Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on VONOVIA SE. We currently have 1 research reports from 1 professional analysts.
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Research reports on
Benefiting from a German-specific resi model
21 Nov 16
Business Vonovia manages GAV of €26bn (including Conwert) in residential assets. Most of the group’s assets are multi-family residences that are distributed across Germany, with properties located in around 770 cities and municipalities. The group’s real estate portfolio covers 21,228,023m² with an average size of 62m². The apartments, which are rented out at €5.89/m² per month on average, include two or three rooms, a kitchen, and a bathroom. Vonovia’s vacancy rate stands at 2.8%. The group focuses on a total return strategy with targeted acquisitions and disposals. 2015 was a strong year of acquisitions for the group, with the integration of the portfolios of GAGFAH, Franconia, and SÜDEWO, increasing the number of apartments by more than 75%. The group also experienced a major acquisition failure with Deutsche Wohnen which preferred to focus on its own acquisition of LEG, a transaction that also failed. With the current consolidation of the German residential market, we expect Vonovia to give DW another try. Wait and see. Recommendation We initiate coverage of Vonovia with an Add recommendation and 19% upside, supported by the continuing strength in the German residential market and our expectations of additional rental growth. As a reminder, over the past few years, Vonovia has been a case of upward guidance revisions, on the back of acquisitions, operational performance, and refinancing efficiencies. 2016 is no different. Market dynamics, triggers, and threats Domestic economic drivers are still expected to fuel the German residential market. On the one hand, GDP expectations have decreased to 1.7% in FY17, on Brexit uncertainties, but are expected to pick up to 2.1% in FY18. On the other, demand for residential assets is expected to continue, supported by German immigration, while current German prices standing substantially below the West European average leave room for further growth. That said, the German residential market remains a much regulated one so that any major shift will take a toll on operations. Although the current regulations that set a cap on rents in major cities have had little impact on the market (see Worth Knowing), stricter measures might be an issue. The coming elections should be watched, especially since measures tend to favour tenants. The prospect of increasing interest rates also presents a threat for the sector both in terms of property valued and operations. That said, Vonovia is already well funded, with a LTV at 47% so that increasing yields will not have an immediate impact on the bottom line. On valuations, the current NIY at 4.5% stands in line with our universe of non-German Office and Retail, only the former is expected to experience excess demand and increasing prices, so that on average Vonovia will be better off.
Another positive verdict
20 Mar 17
Burford’s results for 2016 produced another outstanding set of figures. Revenue grew by 60% to $163.4m with strong growth in the litigation finance business and an additional boost from a secondary sale in the Petersen case. On an underlying basis net income grew to $114m, a 75% increase despite the investment in growing capacity which increased costs. A combination of ongoing investment and gains and increases on valuation saw the fair value of the litigation assets increase 67% to $559m, underpinned by a growth in invested capital to $394m. With the results statement there was an announcement of a further sale of 9% of the Petersen case at a valuation of 20 times the cost of investment.
N+1 Singer - N1S Trend spotting - Strategy update
08 Mar 17
In this new product we present some strategy theme updates arising out of our latest analysis of macro trends and economic data and our innovative Quant work. We also look at upcoming events and suggest topping up on some of our Best Ideas for 2017.
N+1 Singer - Morning Song 22-03-2017
22 Mar 17
Carador Income Fund (CIFU LN) Premium rating restored, high levels of refinancing activity | Cello Group (CLL LN) Outlook getting brighter – watch Pulsar | Eckoh (ECK LN) Largest ever US secure payments win | eg solutions (EGS LN) Full year results in line | Futura Medical (FUM LN) Licensing deal for CSD500 in Portugal | Verona Pharma (VRP LN) Global agreement with QuintilesIMS to support development of RPL554 | Xaar (XAR LN) 2016 results slightly ahead, reduced visibility in 2017
Making Mobiles Better
17 Jan 17
Mobile phones are increasingly the key connection for the modern world. This means that the performance of mobile phones, and their networks, is going to become more critical for all the apps and businesses that rely on them. New technologies such as VR, AR, and AV will need better, more reliable connections to really move into the mainstream. In this thematic piece we attempt to identify some of the most important issues facing mobile phone networks and their users, and start to identify solutions and enablers that will solve these problems and create value by doing so.