Shares in Vonovia
Although Vonovia’s share price fell by approximately 4% in the 2018 fiscal year, dropping from a closing price of € 41.39 on December 31, 2017, to a closing price of € 39.59 on December 31, 2018, Vonovia’s shares significantly outperformed the German leading index, the DAX, the EPRA index and the eurozone real estate industry as a whole in the course of the year.
We believe that the environment for the German residential real estate sector remains positive in general. In our view, the main drivers behind this will be the imbalance between high demand for and a short supply of affordable housing in urban locations, the ongoing favorable environment of low interest rates and a continued keen interest in German residential real estate.
Vonovia’s market capitalization amounted to € 20.5 billion at the end of 2018.
An investor who bought shares in Vonovia when the company went public in 2013 and has held them ever since, reinvesting each dividend in more shares in Vonovia, will have seen the value of his/her securities deposit account increase by approx. 180% by December 2018, achieving a result that far outstrips the performance of an investment in the benchmark indices.