Vonovia has benefited from extremely favorable conditions on the capital and banking markets in recent years, allowing it to establish a financing foundation that is stable in the long run. This gives Vonovia the opportunity to access relatively advantageous (re)financing options, even in market environments that may be more disadvantageous in the future. This is evident, in particular, from the fact that Vonovia had no problems refinancing the acquisition of Deutsche Wohnen via the equity and debt capital markets despite inflation rates being at an all-time high and despite the associated debate on the need to hike key interest rates in the future.
Together with the diversification strategy for liquidity procurement that we have been pursuing for many years now, we also have the opportunity to optimize the structure and conditions of our financial liabilities on an ongoing basis.
The strengthening of our market share in urban areas within our target markets could also have a positive impact on how our investors and ratings agencies assess our risks, resulting in a further improvement in our attractive financing conditions.
Our investments in affordable homes are associated with a cash flow that is largely independent of economic factors. The resulting stability allows us to service our financial liabilities with a relative degree of certainty, even in times of economic or political crisis. This is evident, in particular, from the fact that our rent default rate, which was already low to begin with, has not increased to any significant degree, even in the second year of the coronavirus pandemic.