Close menu




March 1st, 2021 | 09:57 CET

Vonovia, Pollux Properties, Deutsche Wohnen: Building a portfolio on a solid foundation

  • RealEstate
Photo credits: pixabay.com

If you invest your money in the stock market, you can withstand fluctuations. It's part of the game and indispensable if you want to earn returns over the long term. Often, a position runs against us at the beginning, only to turn significantly positive. This scenario is especially true in turbulent times. But it is also possible that portfolios are too speculative after months of a bull market. Here, real estate can provide stability. We present three real estate shares in the check.

time to read: 3 minutes | Author: Nico Popp
ISIN: SG1I77884290 , DE000A0HN5C6 , DE000A1ML7J1

Table of contents:


    Vonovia: Waiting for the bottom

    Vonovia is a popular stock among German investors. The Company recently even moved up into the EuroStoxx 50, making it a big player in Europe and the DAX. Vonovia focuses on residential real estate and has spread its portfolio across Germany, Austria and Sweden. In total, Vonovia has slightly less than 400,000 apartments in its portfolio. While savers often get more frustration than pleasure in their portfolio with a single apartment, such a diversified approach can pay off. Whether noisy neighbors next door are a nuisance or jobs are lost in a region is hardly relevant for Vonovia shareholders. After all, such factors are of little consequence in the case of just under 400,000 apartments.

    The low level of rent losses and the vacancy rate of just 2.6%, which is even lower than in 2019, show that residential real estate is a good approach even in crisis times. Vonovia is convinced that size pays off and recently purchased another 1,000 apartments. On a one-year view, the share has hardly yielded a return but is still in an upward trend in the long term. The Company is interesting, but the stock should first find a bottom in the short term.

    Pollux Properties: Singapore share as a valuation pearl

    The shares of Pollux Properties are also developing rather leisurely in the long term. The Singapore Company operates in an exciting market. Singapore is considered the Switzerland of Asia and boasts an extremely high standard of living. Apartment and office space is scarce in the island state. Consequently, real estate prices are also climbing. In addition, the population is growing: In the past few years alone, the population has increased by around 13% every year. Pollux Properties manages a real estate portfolio in Singapore with an equivalent value of around EUR 200 million, offset by liabilities of roughly half that amount. On the stock exchange, the share is valued at around EUR 65 million. As a result, the price-to-book ratio is only 0.6.

    The Pollux Properties share has been traded in Germany for several months. Although the Company is stable and operates in a conservative sector, prices in the cent range tempt many short-term investors to gamble. However, Pollux Properties is not just as much of a gambler. The Company operates as a local hero in a tight market and shines with low valuations. Investors can use this as an opportunity to look for a good entry point and leave the stock behind - after all, real estate is a safe bank.

    Deutsche Wohnen: The price support has run out

    Many investors also see the Deutsche Wohnen share as a safe bank. Given the stable figures for the past year, there is no denying this. The Company was able to improve slightly in terms of both vacancy rates and rental yields. Deutsche Wohnen focuses on properties in Germany and is particularly strong around Berlin, in the Rhine-Main region and in the Rhineland - all of which are popular metropolitan areas.

    The Company is increasingly committed to climate protection and wants to live up to its responsibility as a real estate company. The Company prematurely ended a buyback program for its shares in the fall, and since then, the share price has weakened. On a one-year horizon, however, the share price still offers a narrow yield of 4%. In addition, there is a dividend yield of around 2%. Unlike Vonovia, Deutsche Wohnen's chart looks less straightforward in the long term. Nevertheless, the downside risk appears limited.

    Real estate from boring to exotic

    Whether Vonovia or Deutsche Wohnen - anyone looking for stability in their portfolio is well served by German real estate companies - after all, housing remains an elementary fundamental right. Those who want to avoid the highly regulated market in Germany and are looking for dynamism and low valuations can also take a closer look at Pollux Properties from Singapore. Besides a price-to-book ratio of 0.6, Pollux shines with expertise in one of the world's most exciting markets.


    Conflict of interest

    Pursuant to §85 of the German Securities Trading Act (WpHG), we point out that Apaton Finance GmbH as well as partners, authors or employees of Apaton Finance GmbH (hereinafter referred to as "Relevant Persons") may in the future hold shares or other financial instruments of the mentioned companies or will bet on rising or falling on rising or falling prices and therefore a conflict of interest may arise in the future. conflict of interest may arise in the future. The Relevant Persons reserve the shares or other financial instruments of the company at any time (hereinafter referred to as the company at any time (hereinafter referred to as a "Transaction"). "Transaction"). Transactions may under certain circumstances influence the respective price of the shares or other financial instruments of the of the Company.

