Vonovia bets on 'heat pump cubes' to modernize 20,000 apartments despite stock slump
Vonovia has unveiled plans to modernise its heating systems across thousands of apartments. The company's latest financial results show a 6.0% rise in adjusted EBITDA, reaching €2.8 billion for the 2025 fiscal year. Yet, despite strong occupancy and rent growth, its stock has fallen to a 52-week low of around €21.
The firm's new strategy focuses on decentralised energy systems, starting with a pilot in Nuremberg. There, 59 apartments will receive climate-friendly heating through a 'heat pump cube'—a compact unit needing only a gravel base for installation. Similar projects are underway in Aachen, where series production has begun, and in Donauwörth, where costs have dropped by 40% compared to earlier trials.
Vonovia aims to roll out these systems to over 20,000 apartments nationwide in the coming years. Each unit costs roughly €15,000, but the company expects long-term savings through scalability and reduced reliance on fossil fuels. The system's digital controls and remote maintenance are designed to improve efficiency over traditional heating methods. Beyond decentralised solutions, the company plans a centralised district heating network to phase out fossil fuels entirely. CEO Luka Mucic's approach prioritises gradual upgrades to lower per-unit costs over time. However, investor confidence has weakened, with shares down 25% in the past month due to high interest rates. Despite this, occupancy remains high at 97.9%, and organic rents have grown by 4.1%.
Vonovia's push for sustainable heating comes as its financial performance stays strong, though market conditions have hit its share price. The Nuremberg pilot marks the first step in a broader plan to modernise thousands of homes. If successful, the 'heat pump cube' could become a standard feature in the company's properties, cutting costs and emissions in the long run.
