Financing
In its announcement of August 23, 2024, 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, in its announcement of July 2, 2024, awarded Vonovia an A- investment grade rating with negative outlook.
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, without any major administrative effort, using bond issues. The published prospectus for the € 40 billion program was expanded on October 7, 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 September 30, 2024, Vonovia had placed a total bond volume of € 23.6 billion, € 22.6 billion of which relates to the EMTN program. Deutsche Wohnen bonds worth a further € 1.8 billion were also assumed.
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.
With a total volume of € 138.7 million, two secured bullet loans were repaid on March 31, 2024.
On April 8, 2024, a € 336.1 million bond was repaid as scheduled.
A further bond, denominated in Swedish krona and with a volume of SEK 500.0 million (around € 48.5 million), was repaid as scheduled on April 8, 2024.
On April 10, 2024, Vonovia issued a € 850.0 million unsecured social bond with a 4.25% coupon and a ten-year term.
Vonovia placed a bond with a volume of SEK 750.0 million (approx. € 66.9 million) with a two-year term as part of a private placement on June 19, 2024. The bond is a floating-rate bond (3M STIBOR plus 1.30% margin; 4.51% after interest and currency hedging) and is structured as a social bond.
On August 6, 2024, Vonovia took out secured financing with Hamburg Commercial Bank in the amount of € 135.0 million with a maturity of seven years. The amount was disbursed on August 28, 2024.
On August 26, 2024, Vonovia issued a CHF 235.0 million (€ 247.8 million) bond with a seven-year term. The coupon is 2.000% p.a. (or 3.897% p.a. after currency hedging).
On September 9, 2024, Vonovia took out a loan in the amount of € 110 million with a ten-year term with Münchener Hypothekenbank. The loan was disbursed on September 12, 2024.
A bond in the amount of € 278.3 million was repaid as scheduled on September 16, 2024.
On September 26, 2024, Vonovia issued an SEK 500.0 million (€ 44.3 million) bond with a four-year term. The bond is a floating-rate bond (3M STIBOR plus 142 basis points).
The debt maturity profile of Vonovia’s financing was as follows as of September 30, 2024:
Debt Maturity Profile on September 30, 2024 (face values)
The key debt ratios are as follows as of the reporting date:
LTV (loan to value)
in € million | Dec. 31, 2023 | Sep. 30, 2024 | Change in % | |||
Non-derivative financial liabilities | 42,933.0 | 43,062.1 | 0.3 | |||
Foreign exchange rate effects | – | -17.5 | – | |||
Cash and cash equivalents* | -1,737.1 | -2,488.3 | 43.2 | |||
Net debt | 41,195.9 | 40,556.3 | -1.6 | |||
Sales receivables | -895.2 | -442.0 | -50.6 | |||
Adjusted net debt | 40,300.7 | 40,114.3 | -0.5 | |||
Fair value of the real estate portfolio | 83,927.7 | 82,636.5 | -1.5 | |||
Loans to companies holding immovable property and land | 814.3 | 712.0 | -12.6 | |||
Shares in other real estate companies | 479.5 | 473.9 | -1.2 | |||
Adjusted fair value of the real estate portfolio | 85,221.5 | 83,822.4 | -1.6 | |||
LTV | 47.3% | 47.9% | 0.6 pp | |||
Adjusted net debt | 40,300.7 | 40,114.3 | -0.5 | |||
Adjusted EBITDA total** | 2,583.8 | 2,560.5 | -0.9 | |||
Adjusted Net debt/Adjusted EBITDA total | 15.6x | 15.7x | 0.1x | |||
- *Incl. term deposits not classified as cash equivalents.
- **Total over four 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 | Sep. 30, 2024 | Change in % | ||||
Total financial debt | 42,933.0 | 43,062.1 | 0.3 | |||||
Total assets | 91,995.9 | 91,030.0 | -1.0 | |||||
LTV | < 60.0% | 46.7% | 47.3% | 0.6 pp | ||||
Secured debt | 12,930.1 | 12,883.4 | -0.4 | |||||
Total assets | 91,995.9 | 91,030.0 | -1.0 | |||||
Secured LTV | < 45.0% | 14.1% | 14.2% | 0.1 pp | ||||
LTM Adjusted EBITDA | 2,583.8 | 2,560.5 | -0.9 | |||||
LTM Net Cash Interest | 650.7 | 691.9 | 6.3 | |||||
ICR | > 1.8x | 4.0x | 3.7x | -0.3x | ||||
Unencumbered assets | 47,296.5 | 47,126.8 | -0.4 | |||||
Unsecured debt | 30,002.9 | 30,178.7 | 0.6 | |||||
Unencumbered assets | > 125.0% | 157.6% | 156.2% | -1.4 pp | ||||
Non-fulfillment of the agreed financial covenants may have a negative effect on Vonovia’s liquidity status. The financial covenants have been fulfilled as of the reporting date.