Vonovia Stock Drops On Weak FY25 Revenues, Stable Outlook, Despite A Turnaround

Core Insights - Vonovia SE's shares fell approximately 10% following the announcement of weak revenues and unit numbers for fiscal 2025, while maintaining its outlook for fiscal 2026 and 2028 [1] Financial Performance - The company reported a net profit for fiscal 2025, primarily due to a significant income tax gain, reversing years of losses [2] - For the 12-month period ending December 2025, net income attributable to Vonovia's shareholders was 3.723 billion euros, compared to a net loss of 896 million euros the previous year [5] - Adjusted shareholder earnings increased to 1.541 billion euros from 1.463 billion euros year-over-year [6] - Net income from fair value adjustments of investment properties was 1.390 billion euros, compared to a loss of 1.559 billion euros the prior year [7] Revenue and EBITDA - Total adjusted EBITDA for fiscal 2025 was 2.80 billion euros, reflecting a 6.0% year-over-year increase, driven by contributions across all business lines [8] - Revenue from property management decreased to 4.918 billion euros from 5.087 billion euros in the previous year, while revenue from the property-letting business fell to 4.749 billion euros from 4.880 billion euros [8] Future Outlook - For fiscal 2026, Vonovia expects total adjusted EBITDA to rise to between 2.95 billion euros and 3.05 billion euros, up from 2.800 billion euros in fiscal 2025 [3] - By 2028, total adjusted EBITDA is projected to grow to between 3.2 billion euros and 3.5 billion euros, with non-rental business contributing at least 15% to total EBITDA in 2026 and between 20% and 25% in 2028 [4] Shareholder Returns - The Management and Supervisory Board proposed a cash dividend of 1.25 euros per share, a 2.5% increase from the previous year [5]