Vonovia:Quarterly Results/2023 Q1

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Results

Vonovia posted mixed Q1 2023 results. Here is a summary.

• Vonovia Q1 2023 revenue declined 12.2% to € 1.43 billion.
• EBITDA declined 10% y/y to €728.7 million.
• Rental revenue grew 2.6% y/y to €800.2 million.
• Group FFO per share declined 17.8% to €0.73.
• CEO Rolf Buch said that the residential segment developed positively while sales business declined. “The housing market was tense in the first three months of the year. Our core business - residential property management - is healthy and developed positively even in this difficult environment. The sales business declined as expected,” CEO Rolf Buch said.
• Market value of its real estate portfolio declined 3.7% Q/Q to €91.2 billion from €94.7 billion. CEO Rolf Buch said, "Our valuation certainly offers the greatest possible transparency with regard to the challenging situation in Q1 2023. However, this valuation is a snapshot. Especially since we are seeing larger transactions again for the first time in the second quarter. Furthermore, the following applies unreservedly: The current market environment with increased capital and construction costs accelerates the megatrends that we are using as the basis of our business.”
• Vonovia sold on May 4, 2023 five real estate portfolios( 1,350 residential units in Frankfurt, Berlin and Munich) to CBRE Investment Management for around €560 million. As such, the company is now able to cover 2023's refinancing needs in full as well as two-third of the refinancing due in 2024. "Amounting to a total of more than €1.5 billion, we already have almost reached our sales target for this year. Furthermore, we assess the results of our negotiations as a positive signal for the entire business: after a very difficult first quarter 2023 with little movement, the market is cautiously opening. Buyers and sellers can come to an agreement again. This in itself is a cause for optimism," Buch said
• Vonovia maintained its 2023 revenue, EBITDA and Group FFO.