Vonovia Slips To Q3 Loss, Revenues Flat; Confirms FY24 View; Sees Growth In Adj. EBITDA Ahead

(RTTNews) - Vonovia SE (VONOY), a German private residential real estate company, reported Wednesday that its third-quarter net loss attributable to shareholders was 74 million euros, compared to prior year's profit of 404.5 million euros. Loss per share was 0.09 euro, compared to profit of 0.44 euro a year ago.

The company noted that the previous year's figures for 2023 adjusted to the current definition of key figures and segments.

The company recorded earnings before tax of 86.3 million euros, sharply lower than prior year's 518.7 million euros.

In the quarter, revenue from property management was flat at 1.321 billion euros.

Looking ahead, Vonovia reaffirmed its fiscal 2024 guidance, and continues to expect adjusted EBITDA to be at the upper end of the range, between 2.55 billion euros and 2.65 billion euros. The Adjusted EBT is also likely to be at the upper end of the range, between 1.7 billion euros and 1.8 billion euros.

In 2025, Vonovia expects to generate rental income of 3.3 billion euros to 3.4 billion euros. The Adjusted EBITDA is likely to be between 2.7 billion euros and 2.8 billion euros and the adjusted EBT between 1.75 billion euros and 1.85 billion euros.

The sustainability targets are expected to be fully met in both 2024 and 2025.

For 2025, the company plans to invest 1.2 billion euros in energy-efficient modernization, new construction and expanding solar panel and heat pump installations.

By 2028, Vonovia aims to have doubled its annual investments to up to 2 billion euros, in climate action initiatives, technological innovation, and new construction.

By 2028, the company is also looking to generate an adjusted EBITDA of 3.2 billion euros to 3.5 billion euros, representing an increase of around 30 percent compared to 2024.

The growth is expected to be driven primarily by additional business segments, with 20-25 percent EBITDA contribution from new construction, value-added residential services, and sales.

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