Vonovia Se · XETR:VNA
Vonovia — Vonovia Se Ord — Q1 2025 Earnings Presentation
35 slides from Vonovia's earnings presentation, May 7, 2025
Slide 1: Q1 2025 Earnings Call Presentation
Q1 2025 Earnings Call Presentation May 6, 2025
Slide 2: Agenda
Agenda Q1 2025 Update pages 3-15 1. 2. Appendix pages 17-35
Slide 3: Key Highlights
Key Highlights Q1 2025 Appendix Update • Transaction market off to a good start and carrying over positive development from Q4 2024 also in Q1 2025. • No impact from temporary bund yield hike. Q1 • Q1 2025 transaction volume of >€2bn much higher than Q1 last year. Market • Ongoing strong interest fr
Slide 4: Transactions & Market Sentiment
Transactions & Market Sentiment Q1 2025 Appendix Update German Housing Market Off to a Promising Start into 2025. German Residential Transaction Market Continues Its German Residential Investment Market – Strong Start into JLL, April 7 Recovery. CBRE, April 7 2025. Cushman & Wakefield, April 7 “Whil
Slide 5: Earnings & Cash Flow Summary
Earnings & Cash Flow Summary Double-digit Growth versus Previous Quarter Q1 2025 Appendix Update €m (unless indicated otherwise) Q1 2025 Q1 2024 Delta (%) Adj. EBITDA Rental 592.6 592.9 -0.1% Adj. EBITDA Value-add 38.5 11.5 >100% • Adj. EBITDA Total up 15% from higher Adj. EBITDA Recurring Sales 19.
Slide 6: Rental Segment
Rental Segment Q1 2025 Appendix Update Rental Segment (€m) Q1 2025 Q1 2024 Delta • Rental revenue +2% despite ~9k fewer units. • Vacancy rate only a function of turnaround time in case of fluctuation. Rental revenue 840.4 824.2 +2.0% • Virtually full rent collection. • Coalition agreement: no negati
Slide 7: Value-add Segment
Value-add Segment Q1 2025 Appendix Update • Increased EBITDA contribution as a result of Value-add Segment (€m) Q1 2025 Q1 2024 Delta • higher investment volume in energy-efficient modernization, PV, Revenue Value-add 387.1 325.1 +19.1% and heat pumps; of which external 31.1 28.2 +10.3% • higher sal
Slide 8: Recurring Sales Segment
Recurring Sales Segment Q1 2025 Appendix Update Recurring Sales Segment (€m) Q1 2025 Q1 2024 Delta • Substantial increase in disposal volume and revenue. Units sold 689 407 +69.3% • Focus shifted from cash generation to profitability. Revenue from recurring sales 122.0 74.6 +63.5% • Increasing deman
Slide 9: Development Segment
Development Segment Q1 2025 Appendix Update • Q1 2025 positively impacted by closing of a land sale. Development Segment (€m) Q1 2025 Q1 2024 Delta • Coalition agreement: Initiatives to reduce construction costs are Revenue from disposal of to-Sell properties 113.5 30.6 >100% helpful and should be s
Slide 10: Estimated Annual Total Accounting and Shareholder Return
Estimated Annual Total Accounting and Shareholder Return Two Types of Returns: Earnings Growth + Organic Value Growth Q1 2025 Appendix Update Assuming stable market yields, the annual total return Baa1. Stable Outlook for 2025E – 2028E for our BBB+ rated capital structure is estimated to be • ~13% b
Slide 11: 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 Q1 2025 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 rent level €/
Slide 12: Financial KPIs
Financial KPIs Leverage Well under Control with Organic Deleveraging Going Forward Q1 2025 Appendix Update • Pro forma cash position of €4.0bn1 covers all near-term maturities. Rating Outlook Last update • Debt KPIs well under control to safeguard good investment grade S&P BBB+ Stable Aug. 23, 2024
Slide 13: 2025 Guidance & 2028 Objective Unchanged
2025 Guidance & 2028 Objective Unchanged Q1 2025 Appendix Update Actuals 2024 Guidance 2025E Objective 2028E Rental Revenue €3.324bn €3.3bn - €3.4bn €3.7bn - €3.8bn >4% Organic rent growth 4.1% ~4% (Higher rent growth driven by higher investment volume) Adj. EBITDA Total €2.625bn €2.7bn - €2.8bn €3.
