Vonovia (VNA) Q1 2026 earnings summary

Executive summary

• Achieved strong operational performance in Q1 2026, with robust growth in Rental (+6.3% Adj. EBITDA) and Value-add (+30.1% Adj. EBITDA) segments, despite lower sales and development due to phasing and prior year land sales.

• Organic rent growth reached 4.0% year-over-year, with occupancy at 97.7% and rent collection at 99.6%.

• Strategic partnerships for heat pump production and serial modernization were launched to support non-rental business growth ambitions.

• Investments in modernization and new construction increased, addressing supply/demand imbalances in urban areas and supporting climate initiatives.

• Market fundamentals remain supportive, with confidence in achieving 2026 guidance and 2028 growth and deleveraging objectives.

Financial highlights

• Adjusted EBITDA Rental grew 6.3% to €629.7 million; Value-add EBITDA up 30.1% to €50.1 million; Recurring Sales EBITDA down 4.7% to €18.2 million; Development EBITDA down 73.7% to €13.6 million due to prior year land sale.

• Adjusted EBITDA Total increased 1.4% to €711.6 million; up 9.7% when adjusted for prior year land sale.

• Adjusted EBT was €462.2 million, down 4.1% year-over-year, mainly due to higher financing expenses.

• Adjusted shareholder earnings were €365.6 million, down 7.2% year-over-year, or €0.43 per share.

• EPRA NTA per share increased 0.6% to €46.57; LTV improved to 45.1%.

• Operating free cash flow dropped 42.6% to €363.9 million, mainly due to lower working capital and investment ramp-up.

Outlook and guidance

• 2026 guidance and 2028 objectives confirmed, targeting rental revenue of €3.45–3.55 billion in 2026 and €3.7–3.8 billion in 2028.

• Organic rent growth expected at 4.1–4.2% for 2026 and 5% for 2028.

• Adjusted EBITDA Total guidance for 2026: €2.95–3.05 billion; Adjusted EBT: €1.9–2.0 billion.

• Dividend policy aims for a payout ratio of 50–60% of Adjusted EBT; proposed dividend of €1.25 per share for 2025.

• Confident in ramping up Recurring Sales and Development segment performance, targeting 3,000–3,500 units in Recurring Sales for 2026.