Germany’s largest residential real estate company, Vonovia, is aiming to return to growth after as the broader housing market rebounds following a sharp downturn.
“We are emerging from the crisis earlier than many others,” said chief executive Rolf Buch while presenting the 2024 figures on Wednesday.
Like other landlords, Vonovia is benefiting from strong demand for housing in metropolitan areas. Rents rose to an average of €8.01 ($8.73) per square metre in 2024 — a 3.5% increase from the previous year. Across Germany, the average monthly rent at the end of December was €7.89 per square metre.
Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) rose 1.6% year-on-year to €2.63 billion in 2024.
Vonovia plans to boost operating profit by around 30% to between €3.2 billion and €3.5 billion by 2028.
In recent years the property giant tried to generate more cash flow by selling assets amid weakness in the commercial and residential property sectors of Europe’s largest economy.
Vonovia had to devalue its property portfolio several times, while high interest rates scared off would-be buyers needing loans, contributing to a loss of nearly €6.8 billion in 2023.
Vonovia reported a bottom-line loss of about €962 million in 2024.
Source: dpa.com