DUESSELDORF (Reuters) -Vonovia, Germany’s largest real estate group, on Wednesday posted a third consecutive annual loss for 2024, amid further writedowns on the values of its properties and a reflection of the nation’s struggling real estate sector.
Germany has been undergoing a major change of fortune after an end to the era of cheap money that fed a decade-long property boom, hitting Vonovia and its rivals hard.
The loss of 962.3 million euros ($1.05 billion) in 2024 is narrower than the 6.76 billion euro loss in 2023. In 2022, the loss was 669.4 million euros.
The company had experienced years of profit going back to at least 2010, according to LSEG data.
Chief Executive Officer Rolf Buch forecast better times ahead, predicting an increase in a key measure of its operating profit.
But he said that plans by the German government for a massive spending surge have created uncertainty for the housing market, an apparent reference to the fact that the new debt plans have already resulted in a rise in borrowing costs.
“The property market is currently reacting strongly to the German government’s announced investment plans. The medium and long-term effects on housing prices and financing costs are yet uncertain,” he said.
($1 = 0.9148 euros)
(Reporting by Matthias Inverardi and Tom SimsEditing by Ludwig Burger)
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