Vonovia Freezes Green Retrofits and Flags CFO Exit as Financing Costs Cloud 2027 Outlook
Published on 11/07/2026 at 13:31 | Editorial boerse-global.de
Vonovia is putting debt reduction ahead of expansion, shelving new Manage-to-Green investments and scaling back Development-to-Hold spending as part of a strategic review of its development business announced on 28 October. The pivot emerged alongside nine-month figures that showed steady operating growth but a more cautious tone on the years ahead.
Higher financing costs and only a partial recovery in the transaction market were named by the company as the drags on its guidance for next year and on its longer-term targets. For 2026, Vonovia expects a broadly stable portfolio valuation compared with the end of 2025.
Earnings edge higher
Adjusted EBITDA for the first nine months came in at EUR 2,187.4 million, up 3.3%. The rental business did the heavy lifting, contributing EUR 1,912.2 million of adjusted EBITDA, a gain of 3.5%.
Alongside the report, the group reaffirmed its forecast for 2026 and issued an initial outlook for 2027 together with revised goals for 2028. For 2027 it pencilled in slight growth in adjusted EBITDA, while adjusted EBT should land roughly at the prior-year level. The organic rent growth target for 2028 was trimmed to around 4.5% from roughly 5%.
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Cash generation is set to soften: within the guidance update, Vonovia said it expects operating free cash flow before changes in net working capital to come in moderately below the previous year's level.
Disposals on track, Berlin in the crosshairs
Property sales totalled around EUR 900 million in the first nine months of 2026, keeping the company on course for its divestment target. Vonovia intends to sell assets worth EUR 5 billion by the end of 2028.
Chief executive Luka Mucic used the results presentation on Wednesday to take aim at expropriation proposals being floated by a possible Berlin coalition, arguing that nationalisation would not create a single additional home. Reuters also flagged rising interest rates and a hardening market for apartment sales as headwinds. Vonovia and Deutsche Wohnen together hold around 138,000 apartments in Berlin and the surrounding region.
In a separate construction push, the landlord said on Thursday that existing buildings on Damaschkestrasse in Lübeck-St. Jürgen will be demolished to make way for new apartments, with work due to start in mid-November.
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Finance chief to step aside
On the personnel front, finance chief Philip Grosse has told the supervisory board he will not seek an extension of his contract, which runs until the end of 2027, according to Reuters. Vonovia said it intends to name a successor shortly.
The company will take its nine-month results on the road starting 9 November with a roadshow in Frankfurt, followed by an event in Paris on 10 November. The Kepler Pan-European Real Estate Conference in London is scheduled for 12 November, and a debt roadshow in Sydney is set for 16 November.
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