The financing strategy pursues various yet complementary goals: These are centered on adequate liquidity at all times, a balanced structure and maturity of debt capital, optimization of financing costs and credit ratingmaintenance.
Thanks to its broad range of equity and debt capital providers and the ‘BBB+’ long-term corporate credit rating awarded to our company by S&P, our company has excellent access to the international debt and equity capital markets. This gives us flexible access to capital based on favorable financing conditions at all times, securing Vonovia’s liquidity on a permanent basis.
This comprehensive access to the international debt and equity capital markets gives a German residential real estate company a clear strategic competitive edge. This becomes obvious if we look at the acquisitions that were announced and completed, and the modernization measures that were implemented, in the reporting year. Without fast and free access to the equity and debt capital markets, it would not have been possible to carry out these measures.
Classification of debtors or securities with regard to their creditworthiness or credit quality according to credit ratings. The classification is generally performed by rating agencies.
Maintenance covers the measures that are necessary to ensure that the property can continue to be used as intended over its useful life and that eliminate structural and other defects caused by wear and tear, age and weathering effects.
The “Strategic” subportfolio contains locations that offer development potential that is above average and for which we are pursuing a value-enhancing property management strategy.
Modernization measures are long-term and sustainable value-enhancing investments in housing and building stocks. Energy-efficient refurbishments generally involve improvements to the building shell and communal areas as well as the heat and electricity supply systems. Typical examples are the installation of heating systems, the renovation of balconies and the retrofitting of prefabricated balconies as well as the implementation of energy-saving projects, such as the installation of double-glazed windows and heat insulation, e.g., facade insulation, insulation of the top story ceilings and basement ceilings. In addition to modernization of the apartment electrics, the refurbishment work upgrades the apartments, typically through the installation of modern and/or handicapped-accessible bathrooms, the installation of new doors and the laying of high-quality and non-slip flooring. Where required, the floor plans are altered to meet changed housing needs.