Investor Relations Activities, Analyst Assessments and Dividend

Investor Relations Activities

Vonovia SE is committed to transparent, ongoing dialogue with its shareholders and potential investors. In the 2018 fiscal year, Vonovia participated in a total of 18 investors’ conference days and organized 27 roadshow days in the most important European, Asian and North American financial centers. In addition, Vonovia took part in various investor forums and numerous one-on-one meetings and teleconferences were held with investors and analysts to keep them informed of current developments and special issues.

In the fall of 2018, the Chairman of the Supervisory Board Jürgen Fitschen conducted a Corporate Governance Road Show together with the Head of Investor Relations to discuss corporate governance at Vonovia with 14 of the company’s largest institutional investors. The event saw three topics emerge as being particularly relevant to the company’s shareholders: Supervisory Board (composition, skills profile, remuneration, etc.), Management Board remuneration and authorized capital. Although corporate governance road shows are becoming increasingly popular at listed companies, they are not yet common practice. The response to the transparent information on how corporate governance is put into practice at Vonovia was very positive, and we intend to continue to organize these events at regular intervals.

The fifth Capital Markets Day, which focused on “Unlocking Potential,” took place in Berlin on June 5, 2018. In three workshops on energy, neighborhood development and project development, Vonovia demonstrated to the 55 external participants the business potential that these and other topics have to offer. The event wrapped up with a property tour that made two stops. First, smaller groups of participants were given a tour of a new construction project, where they were able to experience how professional development and sustainable construction is transforming an unused property into a high-value neighborhood with condominiums and rental apartments. The participants were then shown a neighborhood development project so they could see how socially responsible neighborhood development works. By viewing two model apartments, the group was able to get an idea of how senior-friendly modernization can be successfully realized.

The Investor Relations team also organized and carried out numerous property tours for interested investors and analysts on location with colleagues from the operational areas of the company. The aim of these events was to provide the participants with firsthand insight into Vonovia’s real estate portfolio and processes. Investor Relations also held detailed presentations on Vonovia and the situation on the German residential real estate market at informational events for private shareholders.

In 2019, we will continue to communicate openly with the capital market. Various roadshows, conferences and participation in investor forums have already been planned. Information can be found in the Financial Calendar on our Investor Relations website.

Positive Analyst Assessments

At present, 31 international analysts publish studies on Vonovia on a regular basis (as of December 31, 2018). The average target share price was € 47.50 as of December 31, 2018. Of these analysts, 66% issued a “buy” recommendation, with 27% issuing a “hold” recommendation and 7% recommending that investors sell the company’s shares. One broker has currently suspended coverage of Vonovia due to takeovers.

Share Information

The continuity of our business strategy is also reflected in our dividend policy. Our aim is to distribute around 70% of our to our shareholders. As far as the 2018 fiscal year is concerned, we plan to propose a dividend per share of € 1.44 to the Annual General Meeting, which represents an increase of 9% as against 2017.

Attractive Dividend

Attractive Dividend (Barchart)
Group FFO
Group FFO reflects the recurring earnings from the sustained operating business. In addition to the Adjusted EBITDA for the Rental, Value-add, Recurring Sales and Development segments, Group FFO allows for recurring cash-effective net interest expenses from non-derivative financial instruments as well as income taxes. This key figure is not determined on the basis of any specific international reporting standard but is to be regarded as a supplement to other performance indicators determined in accordance with IFRS.