Vonovia SE on the Capital Market

Shares in Vonovia

Since the outbreak of the war in Ukraine in February 2022, the international capital markets have been dominated by ongoing investor concern regarding high inflation rates, rising interest rates, a slowdown in economic growth and the risk of a recession. In this environment, it came as little surprise to see a negative performance in almost all sectors: DAX -24%; EURO STOXX 50 -23%; EPRA Europe -41%.

In this exceptionally difficult overall market, shares in Vonovia reported above-average losses, trading at € 22.21 at the end of the third quarter. The negative trend seen in the second quarter continued in the third, which was dominated by an ongoing close negative correlation with government bond yields. Similarly, higher interest rates and the resulting capital market fears of a knock-on effect on earnings and property values likely played a decisive role in the drop in performance.

We are observing an ever-wider gap between capital market expectations on the one hand, and ongoing stable development on the residential real estate market on the other. While the capital market appears to be pricing in a massive correction, the residential property markets in which we operate remain robust.

As a result, we remain confident that the fundamental conditions in our markets will ensure positive development in the long run. These include, in particular, the favorable relationship, from an owner’s point of view, between supply and demand in urban regions as well as the structural momentum on the revenue side.

The company’s market capitalization amounted to around € 17.7 billion as of September 30, 2022.

Share Price Development