Real estate: Vonovia benefits from higher rental income – chief financial officer leaves

Berlin. Germany's largest residential real estate group Vonovia continued to benefit from higher rental income in the first nine months. In addition, the business with additional services developed significantly better, as the DAX group announced on Wednesday when it presented its final figures.

However, things went less well for the Bochum-based company when it came to selling apartments and new construction. The interest rates that have risen in recent months have had an impact there.

“The demand for affordable and modernized apartments remains high,” said company boss Luka Mucic, according to the statement. However, the environment remains difficult for the sales segments. Higher financing costs slowed progress in sales. Of course, this also affects the results in these segments.

In the first nine months, Vonovia sold real estate worth around 900 million euros, the group said. The conditions for financing have deteriorated significantly since the outbreak of the conflict in the Middle East and interest rates have risen noticeably again since the beginning of September. Market participants therefore remained cautious about buying real estate and sales processes would take longer.

Meanwhile, Vonovia, like all landlords, continues to benefit from the high demand for living space in metropolitan areas. The monthly rent rose in the first nine months to the end of September year-on-year to an average of 8.57 euros per square meter. That was 3.5 percent more than a year earlier. Rents in Germany averaged 8.41 euros per square meter - an increase of 1.1 percent compared to the previous year.

Vonovia had already presented key data a week ago and was more cautious due to the increased interest rates for the current year and 2028. The group also gave an initial outlook for the coming year. The Bochum team has now confirmed the numbers and forecasts.

Meanwhile, CFO Philip Grosse does not want to extend his contract, which expires at the end of 2027. Vonovia further announced that he informed the supervisory board of his decision. With his early decision, he creates enough time to arrange the succession. Vonovia is confident that it will announce a successor shortly.