Financing
In its announcement of November 20, 2023, the agency Standard & Poor’s indicated that Vonovia’s rating remains unchanged at BBB+ with a stable outlook for its long-term issuer credit rating and A-2 for its short-term issuer credit rating, while Vonovia’s issued and unsecured bonds are rated BBB+.
In its announcement of February 1, 2024, the rating agency Moody’s confirmed Vonovia’s rating of Baa1 with a stable outlook.
The rating agency Scope has awarded Vonovia an A- investment grade rating, but revised Vonovia’s outlook from stable to negative in its announcement of June 29, 2023.
On March 28, 2024, the rating agency Fitch awarded Vonovia a rating for the first time: BBB+ with a stable outlook.
Vonovia SE has launched an EMTN (European medium- term notes) program. This program, which was originally launched via Vonovia Finance B.V., allows funds to be raised quickly at any time via bond issues, without the need for extensive administrative groundwork. The prospectus for the € 40 billion program, which was published on April 2, 2024, must be updated annually and requires approval from the financial supervisory authority of the Grand Duchy of Luxembourg (CSSF).
As of the reporting date of March 31, 2024, Vonovia had placed a total bond volume of € 23.1 billion, € 22.3 billion of which relates to the EMTN program. Vonovia has also assumed Deutsche Wohnen bonds worth a further € 1.8 billion.
A bond in the amount of € 328.6 million was repaid as scheduled on January 15, 2024.
On January 18, 2024, Vonovia issued an unsecured GBP 400.0 million (approx. € 465.1 million) bond with a twelve-year term and a 5.5% coupon (4.55% after currency hedging).
On February 14, 2024, Vonovia issued another unsecured bond with a volume of CHF 150.0 million (approx. € 159.3 million), a five-year term and a 2.565% coupon (4.16% after currency hedging).
In January and February 2024, several drawdowns were made under the Commercial Paper Program, with a total volume of € 500.0 million.
On March 28, 2024, an amount of € 150.0 million was disbursed under a secured financing agreement concluded with Ergo in December 2023.
Two secured bullet loans were repaid on March 31, 2024 with a total volume of € 138.7 million.
The debt maturity profile of Vonovia’s financing was as follows as of March 31, 2024:
The LTV (loan to value) as of the reporting date is as follows:
LTV (loan to value)
in € million | Dec. 31, 2023 | Mar. 31, 2024 | Change in % | |||
Non-derivative financial liabilities | 42,933.0 | 42,476.5 | -1.1 | |||
Foreign exchange rate effects | – | 2.8 | – | |||
Cash and cash equivalents* | -1,737.1 | -1,811.8 | 4.3 | |||
Net debt | 41,195.9 | 40,667.5 | -1.3 | |||
Sales receivables | -895.2 | -832.1 | -7.0 | |||
Adjusted net debt | 40,300.7 | 39,835.4 | -1.2 | |||
Fair value of the real estate portfolio | 83,927.7 | 83,663.8 | -0.3 | |||
Loans to companies holding immovable property and land | 814.3 | 793.2 | -2.6 | |||
Shares in other real estate companies | 479.5 | 480.9 | 0.3 | |||
Adjusted fair value of the real estate portfolio | 85,221.5 | 84,937.9 | -0.3 | |||
LTV | 47.3% | 46.9% | -0.4 pp | |||
Net debt | 40,300.7 | 39,835.4 | -1.2 | |||
Adjusted EBITDA total** | 2,583.8 | 2,533.7 | -1.9 | |||
Net debt/EBITDA multiple | 15.6x | 15.7x | 0.1x | |||
- *Incl. term deposits not classified as cash equivalents.
- **Total over 4 quarters.
Vonovia has undertaken to comply with the following standard market covenants (calculation based on the definitions in the financing documentation) in the context of its issuance of unsecured bonds and financing as well as its structured secured financing.
Compliance with standard market convenats
in € million | Threshold | Dec. 31, 2023 | Mar. 31, 2024 | Change in % | ||||
Total financial debt/ | 42,933.0 | 42,476.5 | -1.1 | |||||
Total assets | 91,995.9 | 91,829.1 | -0.2 | |||||
LTV | < 60.0% | 46.7% | 46.3% | -0.4 pp | ||||
Secured debt/ | 12,930.1 | 12,835.7 | -0.7 | |||||
Total assets | 91,995.9 | 91,829.1 | -0.2 | |||||
Secured LTV | < 45.0% | 14.1% | 14.0% | -0.1 pp | ||||
LTM Adjusted EBITDA/ | 2,583.8 | 2,533.7 | -1.9 | |||||
LTM Net Cash Interest | 650.7 | 662.0 | 1.7 | |||||
ICR | > 1.8x | 4.0x | 3.8x | -0.2x | ||||
Unencumbered assets/ | 47,296.5 | 47,233.2 | -0.1 | |||||
Unsecured debt | 30,002.9 | 29,640.8 | -1.2 | |||||
Unencumbered assets | > 125.0% | 157.6% | 159.4% | 1.8 pp | ||||
Non-fulfillment of the agreed financial covenants may have a negative effect on Vonovia’s liquidity status. As of the reporting date, the financial covenants have been met.