Stock in focus: Why is the Vonovia stock performing so poorly on the stock exchange?
High profits and attractively valued. But for things to pick up again after the stock market collapse, an important condition must be met.
Vonovia's stock has lost nearly 30% in the past six months and over 60% since its record high in summer 2020. The company's key figures appear solid, with a 97.7% occupancy rate, steady rental income, and a net profit of €3.7 billion in the last fiscal year. However, high debt and interest rate developments are cited as main reasons for the stock's decline, with Vonovia having €40 billion in net financial debt.
The European Central Bank's recent interest rate hikes have increased Vonovia's refinancing costs, affecting its cash flows and profits.
Written by urgent.news from Handelsblatt's report — not a translation of it. Machine-written — may contain errors; check the original before relying on it.
