Germany’s largest residential real estate group has reported a robust first-half performance, signaling a turnaround in the property market. Vonovia’s adjusted pre-tax profit surged by 11% to €984 million, while EBITDA rose 12% to €1.42 billion, driven by strong rental growth and strategic sales. The operating free cash flow—critical for dividends—jumped 53% to €1.17 billion, exceeding analyst expectations. Rental income increased 2.6% to €1.69 billion despite a smaller portfolio, with average rents climbing 4.6% to €8.22 per square meter. The vacancy rate dipped to 2.1%, underscoring resilient demand.
Growth Segments Shine
Recurring Sales EBITDA soared 74% to €38.7 million, while the development division swung to a €54 million profit. Value-Add Services nearly doubled EBITDA to €100.7 million. Portfolio valuations rose 1.3%, reflecting market recovery. Vonovia raised its 2025 guidance, targeting adjusted pre-tax profit of €1.85–1.95 billion, up from €1.75–1.85 billion, and confirmed plans to double investments to €2 billion by 2028. Strategic deals, including a €700 million Berlin land transaction, strengthened its balance sheet, with debt easing to 47.3%. The upbeat results suggest sustained momentum ahead.
Ad
Vonovia Stock: Buy or Sell?! New Vonovia Analysis from September 21 delivers the answer:
The latest Vonovia figures speak for themselves: Urgent action needed for Vonovia investors. Is it worth buying or should you sell? Find out what to do now in the current free analysis from September 21.
Vonovia: Buy or sell? Read more here...
