# Vonovia Cuts 2026 Rent Forecast and Lowers 2028 Growth Objective

By John Kim

Canonical URL: https://www.tokenpost.com/news/business/43391
Published: 2026-10-29T09:42:47.000Z
Updated: 2026-10-29T09:42:47.000Z
Section: Business

> The German landlord now expects organic rent growth of about 3.8% in 2026. Its preliminary nine-month results showed higher adjusted EBITDA but lower adjusted earnings.

Vonovia SE cut its 2026 organic rent-growth forecast and lowered its 2028 objective on Wednesday, as preliminary results showed higher adjusted EBITDA but weaker earnings after financing costs. The German landlord issued its updated outlook at 3:35 p.m. ET (19:35 UTC), before its U.S.-traded ADR, VONOY, closed at $9.14, down 0.44% from the previous session. The timing does not establish that the outlook update drove the ADR’s move.

Vonovia now expects organic rent growth of about 3.8% in 2026, compared with its previous forecast of about 4%. It also expects operating free cash flow before changes in net working capital to be moderately below its 2025 level. Previously, the company expected that measure to roughly match 2025.

Initial guidance for 2027 calls for about 4% organic rent growth, with adjusted EBITDA slightly above the 2026 level. For 2028, Vonovia lowered its organic rent-growth objective to about 4.5% from about 5%. It expects adjusted EBITDA of €3.2 billion to €3.5 billion that year to come in at the lower end of the range.

Preliminary results for the first nine months showed adjusted EBITDA of €2.19 billion, up from €2.118 billion a year earlier. Adjusted earnings before taxes fell to €1.41 billion from €1.460 billion, while adjusted shareholder earnings declined to €1.12 billion from €1.201 billion. Vonovia said higher financing costs primarily offset the EBITDA increase at the adjusted earnings-before-taxes and shareholder-earnings levels. The figures remain preliminary and subject to review.

The company cited higher financing costs, weaker transaction activity and lower contributions from its Recurring Sales and Development businesses. CEO Luka Mucic said, “Higher financing costs are affecting both the financial result and transaction volumes in our market-sensitive businesses.” Vonovia also said the re-offer yield on its eight-year unsecured bonds had risen about 140 basis points since the start of the Iran war.

Vonovia expects its 2026 portfolio valuation to be broadly flat compared with year-end 2025, following four consecutive half-year periods of valuation gains. It plans a strategic review of its Development business, lower Development-to-Hold investment and a pause on new Manage-to-Green investments.

VONOY is an unsponsored American depositary receipt, with each depositary share representing 0.5 of a Vonovia ordinary share. The company’s full third-quarter 2026 interim statement is scheduled for Wednesday, Nov. 4.