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Investing.com -- Vonovia returned to profit in the first nine months of the year, recovering from one of the country’s deepest real estate downturns in decades.
The group reported net profit of 3.41 billion euros ($3.98 billion) for the period, compared with a loss of 592 million euros a year earlier. The rebound was mainly driven by a positive revaluation of its vast apartment portfolio.
“After three years of stagnation, we are now growing again at a rapid pace – just like before the crisis,” Chief Executive Rolf Buch said.
Still, shares in Vonovia slipped 1% after the report.
Rental revenue rose 2.8% year-on-year to 2.55 billion euros, with like-for-like (LFL) rental growth at 4.2%.
Jefferies analysts said second-half growth is expected to outpace the first, supported by stable occupancy and rising market rents. The vacancy rate stood at 2.2%, unchanged from the prior quarter.
Adjusted EBITDA climbed 6.4% to 2.12 billion euros, driven by steady rental activity and improved recurring sales margins.
Jefferies analyst Pierre-Emmanuel Clouard said Vonovia’s “bottom line results and leverage are finally going in the right direction.”
The company’s operating cash flow rose 27% to 1.48 billion euros, while net debt-to-EBITDA eased to 14 times from 15.1 times a year earlier.
Vonovia confirmed its 2025 guidance for adjusted EBITDA of around 2.8 billion euros and set 2026 targets broadly in line with market estimates, projecting adjusted EBITDA between 2.95 billion and 3.05 billion euros.
“2025 guidance confirmed, and 2026 is in line with our estimates,” analysts said.