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Group’s Business Development

Business Development in 2021 – An Overview

The 2021 fiscal year was a successful year for Vonovia despite the ongoing coronavirus pandemic. We were able to expand our market position further by acquiring a majority stake in Deutsche Wohnen. In addition, we continued to be a reliable partner for all of our stakeholders, especially our customers. As in 2020, our business processes again continued virtually unhindered in many areas despite the coronavirus crisis thanks to employees working from home. All in all, the coronavirus pandemic did not have any significant impact on Vonovia’s operational and financial performance in 2021 either. We only experienced a low level of rent losses on the whole. Modernization and new construction measures, as well as sales activities, were only slightly affected by the coronavirus restrictions, and the impact was merely temporary. In the 2021 fiscal year, we once again observed stable demand for rental apartments and no negative impact on market values as a result of the coronavirus pandemic.

We invested around € 1.4 billion in total in our own portfolio (including Deutsche Wohnen) for new construction and modernization measures (2020: € 1.3 billion) and around € 0.8 billion for maintenance (2020: € 0.6 billion). We completed 1,373 apartments (2020: 1,442) as part of our new construction measures. We also completed 827 apartments that are intended for sale (2020: 646).

The table below provides an overview of the development of our most recently forecast performance indicators, excluding Deutsche Wohnen, and the target achievement level for these indicators in the 2021 fiscal year. The Group figures for 2021 are also shown including Deutsche Wohnen. When comparing the current Group figures against the previous year, it is important to bear in mind that the figures for 2021 include the Deutsche Wohnen Group, which was consolidated for the first time as of September 30, 2021 together with its earnings contributions for the fourth quarter of 2021.

Performance indicators


Forecast for 2021 in the 2021 Q3 report**



Total Segment Revenue

€ 4.4 billion

€ 4.9–5.1 billion

€ 4.9 billion

€ 5.2 billion

Adjusted EBITDA Total

€ 1,909.8 million

Around upper end of € 2,055–2,105 million

€ 2,098.5 million

€ 2,269.3 million

Group FFO

€ 1,348.2 million

€ 1,520–1,540 million

€ 1,534.5 million

€ 1,672.0 million

Group FFO per share*

€ 2.23


€ 1.98

€ 2.15

EPRA NTA per share*

€ 58.78


€ 66.73

Sustainability Performance Index (SPI)



  1. * Based on the shares carrying dividend rights on the reporting date, prior-year values TERP-adjusted (1.067).
  2. ** Excl. Deutsche Wohnen.

The total segment revenue came to around € 5.2 billion in 2021, up by 18.5% on the prior-year figure of around € 4.4 billion. This increase was due primarily to income from disposal of properties (development), the additional rental income from Deutsche Wohnen in the fourth quarter of 2021, and organic growth thanks to new construction and modernization in the Vonovia portfolio. In the fourth quarter of 2021, Deutsche Wohnen contributed a volume of around € 0.3 billion to Vonovia’s total segment revenue.

The Adjusted EBITDA Total came to € 2,269.3 million in 2021, an increase of 18.8% against the 2020 figure of € 1,909.8 million. Deutsche Wohnen contributed to this increase in the amount of € 170.8 million. With the exception of the Value-add segment, all other segments reported growth in Adjusted EBITDA.

Group FFO rose by 24.0% in 2021 to € 1,672.0 million (2020: € 1,348.2 million). This corresponds to a Group FFO per share of € 2.15 (2020: € 2.23). The main factors contributing to the increase in Group FFO were the acquisition of Deutsche Wohnen with Adjusted EBITDA of € 170.8 million, the improved Adjusted EBITDA Rental and the improved Adjusted EBITDA Development. The Adjusted EBITDA Rental increased from € 1,554.2 million in 2020 to € 1,648.0 million in 2021. The Adjusted EBITDA Development increased from € 110.9 million in 2020 to € 187.7 million in 2021. The Group FFO interest expense came to € 397.7 million in 2021, up by 4.6% on the prior-year value of € 380.1 million. Current income taxes FFO came in at € 65.2 million in 2021, around 24.4% higher than in the previous year (€ 52.4 million). At € 160.0 million, consolidation effects (excluding the at-equity effect of Deutsche Wohnen from the third quarter of 2021) in 2021 were up by 23.9% on the prior-year value of € 129.1 million. This was largely driven by the increase in gross profit for “Development to hold” from € 62.8 million in 2020 to € 84.9 million in 2021.

The EPRA NTA per share came in at € 66.73 in 2021, up by 13.5% on the TERP-adjusted prior-year value of € 58.78 . This increase in the net asset value figure was due primarily to the net income from fair value adjustments of investment properties of € 7,393.8 million in 2021 (2020: € 3,719.8 million). The distribution of the cash dividend of € 486.0 million in 2021 had the opposite effect (2020: € 504.6 million).

The Sustainability Performance Index (Vonovia excluding Deutsche Wohnen) stood at 109% in 2021, higher than the most recent forecast of 105%. This was helped along in particular by the reduction of CO₂ intensity, the development of the average primary energy requirements of new construction, and the positive development of the customer satisfaction index.

Statement of the Management Board on the Economic Situation

The net assets, financial position and results of operations of the Group are extremely positive, particularly given the solid financing, the resulting balanced maturity profile and the financing flexibility gained through the rating-backed bond financings with a view to both organic and external growth. The ongoing improvements to the property management and development processes, the use of new digital software solutions, the expansion of the Value-add segment, the steady Recurring Sales and a successful development business promote ongoing improvement in profitability.