Immobilien: Vonovia profitiert von höheren Mieteinnahmen – Finanzchef geht

Deutschland's leading real estate investment group, Vonovia, continued to benefit from higher rental income in the first nine months of the year, according to the company's latest financial report. Additionally, the business with supplementary services performed significantly better, as the DAX company announced on Wednesday with the release of final figures.

However, Vonovia faced more difficulties in apartment sales and new construction development. The rising interest rates since the past few months impacted the market. The company's CEO, Luka Mucic, stated that the demand for affordable and modernized apartments remains high. Nonetheless, the environment for the sales segments remains challenging due to higher financing costs, which have slowed down the progress in these segments.

Vonovia sold real estate worth around 900 million euros in the first nine months, the company shared further. Since the outbreak of the conflict in the Middle East, financing conditions have significantly worsened, and interest rates have risen again since early September. Consequently, market participants have become cautious when purchasing real estate, and sales processes have become longer.

As of September end, Vonovia owned 527,488 apartments in Germany, Sweden, and Austria, which was about 5,000 fewer than in the previous year's period. Meanwhile, Vonovia continues to benefit like all landlords from a high demand for housing in urban areas. The monthly rent increased in the first nine months to the end of September compared to the previous year's annual average, rising by 8.57 euros per square meter, which is 3.5 percent more than a year earlier.

The rents were 8.41 euros per square meter on average in Germany, a 1.1 percent increase compared to the previous year. Finance Chief Philip Grosse has decided not to extend his contract that was set to expire by the end of 2027. He informed the supervisory board about his decision, as reported by Vonovia. This early decision provides sufficient time to sort out the succession. Vonovia is confident about announcing the successor soon.