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Vonovia: A New Buying Opportunity Emerged

May 03, 2021 8:21 AM ETVonovia SE (VNNVF), VONOY16 Comments
The European View profile picture
The European View


  • The shares of Vonovia, Europe's largest real estate group, are currently in a consolidation phase and 10 percent below their all-time high from September 2020.
  • I welcome this correction since it was overdue. I also took advantage of the share price weakness and increased my stake in the company.
  • If macroeconomic conditions remain, investors will find a good opportunity to benefit from rising rent and real estate prices in Europe.

Moderne Häuser von oben
Photo by Bim/E+ via Getty Images

The shares of Vonovia (OTCPK:VONOY) (OTCPK:VNNVF), Europe's largest real estate group, are currently in a consolidation phase and 10 percent below their all-time high from September 2020. The correction is overdue, as the stock

This article was written by

The European View profile picture
Runner of the TEV Blog | Private InvestorI am a long-term oriented investor and in my early thirties. I hold a law degree and a doctorate in law and love investing and talking about my and others' investments. I regularly write about my research and investments on various investor platforms and the TEV Blog. **My articles represent my opinion only and in no way constitute professional investment advice. It is the responsibility of the reader to conduct their due diligence and seek investment advice from a licensed professional before making any investment decisions.**

Analyst’s Disclosure: I am/we are long VNNVF, VONOY. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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Comments (16)

galicianova profile picture
the price is even better 3 weeks later!
MaritimeTrader profile picture
Long for several years. Shame the dividend is annual..

James Hanshaw profile picture
Good article. I am a long term holder of Vonovia as VNAXon the Frankfurt exchange.

I thought the Berlin rent cap had already been judged illegal. In any case it is a stupid idea because it deters the building of new apartments and sufficient new supply would be the best way to cap rents.
Mike Zoerer profile picture
@James Hanshaw indeed, this has been judged as illegal as this violates the constitution, so this immediate thread is gone. However it seems that the very leftists (communists?) are getting stronger and stronger in Germany, which leaves room for concern in the future.I would like to add that I understand the problem of rising rental rates in many cities, but with an average rental rate of approx 7 Euro/m2 Vovovia and their apartments don't seem to be the real problem, they just are more exposed to activist politics as they are the largest company in this space...
galicianova profile picture
@James Hanshaw vonovia is vna on both etr and fra
James Hanshaw profile picture
@galicianova I buy stocks on their main home exchange
Mike Zoerer profile picture
Thanks, I am long Vonovia, with a really nice entry price, so I can watch this consolidation phase without being nervous. It is an alternative to buying and renting apartments yourself (and believe me, doing this has some serious pros like no fluctuation in value, but also cons - risk of troubles with tenants, and quite some work involved).I don't understand why Vonovia is down so much today 04May after presenting really nice earnings, (nearly 5% to 52.6 Euro)..that looks like a good entry point, but as I have a full position I would only add under 50 - which I don't see happen now, but you never know...
The Greens have a good chance to win the next election in Germany. Will be interesting to see what happens to its economy then, or more precisely the German stock market.
Baloney Sandwitch profile picture
Good article. I note the strong growth in cash flows.
White Cat Society profile picture
Vonovia is superb, even better than most of its American peers.

But the whole REIT scene in Germany is pretty cool, with Deutsche Wohnen, TAG Immobilien, TLG Immobilien, et al.
Luca Stein profile picture
the stock dividend is cool too
galicianova profile picture
@Luca Stein What is the dividend?
@Luca Stein do you knof you own vonoy in usa account ... do you pay foreign tax ? how much . is it better to hold in taxable or ira ? thx.
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