The company's S&P Global-Ratings adjusted EBITDA interest coverage ratio decreased marginally in 2018 to 1.5x from 1.7x in 2017, mainly due to higher operating and administrative expenses than anticipated. On the back of the company's deleveraging strategy, we believe the ratio will improve in the next three-to-four quarters to 1.7x-1.8x, and declining interest expenses will more than offset the negative impact on EBITDA following the company's net seller position for 2019. Significant rent and price increases in the past decade in Germany, particularly in metropolitan areas and despite regulated rents, has caused public outcry and led to political debates surrounding further regulations and tightening rent controls. Further rent regulation may impact like-for-like rental growth for residential landlords. S&P Global Ratings'
