Vonovia SE on the Capital Market

Shares in Vonovia

The performance of Vonovia’s shares remained dominated by macroeconomic issues in the first few months of this year. After starting out on a stable to slightly positive trajectory, the announcement of the new German government's economic stimulus program made at the beginning of March immediately sent German government bonds surging at a historic rate. At least to begin with, the concern was that yields of 4 % and more appeared to be within the realms of possibility. The high negative correlation put real estate stocks under pressure overall. Shares in Vonovia showed a particularly strong reaction, not least due to their high liquidity, and closed the first quarter down by 14.9 %.

The considerable turbulence sparked by the US government’s tariff policy announced at the beginning of April then translated into new volatility on the markets, a trend that Vonovia’s shares were unable to escape, although, as of mid-April, they outperformed the market as a whole. The performance of Vonovia’s shares is likely to continue to be influenced to a considerable degree by market expectations regarding interest rates and yields on government bonds, at least in the short term.

We remain convinced that our positive operating performance, which remains extremely robust compared to most other sectors, should ensure rising share prices in the medium to long term. Assuming stable market yields, the current dividend yield of well in excess of 4% and an organic increase in value thanks to rental growth should ensure a total return in the double-digit percentage range, which we consider to be comparatively attractive given the risk profile and the good investment grade rating confirmed by four rating agencies.

Last but not least, the residential property markets in which we operate are characterized by a high level of excess demand, which is increasingly having a positive impact on rental growth.

As a result, we remain confident that the fundamental conditions in our markets will ensure positive development in the long run. Besides the favorable relationship (from an owner’s point of view) between supply and demand in urban regions, the relevant factors here include, above all, structural momentum on the revenue side as well as support from the key megatrends.

Vonovia’s market capitalization amounted to around € 20.3 billion as of March 31, 2025.

Share Price Development