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Presentation of Performance Indicators Linked to Taxonomy-eligible and Taxonomy-aligned Economic Activities

In order to comply with regulatory requirements for the 2022 fiscal year, Vonovia discloses the following shares in performance indicators that are associated with taxonomy-aligned and non-taxonomy-aligned economic activities. As of the 2023 reporting year, we also plan to report on the taxonomy-eligible and taxonomy-aligned share of the performance indicators with regard to the additional EU environmental objectives 3 to 6. Furthermore, we will include prior-year figures on taxonomy alignment for EU environmental objectives 1 and 2 in the reporting (see Article 8 (3) of the Delegated Act on Article 8 regarding the content and presentation of the information that is to be disclosed).

Turnover

EU Taxonomy – Turnover

Substantial contribution criteria *

DNSH criteria

Category

Code(s)

Ab­solute turn­over

Pro­por­tion of turn­over

Cli­mate Change mitiga­tion

Cli­mate Change adap­ta­tion**

Water and marine re­sources

Cir­cu­lar econ­omy

Pol­lu­tion

Bio­di­ver­sity and eco­sys­tems

Cli­mate change mitiga­tion

Cli­mate change adapta­tion

Water and marine re­sources

Cir­cular econ­omy

Pol­lu­tion

Bio­di­versity and eco­sys­tems

Mini­mum safe­guards

Taxon­omy- aligned propor­tion of turn­over 2022

Taxon­omy- aligned pro­por­tion of turn­over 2021***

En­abling activ­ity

Tran­si­tion­al activ­ity

Economic Activities

€ m

%

%

%

%

%

%

%

Y/N

Y/N

Y/N

Y/N

Y/N

Y/N

Y/N

%

%

E

T

A.

Taxonomy-eligible activities

A.1

Environmental sustainable activities (Taxonomy-aligned)

7.1

Construction of new buildings

F41.1, F41.2, F43

354

3.9

3.9

0.0

Y

Y

Y

Y

Y

Y

3.9

7.7

Acquisition and ownership of buildings

L68

593

6.6

6.6

0.0

Y

Y

Y

Y

Y

Y

6.6

4.1

Electricity generation using solar photovoltaic technology

D35.11

1

0.0

0.0

0.0

Y

Y

Y

Y

Y

Y

0.0

Turnover of environmental sustainable activities (Taxonomy-aligned)

949

10.6

10.6

0.0

10.6

A.2

Taxonomy-eligible but not environmental sustainable activities (not Taxonomy-aligned activities)

7.1

Construction of new buildings

F41.1, F41.2, F43

234

2.6

2.6

0.0

7.7

Acquisition and ownership of buildings

L68

7,414

82.5

82.5

0.0

4.1

Electricity generation using solar photovoltaic technology

D35.11

0

0.0

0.0

0.0

Turnover of Taxonomy-eligible but not environmental sustainable activities (not Taxonomy-aligned activities)

7,648

85.1

85.1

0.0

Total (A.1 + A.2)

8,597

95.7

95.7

0.0

B.

Taxonomy-non-eligible activities

Turnover of Taxonomy-non-eligible activities

386

4.3

Total (A + B)

8,983

100.0

  1. * For the reporting year 2022, the disclosure of the performance indicators covers EU environmental objectives 1 and 2. The determination and disclosure of the taxonomy-aligned portions of the performance indicators with reference to EU environmental objectives 3 to 6 is not part of the reporting requirement for fiscal year 2022.
  2. ** Vonovia discloses taxonomy-aligned shares of business activities related to EU environmental objective 1 (climate change mitigation). We have not identified any significant contribution of our business activities to EU environmental objective 2 (climate change adaptation). DNSH criteria are not available for all taxonomy-relevant activities of Vonovia. Since there is no significant harm on the respective EU environmental objective in these cases either, we have entered “Y” accordingly.
  3. *** In accordance with reporting requirements, the prior-year figures will be disclosed for the first time for the reporting year 2023.

