Vonovia Stock Drops On Weak FY25 Revenues, Stable Outlook, Despite A Turnaround

(RTTNews) - Shares of Vonovia SE were losing around 10 percent in the German trading after the real estate major on Thursday reported weak revenues and units in fiscal 2025, and maintained outlook for fiscal 2026 and fiscal 2028.

However, the firm reported a turnaround to net profit in fiscal 2025, mainly on a significant income tax gain, after years of losses. The company noted that 2025 turned out to be a year of growth in all segments with property values started to rise again. The core rental business saw high demand for rental apartments and rising rents, as well as a positive trend in customer satisfaction.

Looking ahead for fiscal 2026, the company continues to expect total adjusted EBITDA to increase to 2.95 billion euros to 3.05 billion euros from 2.800 billion euros in fiscal 2025.

For fiscal 2026, Vonovia anticipates adjusted EBT from continuing operations of 1.9 billion euros to 2 billion euros, compared with 1.904 billion euros in fiscal 2025.

By 2028, total adjusted EBITDA is set to grow much further, to 3.2 billion euros to 3.5 billion euros, with the non-rental business becoming increasingly significant and contributing at least 15 percent to total EBITDA in 2026 and between 20 percent and 25 percent in 2028.

The three non-rental segments contributed 13 percent in 2025.

The firm further announced that its Management and Supervisory Board have agreed to propose a cash dividend of 1.25 euros per share, up by 2.5 percent from last year, to the Annual General Meeting on May 21.

For the 12-month period to December 2025, the company posted a net income attributable to Vonovia's shareholders of 3.723 billion euros, compared with a net loss of 896 million euros last year. Net earnings per share were 4.33 euros as against the prior year's loss of 1.09 euros per share.

Adjusted Shareholder earnings increased to 1.541 billion euros from last year's 1.463 billion euros. Adjusted income per share also moved up to 1.85 euros from 1.79 euros per share in the previous year.

Income tax gain was 1.586 billion euros, compared with an expense of 385.6 million euros in 2024.

Net income from fair value adjustments of investment properties was 1.390 billion euros, compared with a loss of 1.559 billion euros a year ago.

Vonovia recorded EPRA NTA of 39.253 billion euros, up from the prior year's 37.215 billion euros. EPRA NTA per share stood at 46.28 euros, higher than 45.23 euros last year.

Earnings before tax stood at 2.527 billion euros as against the prior year's loss of 603.4 million euros. Adjusted earnings before tax grew 4.8 percent to 1.90 billion euros.

Vonovia delivered total adjusted EBITDA of 2.80 billion euros, up 6.0 percent year-over-year, driven by increasing contributions across all business lines.

EBITDA Operations Margin, meanwhile, dropped 0.8 percentage points from last year to 79.1 percent.

Revenue from property management slipped to 4.918 billion euros from 5.087 billion euros in the previous year. Revenue from the property-letting business was 4.749 billion euros, less than 4.880 billion euros last year.

Number of units dropped 1.9 percent to 530,979 units from 539,753 units last year.

On the XETRA in Germany, the shares were losing around 9.96 percent, trading at 22.14 euros.

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