Business · Companies · 6 hrs ago
Vonovia expects 2026 earnings near the lower end of its forecast
Germany’s largest residential property company, Vonovia, has issued a more cautious outlook because financing costs are higher, property transactions are weaker and rents are rising less.
The company expects its adjusted earnings before interest, taxes, depreciation and amortisation in 2026 to be in the lower half of its €2.95 billion to €3.05 billion forecast range.
Its forecast for 2028 is also now at the lower end of a €3.2 billion to €3.5 billion range.
For 2027, Vonovia expects operating profit to be slightly above its 2026 level.
In the first nine months of the year, adjusted operating profit was €2.19 billion, only slightly higher than a year earlier.
The cautious outlook weighs on expectations for future earnings at a company whose shares have been under pressure for months.
Vonovia’s share price fell 1% in initial after-hours trading.
Vonovia expects its 2026 adjusted EBITDA to be in the lower half of its forecast range of €2.95 billion to €3.05 billion.
The company cited higher financing costs, a weaker transaction market and slower rent growth.
It expects 2027 operating profit to be slightly above the 2026 level.
For 2028, Vonovia expects adjusted EBITDA near the lower end of its €3.2 billion to €3.5 billion range.
The company also plans to cut some investment and focus on reducing debt and protecting liquidity.
- Who
- Vonovia, Germany’s largest residential property company.
- What
- It expects 2026 adjusted EBITDA to be in the lower half of its forecast range and has become more cautious about its outlook.
- When
- The outlook was announced on Wednesday, October 28, 2026.
- Where
- Vonovia made the announcement in Bochum, Germany.
- Why
- Higher financing costs, a weak transaction market and slower rent growth are weighing on its outlook.
This story does not have two clearly opposing sides.
Vonovia reported adjusted operating profit of €2.19 billion, only slightly above the same period a year earlier.
Vonovia said it expected 2026 adjusted EBITDA in the lower half of its forecast range and lowered its 2028 outlook.
Vonovia said it would publish its full third-quarter interim statement.
- 2026 adjusted EBITDA forecast
- €2.95 billion to €3.05 billion; expected in the lower half
- 2027 operating profit
- Expected to be slightly above the 2026 level
- 2028 adjusted EBITDA forecast
- €3.2 billion to €3.5 billion; expected near the lower end
- Organic rent growth
- About 3.8%, down from a previous target of 4%
- Nine-month adjusted operating profit
- €2.19 billion