Germany's largest residential real estate company, Vonovia, has shown an impressive performance this year amid turbulent stock market times. Despite recently mixed business figures, which showed a decline in operating profit (FFO) by 8.4 percent to 1.45 billion euros, Vonovia's stock recorded a respectable increase of around 20 percent. At first glance, this is a surprising development, but upon closer examination, it becomes apparent that investor confidence in the company remains high.

While businesses dealing with project development, selling apartments, and additional services have proven to be difficult, the demand for affordable housing in densely populated areas remained high. This led to an increase in rent to 7.67 euros per square meter - a 2.7 percent increase compared to the previous year. However, Vonovia had to incur a loss of 3.8 billion euros due to substantial devaluations of its real estate portfolio, after a profit of 2.2 billion euros in the previous year.

A closer look at market developments shows that the hope for an interest rate peak has boosted the stocks of mostly highly indebted real estate companies in both Europe and the USA. Vonovia also benefited from this, as they were able to sell new construction projects to CBRE Investment Management for 357 million euros. In the entire year 2019, proceeds of a total of 3.7 billion euros were already achieved through the sale of apartments.

The corporation plans to divest from approximately 66,000 properties with a total value of 13 billion euros, which will lead to improved debt reduction and at the same time make a capital increase increasingly unlikely. Investor confidence in the value of the portfolio is growing, as the sales typically occurred at or even slightly above book value. As of the end of September, a net asset value of 50.51 euros per share was achieved, while the stock is currently trading at a discount of around 46 percent.

For investors who want to benefit from further upward trends in Vonovia shares, HVB onemarkets offers a classic bonus certificate (ISIN DE000HD11755). Even if the stock is moving sideways, investors can achieve a return of 5.3 percent. With this certificate, investors stay invested in rising prices and thus participate in the success of the company. A way to profit from Vonovia's strong performance while minimizing risk.