Vonovia (VNA) Q4 2025 earnings summary

Executive summary

• 2025 results exceeded or met expectations, with robust performance in rental and non-rental segments, valuation gains, and record customer satisfaction of 76.5%.

• Guidance for 2026 and outlook for 2028 are confirmed, targeting high single-digit earnings growth and accelerated deleveraging.

• Strategic focus includes AI-driven process redesign, digital customer interfaces, and expanding B2B management activities.

• Enhanced transparency with new KPIs and expanded disclosure, including non-German exposure and development activities.

• Dividend policy simplified to a progressive payout of 50%-60% of adjusted EBT, with a proposed €1.25 per share for 2025.

Financial highlights

• Adjusted EBITDA rose 6% year-over-year to €2,801m, with all segments contributing to growth.

• Adjusted EBT increased 4.8% to €1,904m; adjusted shareholder earnings up 16% to €1,541m; EPS (Adj. EBT p.s.) up 3.1% to €2.29.

• EPRA NTA per share grew 2.3% to €46.28; fair value of real estate portfolio rose 3% to €84.4bn.

• Operating free cash flow was €1,778.5m, down 2.9% year-over-year.

• Dividend proposal of €1.25 per share (+2.5%), with a payout ratio target of 50–60% of Adj. EBT.

Outlook and guidance

• 2026 guidance and 2028 objectives reaffirmed, targeting Adj. EBITDA Total of €3.2bn–€3.5bn by 2028, with 20–25% from non-rental activities.

• Rental revenue expected to reach €3.45–3.55bn in 2026 and €3.7–3.8bn in 2028.

• Mid-single-digit CAGR for Adj. EBT through 2028, with additional growth from digitalization and AI initiatives.

• Operating free cash flow for 2026 expected to be similar to 2025’s €1.8bn, subject to working capital changes.

• Non-rental EBITDA contribution projected to rise from 13% in 2025 to 20–25% by 2028.