Portfolio Structure

Portfolio in the Property Management Business

As of December 31, 2022, the Group had a total real estate portfolio comprising 548,524 residential units (2021: 565,334), 164,330 garages and parking spaces (2021: 168,015) and 8,838 commercial units (2021: 9,289). Our locations span 628 cities, towns and municipalities in Germany, Sweden and Austria. 72,779  residential units are also managed for other owners. Most of the properties in the Group’s portfolio are multifamily homes.

In terms of fair value, most of the properties (around 89%) are located in Germany. The Swedish portfolio accounts for around 8% of the fair value, while the share of the Austrian portfolio comes to around 3%. The portfolio is as follows as of December 31, 2022:

As of December 31, 2022, the Group’s real estate portfolio across Germany comprised 487,659 residential units, 122,297 garages and parking spaces and 6,095 commercial units distributed across 476 cities, towns and municipalities. The total living area amounted to 29,989,860 m², with the average apartment size coming in at around 61 m². With a vacancy rate of 1.8%, an average monthly in-place rent of € 7.40 per m² was generated in Germany. The annualized in-place rent for the residential portfolio as of December 31, 2022, came to € 2,615 million for apartments.

In Sweden, the Group’s real estate portfolio comprised 39,453 residential units spanning a total living area of 2,817,871 m², 25,374 garages and parking spaces and 2,149 commercial units. With a vacancy rate of 3.4%, the residential portfolio generated annualized in-place rent of € 317 million as of December 31, 2022. The apartments, which average 71 m² in size, generate monthly in-place rent of € 9.73 per m² (inclusive). Most of them are located in the Stockholm, Gothenburg and Malmö regions.

In the Austrian portfolio, which is largely located in Vienna, Vonovia achieved an annualized in-place rent of € 93 million as of December 31, 2022, with a vacancy rate of 4.9% in the residential portfolio, which comprises 21,412 units covering total living space of 1,578,658 m². The monthly in-place rent amounted to € 5.18 per m² with an average apartment size of around 74 m². The portfolio also comprised 16,659 garages and parking spaces and 594 commercial units.

Changes in the Portfolio

In the course of 2022, the Swedish portfolio was expanded by the acquisition of 830 residential units in the Malmö region. The acquired portfolio was as follows at the time of the takeover:

In the course of 2022, the benefits and encumbrances relating to the apartments from the “Future and Social Pact for Housing” were transferred to municipal housing companies berlinovo, degewo and HOWOGE. Properties from the portfolio earmarked for sale were also disposed of in several transactions as part of the implementation of the portfolio management strategy. At the time of each transfer of possession, benefits and encumbrances, the statistics for the portfolios sold were as follows:

In addition to the acquisition and sale of larger housing stocks, Vonovia’s portfolio changed in 2022 as a result of additions arising from tactical acquisitions, the construction of new apartments and attic extensions on the one hand, and disposals of condominiums and multifamily homes from the portfolio earmarked for sale on the other.

Vonovia invests in its strategic holdings in particular in line with its climate path to promote sustainability and in line with its innovation strategy. We act on behalf of neighborhoods with the (new) development of our urban portfolios. The lion’s share of the portfolio in Germany consists of neighborhoods that we have classified as urban quarters. The remaining existing buildings largely comprise smaller clusters of buildings and solitary properties that we have grouped together as urban clusters. Even though, unlike urban quarters, urban clusters do not relate to entire neighborhoods, they are also managed using the same long-term asset and property management strategies based on our operating platform.

The latest portfolio analysis led to the creation of the additional MFH Sales portfolio alongside the sales portfolio for non-strategic holdings (Non Core) and Recurring Sales within the strategic cluster. This portfolio involves the sale of multifamily homes largely located outside of our urban quarters. The corresponding liquidity inflows are to be used primarily for internal financing.

As part of the merger with Vonovia, Deutsche Wohnen’s real estate portfolio was reviewed and also compared with Vonovia’s portfolio to tap into synergy potential resulting from the coordinated management of the two portfolios. This process involved bringing the portfolio structure into line with Vonovia’s and reporting Deutsche Wohnen’s portfolio as integrated. Following the implementation of the annual structured reassessment of all potential, as of December 31, 2022, Vonovia’s portfolio is as follows:

In order to boost transparency in portfolio presentation, we also break our portfolio in Germany down into 15 regional markets. The regional market classification is orientated toward the residential real estate market regions in Germany. These markets are core towns/cities and their surroundings, mainly urban areas. Our decision to focus on the regional markets that are particularly relevant to Vonovia is our way of looking ahead to the future and provides an overview of our strategic core portfolio in Germany.

In relation to the fair value, 95% of our German portfolio is located in 15 regional markets. Only a small part of our strategic portfolios is located outside of these 15 markets. We have referred to this group as “Other strategic locations”. Our stocks earmarked for sale from the “Recurring Sales”; “MFH Sales” and “Non Core” subportfolios in locations that do not include any strategic stocks are shown as “Non-Strategic Locations”. The fact that our portfolio is spread nationwide makes us more independent of the circumstances prevailing on individual regional markets.

As of December 31, 2022, the German portfolio is as follows, broken down into regional markets: