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Vonovia SE: Vonovia in good position to integrate Deutsche Wohnen

Vonovia SE / Key word(s): 9 Month figures
Vonovia SE: Vonovia in good position to integrate Deutsche Wohnen

04.11.2021 / 07:04
The issuer is solely responsible for the content of this announcement.

Results as of 30 September 2021
Vonovia in good position to integrate Deutsche Wohnen - with fresh energy and ready to face the big challenges of the housing market


- Economic growth: Total Segment Revenue has risen by 10 % (approx. € 3.5 billion), Adjusted EBITDA Total by 8 % (approx. € 1.5 billion) and Group FFO by 13% (approx. € 1.1 billion)

- Full-year 2021 guidance has risen again (Group FFO and Adjusted EBITDA Total)

- Climate roadmap: successes on the way to carbon neutrality

- Majority shareholder of Deutsche Wohnen with around 87.6 % of voting rights


Bochum, 4 November 2021 - Vonovia SE ("Vonovia") continued its positive development during the first nine months of 2021. All the relevant KPIs have improved significantly compared with the previous year. The successful takeover of Deutsche Wohnen has created the basis for an even better position to meet the crucial challenges of today's society. In addition to climate protection, they include demographic change and a shortage of affordable housing in urban areas.

"We can be satisfied with the company's development so far this year and are once again raising our full-year guidance," says CEO Rolf Buch. "This robust development forms the basis for our large-scale investments: We've clearly picked up speed in matters of climate protection, and we want to sustain this high momentum. The merger with Deutsche Wohnen is opening up new opportunities for us. We will use our renewed strength to take on even greater responsibilities on the social front as well."

Following the successful conclusion of the takeover bid to the shareholders of Deutsche Wohnen, Vonovia now holds an overall share of around 87.6 % of the voting rights. The company is currently entering the integration stage which should be concluded in 2023. One part of the merger is the Zukunfts- und Sozialpakt Wohnen (Future and Social Pact for Housing), concluded with the state of Berlin. Together, the two companies have committed themselves to selling 14,750 flats, building 13,000 new ones and implementing a voluntary cap on rents within Berlin.

"We will be a reliable partner for future governments, both at the federal level and in Berlin," says Rolf Buch. "When it comes to the big challenges of the housing market, we can only move forward together - as an alliance of key players. We are ready to work together towards constructive solutions."

Further development of important elements to achieve climate neutrality

During the first nine months of the year, Vonovia continued to work diligently towards a climate-neutral building stock. This is having a positive effect on the company's sustainability performance index (SPI), Vonovia's most important non-financial KPI. Vonovia is expecting to see an SPI of around 105 % for 2021 as a whole. This figure also reflects a clear rise in its customer satisfaction index (CSI) - which rose by 3.3 percentage points compared with the previous year - as well as systematic CO2 savings in the company's building stock through energy-efficient modernization.

Vonovia has reached several important milestones on the way to climate neutrality. Over 1,000 roofs of existing buildings now have solar panels, supplying tenants with green electricity straight from their own roofs. Vonovia is now expanding this program on a wider scale, so that all suitable roofs should be fitted with solar panels by 2050. From 2030, the 17,000 roofs that Vonovia is planning to fit with solar panels are set to save 76,500 metric tons of CO2. In addition, Vonovia is assessing current developments regarding the German government's Climate Protection Act, which aims to achieve climate neutrality by 2045.

In its energy-efficient refurbishments, Vonovia will be making more and more use of a highly effective method, based on the Energiesprong pilot project, which the housing company has started as a pilot project in Bochum. This excellent time saver almost halves on-site construction times during a modernization project. First, each building is given a 3D scan, allowing the accurate prefabrication of façade panels to the nearest millimeter. All that remains to be done on site is the actual assembly. In this way Vonovia is planning to gradually upgrade over 2,800 flats by 2024.

In the future, a further reduction of CO2 will be achieved through the use of sustainable building materials, both in new builds and in redevelopment. "Whenever construction is in progress, we are of course the clients of carbon producers. So this is another area where we want to apply targeted measures to save CO2," says Rolf Buch. Vonovia is applying sustainable modular timber construction methods, e.g. in Reinickendorf, Berlin, where it has so far either started or completed 700 flats. Following on from its own climate conference in 2020, Vonovia is now planning to hold a conference on the subject of building materials in autumn 2022. Experts from the housing, construction and building materials sectors as well as professional associations, researchers and politicians will be discussing sustainability, recycling and the affordability of building materials.

Continued growth and further increase in full-year guidance for 2021

Vonovia is continuing its positive development in economic terms. Total Segment Revenue rose by 9.5 % - from € 3,211.6 million in the first nine months of 2020 to € 3,517.0 million in the same period this year. Two major factors that had a positive impact were, above all, organic growth through new builds and the sale of individual flats in the various price segments.

There was also an improvement in the Adjusted EBITDA Total, which rose by 7.6 % to € 1,540.9 million (9M 2020: € 1,432.5 million). This increase is a reflection of strong demand in the property market. The rise in the Adjusted EBITDA was particularly high in two segments: Recurring Sales (up 40.9 % to € 105.5 million) and Development (up
16.0 % to € 79.8 million). The Adjusted EBITDA from rental business was € 1,240.0 million in the first nine months of 2021, compared with € 1,178.7 million in the same period last year.

Vonovia's leading indicator of sustainable profitability, the Group FFO, rose from € 1,015.9 million in the first nine months of 2020 to € 1,147.3 million in the first nine months of 2021, amounting to an increase of 12.9%.

Thanks to the robust ongoing demand for housing, the outlook for 2021 as a whole remains equally positive, and Vonovia has therefore increased its forecast for two crucial KPIs again. The Adjusted EBITDA Total is expected to be at the upper end of the range between € 2,055 million and € 2,105 million, and the Group FFO is expected to be within a range of € 1,520 million to € 1,540 million. Vonovia is anticipating investments in modernization and new builds to continue at a persistently high level, between € 1,300 million and € 1,600 million. Deutsche Wohnen is not included in this forecast.

Further increase in value for Germany, Austria and Sweden in Q3

As at 30 September, Vonovia and Deutsche Wohnen jointly managed a portfolio of 568,451 flats, so that their joint overall market share in Germany is currently around 2.0%. The net asset value (EPRA NTA) of Vonovia and Deutsche Wohnen was € 40,418.9 million and thus 13.9 % higher than at the end of 2020 (€ 35,488.6 million). Due to high market dynamics, the company's auditor concluded for the first time that the portfolio should be revalued in the third quarter of the year. During the third quarter of 2021, the increase in the value of Vonovia's property portfolio without Deutsche Wohnen amounted to around €1.6 billion (including investments). A further increase in value of between €1.8 billion and € 2.6 billion is expected by the end of the year.

At the end of September 2021, Vonovia's housing stock recorded a vacancy rate of 2.7 %, slightly above the equivalent figure for September 2020. The market-driven increase in rent was 1.1 %. Investments in energy-efficient modernization led to a 1.8 % increase, while investments in new builds and additional floors produced a 0.6% increase in rental income. The average effective monthly rent across the Group was € 7.34 per square meter as at 30 September 2021. In the German portfolio this figure was € 7.14 per square meter. Deutsche Wohnen stock is not included in vacancy figures or rental income.

During the first nine months of the year, Vonovia invested € 1,355.1 million, roughly the same level as in the same period the year before (€ 1,360.0 million). At the same time, there was a significant increase in expenditure on maintenance, reaching € 453.5 million (up 13.6 %) as well as in investments in new builds, reaching € 353.8 million (up
17.5 %). On the other hand, lower investments in Berlin (due to the rent cap, now lifted again) as well as Covid restrictions, led to a lower modernization volume. During the first nine months of 2021, Vonovia completed 1,366 new flats, upgraded 7,268 flats to meet the needs of senior citizens, and renovated more than 8,000 flats to make them more energy-efficient.

In August, Vonovia placed five bonds totaling €5 billion, with an average interest rate of 0.49% and an average term of 10.3 years, including, for the first time, one bond with a term of 30 years. By June, Vonovia had already placed five bonds totaling €4 billion, with an average interest rate of 0.6875% and an average term of 9.5 years.

The full quarterly report can be found at the following web addresses:

Further details, photographic material and video footage can be found in the Press section and the Media Library

(excluding Deutsche Wohnen, unless stated otherwise)

Financial Key Figures in € million
  9M 2020   9M 2021   Change
in %
Total Segment Revenue   3,211.6   3,517.0   9.5  
Adjusted EBITDA Total   1,432.5   1,540.9   7.6
Adjusted EBITDA Rental   1,178.7   1,240.0   5.2  
Adjusted EBITDA Value-add   110.1   115.6   5.0  
Adjusted EBITDA Recurring Sales   74.9   105.5   40.9  
Adjusted EBITDA Development   68.8   79.8   16.0  
Group FFO**   1,015.9   1,147.3   12.9  
Profit for the period**   1,891.6   3,869.1   >100  
Total cost of maintenance, modernization and
new construction (to hold)
  1,360.0   1,355.1   -0.4  
thereof for maintenance expenses and capitalized maintenance   399.1   453.5   13.6  
thereof for modernization   659.7   547.8   -17.0  
thereof for new construction (to hold)   301.2   353.8   17.5  
Key Balance Sheet Figures in € million   Dec. 31, 2020   Sep. 30, 2021   Change
in %
Fair value of the real estate portfolio**   58,910.7   95,378.7   61.9  
EPRA NTA**   35,488.6   40,417.9   13.9  
EPRA NTA pro Aktie in €*/**   62.71   70.26   12.0  
LTV in %   39.4   44.2   4.8 pp  
Non-financial Key Figures   9M 2020   9M 2021   Change
in %
Number of units managed   488,400   639,878   31.0
thereof own apartments**   414,570   568,451   37.1
thereof apartments owned by others   73,830   71,427   -3.3
Number of new apartments completed   1,437   1,366   -4.9
thereof own apartments   1,056   786   -25.6
thereof apartments for sale   381   580   52.2
Vacancy rate (in %)   2.6   2.7   0.1 pp
Monthly in-place rent in €/m²   7.07   7.34   3.8
Number of employees**
(as of Sep. 30)
  16,051   51.9

* Based on the shares carrying dividend rights on the reporting date September 30, 2020: 565,887,299, September 30, 2021: 575,257,327 and Dec. 31, 2020: 565,887,299.

** 2021 incl. Deutsche Wohnen; Group FFO and Profit for the period incl. at-equity results Deutsche Wohnen.

About Vonovia

Vonovia SE is Europe's leading private residential real estate company. Vonovia currently owns around 568,000 residential units (Deutsche Wohnen included) in all attractive cities and regions in Germany, Sweden and Austria. It also manages around 71,500 apartments. Its portfolio is worth approximately € 95.4 billion. As a modern service provider, Vonovia focuses on customer orientation and tenant satisfaction. Offering tenants affordable, attractive and livable homes is a prerequisite for the company's successful development. Therefore, Vonovia makes long-term investments in the maintenance, modernization and senior-friendly conversion of its properties. The company is also creating more and more new apartments by realizing infill developments and adding to existing buildings.

The company, which is based in Bochum, has been listed on the stock exchange since 2013. Since September 2015 Vonovia has been a constituent in the DAX 30 (today DAX 40) and since September 2020 in the EURO STOXX 50. Vonovia SE is also a constituent of additional national and international indices, including DAX 50 ESG, Dow Jones Sustainability Index Europe, STOXX Global ESG Leaders, EURO STOXX ESG Leaders 50, STOXX Europe ESG Leaders 50, FTSE EPRA/NAREIT Developed Europe, and GPR 250 World. Vonovia has a workforce of more than 16,000 employees (Deutsche Wohnen included).

Additional Information:
Approval: Regulated Market/Prime Standard, Frankfurt Stock Exchange
Common code: 094567408
Registered headquarters of Vonovia SE: Bochum, Germany, Bochum Local Court, HRB 16879
Business address of Vonovia SE: Universitaetsstrasse 133, 44803 Bochum, Germany

This press release has been issued by Vonovia SE and/or its subsidiaries solely for information purposes. This press release may contain statements, assumptions, opinions and predictions about the anticipated future development of Vonovia ("forward-looking statements") that reproduce various assumptions regarding, e.g., results derived from Vonovia's current business or from publicly available sources that have not been subject to an independent audit or in-depth evaluation by Vonovia and that may turn out to be incorrect at a later stage. All forward-looking statements express current expectations based on the current business plan and various other assumptions and therefore come with risks and uncertainties that are not insignificant. All forward-looking statements should not therefore be taken as a guarantee for future performance or results and, furthermore, do not necessarily constitute exact indicators that the forecast results will be achieved. All forward-looking statements relate solely to the day on which this press release was issued to its recipients. It is the responsibility of the recipients of this press release to conduct a more detailed analysis of the validity of forward-looking statements and the underlying assumptions. Vonovia accepts no responsibility for any direct or indirect damages or losses or subsequent damages or losses, as well as penalties that the recipients may incur by using the press release, its contents and, in particular, all forward-looking statements or in any other way, as far as this is legally permissible. Vonovia does not provide any guarantees or assurances (either explicitly or implicitly) in respect of the information contained in this press release. Vonovia is not obliged to update or correct the information, forward-looking statements or conclusions drawn in this press release or to include subsequent events or circumstances or to report inaccuracies that become known after the date of this press release.

04.11.2021 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.
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Language: English
Company: Vonovia SE
Universitätsstraße 133
44803 Bochum
Phone: +49 234 314 1609
Fax: +49 234 314 2995
Indices: DAX
Listed: Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover, Munich, Stuttgart, Tradegate Exchange
EQS News ID: 1246089

End of News DGAP News Service

1246089  04.11.2021 

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