...November 11, 2025 This report does not constitute a rating action. FRANKFURT (S&P Global Ratings) Nov. 11, 2025--S&P Global Ratings today said that Vonovia's (###+/Stable/A-2) third-quarter 2025 results are well within expectations, with solid organic rental growth and decreasing leverage. Rental income growth remains strong, supported by rising indexation and investments. As expected, the ongoing housing shortage and lagging indexation in Germany are supporting Vonovia's rental income growth. The company reported 3.8% organic rent growth (year on year, excluding new construction) in third-quarter 2025, compared with 3.7% in 2024, 3.3% in 2023, and 2.6% in 2022. We expect modernization capital expenditure (capex) and steady indexation to continue supporting rental growth for the next two years, despite a very low tenant churn (7.7% as of Sept. 30, 2025), which limits gains from lease renewals. Vonovia's leverage decreased robustly in third-quarter 2025, creating more comfortable headroom...