CapEx

EU Taxonomy – CapEx

Substantial contribution criteria *

DNSH criteria

Category

Code(s)

Ab­solute turn­over

Pro­por­tion of turn­over

Cli­mate Change mitiga­tion

Cli­mate Change adap­ta­tion**

Water and marine re­sources

Cir­cu­lar econ­omy

Pol­lu­tion

Bio­di­ver­sity and eco­sys­tems

Cli­mate change mitiga­tion

Cli­mate change adapta­tion

Water and marine re­sources

Cir­cular econ­omy

Pol­lu­tion

Bio­di­versity and eco­sys­tems

Mini­mum safe­guards

Taxon­omy- aligned propor­tion of turn­over 2022

Taxon­omy- aligned pro­por­tion of turn­over 2021***

En­abling activ­ity

Tran­si­tion­al activ­ity

Economic Activities

€ m

%

%

%

%

%

%

%

Y/N

Y/N

Y/N

Y/N

Y/N

Y/N

Y/N

%

%

E

T

A.

Taxonomy-eligible activities

A.1

Environmental sustainable activities (Taxonomy-aligned)

7.2

Renovation of existing buildings

F41, F43

239

9.6

9.6

0.0

Y

Y

Y

Y

Y

Y

9.6

T

7.3

Installation, maintenance and repair of energy efficiency equipment

F43, C33.12

80

3.2

3.2

0.0

Y

Y

Y

Y

Y

Y

3.2

E

7.4

Installation, maintenance and repair of charging stations for electric vehicles in buildings (and parking spaces attached to buildings)

F43

1

0.0

0.0

0.0

Y

Y

Y

Y

Y

Y

0.0

E

7.5

Installation, maintenance and repair of instruments and devices for measuring, regulation and controlling energy performance of buildings

F43

7

0.3

0.3

0.0

Y

Y

Y

Y

Y

Y

0.3

E

7.6

Installation, maintenance and repair of renewable energy technologies

F43

6

0.2

0.2

0.0

Y

Y

Y

Y

Y

Y

0.2

E

7.7

Acquisition and ownership of buildings

L68

443

17.9

17.9

0.0

Y

Y

Y

Y

Y

Y

17.9

CapEx of environmental sustainable activities (Taxonomy-aligned)

774

31.2

31.2

0.0

31.2

A.2

Taxonomy-eligible but not environmental sustainable activities (not Taxonomy aligned activities)

7.2

Renovation of existing buildings

F41, F43

256

10.3

10.3

0.0

T

7.3

Installation, maintenance and repair of energy efficiency equipment

F43, C33.12

0

0.0

0.0

0.0

E

7.4

Installation, maintenance and repair of charging stations for electric vehicles in buildings (and parking spaces attached to buildings)

F43

0

0.0

0.0

0.0

E

7.5

Installation, maintenance and repair of instruments and devices for measuring, regulation and controlling energy performance of buildings

F43

0

0.0

0.0

0.0

E

7.6

Installation, maintenance and repair of renewable energy technologies

F43

0

0.0

0.0

0.0

E

7.7

Acquisition and ownership of buildings

L68

1,359

54.7

54.7

0.0

CapEx of Taxonomy-eligible but not environmental sustainable activities (not Taxonomy-aligned activities)

1,615

65.0

65.0

0.0

Total (A.1 + A.2)

2,389

96.2

96.2

0.0

B.

Taxonomy-non-eligible activities

CapEx of Taxonomy-non-eligible activities

94

3.8

Total (A + B)

2,483

100.0

  1. * For the reporting year 2022, the disclosure of the performance indicators covers EU environmental objectives 1 and 2. The determination and disclosure of the taxonomy-aligned portions of the performance indicators with reference to EU environmental objectives 3 to 6 is not part of the reporting requirement for fiscal year 2022.
  2. ** Vonovia discloses taxonomy-aligned shares of business activities related to EU environmental objective 1 (climate change mitigation). We have not identified any significant contribution of our business activities to EU environmental objective 2 (climate change adaptation). DNSH criteria are not available for all taxonomy-relevant activities of Vonovia. Since there is no significant harm on the respective EU environmental objective in these cases either, we have entered “Y” accordingly.
  3. *** In accordance with reporting requirements, the prior-year figures will be disclosed for the first time for the reporting year 2023.

