Vonovia SE on the Capital Market
Shares in Vonovia
Whereas the COVID-19 crisis primarily marked 2020 with uncertainty, volatility and a negative share price performance, the picture has changed significantly across the globe in the first nine months of this year. The stock markets have left the pandemic-induced slump behind and are reaching new heights.
The German leading index DAX 40 and the EURO STOXX 50, for example, climbed by 11.2% and 13.3% respectively in the first nine month of 2021, whereas both Vonovia’s shares and the listed residential real estate sector as a whole have shown weaker development to date after significant outperformance in 2020.
We attribute Vonovia’s negative share price performance first and foremost to the following market-related factors: Risk appetite on the capital market has increased considerably in a year-on-year comparison with investors currently focusing more on cyclical stocks and equities whose performance in 2020 was less positive. Rising inflation and an increased interest rate risk make the situation for residential real estate stocks even more challenging. In particular, the weaker performance of shares in German residential real estate companies points to additional uncertainty in the political and regulatory environment, for example the possibility that rent legislation will change after the German Bundestag elections and other regulatory changes associated with the ongoing exploratory coalition talks.
All in all, however, we are convinced that the environment for the German residential real estate sector remains positive in the long term.
We expect the main megatrends – and as a result, the key drivers behind our business – to continue to create a sustained positive environment going forward. Vonovia is in a very good position strategically to be part of the solution to the challenges facing us: urbanization and the resulting imbalance between supply and demand, climate change and the reduction of CO2 emissions in the housing stock, demographic change and senior-friendly apartment conversion. As a result, we are optimistic as we look ahead to the future and are confident that we will remain financially successful.
Vonovia’s market capitalization amounted to around € 29.9 billion as of September 30, 2021.
Share Information (as of September 30, 2021)
First day of trading
July 11, 2013
Total number of shares
Registered shares with no par value
Frankfurt Stock Exchange
DAX 40, EURO STOXX 50, DAX 50 ESG, Dow Jones Sustainability Index Europe, STOXX Global ESG Leaders, EURO STOXX ESG Leaders 50, STOXX Europe ESG Leaders 50, FTSE EPRA/ NAREIT Developed Europe and GPR 250 World