As I have already written, the TEV blog has several purposes. First and foremost, I intend to expand the possibilities of communication with my readers. Therefore, I will not only give updates on possible new investment analyses here but also publish more general articles and maybe exclusive analysis only for the TEV blog. In this article, I would like to draw your attention to my new exclusive investment analysis on Seeking Alpha. The analysis focuses on the German real estate company and Europe’s biggest landlord Vonovia SE (OTCPK:VONOY; VNNF). Analyses such as this one are mainly about companies that reward cash flow-oriented investors with dividends. Furthermore, these companies should have a sustainable business model that provides rising dividends in the future. I showed there that Vonovia might be a good investment case in this regard.
Tough times for REIT-investors
The current economic uncertainty makes it difficult for investors to invest their money profitably. This applies above all to the very popular Real-Estate-Investment-Trust (REIT)-sector. Due to COVID-19, the iShares Global REIT ETF (NYSE:REET) has fallen dramatically in value since the onset of volatility:
Are apartments the solution?
So one could say, however, that real estate companies that rent out apartments would be a good option. One argument here is that even in times of crisis, people have to live somewhere. But the problem is when people can no longer pay their rents due to economic weaknesses. Especially in countries with little social security, for example, unemployment also means having problems paying the rent regularly. Europe and especially countries like Germany are landlords’ paradise when it comes to renting security. Social legislation and state aid keep rent losses to moderate levels. It is, therefore, worthwhile for cash flow-oriented REIT investors to look to Europe.
There are champions such as the company Vonovia SE, which have shown extreme growth and steady growth. In the analysis, I have named the individual arguments in more detail. It is available free of charge for a while. After that, however, Seeking Alpha will put the analysis behind a paywall. If readers want access to the article, they can simply leave a comment because I can free single pieces from the paywall.
So enjoy the analysis while it is still accessible for free!
All the best