Real Estate: Vonovia confirms annual forecast
Bochum-based Dax group Vonovia's rental income and operating profits are increasing. However, the rise in interest rates and the uncertain situation are weighing on the highly indebted company.
Düsseldorf-based real estate giant Vonovia has affirmed its annual outlook amid rising prices for residential property in Germany. The Company reported a slight increase of 1.5 percent in the valuation of its property portfolio during a Wednesday announcement. However, mounting financing costs are weighing heavily on the heavily indebted group.
Vonovia reaffirmed its year-end projections. The company's earnings before interest, taxes, depreciation, and amortization (EBITDA) rose 2.4 percent in the first half to about 1.5 billion euros. In total, Vonovia earned 771.6 million euros, down from 811.5 million euros the previous year. Rents grew organically by 3.6 percent. Despite the higher financing costs, the company expects no change from its forecasts.
Financier Philip Grosse stated that the increased financing costs align with expectations. For the current year 2026, Vonovia anticipates an EBITDA increase to between 2.95 and 3.05 billion euros, up from 2.8 billion euros in 2025. As of June, Vonovia owned over 528,000 residential properties across Germany, Sweden, and Austria, a slight decrease of almost 5,000 units compared to the previous year.
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- Real Estate: Vonovia Confirms Annual Forecast handelsblatt.com
