Vonovia cuts organic rent growth forecast to 3.8%

28. Oct 2026

(AWP Alliance News) - Vonovia SE - Bochum, Germany-based real estate company - Cuts 2026 organic rent growth forecast to 3.8% from around 4%. It now sees operating free cash flow before changes in net working capital to be moderately below the 2025 level, from 'at the previous-year level' previously. Adjusted earnings before interest, taxes, depreciation and amortisation total is now expected in the bottom half of the previously provided range, with adjusted Ebt around the low end of its range. Rental income and adjusted shareholder earnings are projected to be in the upper half of the guidance range.

Vonovia cites lower investment volumes, particularly development-to-hold, as well as slightly softer-than-anticipated rent increases from local rent indices in Germany. Additionally, sales-related segments recurring sales and development are performing significantly below the original expectations due to "increasingly higher financing costs for prospective buyers." Expects positive development in the coming financial year in the core operating business. The development segment and, to a lesser extent, the recurring sales segment will remain burdened by higher interest rates and the resulting weaker transaction market, Vonovia believes. Adds: "The higher interest-rate level also has a negative impact on the company's financial result. In addition, the creation of cost-efficient new housing for the company's own portfolio (to hold) is delayed due to higher capital costs in the development segment. As a result, organic rent growth in 2028 is expected to accelerate compared with the previous years 2026 and 2027 but is nevertheless unlikely to reach the previous objective of approximately 5% in 2028."

Current share price: EUR16.47, closed down 0.4% in Frankfurt on Friday

12-month change: down 39%

By Aidan Lane, Alliance News reporter

Comments and questions to newsroom [at] alliancenews.com