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.
The Vonovia stock has lost nearly 30% of its value over the past six months and over 60% since its record high in summer 2020. Despite a high occupancy rate of 97.7% and increasing rental income, with a net profit of €3.7 billion in the last financial year, the stock's performance has been poor. The company's high debt, currently at €40 billion in net financial debt, and rising interest rates, with the European Central Bank (ECB) increasing the key interest rate to 2.5% on Thursday, are cited as main reasons for the decline. As a result, Vonovia faces higher refinancing costs, impacting 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.
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