Vonovia SE in the Capital Market

• Shares in Vonovia gain approx. 21% in 2019, significantly outperforming other German listed residential real estate companies.
• Dividend: increased for the sixth time in a row – high acceptance of scrip dividend again.
• We believe that the environment for the German residential real estate sector remains positive.

Developments on the International Capital Markets

2019 was an unsettled year for the international capital markets. Uncertainty regarding future interest rate developments and brewing trade conflicts, in connection with international political tension and concerns of escalation, put pressure on international capital markets, while the low interest rate policy pursued by the United States and Europe provided support for the stock markets.

The Dow Jones, for example, made gains of 22% in 2019, with the German leading index DAX 30 climbing by 25%. The EPRA index for European real estate stocks also closed the year with positive performance, namely at 2,481 points, up by 25% in a year-over-year comparison.

In our view, developments in the German residential real estate sector in particular were shaped primarily by two factors in 2019, each having an opposite effect on Vonovia’s share price: the issue of regulation, which had a negative impact, and the sustained low interest rates, which provided positive impetus.