Vonovia CEO Rolf Buch: In the service of shareholders AND tenants?

Rolf Buch

Some investors would not like to hear that: When asked to whom he feels more committed (the tenants or the shareholders), Vonovia CEO Rolf Buch replied in an interview with Spiegel: “Both. We have to find a balance, that’s our job.” Of all people, the man that some consider to be the prime example of a profit-fixed real estate capitalist is thus an opponent of the shareholder value concept – and an advocate of German corporate governance culture. Is that credible? Or is that the wolf in sheep’s clothing talking?

Miethai image would be a fire hazard for Vonovia

Buch says:”Our investors understand that the investment would have no sustainable value without tenants Okay, that sounds more like a matter of course, but it should mean: Vonovia investors think long-term and do not demand maximum rent increases – well aware that a “Miethai” image is harmful in the long run. A look at the shareholder structure reveals that long-term investors such as Blackrock (7.9 percent) and the Norwegian pension fund (6.9 percent) dominate. This suggests that Buch not only wants to find a “balance” – but also is allowed to. At least as long as no activist shareholders appear on the plan.