Vonovia Se · XETR:VNA
Vonovia — Vonovia Se Ord — FY 2024 Earnings Presentation
45 slides from Vonovia's earnings presentation, Mar 19, 2025
Slide 1: FY 2024 Earnings Call Presentation
FY 2024 Earnings Call Presentation March 19, 2025
Slide 2: Agenda
Agenda 1. Big Picture page 3-7 2. FY 2024 Update pages 9-18 3. Appendix pages 20-45
Slide 3: Vonovia's Evolution across 3 Phases since the IPO
Vonovia’s Evolution across 3 Phases since the IPO Impact of Recent Macro Events on Phase 3 Timing Return to Growth Not Clear yet Big Picture FY2024 Appendix Update 1 2 3 2013 … 2021 2022 2023 H1’24 H2’24 2025+ Early March 2025 ? Building the market leader Crisis Management Return to growth New uncer
Slide 4: Price Development
Price Development Stabilization Big Picture FY2024 Appendix Update 125 Price Development Multi-family Houses1 120 • Market data suggests that value declines have stopped and prices 115 110 have stabilized. 105 100 Estimated • Prices for multi-family houses are moving sideways on average. 95 low poin
Slide 5: Transactions & Market Sentiment
Transactions & Market Sentiment Increasing Volumes. Growing Optimism Big Picture FY2024 Appendix Update • Q4 2024 with largest transaction volume in almost three years. What is the focus of your real estate investments for 2025?2 0% 20% 40% 60% 80% 100% Resi • Residential is most favored asset class
Slide 6: Increasing Real Market Levels As Supply/Demand Imbalance Beats Regulation
Increasing Real Market Levels As Supply/Demand Imbalance Beats Regulation Robust Growth Trajectory for Many Years Big Picture FY2024 Appendix Update • Vonovia’s portfolio is focused on urban growth markets with the Wide disparity of gross initial yields based on in-place values and rents (current re
Slide 7: Earnings Growth
Earnings Growth Ambition to Grow Adj. EBITDA Total CAGR by ~8% until 2028E Big Picture FY2024 Appendix Update 2024-2028E CAGR Rental business • Adj. EBITDA Rental ~4% Rock solid, low risk, and highly predictable • Adj. EBITDA Non-rental ~30% ~4% Adj. EBITDA Rental growth p.a. for the long-term (Base
Slide 8: Agenda
Agenda 1. Big Picture page 3-7 2. FY 2024 Update pages 9-18 3. Appendix pages 20-45
Slide 9: Key Highlights
Key Highlights FY2024 Big Picture Appendix Update • Current market data suggests that value declines have stopped and prices have stabilized. Market • Vonovia portfolio value up 0.5% in H2 2024 (l-f-l). • Transaction volumes are increasing; growing market optimism. Preface • Successful completion of
Slide 10: Successful Completion of Disposal Program for Cash Generation Purposes
Successful Completion of Disposal Program for Cash Generation Purposes Almost €8bn Disposal Volume in 2023+2024. Rating Stabilized Big Picture FY2024 Appendix Update • Disposal program initiated for cash generation successfully completed. • Total disposal volume of €7.9bn since the beginning of 2023
Slide 11: Earnings & Cash Flow Summary
Earnings & Cash Flow Summary FY2024 Big Picture Appendix Update €m (unless indicated otherwise) FY 2024 FY 2023 Delta (%) Adj. EBITDA Rental 2,385.7 2,401.7 -0.7% • Underlying operations remain highly favorable with growing Adj. EBITDA Value-add 168.4 105.5 +59.6% rents, virtually full occupancy, an
Slide 12: Accretive Investment Program in Long-term Portfolio
Accretive Investment Program in Long-term Portfolio Acceleration through Tech-supported Investments Big Picture FY2024 Appendix Update • Investment program is based on the long-term structural megatrends Optimize Apartment renovation supply demand imbalance, climate change, and demographic change. A
Slide 13: Rental Segment