OpEx

EU Taxonomy – OpEx

Substantial contribution criteria *

DNSH criteria

Category

Code(s)

Ab­solute turn­over

Pro­por­tion of turn­over

Cli­mate Change mitiga­tion

Cli­mate Change adap­ta­tion**

Water and marine re­sources

Cir­cu­lar econ­omy

Pol­lu­tion

Bio­di­ver­sity and eco­sys­tems

Cli­mate change mitiga­tion

Cli­mate change adapta­tion

Water and marine re­sources

Cir­cular econ­omy

Pol­lu­tion

Bio­di­versity and eco­sys­tems

Mini­mum safe­guards

Taxon­omy- aligned propor­tion of turn­over 2022

Taxon­omy- aligned pro­por­tion of turn­over 2021***

En­abling activ­ity

Tran­si­tion­al activ­ity

Economic Activities

€ m

%

%

%

%

%

%

%

Y/N

Y/N

Y/N

Y/N

Y/N

Y/N

Y/N

%

%

E

T

A.

Taxonomy-eligible activities

A.1

Environmental sustainable activities (Taxonomy-aligned)

7.7

Acquisition and ownership of buildings

L68

49

12.3

12.3

0.0

Y

Y

Y

Y

Y

Y

12.3

OpEx of environmental sustainable activities (Taxonomy-aligned)

49

12.3

12.3

0.0

12.3

A.2

Taxonomy-eligible but not environmental sustainable activities (not Taxonomy-aligned activities)

7.7

Acquisition and ownership of buildings

L68

331

82.9

82.9

0.0

OpEx of Taxonomy-eligible but not environmental sustainable activities (not Taxonomy-aligned activities)

331

82.9

82.9

0.0

Total (A.1 + A.2)

381

95.3

95.3

0.0

B.

Taxonomy-non-eligible activities

OpEx of Taxonomy-non-eligible activities

19

4.7

Total (A + B)

399

100.0

  1. * For the reporting year 2022, the disclosure of the performance indicators covers EU environmental objectives 1 and 2. The determination and disclosure of the taxonomy-aligned portions of the performance indicators with reference to EU environmental objectives 3 to 6 is not part of the reporting requirement for fiscal year 2022.
  2. ** Vonovia discloses taxonomy-aligned shares of business activities related to EU environmental objective 1 (climate change mitigation). We have not identified any significant contribution of our business activities to EU environmental objective 2 (climate change adaptation). DNSH criteria are not available for all taxonomy-relevant activities of Vonovia. Since there is no significant harm on the respective EU environmental objective in these cases either, we have entered “Y” accordingly.
  3. *** In accordance with reporting requirements, the prior-year figures will be disclosed for the first time for the reporting year 2023.

Adjusted EBITDA Development

The Adjusted EBITDA Development includes the gross profit from the development activities of “to sell” projects (income from sold development projects less production costs) and the gross profit from the development activities of “to hold” projects (fair value of the units developed for the company’s own portfolio less incurred production costs) less the operating expenses from the Development segment.

Adjusted EBITDA Care

The Adjusted EBITDA Care is calculated by deducting maintenance expenses and operating costs from the segment revenue.

Adjusted EBITDA Recurring Sales

The Adjusted EBITDA Recurring Sales compares the proceeds generated from the privatization business with the fair values of assets sold and also deducts the related costs of sale. In order to disclose profit and revenue in the period in which they are incurred and to report a sales margin, the fair value of properties sold, valued in accordance with IFRS 5, has to be adjusted to reflect realized/unrealized changes in value.

Adjusted EBITDA Rental

The Adjusted EBITDA Rental is calculated by deducting the operating expenses of the Rental segment and the expenses for maintenance in the Rental segment from the Group’s rental income.

Adjusted EBITDA Total (Earnings Before Interest, Taxes, Depreciation and Amortization)

Adjusted EBITDA Total is the result before interest, taxes, depreciation and amortization (including income from other operational investments and intragroup profits) adjusted for effects that do not relate to the period, recur irregularly and that are atypical for business operation, and for net income from fair value adjustments to investment properties. These non-recurring items include the development of new fields of business and business processes, acquisition projects, expenses for refinancing and equity increases (where not treated as capital procurement costs), IPO preparation costs and expenses for pre-retirement part-time work arrangements and severance payments. The Adjusted EBITDA Total is derived from the sum of the Adjusted EBITDA Rental, Adjusted EBITDA Value-add, Adjusted EBITDA Recurring Sales, Adjusted EBITDA Development and Adjusted EBITDA Care.

