Office property allocation also reduced
Shift underscores weakness in German and US real estate
Fourthquarter profit nearly doubles

FRANKFURT, Feb 23 Reuters Allianz39;s 58.4 billion euro 63.21 billion real estate portfolio is shrinking, becoming less devoted to offices and less German, underscoring troubles in the commercial property sector and the insurer39;s home market.

The value of Allianz39;s real estate portfolio fell by 6.2 in 2023 from 62.3 billion euros a year earlier, figures showed on Friday, as the German insurer revalued some holdings and sold others.

Allianz, one of Europe39;s largest investors, faces portfolio pressure in both its home market and the United States as prices and demand for commercial real estate decline sharply.

Investors are closely watching to what extent financial institutions, funds and other property owners are revising the values of their holdings or selling as the market declines.

The share of Allianz39;s portfolio allocated to office buildings fell to 49 from 52 over the course of last year, dropping below 50 for the first time in at least a decade, company presentations show. In 2013 it stood at 62.

At the same time, its portfolio allocation to Germany which is going through its most severe real estate crisis in decades edged down to 17, compared with 18 in 2022 and 29 in 2013.

Its allocation to the United States also dropped slightly.

Finance chief ClaireMarie CosteLepoutre said Allianz was invested in real estate for…