renovated to make them energy efficient. “We continually examine our buildings to see whether another actor could be a better owner,” said a spokesman for Deutsche Wohnen. "The stocks mentioned are also for sale." The value of the 800 apartments has not been given.