Adjusted EBITDA Total (Earnings Before Interest, Taxes, Depreciation and Amortization)

Adjusted EBITDA Total is the result before interest, taxes, depreciation and amortization (including income from other operational investments and intragroup profits) adjusted for effects that do not relate to the period, recur irregularly and that are atypical for business operation, and for net income from fair value adjustments to investment properties. These non-recurring items include the development of new fields of business and business processes, acquisition projects, expenses for refinancing and equity increases (where not treated as capital procurement costs), IPO preparation costs and expenses for pre-retirement part-time work arrangements and severance payments. The Adjusted EBITDA Total is derived from the sum of the Adjusted EBITDA Rental, Adjusted EBITDA Value-add, Adjusted EBITDA Recurring Sales, Adjusted EBITDA Development and Adjusted EBITDA Care.

Adjusted EBITDA Total (Earnings Before Interest, Taxes, Depreciation and Amortization)

Adjusted EBITDA Total is the result before interest, taxes, depreciation and amortization (including income from other operational investments and intragroup profits) adjusted for effects that do not relate to the period, recur irregularly and that are atypical for business operation, and for net income from fair value adjustments to investment properties. These non-recurring items include the development of new fields of business and business processes, acquisition projects, expenses for refinancing and equity increases (where not treated as capital procurement costs), IPO preparation costs and expenses for pre-retirement part-time work arrangements and severance payments. The Adjusted EBITDA Total is derived from the sum of the Adjusted EBITDA Rental, Adjusted EBITDA Value-add, Adjusted EBITDA Recurring Sales, Adjusted EBITDA Development and Adjusted EBITDA Care.

Adjusted EBITDA Value-add

The Adjusted EBITDA Value-add is calculated by deducting operating expenses from the segment’s income.

COSO

The Committee of Sponsoring Organizations of the Treadway Commission (COSO) is a private-sector U.S. organization. It was founded in 1985. In 1992, COSO published the COSO model, an SEC-recognized standard for internal controls. This provided a basis for the documentation, analysis and design of internal control systems. In 2004, the model was further developed and the COSO Enterprise Risk Management Framework was published. Since then, it has been used to structure and develop risk management systems.

Covenants

Requirements specified in loan agreements or bond conditions containing future obligations of the borrower or the bond obligor to meet specific requirements or to refrain from undertaking certain activities.

EPRA Key Figures

For information on the EPRA key figures, we refer to the chapter on segment reporting according to EPRA.

EPRA NTA

The presentation of the NAV based on the EPRA definition aims to show the net asset value in a long-term business model. NTA stands for Net Tangible Assets. The equity attributable to Vonovia’s shareholders is adjusted by deferred taxes in relation to the existing portfolio and the fair value of derivative financial instruments after taking deferred taxes into account. Stated goodwill and other intangible assets are also deducted.

European Public Real Estate Association (EPRA)

The European Public Real Estate Association (EPRA) is a non-profit organization that has its registered headquarters in Brussels and represents the interests of listed European real estate companies. Its mission is to raise awareness of European listed real estate companies as a potential investment destination that offers an alternative to conventional investments. EPRA is a registered trademark of the European Public Real Estate Association.

European Public Real Estate Association (EPRA)

The European Public Real Estate Association (EPRA) is a non-profit organization that has its registered headquarters in Brussels and represents the interests of listed European real estate companies. Its mission is to raise awareness of European listed real estate companies as a potential investment destination that offers an alternative to conventional investments. EPRA is a registered trademark of the European Public Real Estate Association.

Fair Value

Fair value is particularly relevant with regard to valuation in accordance with IAS 40 in conjunction with IFRS 13. The fair value is the amount for which an asset could be exchanged between knowledgeable, willing parties in an arm’s length transaction.

Fair Value

Fair value is particularly relevant with regard to valuation in accordance with IAS 40 in conjunction with IFRS 13. The fair value is the amount for which an asset could be exchanged between knowledgeable, willing parties in an arm’s length transaction.

Fair Value

Fair value is particularly relevant with regard to valuation in accordance with IAS 40 in conjunction with IFRS 13. The fair value is the amount for which an asset could be exchanged between knowledgeable, willing parties in an arm’s length transaction.

Fair Value

Fair value is particularly relevant with regard to valuation in accordance with IAS 40 in conjunction with IFRS 13. The fair value is the amount for which an asset could be exchanged between knowledgeable, willing parties in an arm’s length transaction.

