Vonovia: Nine-month figures shine

Vonovia has presented its figures for the first nine months of the financial year. Here are the key figures.

Rental income amounted to EUR 1.53 billion (previous year: EUR 1.39 billion). The operating profit (Group FFO) amounted to EUR 932.8 million (previous year: EUR 842.7 million).

The share reacted slightly positively this morning.

The market-related increase in rents was 1.2%. According to Vonovia, the sales growth is mainly due to the acquisitions of BUWOG and Victoria Park from last year. Further out of the development business, the new building and further efficiency improvements.

For 2019 as a whole, Vonovia currently confirms an operating profit at the upper end of the previously expected range. A further increase of 7% to around EUR 1.275-1.325 billion is expected for 2020.

From Vonovia’s remarks, we can hear that they are watching to become more independent from Berlin and Germany in general (rent rises slowed down, discussions in other federal states increase). Compared to German housing (see here), however, there is relatively little involvement in Berlin. Quote:

“Vonovia’s successful development is also based on our strategic decision to expand our involvement outside Germany and to expand our business model with BUWOG to include development. In conjunction with our decision to focus on dynamic growth regions in Germany, we now have a well-balanced portfolio that is independent of individual regional fluctuations,” says Rolf Buch, CEO of Vonovia. “Our business model is future-oriented and stable.”

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