Germany’s largest residential real estate group Vonovia slipped deep into the loss zone in 2023. The bottom line was a loss of almost 6.8 billion euros, as the DAX group announced in the evening.
The crisis on the real estate market is having massive consequences for Germany’s largest residential real estate group, Vonovia. As the company announced after the stock market closed, it posted a loss of 6.7 billion euros last year. In the previous year, Vonovia had recorded a deficit of around 669 million euros. The value of the rental portfolio was around 83.9 billion euros at the end of December 2023. A year earlier, Vonovia had valued the properties at 94.7 billion euros.
However, money is to be distributed to shareholders despite the poor figures: management wants to propose a dividend of 90 cents per share to the general meeting. A year earlier, the group paid out 85 cents.
Real estate industry negative pressure
The real estate industry is struggling with the consequences of high interest rates and skyrocketing construction costs. Hardly any new apartments are being built and property prices are falling.
In addition, there have been hardly any major transactions for a long time – this makes it difficult for many market participants to assess what the real estate holdings on their books are really worth. This fuels further uncertainty.