Group’s Business Development
Overview of Business Performance in 2024
Vonovia can look back on a positive 2024 fiscal year despite the strained overall conditions on the real estate markets. Following two years of balance sheet stabilization, the successful completion of the apartment sale program will now allow Vonovia to focus on growth and higher investment as of 2025.
The 2024 fiscal year saw the company sell a total of 2,470 units from its Recurring Sales portfolio (2023: 1,590) and 5,184 units from its Non Core/Other portfolio (2023: 2,248).
In the 2024 fiscal year, the core rental business saw high demand for rental apartments and rising rents, as well as a positive trend in customer satisfaction. In the Value-add segment, investments were increased, particularly in new photovoltaic systems and heat pumps, and a lease agreement was concluded for the existing coaxial network. In the 2024 fiscal year, we invested a total of around € 0.8 billion for maintenance (2023: € 0.7 billion) and around € 0.8 billion in total (2023: € 0.8 billion) in modernization/portfolio and new construction. In the Development segment, we completed 1,276 units for our own portfolio (2023: 1,332). In addition, 2,471 units intended for sale were completed (2023: 1,128).
The table below provides an overview of the development of the key performance indicators we last forecast for 2024 and their target achievement in the 2024 fiscal year.
Development of forecast performance indicators
2023 | Forecast for 2024 in the 2024 Q3 report | 2024 | |||||
Adjusted EBITDA Total (continuing operations) in € million | 2,583.8 | upper end of | 2,625.1 | ||||
Adjusted EBT (continuing operations) in € million | 1,866.2 | upper end of | 1,799.6 | ||||
EPRA NTA per share* in € | 46.82 | suspended | 45.23 | ||||
Sustainability Performance Index (SPI) in % | 111 | 100 | 104 | ||||
Rental income in € million | 3,253.4 | ~€ 3.3 billion | 3,323.5 | ||||
Organic rent growth in % | 3.8 | Upper end of 3.8–4.1 | 4.1 | ||||
Additional rent increase claim in %** | 1.8 | ~2 | 2.1 | ||||
- * Based on the shares carrying dividend rights on the reporting date.
- ** For Germany: Additional rent increase claim at apartment level in relation to the local comparable rent (OVM) at the time of accrual that is guaranteed by law but can only be implemented once the three-year period for maximum rent growth (“Kappungsgrenze”) has lapsed. The percentage value refers to the cumulative rent increase claim at the respective point in time and – for that period – cannot be added to the organic rent growth as the implementation occurs in subsequent years.
Overall, the adjusted EBITDA total from continuing operations of € 2,625.1 million in the 2024 fiscal year was 1.6 % higher than the previous year’s figure of € 2,583.8 million. The Rental segment contributed € 2,385.7 million (2023: € 2,401.7 million), the Value-add segment € 168.4 million (2023: € 105.5 million), the Recurring Sales segment € 57.6 million (2023: € 63.4 million) and the Development segment € 13.4 million (2023: € 13.2 million).
The Adjusted EBT of continuing operations amounted to € 1,799.6 million in the 2024 fiscal year compared to € 1,866.2 million in the previous year. In the reconciliation of adjusted EBITDA to adjusted EBT, the contributing factors were the adjusted net financial result of € -709.0 million (2023: € -625.1 million), depreciation and amortization of € -112.7 million (2023: € -110.2 million) and interim profits of € -3.8 million (2023: interim losses of € 17.7 million).
EPRA NTA per share developed from € 46.82 at the end of 2023 to € 45.23 at the end of 2024. The development in the net asset value figure was due primarily to the net income from fair value adjustments of investment properties of € -1,559.0 million in 2024 (2023: € -10,651.2 million). The distribution of the cash dividend of € 506.4 million in 2024 (2023: € 372.9 million) and the issue of new shares as part of the scrip dividend also had an impact on this key figure.
The Sustainability Performance Index stood at 104 % (2023: 111 %) in the 2024 fiscal year. This was helped along in particular by the reduction of CO2 intensity, the development of the average primary energy requirements of new construction and high levels of customer and employee satisfaction.
Statement of the Management Board on the Economic Situation
The net assets, financial position and results of operations of the Group are stable, particularly given the solid financing, the resulting balanced maturity profile and the flexibility gained through bond financings as a result of a diversified financing mix. The ongoing improvements to the property management processes and the use of new digital software solutions promote ongoing improvement in profitability.