Capital Market Development and Shares in Vonovia

In 2024, the international capital markets were yet again dominated by the interest rate policy pursued by the world’s leading central banks, and by investor expectations regarding interest rate trends. The first interest rate cuts by the U.S. and European central banks then also sent prices on an upward trajectory into the third quarter. When it became apparent, in the fourth quarter of the year, that the next set of interest rate cuts could be a long time coming or might even fail to materialize entirely, particularly in the United States, sentiment deteriorated and put increasing pressure on the stock markets. Real estate stocks, in particular, suffered heftier losses, because their capital intensity makes them more sensitive to interest rates.

Performance of GICS sectors

In this environment, the DAX 40 closed 18.8% up, with the EPRA Europe real estate index down by -7.1%. Vonovia gained 2.7% over the course of the year, meaning that its performance in 2024 was slightly positive. Overall, there was once again a strong correlation in the fiscal year under review between Vonovia’s share price on the one hand, and the capital market’s assessment of future interest rate trends and government bond yields on the other.

We continued to see a discrepancy in 2024 between rather subdued capital market assessments on the one hand and improving sentiment on the residential real estate market on the other. While the capital market is pricing real estate stocks at hefty discounts, the residential property markets in which we operate are proving to be relatively robust, and many experts agree that the low point has already been reached, or that the worst is already over and things are improving again. This is due, in particular, to the favorable relationship, from an owner’s point of view, between supply and demand in urban regions, which have conventionally been long-term financing arrangements, tax aspects as well as the structural momentum on the revenue side. The transaction volume has also increased considerably again.

We believe that shares in Vonovia will reflect the positive operating development and ultimately the success of our business model as a whole in the medium to long term. Our responses to key long-term megatrends – climate change, urbanization and demographic change – remain the dominant factors driving our business. We are optimistic as we look ahead to the future and are confident that we will remain financially successful.

The average daily trading volume for shares in Vonovia SE, expressed as the number of shares traded on XETRA, came to 2.1 million in 2024. Expressed in euros, shares in Vonovia worth € 60.3 million were traded every day on average in 2024, down slightly on the previous year.

Vonovia’s shares reached their highest daily closing price for the year on October 2, 2024, at € 33.57 and their lowest daily closing price on March 15, 2024, at € 23.99.

Vonovia’s market capitalization amounted to around € 24.1 billion as of December 31, 2024.

Share Price Development

Index Memberships: Vonovia SE Member of the DAX 50 ESG and DJSI Europe

Vonovia has been a member of various sustainability indices since 2020, in particular the DAX 50 ESG and the Dow Jones Sustainability Index (DJSI Europe), which confirms Vonovia’s successful ESG activities and the progress made in this area. We provide detailed information on our rating performance on our website: https://www.vonovia.com/en/sustainability/esg-ratings-rankings

Long-term Yield

An investor who bought shares in Vonovia when the company went public in 2013 and has held them ever since, reinvesting each dividend in more shares in Vonovia, will have seen the value of their securities deposit account increase by 166% by December 31, 2024, a result that far outstrips the performance of a corresponding investment in the benchmark indices. 

Yield since Vonovia IPO