Half Year 2024 Vonovia SE Earnings Call Transcript
Key Points
- Vonovia SE (VNNVF) has largely completed its balance sheet stabilization phase and is moving into a more positive environment.
- The company is on track to achieve its EUR3 billion disposal target for the year, having already signed around EUR1.5 billion in disposals.
- Rent growth continues to show positive momentum, with an expected annual growth rate of around 4% per year.
- The company has raised its guidance for rent growth, adjusted EBITDA, and EBT to the upper end of its guidance range for 2024.
- Vonovia SE (VNNVF) has a strong cash position with EUR4 billion, sufficient to cover near-term maturities and maintain a comfortable funding situation.
- The valuation of the company's portfolio saw a 1.4% decline in the first half of the year, continuing a trend of value declines.
- Adjusted EBITDA total is down 2.6% year-on-year due to lower profitability in the disposal segments.
- EBT is down 6.2% year-on-year, driven by higher interest costs and lower profitability in certain segments.
- The company's ICR has dropped from 4 times to 3.6, getting close to its target range of at least 3.5 times.
- The development sector in Germany remains in a deep crisis, with new construction rates expected to decline further, impacting smaller developers.
Welcome, everybody, to our H1 update call. Our speakers today are, once again, CEO, Rolf Buch; and CFO, Philip Grosse. They will be happy to provide an update on the year so far and then answer your questions.
We felt that the Q1 call was very efficient, and we have received a lot of positive feedback from both the sell side and the buy side, saying it should be the benchmark for future calls. That is why today's presentation is, again, more concise than in the past and much closer to Q1 in terms of focus and structure.
And again, we will limit the number of questions for the Q&A to two per analyst. I kindly ask for your support here and for your understanding. If you have more questions, especially as they relate to modeling, you know where to find me and the team after the call. With that, over to you, Rolf.
Thank you, Rene, and good afternoon also from my side as well and Happy Holidays to all of you
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