GAV

The Gross Asset Value (GAV) of the recognized real estate investments. This consists of the owner-occupied properties, the investment properties including development to hold, the assets held for sale and the development to sell area. In the latter, both residential properties for which a purchase contract has been signed and those with the intention to sell – i.e., a purchase contract has not yet been signed – are included.

GAV

The Gross Asset Value (GAV) of the recognized real estate investments. This consists of the owner-occupied properties, the investment properties including development to hold, the assets held for sale and the development to sell area. In the latter, both residential properties for which a purchase contract has been signed and those with the intention to sell – i.e., a purchase contract has not yet been signed – are included.

Group FFO

Group FFO reflects the recurring earnings from the operating business. In addition to the adjusted EBITDA for the Rental, Value-add, Recurring Sales, Development and Care segments, Group FFO allows for recurring current net interest expenses from non-derivative financial instruments as well as current income taxes. This key figure is not determined on the basis of any specific international reporting standard but is to be regarded as a supplement to other performance indicators determined in accordance with IFRS.

ICR (Interest Coverage Ratio)

The interest coverage ratio is the ratio of Adjusted EBITDA Total to net cash interest.

Maintenance

Maintenance covers the measures that are necessary to ensure that the property can continue to be used as intended over its useful life and that eliminate structural and other defects caused by wear and tear, age and weathering effects.

Maintenance

Maintenance covers the measures that are necessary to ensure that the property can continue to be used as intended over its useful life and that eliminate structural and other defects caused by wear and tear, age and weathering effects.

Maintenance

Maintenance covers the measures that are necessary to ensure that the property can continue to be used as intended over its useful life and that eliminate structural and other defects caused by wear and tear, age and weathering effects.

Maintenance

Maintenance covers the measures that are necessary to ensure that the property can continue to be used as intended over its useful life and that eliminate structural and other defects caused by wear and tear, age and weathering effects.

Vacancy Rate

The vacancy rate is the number of empty units as a percentage of the total units owned by the company. The vacant units are counted at the end of each month.

Vacancy Rate

The vacancy rate is the number of empty units as a percentage of the total units owned by the company. The vacant units are counted at the end of each month.

Vacancy Rate

The vacancy rate is the number of empty units as a percentage of the total units owned by the company. The vacant units are counted at the end of each month.

Vacancy Rate

The vacancy rate is the number of empty units as a percentage of the total units owned by the company. The vacant units are counted at the end of each month.

LTV Ratio (Loan-to-Value Ratio)

The LTV ratio shows the extent to which financial liabilities are covered. It shows the ratio of non-derivative financial liabilities pursuant to IFRS, less foreign exchange rate effects, cash and cash equivalents less advance payments received by Development (period-related), receivables from disposals, plus purchase prices for outstanding acquisitions to the total fair values of the real estate portfolio, fair values of the projects/land currently under construction as well as receivables from the sale of real estate inventories (period-related) plus the fair values of outstanding acquisitions and investments in other real estate companies, as well as loans to companies with holdings of real estate and land.

Rental Income

Rental income refers to the current gross income for rented units as agreed in the corresponding lease agreements before the deduction of non-transferable ancillary costs. The rental income from the Austrian property portfolio additionally includes maintenance and improvement contributions (EVB). The rental income from the portfolio in Sweden reflects inclusive rents, meaning that the amounts contain operating and heating costs.

Rental Income

Rental income refers to the current gross income for rented units as agreed in the corresponding lease agreements before the deduction of non-transferable ancillary costs. The rental income from the Austrian property portfolio additionally includes maintenance and improvement contributions (EVB). The rental income from the portfolio in Sweden reflects inclusive rents, meaning that the amounts contain operating and heating costs.

MFH Sales

We also report on the Other segment, which is not relevant from a corporate management perspective, in our segment reporting. This portfolio involves the sale of multifamily homes largely located outside of our urban quarters.

Rental Income

Rental income refers to the current gross income for rented units as agreed in the corresponding lease agreements before the deduction of non-transferable ancillary costs. The rental income from the Austrian property portfolio additionally includes maintenance and improvement contributions (EVB). The rental income from the portfolio in Sweden reflects inclusive rents, meaning that the amounts contain operating and heating costs.

