Vonovia, Germany’s largest residential real estate company, has extended the contract of its chief executive Rolf Buch by five years to February 2023.
Mr. Buch switched from German media group Bertelsmann to Vonovia in 2013, leading the company through its stock market flotation in Frankfurt in September 2015. Vonovia became the first private housing company to join Germany’s DAX blue-chip index.
“In his role as CEO, he has laid the right foundation for further dynamic growth and a successful future,” supervisory board chairman Wulf Bernotat said in a statement. “We want to continue on this path with him.”
Vonovia, a real-estate group headquartered in Düsseldorf, was founded in 2001 as Deutsche Annington, the German affiliate of British housing firm Annington Homes. The largest private owner of homes in Germany, Vonovia manages 400,000 homes and apartments.
The company presented its 2016 annual results on Tuesday. A general increase in property prices helped drive Vonovia’s net asset value by 27 percent to €14.3 billion, or $15.1 billion, leading profits to jump 25 percent to €760.8 million. The group expects core profit to further rise to up to €850 million in 2017.
A year after the failure of Vonovia’s drawn-out €10-billion hostile takeover of smaller rival Deutsche Wohnen, the company said it is planning to focus on organic growth and abstain from acquisitions in an overheated German market, amid record-low interest rates and the recent arrival of over 1 million refugees that has further increased demand for housing.
“We don’t need to buy at inflated prices,” said Mr. Buch, who added that a potential acquisition of Deutsche Wohnen was not high up on his agenda.