Vonovia concludes 2024 at the upper end of its guidance and returns to growth

• Adjusted EBITDA Total at €2.6 billion, with full portfolio occupancy.
• Stabilization of property values in H2, LTV near target range, robust investment grade ratings.
• 3,747 apartments completed; construction of around 3,000 new units set to begin in 2025.
• Significant dividend increase to €1.22.
• Strong start to 2025 marks the beginning of a growth phase. Adjusted EBITDA expected to range between €2.7 and €2.8 billion.
• Outlook until 2028: Vonovia envisages EBITDA growth of around 30%.

Bochum, 19 March 2025  – Vonovia SE (“Vonovia”) concluded the 2024 financial year with a positive result. All its key figures reached the upper end of the guidance, providing a good foundation for the Bochum-based company to resume growth. Vonovia expects to realise significant economies of scale and efficiency gains over the next three years.  

“We’re emerging from the crisis ahead of many others and, in fact, in a stronger position than when we entered it. Over the last three years, we’ve been focusing on our core business and have generated approximately €11 billion in additional cash. We’ve done our homework. No other company owns more rental properties than we do. Now is the time to fully leverage our potential and move forward as a market leader with a fresh outlook,” says Rolf Buch, CEO of Vonovia. “The property market is currently reacting strongly to the German government's announced investment plans. The medium and long-term effects on housing prices and financing costs are yet uncertain. We are observant, but acting prudently. Our priorities are clear: a good investment grade rating and the long-term success of our business. As we continue our growth trajectory, we know very well that, with the experience we have gained over the past three years, we are capable to act at any time and in any direction,” says Buch.

Strong economic performance paves the way for growth

For the 2024 financial year, Vonovia’s key figures reached the upper end of the guidance. Adjusted EBITDA Total rose to approximately €2.6 billion, with rental business contributing 91% to the overall result. As anticipated, Adjusted EBT of €1.8 billion was slightly below the previous year. 
The portfolio remained almost fully let, with a vacancy rate of 2.0%. Organic rental growth of 4.1% exceeded the previous year's figure. In total, core rental business contributed nearly €2.4 billion to overall EBITDA, almost matching the 2023 level despite sales and higher maintenance expenses. Overall, the other segments performed as expected, remaining stable. Following a sharp decline, property values stabilised in the second half of 2024, with a modest increase of 0.5%. Based on the most recently finalised sales, the pro forma loan-to-value ratio stood at 45.8%, nearly within the target range of 40–45%. All investment-grade ratings remain strong.

In 2024, Vonovia completed a total of 3,747 new residential units and will begin projects for around 3,000 new units in the current financial year. 
“However, to achieve our long-term goal of around 70,000 new apartments on our own properties, we need political frameworks that will drive further reductions in construction costs. For some initial momentum and ultimately to ensure affordable rents, the current average cost of €5,000 per square metre will need to come down significantly, to no more than €3,500 per square metre,” says Buch.

In 2024, Vonovia invested a total of €1.6 billion (2023: €1.53 billion) in modernization, maintenance, and new builds. Measures such as the serial prefabrication of façade panels and greater use of solar panels and heat pumps reduced the carbon intensity of Vonovia’s German portfolio by 1.6%, bringing it down to 31.2 kg CO₂e/m². Furthermore, Vonovia responded to the needs of Germany's ageing population by converting a further 11,100 apartments into wheelchair-accessible units.

For the first time, Vonovia prepared its sustainability statement under the European Sustainability Reporting Standards (ESRS) as part of its Annual Report. This report also complies with the requirements of the Corporate Sustainability Reporting Directive (CSRD).
Based on this development and the underlying dividend policy of Vonovia, the Management and Supervisory Boards intend to propose a dividend of €1.22 per share at the Annual General Meeting. This proposal represents an increase of around 36% since the previous year (2023: €0.90) and underlines the company’s successful trajectory. This corresponds to a dividend yield of 4,2%.

Positive outlook for 2025

2025 got off to a promising start. Vonovia sold Deutsche Wohnen’s senior care company, Pflegen & Wohnen, with its 13 care homes to the City of Hamburg for €380 million, thus achieving its strategic goal of divesting all self-operated care facilities.
At the Extraordinary General Meeting in January 2025, 99.97% of the Vonovia shareholders approved the domination and profit-and-loss transfer agreement with Deutsche Wohnen. “This agreement,” says Buch, “increases our operational flexibility and completes the successful integration of Deutsche Wohnen into the Vonovia Group.”
For the full financial year, Vonovia expects Adjusted EBITDA to be between €2.7 and €2.8 billion, with Adjusted EBT likely to range between €1.75 and €1.85 billion. As before, the SPI target is expected to be achieved in full.

In addition, Vonovia intends to significantly step up its spendings on modernization and new builds for its own portfolio to around €1.2 billion, which will include major investments in the expansion of photovoltaics. Also, Vonovia has again tightened up its climate protection targets, which it transparently outlines in its binding Climate Roadmap. Looking beyond 2045, the company has announced a net zero standard.

2028+ Growth Strategy built on a solid foundation

This outlook also lays the foundation for growth beyond 2025. In terms of total income, Vonovia aims to raise its Adjusted EBITDA to a level of €3.2 to €3.5 billion in 2028, which will be an increase of around 30% compared to 2024. The Value-add, Development and Recurring Sales business segments, which currently contribute around 9% to adjusted EBITDA, are expected to range between 20 and 25% by 2028. To this end, investments will be doubled and should reach up to €2 billion compared to 2024.

As well as recruiting around 2,800 new employees in 2025 alone, Vonovia’s growth strategy is primarily based on three strategic initiatives: 

Under the banner of “Return to Performance”, Vonovia will focus on strengthening its Value-add, Development and Recurring Sales segments by expanding its maintenance service, resuming new construction, and reaping greater market effects from Recurring Sales. 
With an emphasis on serial modernization, modular new builds, and modern heating infrastructure, investments will primarily focus on innovative technologies.
Vonovia will also offer its scalable model to the market, aiming to acquire high-potential assets and upgrade them to contemporary energy efficiency standards. 
The foundation of this growth strategy is the best-in-class platform that Vonovia has developed over the past few years, which encompasses the entire housing lifecycle. It starts with intelligent acquisitions and serial new construction and extends through efficient management, neighbourhood development, serial refurbishment systems and a sustainable direct energy supply.
The growth strategy is the outcome of several key phases in the corporate development of Vonovia. It started with its IPO, which fundamentally changed the company’s access to capital and enabled it to leverage opportunities in the market. Between 2013 and 2021, Vonovia therefore gradually became the European market leader, with around 540,000 residential units in the most attractive metropolitan areas across Germany, Sweden, and Austria.