Slide 14: Wrap-up
Wrap-up • Operating business continues to run like clockwork. • Market fundamentals remain increasingly favorable • no impact from temporary bund yield hike; • transaction market off to a good start into 2025; • investor appetite is healthy; • environment bodes well overall for H1 2025 valuation; •
Slide 15: CEO Change
CEO Change Supervisory Board Decides Early for Orderly Long-term Succession Q1 2025 Appendix Update Succession. After 12 years as CEO of Vonovia, Rolf Buch and the Supervisory Board have mutually agreed to terminate Rolf’s contract by the end of this year to enable an orderly long-term succession. H
Slide 16: Agenda
Agenda 1. Q1 2025 Update pages 3-15 2. Appendix pages 17-35
Slide 17: EPRA NTA
EPRA NTA Q1 2025 Appendix Update EPRA NTA (€m) Mar. 31, Dec. 31, (unless indicated otherwise) 2025 2024 Delta Total equity attributable to Vonovia 24,768.5 23,996.4 +3.2% • Deferred tax liabilities are the calculated tax expenses on the shareholders delta between (IFRS) fair values and (local GAAP)
Slide 18: Earnings Growth
Earnings Growth Ambition to Grow Adj. EBITDA Total CAGR by ~8% until 2028 Q1 2025 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 (Based on €1bn in
Slide 19: Accelerated tech-supported investments
Accretive Investment Program in Long-term Portfolio Acceleration through Tech-supported Investments Q1 2025 Appendix Update • Investment program is based on the long-term structural megatrends Optimize Apartment renovation supply demand imbalance, climate change, and demographic change. Apartment up
Slide 20: Development to Sell
Development to Sell Disciplined Capital Commitment & Increased Profitability through Reducing Costs Q1 2025 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 and therefore
Slide 21: 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 Beats Regulation Q1 2025 Appendix Update Vonovia Real market4 Delta between real market and Vonovia in-place rent % of total In-place Regional Market (Mar. 31, 2025) Reletting rent r
Slide 22: Our Business Is Supported by Structural Megatrends…
Our Business Is Supported by Structural Megatrends… Q1 2025 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. Urbanization
Slide 23: …Creating Highly Attractive Investment Opportunities
…Creating Highly Attractive Investment Opportunities Q1 2025 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 volume every yea
Slide 24: Regional Markets
Regional Markets Balanced Exposure to Relevant Growth Regions Q1 2025 Appendix Update Fair value1 In-place rent Regional Markets Residential Organic rent Multiple Market rent Average rent Purchase power increase forecast growth (LTM, %) (Mar. 31, 2025) (€bn) (€/sqm) Residential units Vacancy (%) Tot
Slide 25: Portfolio Clustering
Portfolio Clustering Q1 2025 Appendix Update In-place In-place rent Vacancy Fair value Fair value Gross Mar. 31, 2025 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 438,030 2,621 7.99 1.7 6
Slide 26: Capital Allocation Focus
Capital Allocation Focus Key Priorities for Vonovia Q1 2025 Appendix Update Financial Strength Growth Strategic Ratings, Covenants & Liquidity Rental & Non-Rental Growth Priorities Preserving a robust Acceleration through organic growth capital structure initiatives ▪ General preference for allocati
Slide 27: Commitment to Sustainability
Commitment to Sustainability Science-based Decarbonization Roadmap with Measurable Interim Targets Q1 2025 Appendix Update • Accelerated decarbonization with Net Zero target by 2045. • Including Scope 1, 2 and 3.3. • According to SBTi, Vonovia's climate targets until 2030 are in line with the 1.5-de
Slide 28: Sustainability Performance Index (SPI)
Sustainability Performance Index (SPI) Measurable Targets for Non-financial KPIs Q1 2025 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 the most hous
Slide 29: Recognition of ESG Performance
Recognition of ESG Performance ESG Ratings and Indices Q1 2025 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 A- A A 20% A A A A- B B B B C B- B B- 10% BBB BBB C C- D 0% CCC B BB BBB A AA AAA D- 2018 2019 2020 2
Slide 30: Energy Efficiency Classes
Energy Efficiency Classes Substantial Progress since IPO Puts Vonovia Ahead of the Market Q1 2025 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 energy 12.0%
Slide 31: Debt Structure
Debt Structure Well-balanced and Long-term Maturity Profile with Diverse Funding Mix Q1 2025 Appendix Update €bn Maturity Profile as of March 31, 2025 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 43% 3.0 Green/Social Bonds 31
Slide 32: Residential Market Fundamentals (Germany)
Residential Market Fundamentals (Germany) Household Sizes and Ownership Structure Q1 2025 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 with ~43m
Slide 33: Vonovia Shares
Vonovia Shares Basic Data and NOSH Evolution Q1 2025 Appendix Update Norges First day of trading July 11, 2013 No. of shares outstanding 822.9 million 14.7% Free float 85.3% BlackRock 7.7% ISIN DE000A1ML7J1 Ticker symbol VNA 3.8% APG 3.0% DWS Share class Registered shares with no par value Main list
Slide 34: IR Contact & Financial Calendar
IR Contact & Financial Calendar https://www.vonovia.com/en/investors Q1 2025 Appendix Update Contact Financial Calendar 2025 May 07 Interim results 3M 2025 Rene Hoffmann (Head of IR) May 8 Roadshow London (CEO, CFO) (Primary contact for Sell side, Buy side) May 9 Roadshow Frankfurt (CEO) +49 234 314
Slide 35: 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