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Shares in Vonovia

Vonovia’s shares closed 2021 at € 48.50 after a volatile year on the stock market. While the relevant benchmark indices showed positive development in the course of 2021, with the DAX 40 gaining 15.8%, the FTSE EPRA Europe rising by 15.1% or the EURO STOXX 50 making gains of 20.6%, Vonovia’s shares lost 13.4% of their value. Concerns regarding a prolonged period of high inflation and an associated rise in interest rates had a negative impact on the share price performance of German residential real estate companies, particularly towards the end of 2021. The imminent capital increase, which we ultimately implemented successfully in connection with the Deutsche Wohnen transaction in December, also had an impact on Vonovia’s share price, as was to be expected.

Share Price Development

Share Price Performance since IPO

Even though Vonovia’s share price declined in 2021, we still believe that our shares reflect the success of our business model as a whole in the long term. The graphic, for example, illustrates Vonovia’s share price performance as against the DAX and EPRA since the time of the IPO and its superior performance of approx. 270% in the period leading up to the end of 2021.

Vonovia’s shares reached their highest price for the year on August 22, 2021 at € 57.15 and their lowest price on May 25, 2021 at € 45.53.

Vonovia’s market capitalization amounted to around € 37.7 billion as of December 31, 2021.

As a residential real estate company, Vonovia’s operating business is still only very marginally affected by the coronavirus pandemic. Particularly on the demand and the resulting income side, we still do not expect the crisis to have any impact to speak of. Rather, the main long-term megatrends will remain the dominant forces driving our business: urbanization and the resulting imbalance between supply and demand as well as climate change and the reduction of CO₂ emissions in the housing stock. Other key factors include demographic change and senior-friendly apartment conversion. We are optimistic as we look ahead to the future and are confident that we will remain financially successful.

The average trading volume for shares in Vonovia SE, expressed as the number of shares traded on XETRA, remained more or less on a par with the 2020 fiscal year, with an average daily trading volume of 1.7 million shares in 2021. Expressed in euros, shares in Vonovia worth € 84 million were traded every day on average in 2021.

Index Memberships: Vonovia SE Member of the EURO STOXX 50, DAX 50 ESG and DJSI Europe

Vonovia has been a member of various sustainability indices since 2020, in particular the DAX 50 ESG and the Dow Jones Sustainability Index (DJSI Europe), which confirms Vonovia’s successful ESG activities and the progress made in this area.

Capital Increase with Subscription Rights Totaling € 8.1 billion

In connection with the refinancing of the acquisition of Deutsche Wohnen, Vonovia’s Management Board passed a resolution, with the approval of the Supervisory Board, on a capital increase with subscription rights in the amount of approximately € 8.1 billion on November 21, 2021. Vonovia’s existing shareholders were able to purchase 7 new shares for 20 existing ones at a price of € 40 per share, which corresponded to a standard market discount of approximately 20% on the TERP (theoretical ex-rights price).

By the end of the subscription period on December 7, 2021 subscription rights had been exercised for 198,508,119 shares, corresponding to a subscription rate of 98.59%. The remaining 2,831,943 new shares were placed with institutional investors as part of a private placement. This brought the total gross proceeds to just under € 8.1 billion.

Following the entry of the capital increase in the commercial register on December 2, 2021 the company’s share capital amounts to € 776,597,389.00, split into 776,597,389 shares.

A capital increase with subscription rights at a discount requires all of the historical key figures per share to be adjusted, as a capital increase with subscription rights at a discount is a combination of an issue at the full share price and a bonus share issue.

Pursuant to IAS 33, the earnings per share for previous periods have to be adjusted to reflect the bonus element. Vonovia applies this method to all other share-related key figures, such as Group FFO, share prices, dividends or NTA, and marks the figures concerned accordingly.

Long-term Yield

An investor who bought shares in Vonovia when the company went public in 2013 and has held them ever since, reinvesting each dividend in more shares in Vonovia, will have seen the value of their securities deposit account increase by 267% by December 31, 2021 a result that far outstrips the performance of a corresponding investment in the benchmark indices.

Yield since Vonovia IPO

Successful Development of Vonovia’s Shares Over a Period of Several Years

Successful Development of Vonovia’s Shares Over a Period of Several Years

2013

2014

2015

2016

2017

2018

2019

2020

2021

Annual closing price (€)

16.06*

25.08*

26.76*

28.97*

38.80*

37.11*

45.00*

56.02*

48.50

High (€)*

17.62

25.08

31.15

34.51

39.26

41.88

45.78

58.33

56.64

Low (€)*

15.65

16.31

22.68

23.43

28.08

33.94

37.39

36.19

45.85

No. of shares as of Dec. 31 (in million)

251.5*

304.6*

497.2*

497.2*

517.6*

552.8*

578.6*

603.8*

776.6

Market cap as of Dec. 31 (€ billion)

4.0

7.6

13.3

14.4

20.1

20.5

26.0

33.8

37.7

Average transaction volume per day (VWAP in € million)*

1.3

12.3

45.2

41.2

47.6

55.8

65.9

85.7

84.2

Dividend per share (€)

0.62*

0.70*

0.88*

1.05*

1.24*

1.35*

1.47*

1.58*

1.66**

Dividend yield (%)

3.9

2.8

3.3

3.6

3.2

3.6

3.3

2.8

3.4

  1. *Values are TERP-adjusted (TERP 2015: 1,051 – capital increase with subscription rights in connection with Südewo acquisition; TERP 2021: 1.067 – capital increase with subscription rights in connection with Deutsche Wohnen acquisition).
  2. **Planned dividend proposed to the 2022 Annual General Meeting.
  3. Source of share prices: FactSet