Vonovia Shifts to Cash-Only Payout Amid Major Asset Sale Plan

Vonovia proposes €1.25 cash dividend, ends scrip program. Plans €2.5B asset sales to reduce LTV ratio to ~40% by 2028, targeting cost savings via prefabrication.

Germany's largest residential landlord, Vonovia, is streamlining its shareholder returns while preparing a multi-billion euro asset disposal program to accelerate debt reduction. The company's management and supervisory board will propose a dividend of €1.25 per share at the Annual General Meeting on May 21, 2026, marking a definitive end to its scrip dividend program. The payout will be made exclusively in cash from the company's tax contribution account, allowing domestic investors to receive it free of capital gains tax and the solidarity surcharge.

This shift coincides with a broader strategic push to strengthen the balance sheet. A central pillar is reducing the loan-to-value (LTV) ratio from 45.4% to around 40% by 2028. To achieve this, Vonovia plans property sales worth €2 billion, focusing on commercial and care assets. An additional €500 million is expected from the sale of minority stakes. Operationally, management forecasts an adjusted EBITDA between €2.95 billion and €3.05 billion for 2026, a noticeable increase from the previous year's €2.8 billion.

The company is also pursuing significant cost savings in its core business. CEO Luka Mucic recently advocated for nationwide type approvals in residential construction at a Berlin forum. He argues that industrial prefabrication could slash gross construction costs by up to 30% and reduce building defects by approximately 60%.

Investor sentiment remains cautious as these plans unfold. The share price, hovering around €23.44, shows a monthly decline of about 5.5% and is down roughly 16% year-to-date. It continues to trade well below its 200-day line at €25.78 and is over 22% below its 52-week high near €30 euros. Based on the current price, the proposed dividend implies a yield of around 5.3%. Analyst consensus paints a more optimistic long-term picture, with an average price target of €33.84, ranging from €23.00 to nearly €53.

Upcoming events are set to provide fresh fundamental data. The company will release its first-quarter 2026 figures on May 7, offering insight into its operational start to the year and the ongoing impact of high refinancing costs. Furthermore, a key personnel change is scheduled for the AGM. Dr. Anne-Marie Großmann-Minkwitz, a 37-year-old board member of the GMH Group, is slated to join the supervisory board, succeeding Matthias Hünlein. Market observers view her industrial process expertise as a strategic asset for Vonovia's technological transformation. Another executive, Katja Wünschel, will officially assume her new board position on June 1.