In recent months, German real estate stocks like Vonovia, LEG, and TAG have shown robustness despite the overall market weakness. This development is particularly interesting for private investors as they respond to current market movements and changes in bond yields.
Market Movements and Bond Yields
The yields of federal bonds have changed over the last few months, positively affecting interest-sensitive assets like real estate stocks. When bond yields decline, real estate stocks often become more attractive as they are considered a stable form of investment and tend to be less affected by interest rate changes.
Vonovia
- Current Price: The price of Vonovia shares remains stable and is one of the most robust values in the DAX.
- Market Position: Vonovia is one of the largest real estate companies in Germany and has proven resilient to market fluctuations.
LEG Immobilien
- Market Position: LEG Immobilien is focused on North Rhine-Westphalia and is also considered one of the robust values in the MDAX.
- Current Price: The price of LEG Immobilien remains stable, with a slight decline of 1.68% recently.
TAG Immobilien
- Market Position: TAG Immobilien has most of its apartments in the eastern federal states and plans an expansion in Poland.
- Financial Situation: After the placement of a convertible bond, TAG has liquid funds for new projects, increasing its growth potential.
- Valuation: TAG is considered undervalued with a price-earnings ratio (P/E) of under 10 and a dividend yield close to 3%.
Other Factors
- REITs and Open Real Estate Funds: Alternatives to classic real estate stocks are REITs and open real estate funds, which have faced challenges in valuing their properties.
- Market Trends: The European real estate market is overall weaker than the German one, increasing the attractiveness of German real estate stocks.
In summary, Vonovia, LEG, and TAG offer interesting investment opportunities due to their stability and growth potential in an otherwise challenging market environment. However, private investors should keep an eye on the overall market trends and the specific developments in the real estate sector.