Rental Segment Highly Robust Big Picture FY2024 Appendix Update Organic rent growth (y-o-y, %) Fluctuation rate (%)1,2 • Accelerating market rent growth but 4.1 fluctuation remains low. 3.8 7.9 8.1 0.4 • Vacancy rate only a function of turnaround 0.5 0.9 time in case of fluctuation. 1.0 • Virtually
Slide 14: Valuation
Valuation Negative Price Correction Appears to Be Over for Now Big Picture FY2024 Appendix Update Valuation KPIs Dec. 31, 2024 (Standing Portfolio3) • L-f-l value decline of -0.9% in 2024 (-1.4% in H1 and +0.5% in H2). • Standing portfolio now valued at 23.2x in-place rent equaling 4.3% on Germany S
Slide 15: Financial KPIs
Financial KPIs Leverage Well under Control with Organic Deleveraging Going Forward Big Picture FY2024 Appendix Update • Pro forma cash position of €3.8bn1 covers all near-term maturities. Rating Outlook Last update • Debt KPIs well under control to safeguard good investment grade S&P BBB+ Stable Aug
Slide 16: FY2024 Dividend Proposal
FY2024 Dividend Proposal €1.22 p.s. (+36% y-o-y) Big Picture FY2024 Appendix Update • Proposal1 in line with market guidance of ~€1bn dividend capacity. Dividend Policy • €0.12 below strict application of dividend policy. Retained cash will be 50% of Adj. EBT plus surplus liquidity2 from Operating F
Slide 17: 2025 Guidance & 2028 Objective Unchanged
2025 Guidance & 2028 Objective Unchanged FY2024 Big Picture Appendix Update Actuals 2023 Actuals 2024 Initial Guidance 2025E Objective 2028E Rental Revenue €3.253bn €3.324bn €3.3bn - €3.4bn €3.7bn - €3.8bn >4% Organic rent growth 3.8% 4.1% ~4% (Higher rent growth driven by higher investment volume)
Slide 18: Wrap-up
Wrap-up • Following the inflation-driven interest rate hike in the wake of the war on Ukraine, our residential markets have shown clear signs of stabilization and normalization with values bottoming out and optimism returning to the sector. • Vonovia’s operating business remains rock solid and we ar
Slide 19: Agenda
Agenda 1. Big Picture page 3-7 2. FY 2024 Update pages 9-18 3. Appendix pages 20-45
Slide 20: Adj. EBITDA Non-rental
Adj. EBITDA Non-rental Varying Degrees of Capital Intensity Big Picture FY2024 Appendix Update • Non-rental initiatives overall are more capital light than the rental business, but some initiatives require more investments than others. • In light of the recent increase in bund yields, Vonovia will c
Slide 21: EPRA NTA
EPRA NTA FY2024 Big Picture Appendix Update EPRA NTA (€m) (unless indicated otherwise) Dec. 31, 2024 Dec. 31, 2023 Delta Total equity attributable to Vonovia shareholders 23,996.4 25,682.6 -6.6% Deferred tax in relation to FV gains of investment properties1 14,620.2 13,895.3 +5.2% FV of financial in
Slide 22: Rental Segment
Rental Segment FY2024 Big Picture Appendix Update Rental revenue by geography • Increased revenue driven by rental growth on a smaller portfolio. Austria Sweden 4% • Maintenance and operating expenses on a more normalized level 11% (following stringent cash focus in prior year). Germany 85% • Scale
Slide 23: Robust Long-term Upward Trajectory for Vonovia's Rent Levels
Robust Long-term Upward Trajectory for Vonovia’s Rent Levels Increasing Real Market Levels As Supply/Demand Imbalance Trumps Regulation Big Picture FY2024 Appendix Update Vonovia Real market4 Delta between real market and Vonovia in-place rent % of total In-place Regional Market (Dec. 31, 2024) Rele
Slide 24: Value-add Segment
Value-add Segment FY2024 Big Picture Appendix Update • FY 2024 includes €58m from lease agreement on coax network.1 Value-add Segment (€m) FY 2024 FY 2023 Delta • VTS Transformation Program underway to optimize operations, reduce Revenue Value-add 1,359.4 1,224.7 +11.0% complexity and leverage syner
