FRANKFURT (dpa-AFX) - The quarterly figures of Germany's largest residential real estate group Vonovia also gave the sector as a whole a slight boost on Tuesday. The company returned to profit following a billion-euro loss in the previous year. Vonovia also raised its forecast for rental income growth in 2024.

Vonovia shares recently rose by 5.2 percent to EUR 27.50. They thus continued the recent recovery trend and took the top spot in the weakening German leading index Dax.

TAG Immobilien, LEG Immobilien and Aroundtown took top places in the MDax mid-cap index, while Patrizia, Vonovia subsidiary Deutsche Wohnen and Grand City Properties were among the leaders in the SDax small and mid-cap index. The European sector index led the list of winners in the broad-based Stoxx Europe 600 with a plus of 0.9 percent.

Overall, the sector stocks have some catching up to do, as the hoped-for easing of monetary policy on both sides of the Atlantic has yet to materialize. Despite the recent recovery, the sector index is still the biggest loser since the beginning of the year, down 5.2 percent. Individual stocks are also lagging behind the positive market trend.

Meanwhile, the latest inflation data underpins the expectation that at least the European Central Bank (ECB) will cut interest rates again for the first time at its June meeting. After the inflation rate in Germany remained at its recent significantly lower level in April, as expected, inflation in the eurozone showed a similar picture. However, excluding the volatile prices for energy, food and luxury foods, core inflation continued to fall. The inflation data should not change the expected ECB interest rate cut, write the experts at Pantheon Macro.

The Vonovia figures met with a largely positive response from analysts. Neil Green from the US bank JPMorgan attested to the Group's encouraging start to the year with progress in the sale of apartments, the statements on the value of the real estate portfolio and the return to profit growth in 2025. Berenberg expert Kai Klose praised the figures for exceeding his expectations, while Andre Remke from Baader Bank highlighted the increased target for rental income growth.

Apart from this, Vonovia had merely confirmed the annual outlook, criticized analyst Paul May from the British investment bank Barclays. However, he also sees a positive overall picture in the figures./gl/la/stk