Germany's Vonovia 9M adj. EBITDA rises, outlook cut on higher financing costs

Overview

• Germany residential real estate firm's preliminary 9M 2026 adj. EBITDA rose slightly yr/yr

• Higher financing costs offset gains at EBT and shareholder earnings levels

• Company expects FY2026 adj. EBITDA at lower half of guidance range amid market headwinds

Outlook

• Vonovia expects 2026 adj EBITDA Total at bottom half of guidance range

• Company sees 2026 adj EBT around low end of guidance range

• Vonovia expects organic rent growth of about 3.8% in 2026, below prior expectations

Result Drivers

• HIGHER FINANCING COSTS - Co said increased financing costs offset gains at EBT and shareholder earnings levels

• WEAKER TRANSACTION BUSINESS - Co said constrained transaction activity and lower contributions from Recurring Sales and Development are shaping guidance

• SLOWER RENT GROWTH - Co said organic rent growth is now expected to be slightly below previous expectations due to lower investment volumes and softer rent increases

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 11 "strong buy" or "buy", 4 "hold" and 7 "sell" or "strong sell"

• The average consensus recommendation for the real estate rental, development & operations peer group is "buy."

• Wall Street's median 12-month price target for Vonovia SE is €23.00, about 39.6% above its October 28 closing price of €16.47

• The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 10 three months ago

Reuters Recommended Reads

• Oct 28 - Germany's Helaba cuts 2026 outlook on property weakness

• Oct 26 - Alexandria Real Estate Q3 net loss widens on impairments

• Oct 26 - Piedmont Realty Trust Q3 core FFO per share rises as rental rates grew, new leases started

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)