Slide 25: Recurring Sales Segment
Recurring Sales Segment FY2024 Big Picture Appendix Update • Substantial increase in disposal volume. Recurring Sales Segment (€m) FY 2024 FY 2023 Delta • 2024 focus was still on cash generation more than profitability, Units sold 2,470 1,590 +55.3% resulting in lower average sales prices and impact
Slide 26: Development Segment
Development Segment FY2024 Big Picture Appendix Update • 2024 disposal volume more than doubled y-o-y as a result of focus on Development Segment (€m) FY 2024 FY 2023 Delta capital release. • As a result, gross margin was not the key priority in 2024 and came in lower than the 15-20% expected going
Slide 27: Development to Sell
Development to Sell Disciplined Capital Commitment & Increased Profitability through Reducing Costs FY2024 Big Picture Appendix Update • Development-to-Sell earnings are shown in Development EBITDA (earnings contributions from Development to Hold are shown in the State-of-the-art valuation result an
Slide 28: Our Business Is Supported by Structural Megatrends…
Our Business Is Supported by Structural Megatrends… FY2024 Big Picture Appendix Update • However, the new environment and higher interest rate level has accelerated the relevant megatrends around which we have built our business, leading to even stronger fundamentals in the medium- and long-term. Ur
Slide 29: …Creating Highly Attractive Investment Opportunities
…Creating Highly Attractive Investment Opportunities FY2024 Big Picture Appendix Update Support from megatrends while other real Supply-/ >€100bn investment volume every year to complete estate sectors fight disruptive changes Demand Imbalance 400k apartments per year.1 Up to €120bn investment volum
Slide 30: Regional Markets
Regional Markets Balanced Exposure to Relevant Growth Regions Big Picture FY2024 Appendix Update Fair value1 In-place rent Regional Markets Residential Organic rent Multiple Market rent Average rent Purchase power increase forecast growth (LTM, %) (Dec. 31, 2024) (€bn) (€/sqm) Residential units Vaca
Slide 31: Portfolio Clustering
Portfolio Clustering FY2024 Big Picture Appendix Update In-place In-place rent Vacancy Fair value Fair value Gross Dec. 31, 2024 Resi units (€m, rent rate (€bn) (€/sqm) yield 1 1 (€/sqm) p.a.) Urban quarters • German portfolio comprises of strategic assets in 15 urban growth & clusters 441,664 2,622
Slide 32: Reconciliation Adj. EBITDA to Adj. EBT to OFCF
Reconciliation Adj. EBITDA to Adj. EBT to OFCF FY2024 Big Picture Appendix Update Adj. EBITDA, Adj. EBT, and OFCF are based on the four business segments and exclude any disposal proceeds outside Recurring Sales & Development. €m 2024 2023 2022 Adj. EBITDA Total 2,625 2,584 2,606 - Adj. net financia
Slide 33: Yield Dispersion between Reported and Implied Numbers
Yield Dispersion between Reported and Implied Numbers FY2024 Big Picture Appendix Update Based on P&L and balance sheet (FY2024) Based on share price (mid March €26) Gross rental yield 4.2% 5.4% Rental income / FV Rental income / implied EV1 Net rental yield 3.4% 4.3% Gross yield * 80% margin Gross
Slide 34: Evolving the Capital Allocation Focus – Key Priorities for Vonovia
Evolving the Capital Allocation Focus – Key Priorities for Vonovia FY2024 Big Picture Appendix Update Financial Strength Growth Strategic Ratings, Covenants & Liquidity Rental & Non-Rental Growth Priorities Preserving a robust Acceleration through organic growth capital structure initiatives ▪ Gener
Slide 35: Commitment to Sustainability
