BOCHUM (awp international) – Real estate sales and the founding of a company are bringing billions into the coffers of Vonovia, Germany’s largest residential real estate group. Overall, the board expects fresh money of around 1.8 billion euros, as the DAX group announced. The inflow is expected in the first half of 2025 at the latest. A different picture emerged on the stock market on Thursday: While shares from the subsidiary Deutsche Wohnen gained 3.1 percent, Vonovia shares were almost one percent lower.
Since the beginning of the year, Vonovia’s share price has increased by almost 17 percent. Shareholders have been looking at an increase of more than 50 percent for a year. But anyone who bought shares three years ago has to come to terms with a decline of almost a fifth.
As Vonovia announced the evening before in Bochum, the inflow of liquidity since the beginning of the year has totaled a good 3.3 billion euros. The real estate group wants to collect around four billion by the end of the year – as much as the year before.
Eleven development projects will go to a new fund for half a billion euros. This will take care of the acquisition and management of development projects in metropolitan regions. The subsidiary Deutsche Wohnen is selling 27 care facilities, most of which are located in the greater Berlin area, for a good 300 million euros.
In addition to the real estate sales, Vonovia announced that it would set up a company with the investor Apollo. This should then have 20 percent of the shares in the subsidiary Deutsche Wohnen.
Jefferies analyst Pierre-Emmanuel Clouard assumes that Vonovia wants to avoid a tax burden as a result of the domination agreement last month. The industry expert was surprised by the plan: According to him, CEO Rolf Buch made it clear when presenting the figures for the last financial year that he was not looking for another joint venture with Apollo. The deal is also likely to have a negative impact on operating profit (FFO).
Shares in Deutsche Wohnen benefited from the news on Thursday with price gains./ngu/jkr/jha/
