Vonovia SE VNA

Morningstar Rating

Initiating Coverage of Vonovia, the German Residential REIT

Business Strategy and Outlook

Since Vonovia’s poorly timed acquisition of Deutsche Wohnen in 2021, it has been focused on deleveraging its balance sheet and diversifying revenue through nonrental activities. Specifically, these initiatives include expanding the internal craftsmen organization (VTS), ramping up ‘development to sell’ projects, and monetizing the portfolio through recurring sales.

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