Vonovia

The Higher Regional Court of Hamm ruled that a linkage used by Vonovia between lease agreements and electricity supply contracts was invalid after the German Tenants' Association filed suit. Practical effects remain limited, as Vonovia had already switched to separate electricity supply contracts. Operationally the ruling changes little, but the group's strategy to expand ancillary services takes a small hit; burdening factors such as high debt and higher interest rates remain. » Więcej na deraktionaer.de

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. » Więcej na 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. » Więcej na handelsblatt.com