Shares in Vonovia

Whereas the COVID-19 crisis primarily marked 2020 with uncertainty, volatility and a negative share price performance, the picture has changed significantly in the first six months of this year. The stock markets have left the pandemic-induced slump behind and are reaching new heights.

The German leading index DAX 30 and the EURO STOXX 50, for example, climbed by 13.2% and 13.8% respectively in the first half of the year, whereas both Vonovia’s shares and the listed residential real estate sector as a whole have shown weaker development to date after significant outperformance in 2020.

We attribute the negative share price performance first and foremost to the following market-related factors: Risk appetite on the capital market has increased considerably in a year-on-year comparison, with investors currently focusing more on cyclical stocks and equities whose performance in 2020 was less positive. Increased interest rate risk and expectations of rising inflation make the situation for residential real estate stocks even more challenging. Finally, the possibility that rent legislation will change after the German Bundestag elections is a source of additional uncertainty.

All in all, however, we are convinced that the environment for the German residential real estate sector will remain positive in the long term. We expect the main megatrends – and as a result, the key drivers behind our business – to continue to create a sustained positive environment going forward. Vonovia is in a very good position strategically to be part of the solution to the challenges facing us: urbanization and the resulting imbalance between supply and demand, climate change and the reduction of CO₂ emissions in the housing stock, demographic change and senior-friendly apartment conversion. As a result, we are optimistic as we look ahead to the future and are confident that we will remain financially successful.

Vonovia’s market capitalization amounted to around € 31.4 billion as of June 30, 2021.

Share Price Development