Vonovia's CFO Succession Opens a New Front as Financing Costs Weigh on Nine-Month Earnings

Published on 11/06/2026 at 10:21 | Editorial boerse-global.de

Vonovia CFO Philip Grosse won't extend his contract past 2027. Nine-month pre-tax profit fell 3.5% as financing costs rose and analysts cut targets.

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Vonovia will need a new hand on the financial tiller. Philip Grosse, the group's finance chief, has told the company he will not extend his contract when it expires at the end of 2027, Vonovia announced on Wednesday. A successor is to be sought.

The disclosure lands at an awkward moment for the Bochum-based landlord, which is simultaneously navigating costlier debt, a sluggish transaction market and a heated political row in the German capital.

Earnings: Top Line Advances, Bottom Line Slips

For the first nine months of 2026, Vonovia posted an adjusted pre-tax result of EUR 1.408 billion — a decline of 3.5% year on year. Adjusted EBITDA, by contrast, moved in the opposite direction, climbing 3.3% to EUR 2.187 billion.

Management pinned the pre-tax shortfall on higher financing costs, compounded by weaker sales and development activity. The sale-oriented segments, the company said, remained under pressure from the broader market environment.

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The group reaffirmed its guidance for the current year. Adjusted EBITDA is expected in the lower half of a EUR 2.95–3.05 billion range, while the adjusted pre-tax result should come in near the bottom of a EUR 1.9–2.0 billion band. Adjusted shareholder returns, however, are forecast in the upper half of a EUR 1.4–1.5 billion range. Looking to 2027, Vonovia projects adjusted EBITDA slightly above the 2026 level.

Development Business Under Review

The earnings release follows a strategic rethink announced on 28 October, when Vonovia said it would review its development business and scale back investment in development-to-hold projects. New manage-to-green spending has been paused for now. The company cited rising financing costs and a weaker transaction market as the reasons, alongside smaller contributions from disposals and project development.

Two Brokers, Two Haircuts

Analysts have been trimming their price targets. Deutsche Bank Research cut its target to EUR 20 from EUR 25 on Tuesday while keeping its "Buy" rating. Analyst Thomas Rothäusler pointed to higher market interest rates and elevated financing costs, adding that softer portfolio valuations and tougher disposal conditions across the European property sector were also factored in.

Goldman Sachs had already moved on Monday, nudging its target to EUR 20 from EUR 25 — wait, to EUR 18.20 from EUR 18.40 — and maintaining a "Neutral" stance. Analyst Jonathan Kownator framed his view around the balance between growth, distributions and debt reduction, with the lingering risk of Berlin's expropriation debate also feeding into his assessment.

Mucic Takes Aim at Berlin

Chief executive Luka Mucic used Wednesday's platform to renew his criticism of expropriation proposals under discussion in Berlin. Quoted by Reuters, he argued that the mere debate erodes confidence in property rights, investment and Germany as a business location. Vonovia and its subsidiary Deutsche Wohnen manage roughly 138,000 apartments in and around the capital, according to the news agency.

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Mucic also contended that expropriation would not create a single additional home and described the plans as legally questionable from the company's standpoint. Reuters, for its part, flagged rising interest rates as a further drag, complicating debt reduction and weighing on planned apartment sales amid a gathering property market downturn.