"We want to accelerate growth to create additional value," Mucic announced: "This also requires more ambitious targets for debt." Consequently, the loan-to-value (LTV) ratio is expected to drop from its recent 45.4 percent to around 40 percent by the end of 2028. To achieve this, "increased sales activities" are also planned. "All options will be examined, including non-strategic minority stakes at home and abroad," the company added. Mucic also reaffirmed the goal of increasing adjusted operating profit (Ebitda) to between 3.2 and 3.5 billion euros by 2028. The former SAP and Vodafone executive Mucic took over the top post at Vonovia in January. He succeeds Rolf Buch, who now works for the financial investor KKR.
In the past, the group had repeatedly been forced to write down the value of its portfolio due to the real estate crisis, resulting in billions in losses. Following the ECB"s interest rate pivot, real estate is gaining value again and Vonovia is posting profits. Vonovia is also focusing on residential services intended to further drive earnings. By simplifying the construction of new apartments, the group also aims to reduce construction costs. Furthermore, Vonovia is working with partners on the serial production of heat pumps for multi-family buildings. Mucic also sees "significant potential" for Vonovia in the use of digitalization and artificial intelligence, which could lead to cost advantages.
(Report by Matthias Inverardi, edited by Olaf Brenner. For inquiries, please contact our editorial office at berlin.newsroom@thomsonreuters.com (for politics and economics) or frankfurt.newsroom@thomsonreuters.com (for companies and markets).)
