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IOL News
a day ago
- Business
- IOL News
World's oldest social housing still charges just 88 cents rent
A general view of the streets at the Fuggerei in Augsburg, southern Germany. Founded in 1521 by the wealthy businessman Jakob Fugger and believed to be the oldest such project in the world, the Fuggerei in the city of Augsburg provides living space for 150 residents facing financial hardship. Image: Michaela STACHE / AFP WHEN German pensioner Angelika Stibi got the keys to her new home in the southern region of Bavaria this year, a huge financial weight was lifted from her shoulders. Stibi has to pay just 88 euro cents (R17) a year for her apartment in the social housing complex known as the Fuggerei, where rents have not gone up since the Middle Ages. Founded in 1521 by the wealthy businessman Jakob Fugger and believed to be the oldest such project in the world, the Fuggerei in the city of Augsburg provides living space for 150 residents facing financial hardship. Consisting of several rows of yellow terraced buildings with green shutters and sloping red roofs, the complex still resembles a medieval village. "I had a truly wonderful life until I was 55," said Stibi, a mother of two in her 60s from Augsburg. Martha Jesse poses in front of her flat in the Fuggerei in Augsburg, southern Germany. Image: Michaela STACHE / AFP Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ Ad loading After she was diagnosed with cancer, "everything went from bad to worse" and she was left with no other option but to apply for social housing, she said. Waiting lists are long for apartments in the walled enclave not far from Augsburg city centre, with most applicants having to wait "between two and six or seven years", according to resident social worker Doris Herzog. "It all depends on the apartment you want. The ones on the ground floor are very popular," Herzog said. Applicants must be able to prove that they are Augsburg residents, Catholic and suffering from financial hardship. Relative of Mozart Martha Jesse has been living at the Fuggerei for 17 years after finding herself with monthly pension payments of just 400 euros, despite having worked for 45 years. "Living elsewhere would have been almost impossible," said the 77-year-old, whose apartment is filled with religious symbols. The Fuggerei was heavily damaged in World War II but has since been rebuilt in its original style. Renowned composer Wolfgang Amadeus Mozart's great-grandfather, the mason Franz Mozart, was once a resident and visitors can still see a stone plaque bearing his name. For Andreas Tervooren, a 49-year-old night security guard who has lived at the Fuggerei since 2017, the complex is "like a town within a town" or "the Asterix village in the comic books". The meagre rents at the Fuggerei are all the more remarkable given its location an hour's drive from Munich, the most expensive city in Germany to live in and one of the most expensive in Europe. Rents have also risen sharply in many other German cities in recent years, leading to a wave of protests. But not at the Fuggerei, whose founders stipulated that the rent should never be raised. Daily prayer Jakob Fugger (1459-1525), also known as Jakob the Rich, was a merchant and financier from a wealthy family known for its ties to European emperors and the Habsburg family. Fugger set up several foundations to help the people of Augsburg, and they continue to fund the upkeep of the Fuggerei to this day. The annual rent in the Fuggerei was one Rhenish gulden, about the weekly wage of a craftsman at the time - equivalent to 88 cents in today's money. Although some descendants of the Fugger family are still involved in the management of the foundations, they no longer contribute any money. "We are financed mainly through income from forestry holdings, and we also have a small tourism business," said Daniel Hobohm, administrator of the Fugger foundations. The Fuggerei attracts a steady stream of visitors, and the foundations also receive rental income from other properties. In return for their lodgings, residents of the Fuggerei must fulfil just one condition - every day, they must recite a prayer for the donors and their families.
Forbes
30-04-2025
- Business
- Forbes
What's Next For CAT Stock?
Visitor inspect exhibits at the booth of Caterpillar on the grounds of the "Bauma 2025" fair in ... More Munich, southern Germany, on April 7, 2025. (Photo by Michaela STACHE / AFP) (Photo by MICHAELA STACHE/AFP via Getty Images) Caterpillar (NYSE: CAT) recently published its Q1 results, and both revenue and earnings fell short of analysts' forecasts. The company reported revenue of $14.2 billion and adjusted earnings of $4.25 per share, compared to the expected figures of $14.6 billion and $4.35, respectively. Decreased dealer inventory levels negatively impacted the company's revenue. Nonetheless, the outlook for the company is more favorable than anticipated, which bodes well for its stock. CAT stock has seen returns of -15% since the start of the year (as of April 29), lagging behind the S&P 500 index, which is down 5%. However, if you are looking for upside with more stability than a single stock, consider the High Quality portfolio, which has surpassed the S&P, achieving over 91% returns since its inception. Caterpillar's first-quarter results showed a 10% decrease in revenue year-over-year, totaling $14.2 billion. Analyzing performance across its segments, Construction Industries saw the most significant decline at 19%, followed by Resource Industries with a 10% drop, and Energy & Transportation experienced a more modest 2% decrease in revenue compared to the prior year. Our dashboard on Caterpillar's revenue provides further details. This sales decline, combined with a 390 basis point reduction in adjusted operating margin to 18.3%, led to earnings per share of $4.25, down from $5.60 in the same quarter last year. An important factor affecting Caterpillar's sales was a significantly lower change in dealer inventory levels ($100 million compared to $1.4 billion in the previous year's quarter), indicating overall weak demand. This subdued demand is attributed to the ongoing situation of high interest rates and significant inflation. Furthermore, lower price realization also contributed to the reduction in the company's sales. Given this weak demand, Caterpillar may face difficulties in increasing prices. Looking ahead, Caterpillar expects its second-quarter sales to be comparable to the previous year. However, the company predicts an additional cost headwind of $250 million to $350 million in Q2 due to tariffs. For the entire year, assuming no further effects from tariffs, Caterpillar estimates sales will be roughly flat compared to 2024, which is an improvement from January's projection of a slight decline. Nevertheless, if tariffs remain at their current levels, the company still anticipates full-year sales to align with the initial January guidance. Although the first quarter was weaker than expected, Caterpillar's stock rose 3% following the earnings announcement due to a positive outlook. Notably, CAT has exhibited consistent growth, increasing its value each year for the past four years. Specifically, the stock delivered returns of 16% in 2021, 19% in 2022, 26% in 2023, and 25% in 2024. However, this consistent appreciation has not led to consistent market outperformance. In contrast, the Trefis High Quality (HQ) Portfolio, which comprises 30 stocks, is less volatile. It has comfortably outperformed the S&P 500 over the last four years. Why is that? As a collective, HQ Portfolio stocks have provided better returns with reduced risk compared to the benchmark index; resulting in a less tumultuous experience, as illustrated in HQ Portfolio performance metrics. Considering the current uncertain macroeconomic situation, particularly concerning tariffs and trade conflicts, the question emerges as to whether CAT might experience a comparable period of underperformance compared to the S&P 500 over the next 12 months, similar to 2021. Alternatively, might the stock see significant upward movement? While we are in the process of updating our valuation model for CAT to reflect the latest results, our current evaluation indicates potential for growth. Currently trading at approximately $315, CAT's stock has a price-to-earnings (P/E) ratio of 15x, based on trailing earnings of $20.55 per share. This is lower than its average P/E ratio of 19x over the past five years. Although a slight contraction in the valuation multiple seems reasonable given the recent decrease in sales and profits, we believe that with a 15x earnings multiple, CAT stock may still have some room for appreciation. While CAT stock appears to have potential for growth, it is beneficial to evaluate how Caterpillar's Peers perform on important metrics. You can find additional valuable comparisons for companies across various industries at Peer Comparisons.
