Germany's Vonovia lifts 2021 guidance, hints at Adler takeover

Vonovia, the German listed residential landlord, has announced that it is raising its guidance for the full year 2021.

Due to the ongoing demand for housing and the outlook for 2021 that remains equally positive, the company said that it expects EBITDA to be at the upper end of the range between €2 mln and €2,1 mln, and the Group FFO is expected to be within a range of €1,5 mln to €1,5 mln. Vonovia is anticipating investments in modernization and new builds to continue at a persistently high level, between €1,3 mln and €1,6 mln.

Deutsche Wohnen is not included in this forecast.

'We can be satisfied with the company's development so far this year and are once again raising our full-year guidance,' said CEO Rolf Buch. 'This robust development forms the basis for our large-scale investments: We've clearly picked up speed in matters of climate protection, and we want to sustain this high momentum. The merger with Deutsche Wohnen is opening up new opportunities for us. We will use our renewed strength to take on even greater responsibilities on the social front as well.'

In late October, Vonovia secured 88% of Deutsche Wohnen and gave outstanding shareholders the opportunity to tender their shares at a price of €53 per share. The company is currently entering the integration stage which should be concluded in 2023.

One part of the merger is the Zukunfts- und Sozialpakt Wohnen (Future and Social Pact for Housing), concluded with the state of Berlin. Together, the two companies have committed themselves to selling 14,750 flats, building 13,000 new ones and implementing a voluntary cap on rents within Berlin.

'We will be a reliable partner for future governments, both at the federal level and in Berlin,' said Rolf Buch. 'When it comes to the big challenges of the housing market, we can only move forward together - as an alliance of key players. We are ready to work together towards constructive solutions.'

As of September, Vonovia and Deutsche Wohnen jointly managed a portfolio of 568,451 flats, so that their joint overall market share in Germany is currently around 2.0%.

Vonovia may try to grow further next year as the company is evaluating the acquisition of a majority stake in peer Adler. Vonovia currently owns a purchase option for 13.3% of the Adler shares for a price of €14 per share.

'If we exercise the option, we will try to get Adler under control,' Buch said earlier this week at an analyst conference.

Vonovia secured the option by granting Aggregate, the main shareholder in Adler, a loan of €250 mln. The loan is secured against the entire 26.6% Adler shareholding owned by Aggregate.


Latest news

Best read stories