Vonovia

Vonovia shares lost almost 30% over six months and are more than 60% below the 2020 record high, despite positive operational data such as an occupancy rate of 97.7% and a net profit of €3.7 billion. Main burdens are high net financial debt of around €40 billion and rising interest rates, which squeeze refinancing costs and cash flows. Political risks from expropriation debates in Berlin and a downgrade and target cut by Goldman Sachs intensified the selling pressure. Valuation metrics, however, show potential: a net asset value (NAV) of about €46 and an expected price‑earnings ratio of 9.7, with a discount of more than 50% to book value. A sustainable turnaround is unlikely until bond yields and interest rate expectations fall significantly. » More on handelsblatt.com

Despite rising rental income, a high occupancy rate (97.7%) and a net profit of €3.7 billion, Vonovia is under heavy selling pressure. Main reasons are high net financial debt of around €40 billion and higher interest rates, which increase refinancing costs and weigh on cash flows. Political uncertainty in Germany over expropriation debates and Goldman Sachs' downgrade of its recommendation intensify the selling pressure. Fundamentally the stock looks cheap with a net asset value of €46 and an expected P/E of 9.7, but a recovery depends on sustainably lower bond yields. » More on handelsblatt.com

The ECB raised its main interest rate by 25 basis points to 2.50 percent, potentially increasing financing costs and putting pressure on portfolio values for interest-rate-sensitive property groups like Vonovia. The move was largely expected and already priced in, so Vonovia shares initially only slipped slightly, but given high debt levels and the possibility of further rate hikes the stock remains under investor pressure. Despite an attractive dividend yield of 6.7 percent, a clear price rally is not currently in sight. » More on deraktionaer.de