Coronavirus pandemic and impact on Vonovia
As a socially committed landlord responsible for around one million people living in our apartments, we are well aware of our tenants’ concerns in the current environment and take them very seriously. Even before the legislature adopted its package of measures to alleviate the consequences of the coronavirus pandemic, we gave our tenants the assurance that financial hardship as a result of the pandemic would not result in the termination of their lease agreement or the loss of their apartment, and that we were committed to finding mutually acceptable solutions with minimum red tape if need be.
We have also taken the necessary measures to ensure that we can maintain our high level of service and the reliable infrastructure that we provide our customers in spite of the impact of the coronavirus. We are doing everything in our power to respond to our customers’ concerns and remain on hand as a reliable partner for them, even in these times of crisis. Last but not least, we are keeping a close eye on the situation so as to continue to provide the best possible protection for our employees. Our special thanks go to them for their untiring commitment, also – and particularly – in these difficult times.
According to current estimates, the crisis has not had any material financial impact on Vonovia’s business model. Based on updated corporate planning, we expect only a limited impact on EBITDA growth, practically no impact on the Group FFO and only a temporary impact on liquidity since the rental business will be subject only to manageable rent deferments or rent losses. Such deferred amounts would still be owed and would likely be settled at a later point in time.
Vonovia is still in a comfortable liquidity position. Our monthly cash flow from operating activities, our stable bank relationships and the fact that we still enjoy unrestricted access to the capital market give us a high degree of financial stability and the necessary flexibility where appropriate. We have already secured our liquidity requirements to cover the period leading up to December 2020 by issuing two corporate bonds with a total volume of € 1 billion at the end of March, completing the corresponding transaction in April. As far as the covenants agreed in our ratings and as part of our capital market financing arrangements are concerned, we remain at a very secure level and meet all of the requirements with a considerable buffer.