    Furthermore, Apaton Finance GmbH reserves the right to enter into future relationships with the company or with third parties in relation to reports on the company. with regard to reports on the company, which are published within the scope of the Apaton Finance GmbH as well as in the social media, on partner sites or in e-mails, on partner sites or in e-mails. The above references to existing conflicts of interest apply apply to all types and forms of publication used by Apaton Finance GmbH uses for publications on companies.

    Risk notice

    Apaton Finance GmbH offers editors, agencies and companies the opportunity to publish commentaries, interviews, summaries, news and etc. on news.financial. These contents serve information for readers and does not constitute a call to action or recommendations, neither explicitly nor implicitly. implicitly, they are to be understood as an assurance of possible price be understood. The contents do not replace individual professional investment advice and do not constitute an offer to sell the share(s) offer to sell the share(s) or other financial instrument(s) in question, nor is it an nor an invitation to buy or sell such.

    The content is expressly not a financial analysis, but rather financial analysis, but rather journalistic or advertising texts. Readers or users who make investment decisions or carry out transactions on the basis decisions or transactions on the basis of the information provided here act completely at their own risk. There is no contractual relationship between between Apaton Finance GmbH and its readers or the users of its offers. users of its offers, as our information only refers to the company and not to the company, but not to the investment decision of the reader or user. or user.

    The acquisition of financial instruments entails high risks that can lead to the total loss of the capital invested. The information published by Apaton Finance GmbH and its authors are based on careful research on careful research, nevertheless no liability for financial losses financial losses or a content guarantee for topicality, correctness, adequacy and completeness of the contents offered here. contents offered here. Please also note our Terms of use.


    Der Autor

    Nico Popp

    At home in Southern Germany, the passionate stock exchange expert has been accompanying the capital markets for about twenty years. With a soft spot for smaller companies, he is constantly on the lookout for exciting investment stories.

    About the author



    Related comments:

    Commented by Juliane Zielonka on April 27th, 2023 | 08:30 CEST

    Vonovia, Desert Gold Ventures, Daimler Truck - Solid growth surprises investors

    • Mining
    • Gold
    • RealEstate
    • Electromobility

    Vonovia has secured a strong US partner to further secure its real estate business in Germany. Proceeds from the investment will support Vonovia's capital allocation plans while giving Apollo's insurance and institutional clients access to a portfolio of long-term, high-quality assets. High quality is also the acreage Desert Gold Ventures is exploring in Mali, Africa. New gold exploration areas have been defined that show promise. Gold will continue to gain importance in the near future, as it is a valuable component of numerous solutions in the energy transition. According to Daimler Truck CEO Daum, progress is still far too slow. But the Q1/23 result exceeds all expectations.

    Read

    Commented by Fabian Lorenz on April 13th, 2023 | 10:52 CEST

    Vonovia, Barrick Gold, Blackrock Silver: Gold and silver shares in demand again

    • Mining
    • Silver
    • Gold
    • Lithium
    • RealEstate

    Gold and silver continue to develop strongly. The prices for the precious metals are shooting upward this week. Price targets for gold ranging from USD 2,500 to USD 3,000 are creating a good mood. And new all-time highs are also expected for silver. Meanwhile, shares in the sector can also profit from this. Barrick Gold looks very interesting from a chart perspective, and analysts will probably have to adjust the assumed gold price upward in their earnings forecasts. The second sector giant Newmont, on the other hand, has opened the takeover carousel. Therefore, it should only be a matter of time before the explorers also jump on board. Blackrock Silver, for example, has exciting silver and lithium projects. And all of them are in the US. Experts also see initial entry opportunities in "concrete gold". After the sell-off, analysts recommend investing in Vonovia real estate shares.

    Read

    Commented by Nico Popp on April 5th, 2023 | 12:30 CEST

    Crisis comeback? There is a solution! Deutsche Bank, Vonovia, Globex Mining

    • Mining
    • Gold
    • Silver
    • Commodities
    • Banking
    • RealEstate

    March was a dark month for the shares of Deutsche Bank and Vonovia - the prices of both companies fell by more than 20%. In recent weeks, the uncertainty surrounding banks and real estate companies was too great. At the same time, the gold price rose significantly and even surpassed the USD 2,000 mark. We look at what the contrasting price movements mean and where laggards can be found.

    Read