What’s behind the sell-off in real estate stocks

Dusseldorf Real estate stocks should have calmed down in mid-March. With Vonovia, the largest residential real estate group in Europe presented its figures and only cut the dividend by half, while the competition completely refrained from paying a dividend in order to stabilize the balance sheet.

Although many points in the numbers sound negative, according to DZ Bank, “our core message is that the course should have anticipated much worse”. Vonovia CFO Philip Grosse also saw it this way: “Our price is pricing in a valuation discount of 30 percent for our real estate, which I don’t see in any way covered by our fundamental data.”