Modernization Measures

Modernization measures are long-term and sustainable value-enhancing investments in housing and building stocks. Energy-efficient refurbishments generally involve improvements to the building shell and communal areas as well as the heat and electricity supply systems. Typical examples are the installation of heating systems, the renovation of balconies and the retrofitting of prefabricated balconies as well as the implementation of energy-saving projects, such as the installation of double-glazed windows and heat insulation, e.g. , facade insulation, insulation of the top story ceilings and basement ceilings. In addition to modernization of the apartment electrics, the refurbishment work upgrades the apartments, typically through the installation of modern and/or accessible bathrooms, the installation of new doors and the laying of high-quality and non-slip flooring. Where required, the floor plans are altered to meet changed housing needs.

Modernization Measures

Modernization measures are long-term and sustainable value-enhancing investments in housing and building stocks. Energy-efficient refurbishments generally involve improvements to the building shell and communal areas as well as the heat and electricity supply systems. Typical examples are the installation of heating systems, the renovation of balconies and the retrofitting of prefabricated balconies as well as the implementation of energy-saving projects, such as the installation of double-glazed windows and heat insulation, e.g. , facade insulation, insulation of the top story ceilings and basement ceilings. In addition to modernization of the apartment electrics, the refurbishment work upgrades the apartments, typically through the installation of modern and/or accessible bathrooms, the installation of new doors and the laying of high-quality and non-slip flooring. Where required, the floor plans are altered to meet changed housing needs.

Modernization Measures

Modernization measures are long-term and sustainable value-enhancing investments in housing and building stocks. Energy-efficient refurbishments generally involve improvements to the building shell and communal areas as well as the heat and electricity supply systems. Typical examples are the installation of heating systems, the renovation of balconies and the retrofitting of prefabricated balconies as well as the implementation of energy-saving projects, such as the installation of double-glazed windows and heat insulation, e.g. , facade insulation, insulation of the top story ceilings and basement ceilings. In addition to modernization of the apartment electrics, the refurbishment work upgrades the apartments, typically through the installation of modern and/or accessible bathrooms, the installation of new doors and the laying of high-quality and non-slip flooring. Where required, the floor plans are altered to meet changed housing needs.

Modernization Measures

Modernization measures are long-term and sustainable value-enhancing investments in housing and building stocks. Energy-efficient refurbishments generally involve improvements to the building shell and communal areas as well as the heat and electricity supply systems. Typical examples are the installation of heating systems, the renovation of balconies and the retrofitting of prefabricated balconies as well as the implementation of energy-saving projects, such as the installation of double-glazed windows and heat insulation, e.g. , facade insulation, insulation of the top story ceilings and basement ceilings. In addition to modernization of the apartment electrics, the refurbishment work upgrades the apartments, typically through the installation of modern and/or accessible bathrooms, the installation of new doors and the laying of high-quality and non-slip flooring. Where required, the floor plans are altered to meet changed housing needs.

Monthly In-place Rent

The monthly in-place rent is measured in euros per square meter and is the current gross rental income per month for rented units as agreed in the corresponding rent agreements at the end of the relevant month before deduction of non-transferable ancillary costs divided by the living area of the rented units. The rental income from the Austrian property portfolio additionally includes maintenance and improvement contributions (EVB). The rental income from the portfolio in Sweden reflects inclusive rents, meaning that the amounts contain operating and heating costs.

The in-place rent is often referred to as the “Nettokaltmiete” (net rent excl. ancillary costs such as heating, etc.). The monthly in-place rent on a like-for-like basis refers to the monthly in-place rent for the residential portfolio that was already held by Vonovia twelve months previously, i.e., portfolio changes during this period are not included in the calculation of the in-place rent on a like-for-like basis. If we also include the increase in rent due to new construction measures and measures to add extra stories, then we arrive at the organic increase in rent.

Monthly In-place Rent

The monthly in-place rent is measured in euros per square meter and is the current gross rental income per month for rented units as agreed in the corresponding rent agreements at the end of the relevant month before deduction of non-transferable ancillary costs divided by the living area of the rented units. The rental income from the Austrian property portfolio additionally includes maintenance and improvement contributions (EVB). The rental income from the portfolio in Sweden reflects inclusive rents, meaning that the amounts contain operating and heating costs.

