Vonovia

Rising interest rates, the debate over a possible expropriation in Berlin and a brewing property crisis are complicating Vonovia’s plans to cut billions in debt. Finance chief Philip Grosse will not extend his contract beyond the end of 2027; a successor is to be named “shortly.” The company expects longer sales processes, possible write-downs on the portfolio, and now considers its goal of reducing the LTV to around 40% by the end of 2028 more difficult to achieve. » More on faz.net

Vonovia adjusted its growth targets and unexpectedly issued a profit forecast revision. CFO Philip Grosse announced he will leave at the end of 2027, prompting analysts to increasingly fear a cut to the dividend of €1.25 per share. CEO Luka Mucic answered analysts' questions after the quarterly results; management cited reasons for rising risks and uncertainties. » More on handelsblatt.com

Vonovia increased the average monthly rent in the first nine months by 3.5% to €8.57 per square meter and also recorded higher revenues from additional services. Apartment sales and the new-build business are suffering from higher interest rates and deteriorated financing conditions since the Middle East conflict, causing the property portfolio to shrink slightly and sales processes to take longer. Chief Financial Officer Philip Grosse announced he will not extend his contract, which expires at the end of 2027; the company expects a successor to be named soon and says it is taking a more cautious stance for 2024 and 2028 due to the interest-rate environment. » More on deraktionaer.de

Vonovia staged a rebound at the start of the week after the more cautious outlook had recently pushed the share down to €15.26. Goldman Sachs slightly cut its price target to €18.20 but kept the stock at “Neutral,” while Deutsche Bank Research views Vonovia as a buy with a €25.00 target. Despite the recovery, the environment remains risky: debate over possible expropriation in Berlin and rising interest rates weigh on prospects, investors remain cautious and the stock is about 32% down year‑to‑date. » More on deraktionaer.de

Vonovia reduces the forecast for adjusted EBITDA 2026 to the lower half of the previously targeted range and gives a more cautious outlook for 2027/2028. The reason is rising interest rates, which are weighing on property valuations and transaction volumes; the share price fell to a low not seen since 2014. The group plans to reduce debt through extensive property sales and more restrained investment, but sees the core operating business as stable. » More on faz.net