Vonovia Q1 dented by higher financing costs (updated)

Vonovia SE

07/05/2026 07:03

Updates with details and CFO statements

FRANKFURT, May 7 (Reuters) - Vonovia VNAn.DE, Germany's largest real estate group, said on Thursday that adjusted earnings before tax fell 4.1% in the first quarter due to higher financing expenses against the backdrop of the war in the Middle East.

The war in Iran has increased financing costs.

Adjusted earnings before tax were 462.2 million euros ($543.18 million), down from 482.1 million euros a year earlier.

"We are keeping a very close eye on the region and the knock-on effects," Chief Financial Officer Philip Grosse said of the Middle East.

Ten-year financing costs are 4.5%, an increase of half a percentage point.

Rate levels of more than 5% or 6% would be above the property company's expected financing costs, Grosse said.

The company expects the value of its portfolio to rise this year.

($1 = 0.8509 euros)

 (Reporting by Tom Sims and Mattias Inverardi, Editing by Friederike Heine)

 ((Tom.Sims@thomsonreuters.com; +49 30 220 133 645;))