Vonovia SE on the Capital Market

Shares in Vonovia

The first three months of 2022 were dominated by the ongoing coronavirus pandemic and, first and foremost, by the war in Ukraine and its implications. In addition to the humanitarian catastrophe, the topics of rising inflation and interest rates and central bank monetary policy were the main issues from a capital market perspective. In this environment, it came as little surprise to see negative performance by entire indices and in almost all sectors: DAX -9.2%; EuroStoxx 50 -9.2%; EPRA Europe -5.5%; 15 out of 19 Stoxx Europe 600 sectors with negative performance of between -0.3% and -27.5% in the first quarter of 2022.

Shares in Vonovia lost 12.8% in the first three months, trading at € 42.31 at the end of the first quarter of 2022. This mainly reflects capital market concerns that higher inflation and interest rates could have a negative impact on the business, at least in the short term. There were no signs of any drop in transactions on the residential real estate market comparable to the drop in the share price. Those investors with more of a long-term focus that are active in the direct market remain optimistic about the sector and are still investing almost just as much money into residential real estate in view of higher inflation and interest rates. This trend is likely driven in particular by the favorable supply and demand situation in urban regions. As a result, there is still a strong consensus overall regarding the medium- and long-term development in yields on, and the value of, residential real estate.

Vonovia’s market capitalization amounted to around € 32.9 billion as of March 31, 2022.

Share Price Development