Vonovia ANNGR (Baa1/BBB+): 1Q24 Preview
The big news for Vonovia last year was the revaluation of their portfolio by -11%. The company fully revalued its portfolio at the end of 2023 but they do also assess any major valuation developments quarterly.
• Watch for maintenance and modernization expense: this fell -4% and -43% respectively in 2023.
• Gross annual interest expense was EUR 810m (EUR 619m on FFO basis).
• Vonovia did not issue any bonds in 2023 but have issued 3 times this year.The company has been very active in secured and unsecured lending from banks and from the EIB. As a result, they have committed to covenants restricting Loan-to-Value, Interest Coverage and Unencumbered Assets/Unsecured Debt. They are comfortably above the threshold for these ratios, but their existence should give Sr Unsec Bond investors some comfort.(From David Hayes)