Vonovia: Profit Decline Despite Rising Rents

$VNA (+3,53%) increased its operating profit (adjusted EBITDA) in the leasing business by 3.5% to 1.9 billion euros after nine months; organic rental growth was 3.8%. Thanks to higher contributions from the tradesmen’s organization and the growing energy business, adjusted EBITDA in the “Value-add” business segment rose by a full 31.4% to 197.2 million euros. In residential sales, however, it fell by 11.8% to 49.9 million euros. Due to higher interest rates, only 965 apartments were sold, compared to 1,553 in the same period last year. The corresponding revenue fell by 27.6% to 216.8 million euros. In addition to individual sales, Vonovia sold non-core properties for 410 million euros, minority interests for 240 million euros, and land for 20 million euros. Adjusted EBITDA across all business segments increased by 3.3% to 2.2 billion euros; however, higher financing costs led to a 3.5% decline in adjusted pre-tax profit to 1.4 billion euros. The debt-to-equity ratio also worsened, rising from 45.4% to 46.1%. Chief Financial Officer Philip Grosse announced that he will not renew his contract, which expires at the end of 2027.