Corporate Update – Fiscal Year 2025
Von VONOVIA SE reported a solid performance for the fiscal year ended 31 December 2025, with operating profits and cash generation exceeding expectations. The company’s core rental business continued to benefit from a favourable market environment, recording steady rent growth, high occupancy and efficient collection rates. In addition, the non‑rental segments – encompassing property services and development activities – outperformed their previous‑year results, contributing a growing share of overall earnings.
Management confirmed its outlook for 2026 and the 2028 target year, emphasising a strategy to accelerate growth while tightening the capital structure. A more ambitious approach to debt reduction is part of the plan, with tighter targets for net debt relative to earnings and for loan‑to‑value ratios. The board also approved a dividend of €1.25 per share, a modest increase over the previous year, and announced a simplified dividend policy aimed at maintaining a payout ratio of roughly fifty to sixty percent of adjusted earnings.
The company’s portfolio remains sizeable, with over 530 000 residential units across Germany, Sweden and Austria. Construction activity is robust, with more than 4 200 units currently under development, and a long‑term pipeline of about 65 000 homes. Property valuations have shown a modest gain in the second half of 2025, and the overall fair value of the real‑estate book is above €80 billion. Debt metrics have improved, with net debt to EBITDA and loan‑to‑value ratios moving closer to the newly defined thresholds.
Von VONOVIA’s management highlighted opportunities in digitalisation and the expansion of its service platform, expecting these initiatives to support future growth and enhance cost efficiencies. The company’s financial position is considered robust by rating agencies, and it remains positioned to deliver shareholder value through a combination of disciplined capital management and continued investment in its housing portfolio.
