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The DAX group Deutsche Wohnen is also affected. This year alone, he expects rental losses of around 9 million euros, and next year it should be 30 million euros. Deutsche Wohnen will have to lower every third rent of the 116,000 apartments in Berlin.
Sounds like a lot at first, but it has to be put in relation to the total rental income. Last year these totaled 862 million euros nationwide. The bottom line: Deutsche Wohnen, like its competitor Vonovia, has announced that it will postpone planned renovations or new projects or completely discontinue them, which of course will limit the possibility of further increasing the rental volume. In addition, a number of federal states with large cities are looking at how the Berlin rent cap will work in the end, because there are corresponding considerations there too. This could turn Berlin into a blueprint for further adversity among the residential real estate groups.
The stock exchange is increasingly reflecting this. Quite a few investors see this as a sign that the real estate boom in Germany is over for the time being. The corresponding stock valuations are then also put to the test. Deutsche Wohnen is currently rated with a P / E ratio of 23 for the current and next financial year. Values below 10 have been more common in recent years.
Under these premises, there is a growing risk that the share will now break through its 200-day line, which is currently around 40 euros. Then the value could quickly find itself in the range of 35/36 euros.
Speculatively minded investors can rely on this with a put leverage certificate. Here we would use an Open End Turbo warrant from UBS with a leverage of 5.4. We believe it has a potential of around 70 percent with a price target of EUR 1.30. We set the stop loss at EUR 0.50.
Underlying: Deutsche Wohnen
Produktgattung: Knock-out Warrants
Duration: Open end
Knockout put rate (11/24/2020 10:33 a.m.): 0.76 euros
Base price variable: 47.44407 euros
Knock-out threshold: EUR 47.44407
Distance to knock-out: 17.8 percent
Stopp-Loss Put: 0,50 Euro
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Image sources: Deutsche Wohnen