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Investing.com -- Vonovia SE (ETR:VNAn) reported key performance indicators for the first quarter of 2025 that are slightly ahead of expectations for the first half and full year of 2025.
The company pre-released its earnings yesterday evening, revealing a positive year-over-year trend and also announced that CEO Rolf Buch will step down at the end of 2025. He will be replaced by Luka Mucic, currently the CFO of Vodafone (NASDAQ:VOD) and former CFO and COO of SAP.
At 09:07GMT, shares were down 0.6% in Frankfurt trading.
Vonovia’s adjusted earnings before taxes (EBT) post-minorities per share for Q1 2025 stood at €0.53, marking a 16.1% increase from the previous year, and trending slightly better than Barclays (LON:BARC)’ forecast for the full year of €1.93. This figure is at the upper end of the company’s full-year 2025 guidance, supported by lower net finance costs.
However, adjusted EBITDA saw a 15.1% rise year-over-year, which is a bit lower than Barclays’ estimates. The company’s core rental EBITDA remained nearly flat at €592.6 million, while earnings from privatizations more than doubled compared to Q1 2024, reaching €19.1 million. The Value Add segment also saw a significant increase, tripling to €38.5 million.
Organic rent growth for the company was reported at 4.3% year-over-year in the first quarter, with the rent index contributing 2.9%, modernization adding 1%, and new construction contributing 0.4%. Vonovia has maintained its guidance for like-for-like (LFL) rent growth at around 4% for the full year of 2025, with expectations to exceed 4% from 2025 to 2028. The company’s projections are in line with Barclays’ average annual LFL rent growth estimate of 4.5% for the period from 2025 to 2028.
The operating free cash flow (OFCF) demonstrated a substantial increase of 43% year-over-year to €718 million. All business segments reported growth, with the development to sell working capital experiencing a notable increase from €68 million to €172 million.
Despite these changes, Vonovia’s guidance for the full year of 2025 remains unchanged from the forecasts made on the FY24 earnings day.
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