Vonovia’s chief executive Luka Mucic told Handelsblatt that the left in Berlin is considering expropriating housing firms and explained the company’s position on future investments in the city.
Vonovia’s stock is lagging despite strong earnings and a favorable valuation. Analysts argue that a specific condition needs to be fulfilled before the share can rebound following the recent market slump.
Vonovia, a DAX-listed German residential property group, is at the centre of a political dispute in Berlin over a proposal to socialise 138,000 of its rental units. The move could expose the company to a loss of up to 23 billion euros, prompting Vonovia to adopt a cautious public stance.