Philip Grosse, CFO of Vonovia SE (FRA: VNA), sat down for a video interview during Nareit’s REITweek: 2025 Investor Conference in New York City June 2-5.
Grosse highlighted key trends in the residential real estate markets of Germany, Austria, and Sweden. He identified three main themes: a significant housing shortage in Germany, especially in metropolitan areas, which is driving rent growth; the company’s proactive approach to climate goals through energy-efficient modernization that yields strong returns; and the large gap between regulated and market rents, offering long-term rental growth potential.
Discussing recent earnings, Grosse emphasized the company's strong total shareholder return, driven by steady rental income growth (4%–4.5% annually) and rapid expansion in non-rental segments, which are growing at nearly 30% compound annual growth rate (CAGR), contributing to cash earnings and portfolio value uplift.
In investor meetings, the strategic focus has shifted from crisis management to growth, particularly in non-rental activities like privatization, development-to-sell, and B2C/B2B services, Grosse said.