“We will no longer buy from ADLER and are prepared to sell our stake in the future,” said Vonovia CEO Rolf Buch to the “Handelsblatt” (Wednesday edition). The stocks at ADLER are definitely valuable and it was therefore thought that it would be a good idea to get a foot in the door at ADLER. “But the capital market sees it differently,” said the manager. “I accept that the majority of our shareholders do not want a takeover and therefore we will not do it either.”
At the moment, however, it makes no sense to exit quickly. “We are of the opinion that ADLER’s values are not currently reflected in the stock market price,” said Buch. “That’s why we prefer to wait and see. I am confident that the new management team at ADLER will now establish a governance that is transparent. So we have enough time to wait until someone offers us a fair price for our share.”
The big difference between ADLER and Wirecard is that the projects and buildings are there. “These aren’t bogus deals in Asia, they’re real estate,” says the manager. “I can touch and look at them. The portfolio can’t vanish into thin air.”/he
The ADLER share temporarily gained 3.65 percent via XETRA to EUR 4.77. The Vonovia share has meanwhile fallen 1.24 percent to EUR 35.01.
Vonovia boss: High inflation doesn’t ignore rents
Germany’s largest real estate company, Vonovia, believes that significant rent increases are inevitable if inflation continues to be above average. “If inflation is permanently at four percent, rents will have to rise accordingly every year in the future,” said Vonovia CEO Rolf Buch to the “Handelsblatt” (Wednesday). Otherwise, many landlords would get into serious trouble. “We can’t pretend that inflation will bypass rents. It’s not going to work.”
Vonovia is Germany’s largest housing group. The listed company rents out more than 565,000 apartments in Germany, Sweden and Austria, including more than 505,000 in this country alone. In 2020, almost half of the population in Germany lived in rented accommodation.
At the presentation of the annual balance sheet for 2021, the Vonovia Management Board reported in mid-March that the average rent had increased to EUR 7.33 per square meter – that was 2.4 percent more than a year earlier. According to the information, modernized apartments in particular contributed to the increase. The companies can pass on some of the costs for energy-related refurbishments, such as thermal insulation and replacing old heating systems and windows, to the rent.
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Image sources: ADLER Group, Vonovia SE