BERLIN, March 4 (Reuters) - German residential real estate company Vonovia reported on Thursday an 8.5% rise in 2020 operating profit and confirmed its forecast for 2021.

The Bochum-based landlord said last year's adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) rose to 1.91 billion euros ($2.3 billion).

The group's funds from operations or recurring earnings from its operating business (FFO) rose 10.6% to 1.35 billion euros, slightly above its forecast of 1.33 billion euros.

Vonovia said it had temporarily stopped rent increases and lease terminations during the pandemic, which also caused delays in some construction projects.

The DAX-listed company confirmed a forecast for 2021 in gave in November for adjusted EBITDA between 1.975 billion euros and 2.025 billion euros.

The company said it plans to spend up to 1.6 billion euros on modernization and new construction in 2021 and confirmed its 2020 dividend proposal of 1.69 euro per share.

Vonovia manages around 416,000 of its own rental apartments - of that total, 355,000 are in Germany, giving it a market share of 1.5%. Its portfolio is well let, with a vacancy rate of 2.4%.

The value of its real estate portfolio at the end of 2020 grew by 19.2% year-on-year to 35.49 billion euros, it said.

($1 = 0.8295 euros) (Reporting by Riham Alkousaa Editing by Caroline Copley and Emma Thomasson)