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What does Vonovia do?
Vonovia SE (Vonovia) is a real estate company. It provides one-stop housing-related services such as procurement, development, gardening, landscaping, refurbishment, modernization, upgradation, leasing, selling and management of residential properties.
Is Vonovia a REIT?
Note that Vonovia is not a REIT, but it does payout 70% of annual FFO.
What is Vonovia in Germany?
Vonovia is a German real estate company based in Bochum, North Rhine-Westphalia. Its history goes back to Deutsche Annington, which merged with GAGFAH and was subsequently renamed Vonovia.
Is Vonovia undervalued?
Vonovia has seen significant declines in its share price for the past few weeks, pushing its yield to above 5%. The market isn’t happy with Vonovia’s new, more defensive approach. We disagree with that take, however, and view Vonovia as undervalued with a now-30% upside.
How many UK REITs are there?
Fast forward 10 years and there are now more than 70 UK REITs. “ UK REITs have been around for over 10 years now, and they have evolved significantly since they were introduced. From initial take up by the large listed property companies, REITs have become more of a sector-driven investment vehicle.
Is Vonovia a good buy?
Vonovia is a great company. However, investors should not be blinded by the current favorable valuation. The market is currently pricing in a change in the fundamental environment. In my view, the correction is therefore justified and does not automatically lead to a better risk/reward scenario.
How do I buy a REIT UK?
To invest in REITs, you simply need to invest in one of the REITs listed on a stock market on the London Stock Exchange. There are UK REITs available to investors on both the Main Market and the Alternative Investment Market (AIM).
Are REITs worth it UK?
Benefits of investing in REITs 90% of REIT income goes on dividend payouts to investors who don’t have to pay income tax. REITs are often consistent in terms of income and market performance. They can be a relatively safe option if you want to diversify your portfolio. They earn you a passive income.
Should you invest in REITs in 2021?
Attractive income One reason REITs have generated solid total returns over the long term is that most pay attractive dividends. For example, as of mid-2021, the average REIT yielded over 3%, more than double the dividend yield of stocks in the S&P 500.