1Sem.·

Additional Purchase of Vonovia🏡

Here, too, I took advantage of the current weakness caused by interest rates to buy more shares.

Vonovia is Germany's largest real estate group and has become an integral part of the market.

For me, it's an attractive dividend payer.💰

$VNA (+2,89 %)

25.08

Vonovia

Acheté x25 à 19,94 €

498,37 €

15 Commentaires

MB I.@Droid

1Sem.

A while back, I set up a price alert for Vonovia through Deffner & Zschäpitz, and yesterday I took the plunge and made my first small investment.
I don’t think anyone needs to worry about expropriation, because the idea that Vonovia would have to surrender its apartments without compensation in a country governed by the rule of law—even in the worst-case scenario—is something only Left Party voters would dream of.

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EugeneKrabs@Danicx13

1Sem.

@Droid I agree

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GAE@The_Investo_tte_r

1Sem.

@Droid Me too—I went ahead and bought some, but I’ve since sold them at roughly break-even and shifted my investment into an ETF. Ultimately, the reason was that VONOVIA wants to switch to an asset-light model, which I’m rather skeptical of, especially for a traditional real estate company.

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Horsti@Horstiiii

1Sem.

I also find Vonovia very attractive right now, even though it’s a boring stock... It currently pays a very good dividend, and the stock price will recover in the long run. That makes it very attractive for a buy-and-hold strategy. If I have the money, you can’t go wrong buying it at 20 euros...

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EugeneKrabs@Danicx13

1Sem.

@Horstiiii I totally agree 👍🏼

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Jannik@Bieber89

1Sem.

Charging the right juice 😂

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Hodlinvestor@Hodlinvestor

1Sem.

I went for it, too

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NichtRelevant@NichtRelevant

1Sem.

I hadn’t even considered Vonovia. Ages ago, I took a look at the stock, but at the time, the actual yield seemed too low to me. Now, however, with the stock price having fallen, it looks pretty good.

Of course, there are risks with Vonovia due to populist rent market regulations and various citizens’ initiatives (Berlin). Nevertheless, in my view, this is a sound business model—rents will rise, and there will continue to be a need for apartments. Refinancing costs associated with loan renewals could put pressure on margins—but I think Vonovia is professional enough to anticipate this and take appropriate precautions.

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EugeneKrabs@Danicx13

1Sem.

@NichtRelevant I feel the same way

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Keineui@Keineui

1Sem.

I see problems here as well. Dividend growth has been negative for 3–5 years (though it’s still okay at just under 7%).
Not to mention the expropriation issue in Berlin. And interest rates are more likely to rise than to fall. Rents are also heavily regulated. So, purely for the dividend, I would have gone with something else here. $AD is looking much more appealing to me these days…

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NichtRelevant@NichtRelevant

1Sem.

@Keineui The referendum in Berlin is an issue, but they can’t expropriate property without compensation. The State of Berlin would have to pay an enormous amount of money, and that’s exactly what they don’t have. I therefore don’t see this expropriation happening. Of course, the compensation could be financed with external funds, but even the State of Berlin would have to pay interest on that amount at current market rates. If this isn’t handled through the state bank, a financial institution would think twice about financing a transaction that is guaranteed to be challenged in the Constitutional Court.

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Keineui@Keineui

1Sem.

@NichtRelevant There's also talk there of expropriation for a symbolic €1. That argument doesn't hold water for me. I realize it won't actually happen, but the discussions alone show which way the wind is blowing.

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NichtRelevant@NichtRelevant

1Sem.

@Keineui Perhaps I should say up front—I’m not trying to convince anyone to invest in Vonovia. I’m not invested in it myself, either. So this really isn’t an attempt to change your mind—the risks arising from the expropriation debate are real, especially because the stock price does react—and must react—to news on this topic.

However, I think that expropriation for a symbolic 1 euro is just wishful thinking on the part of certain political factions. It’s clear that the Constitutional Court would immediately strike that down. It’s also clear that—should something like that be implemented—not a single square meter of residential space would be built privately in Berlin for decades to come.
I suppose this topic just gets under my skin because I’m primarily a real estate investor and I’m tired of constantly being portrayed as a profiteer. Providing housing is a lot of work, and the government, in particular, has contributed significantly to the rising cost of housing through building codes, regulations, processing times, and fees.

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Keineui@Keineui

1Sem.

@NichtRelevant I agree with you. Nevertheless, this isn’t a sure thing, and real estate companies like Vonovia always rely to some extent on valuation gains. The fact that these aren’t rising much anymore is evident from Aroundtown’s latest figures. No new valuation gains have been added there, and as a result, consolidated net income is down by nearly 50%—driven purely by valuation. And we won’t be seeing any noticeable rent increases in the residential sector at Vonovia anytime soon. So where is the growth supposed to come from? Valuations are flat, rents are flat. Sure, demand is high, but where does growth come from? Interest rates are tight. So this is far from a sure thing...

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NichtRelevant@NichtRelevant

1Sem.

@Keineui Real estate valuations are indeed stagnating or even declining, depending on the region. While this isn’t necessarily good news for a publicly traded company, the drop in the stock price has, of course, made the valuation a bit more attractive again.
It probably won’t be a stock that skyrockets, but if it gradually rises slightly and the dividend isn’t cut, that could still be attractive to dividend hunters.
Personally, it’s not for me, since I’m already overweight in real estate; it would make no sense to invest in real estate via the stock market on top of that.

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