Shares in Vonovia
In the 2019 fiscal year, Vonovia’s share price rose by approximately 21%, climbing from a closing price of € 39.59 on December 31, 2018, to a closing price of € 48.00 on December 31, 2019, outperforming the other listed German residential real estate companies. Like the German residential real estate sector as a whole, Vonovia showed slightly weaker development than the German leading index DAX 30 (25%) and the EPRA Europa index (25%), but performed better than the EPRA Germany index (10%).
The chart illustrates Vonovia’s share price performance in 2019, which was influenced particularly by the statement on a capital increase notification in May and the announcement of the Berlin-specific rent freeze legislation in June as well as by the ongoing debate around further rent regulation.
Share Price Development
We believe that the environment for the German residential real estate sector tends to remain 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 homes 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 around € 26 billion as of December 31, 2019.
The average trading volume for shares in Vonovia SE, expressed as the number of shares traded on Xetra, rose from an average daily trading volume of 1.38 million shares in 2018 to 1.46 million shares in 2019. Expressed in euros, shares in Vonovia worth € 66 million were traded every day on average in 2019, a figure that was up by 18% on 2018.
Long-term Yield
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 their securities deposit account increase by approx. 225% by December 2019, achieving a result that far outstrips the performance of an investment in the benchmark indices.
Total Shareholder Return since Vonovia IPO
A multi-year index comparison also highlights the solid performance of Vonovia’s shares.
|
Vonovia SE |
DAX |
FTSE EPRA/NAREIT Europe Index |
Stoxx Europe 600 |
MSCI Germany |
GPR 250 World |
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|---|---|---|---|---|---|---|---|---|
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|
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|
|
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1 Y |
21% |
25% |
25% |
24% |
20% |
17% |
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3 Y |
63% |
15% |
21% |
15% |
6% |
12% |
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5 Y |
98% |
35% |
29% |
22% |
17% |
13% |
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IPO |
225% |
62% |
61% |
40% |
37% |
27% |
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|
2013 |
2014 |
2015 |
2016 |
2017 |
2018 |
2019 |
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|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
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Annual closing price (€) |
17.13* |
26.75* |
28.55 |
30.91 |
41.39 |
39.59 |
48.00 |
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High (€) |
18.79* |
26.75* |
33.23 |
36.81 |
41.88 |
44.70 |
48.84 |
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Low (€) |
16.75* |
17.13* |
24.19 |
24.99 |
29.96 |
36.20 |
40.00 |
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No. of shares as of Dec. 31 |
224,242,425* |
271,622,425* |
466,000,624 |
466,000,624 |
485,100,826 |
518,077,934 |
542,273,611 |
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Market cap as of Dec. 31 (€ billion) |
3.84* |
7.3* |
13.3 |
14.4 |
20.1 |
20.5 |
26.0 |
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Average transaction volume per day (VWAP in € million) |
1.3* |
12.3* |
45.2 |
41.2 |
47.6 |
55.8 |
66.0 |
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Dividend per share (€) |
0.67* |
0.74* |
0.94 |
1.12 |
1.32 |
1.44 |
1.57** |
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Dividend yield (%) |
3.9 |
2.8 |
3.3 |
3.6 |
3.2 |
3.6 |
3.3 |
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