Vonovia SE Doubles Investments to €2 Billion, Eyes Growth

Vonovia SE announced a significant strategic shift, doubling its investment to €2 billion to boost growth. The company targets a 30% increase in EBITDA by 2028, primarily from new business segments, including construction and residential services. Investments will focus on climate initiatives, technology, and construction. Additional cash generation of €4 billion helped it exceed 2024 sales targets, maintaining stable property values and investment-grade ratings.

Vonovia aims for a €3.2 to €3.5 billion Adjusted EBITDA by 2028, focusing on modular construction and refurbishment. The company plans to invest €1.2 billion in 2025 for modernization and renewable energy installations. It reduced energy-inefficient buildings to 2.9% in its portfolio and plans 700 MWp solar power generation. It will also add up to 14,000 heat pumps and explore stranded asset upgrades.

The company will cut construction costs while delivering 3,000 new apartments and has identified potential for 70,000 urban apartments. Vonovia’s core rental business is stable, with a 3.8% rent increase since the start of the year.