The in-place rent is often referred to as the “Nettokaltmiete” (net rent excl. ancillary costs such as heating, etc.). The monthly in-place rent on a like-for-like basis refers to the monthly in-place rent for the residential portfolio that was already held by Vonovia twelve months previously, i.e., portfolio changes during this period are not included in the calculation of the in-place rent on a like-for-like basis. If we also include the increase in rent due to new construction measures and measures to add extra stories, then we arrive at the organic increase in rent.

Sustainability Performance Index (SPI)

Index to measure non-financial performance. Vonovia’s sustainable activities are geared towards the top sustainability topics that we have identified, which are bundled in the Sustainability Performance Index. The Customer Satisfaction Index (CSI) is included in the calculation of the Sustainability Performance Index. The CSI is determined at regular intervals in systematic customer surveys conducted by an external service provider and shows the effectiveness and sustainability of our services for the customer. Other indicators used in the Sustainability Performance Index are the carbon savings achieved annually in housing stock, the energy efficiency of new buildings, the share of accessible (partial) modernization measures in relation to newly let apartments, the increase in employee satisfaction and diversity in the company’s top management team.

Sustainability Performance Index (SPI)

Index to measure non-financial performance. Vonovia’s sustainable activities are geared towards the top sustainability topics that we have identified, which are bundled in the Sustainability Performance Index. The Customer Satisfaction Index (CSI) is included in the calculation of the Sustainability Performance Index. The CSI is determined at regular intervals in systematic customer surveys conducted by an external service provider and shows the effectiveness and sustainability of our services for the customer. Other indicators used in the Sustainability Performance Index are the carbon savings achieved annually in housing stock, the energy efficiency of new buildings, the share of accessible (partial) modernization measures in relation to newly let apartments, the increase in employee satisfaction and diversity in the company’s top management team.

Non-core

We also report on the Other segment, which is not relevant from a corporate management perspective, in our segment reporting. This includes the sale, only as and when the right opportunities present themselves, of entire buildings or land (Non Core) that are likely to have below-average development potential in terms of rent growth in the medium term and are located in areas that can be described as peripheral compared with Vonovia’s overall portfolio and in view of future acquisitions.

Rating

Classification of debtors or securities with regard to their creditworthiness or credit quality according to credit ratings. The classification is generally performed by rating agencies.

Rating

Classification of debtors or securities with regard to their creditworthiness or credit quality according to credit ratings. The classification is generally performed by rating agencies.

Rating

Classification of debtors or securities with regard to their creditworthiness or credit quality according to credit ratings. The classification is generally performed by rating agencies.

Rating

Classification of debtors or securities with regard to their creditworthiness or credit quality according to credit ratings. The classification is generally performed by rating agencies.

Recurring Sales

The Recurring Sales segment includes the regular and sustainable disposals of individual condominiums and single-family houses from our portfolio. It does not include the sale of entire buildings or land (MFH Sales/Non Core). These properties are only sold as and when the right opportunities present themselves, meaning that the sales do not form part of our operating business within the narrower sense of the term. Therefore, these sales will be reported under “Other” in our segment reporting.

Fair Value Step-up

Fair value step-up is the difference between the income from selling a unit and its current fair value in relation to its fair value. It shows the percentage increase in value for the company on the sale of a unit before further costs of sale.

Fair Value Step-up

Fair value step-up is the difference between the income from selling a unit and its current fair value in relation to its fair value. It shows the percentage increase in value for the company on the sale of a unit before further costs of sale.

Cash-generating Unit (CGU)

Fair value step-up is the difference between the income from selling a unit and its current fair value in relation to its fair value. It shows the percentage increase in value for the company on the sale of a unit before further costs of sale.

Cash-generating Unit (CGU)

Fair value step-up is the difference between the income from selling a unit and its current fair value in relation to its fair value. It shows the percentage increase in value for the company on the sale of a unit before further costs of sale.

Cash-generating Unit (CGU)

Fair value step-up is the difference between the income from selling a unit and its current fair value in relation to its fair value. It shows the percentage increase in value for the company on the sale of a unit before further costs of sale.

Cash-generating Unit (CGU)

Fair value step-up is the difference between the income from selling a unit and its current fair value in relation to its fair value. It shows the percentage increase in value for the company on the sale of a unit before further costs of sale.

Cash-generating Unit (CGU)

Fair value step-up is the difference between the income from selling a unit and its current fair value in relation to its fair value. It shows the percentage increase in value for the company on the sale of a unit before further costs of sale.