Commitment to Sustainability Science-based Decarbonization Roadmap with Measurable Interim Targets Big Picture FY2024 Appendix Update • Accelerated decarbonization with Net Zero target by 2045. • Following CRREM MFH 1.5 degree pathway. • Including Scope 1, 2 and 3.3. • According to SBTi, Vonovia's c
Slide 36: Sustainability Performance Index (SPI)
Sustainability Performance Index (SPI) Measurable Targets for Non-financial KPIs Big Picture FY2024 Appendix Update • The SPI is the leading quantitative, non- SPI 2023 2024 Targets Scope Weighting Actuals Actuals 2030 financial metric to measure CO2 intensity in the sustainability performance in th
Slide 37: Recognition of ESG Performance
Recognition of ESG Performance ESG Ratings and Indices Big Picture FY2024 Appendix Update ESG Ratings 19,2 5.8 ESG Risk Rating 7,7 6,7 7.6 6.0 2019 2020 2021 2023 2024 2018 2019 2020 2021 2022 2023 2024 AAA AA 20% A A A A B B A- B C B- 10% BBB BBB 0% CCC B BB BBB A AA AAA 2018 2019 2020 2021 2022 20
Slide 38: Energy Efficiency Classes
Energy Efficiency Classes Substantial Progress since IPO Puts Vonovia Ahead of the Market Big Picture FY2024 Appendix Update 0.3% 0.2% 1.2% 0.2% 2.0% Energy 4.0% Heating system Heating system 4.0% Performance (to be) powered by 12.9% (to be) powered by Certificate 11.6% renewable energy renewable en
Slide 39: Debt Structure
Debt Structure Well-balanced and Long-term Maturity Profile with Diverse Funding Mix Big Picture FY2024 Appendix Update €bn Maturity Profile as of December 31, 2024 7% 14% 5.5 3% Bonds 5.0 2% Bank loans German lenders 4.5 Bank loans Austrian lenders 4.0 3.5 Bank loans Swedish lenders 44% 3.0 Green/S
Slide 40: Bonds & Ratings
Bonds & Ratings FY2024 Big Picture Appendix Update ISIN Amount Issue price Current Price2 Yield2 Coupon Final Maturity Date Fitch Moodys Scope S&P DE000A1ZY989 EUR 485.4m 98.455% 99.74% 3.58% 1.500% 31. Mar 25 BBB+ Baa1 A- BBB+ DE000A289NE4 EUR 589.7m 98.910% 99.61% 2.93% 1.000% 30. Apr 25 NR Baa1 N
Slide 41: Bond Covenants
Bond Covenants FY2024 Big Picture Appendix Update Required Current level Bond covenants level (Dec. 31, 2024) LTV 42.7bn <60% ➔ 47.3% (Total financial debt / total assets) 90.2bn Secured LTV 13.2bn <45% ➔ 14.6% (Secured debt / total assets) 90.2bn ICR 2,625m >1.8x ➔ 3.8x (LTM Adj. EBITDA / LTM net c
Slide 42: Residential Market Fundamentals (Germany)
Residential Market Fundamentals (Germany) Household Sizes and Ownership Structure Big Picture FY2024 Appendix Update Growing number of smaller households Fragmented ownership structure • While the magnitude of the overall population in Germany varies • Germany is the largest housing market in Europe
Slide 43: Vonovia Shares
Vonovia Shares Basic Data and NOSH Evolution Big Picture FY2024 Appendix Update Norges First day of trading July 11, 2013 No. of shares outstanding 822.9 million 14.7% Free float 85.3% BlackRock 7.8% ISIN DE000A1ML7J1 Ticker symbol VNA 3.8% APG Share class Registered shares with no par value Main li
Slide 44: IR Contact & Financial Calendar
IR Contact & Financial Calendar https://www.vonovia.com/en/investors Big Picture FY2024 Appendix Update Contact Financial Calendar 2025 March 20 BofA EMEA Real Estate CEO Conference, London Rene Hoffmann (Head of IR) March 21 FY2024 Roadshow, London (Primary contact for Sell side, Buy side) March 24
Slide 45: Disclaimer
Disclaimer This presentation has been specifically prepared by Vonovia SE and/or its affiliates (together, “Vonovia”) for internal use. Consequently, it may not be sufficient or appropriate for the purpose for which a third party might use it. This presentation has been provided for information purp