Vonovia Hits €900 Million in Disposals as CFO Signals Exit and Green Retrofit Spend Goes on Hold
Published on 11/07/2026 at 15:01 | Editorial boerse-global.de
Vonovia has sold roughly €900 million of property in the first nine months of 2026, putting the German landlord on track for a €5 billion disposal target it aims to complete by the end of 2028. The figure, disclosed on Wednesday, lands as the group pivots toward debt reduction and pulls back on new spending.
That retrenchment has several moving parts. On 28 October Vonovia announced a strategic review of its development business, said investment in development-to-hold projects would fall, and put new manage-to-green investments on hold. Higher financing costs and only a partial recovery in the transaction market were cited as drags on the outlook for next year and on longer-term goals.
Earnings: lettings up, pre-tax profit down
Adjusted EBITDA from the rental business rose 3.5% to €1,912.2 million in the nine-month period. At group level, adjusted EBITDA climbed 3.3% to €2,187.4 million. Adjusted earnings before tax moved the other way, slipping 3.5% to €1,408.0 million, while organic rent growth came in at 3.8%.
Should investors sell immediately? Or is it worth buying Vonovia?
For the full year 2026, Vonovia expects adjusted EBITDA in the lower half of a €2.95 billion to €3.05 billion range. Portfolio valuations are seen as broadly stable versus the end of 2025. Looking further out, the company guided toward slight adjusted EBITDA growth in 2027, with adjusted EBT roughly flat year on year. Its organic rent growth target for 2028 was trimmed to around 4.5% from about 5%, and operating free cash flow before changes in net working capital is expected moderately below the prior year.
Berlin politics and a finance chief's departure
Chief executive Luka Mucic used Wednesday's update to warn about Berlin's plans to socialise large landlords. Vonovia and Deutsche Wohnen together own around 138,000 apartments in and around the German capital. Reuters also flagged rising interest rates and increasingly difficult property sales as headwinds.
Separately, finance chief Philip Grosse said he will not extend his contract, which runs until the end of 2027. Vonovia said it intends to settle on a successor in good time, opening an early window on the change at the top of its finance function.
Diary dates
A roadshow on the nine-month results is scheduled for Frankfurt on 9 November, followed by an event in Paris on 10 November and the Kepler Pan-European Real Estate Conference in London on 12 November. A debt roadshow in Sydney is set for 16 November. Preliminary 2026 figures are due on 18 February 2027, with the full annual results slated for 5 March 2027.
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