FRANKFURT (Reuters) – Shares in Vonovia, Germany’s largest landlord, opened 4% lower on Friday after the company reported its biggest loss ever for 2023, in the latest sign of stress in the nation’s struggling real-estate sector.
The 6.76 billion euro ($7.36 billion) loss is wider than the 669.4 million euros lost in 2022, and the two consecutive losses mark a reversal from years of steady profit during a decade-long property boom.
The loss came as Vonovia wrote down the value of its more than 500,000 apartments by 10.7 billion euros last year, bringing its portfolio value to 84 billion euros.
Analysts with Jefferies said that the results left them “scratching our heads”, while Baader analysts called the earnings a “mixed bag”.
($1 = 0.9189 euros)
(Reporting by Tom Sims and Matthias Inverardi; Editing by Madeline Chambers)
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