Vonovia

JPMorgan has reduced its target price for Vonovia from €34.50 to €26.00 and, despite keeping a buy rating, flagged a possible dividend reduction. The bank recommends selling roughly €1 billion of property to pay down debt; if such transactions do not occur, a dividend cut could be necessary. Goldman Sachs recently also sharply lowered its target and downgraded the stock, leaving investors cautious. JPMorgan nevertheless points to the low valuation and the resilience of the German residential property market as supporting factors. » Mere på deraktionaer.de

Electoral gains by the Left in Berlin, coupled with calls for expropriations, have increased political risks for Vonovia and driven the stock sharply lower in recent years. Vonovia is currently trading at roughly a 60 percent discount to book value, which the capital markets interpret as a high expectation of political risk. At the same time, rising interest rates and weaker fundamentals are additional burdens, while the report finds that regulation and a rent cap will neither protect tenants nor create new housing. » Mere på t-online.de

According to a report, Vonovia could receive the assignment to manage an Alecta residential real estate portfolio worth around €10 billion, comprising about 50,000 apartments in Sweden, Norway, Denmark and Germany. The mandate would be the first large asset‑management assignment for a third‑party client and would bring fee‑based revenues as well as a broader business profile. The mandate has not yet been confirmed; political debates over expropriations in Berlin and the persistently unfavorable interest‑rate outlook continue to weigh on the stock. » Mere på deraktionaer.de