...May 9, 2025 This report does not constitute a rating action. PARIS (S&P Global Ratings) May 9, 2025--S&P Global Ratings today said that Vonovia's first- quarter 2025 results are in line with its expectations, notably rising organic rent growth and decreasing leverage. Rental income growth accelerated, supported by rising indexation and a housing shortage. As expected, a growing housing shortage and lagging indexation in Germany are supporting Vonovia's rental income growth. The company reported 3.9% organic rent growth (year on year, excluding new constructions) in the first quarter of 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 the company's rental growth for the next two years, despite a very low tenant churn (7.5% as of March 31, 2025) which limits gains from lease renewals. Vonovia's leverage is finally declining--as disposal proceeds are gradually cashed in with a...
