Social Key Figures

Voluntary Commitments

2021

2022

2023

Social Key Figures (in Germany)

GRI 203–1, 203–2, 413–1

Voluntary Commitments 1)

Average modernization cost
allocation
2)

1.24 €/m²

1.20 €/m²

1.32 €/m²

Customer care for
modernization work
(hardship management)
3)

662 positive decisions 4)
reached out of 874 hardship objection cases

400 5) positive decisions 4)
reached out of 546 hardship objection cases

271 positive decisions 4)
reached out of 460 hardship objection cases

Protection for older tenants 6)

163 positive decisions 4)
reached out of 316 requests

198 5) positive decisions 4)
reached out of 334 requests

300 positive decisions 4)
reached out of 635 requests

  1. 1)2021 and 2022 excl. Deutsche Wohnen, from 2023 incl. Deutsche Wohnen (excl. Care segment).
  2. 2)Related to the modernization program and modernization work within the scope of community development; excluding heating renovation.
  3. 3)Individual support for customers in cases of rent increases due to modernization work.
  4. 4)Rent increases were not implemented or were not implemented in the planned amount, or other support (e.g., help with moving, moving furniture, or finding an alternative apartment).
  5. 5)Correction due to cases received by December 31, 2021 but not positively decided until 2022.
  6. 6)Guarantee that apartments will remain affordable for people aged over 70 even if the standard local comparative rent changes.

Tenant Participation

2021

2022

2023

Tenant Participation

Tenant meetings and
consultation processes
1)

79 2)

114

58

Proportion of tenants involved (units) in modernization/
construction measures

3,631 tenants reached in relation to 8,230 modernized residential units 2) 3)

44.1%

2,089 tenants reached in relation to 6,821 modernized residential units 2) 3)

30.6%

5,058 tenants reached in relation to 5,674 modernized residential units 2) 3)

89.1%

  1. 1)Includes tenant meetings, workshops, advisory boards, consultation hours, neighborhood walks, etc.
  2. 2)Decline mainly due to limited opportunities during the coronavirus pandemic.
  3. 3)Excl. Deutsche Wohnen, Austria and Sweden.
  4. 4)From 2023 incl. Deutsche Wohnen, excl. Austria and Sweden. In 2023, conversion of the calculation of “modernized residential units” from the program year to the year of completion (see table “Refurbishment”).

Grants and Social Support

2021

2022

2023

number

total/units

number

total/units

number

total/units

Grants and Social Support 1)

Grants for social/cultural projects and facilities 2)

€ 1,464,060

€ 1,156,765

€ 1,346,708

of which locally through
regional contributions

176 projects

€ 575,072

162 projects

€ 258,803

162 projects

€ 243,578

of which centrally via a funding program for social projects

146 projects

€ 373,993

167 projects

€ 354,225

215 projects

€ 445,238

of which via foundations

Grants from founda­tions: Vonovia Stiftung (Vonovia foundation), Vonovia Mieterstiftung e. V. and Stiftung Mensch und Wohnen

€ 208,810

Grants from founda­tions: Vonovia Stiftung (Vonovia foundation), Vonovia Mieterstiftung e. V. and Stiftung Mensch und Wohnen

€ 196,143

Grants from founda­tions: Vonovia Stiftung (Vonovia foundation), Vonovia Mieterstiftung e. V. and Stiftung Mensch und Wohnen

€ 210,490

of which via central cooperation projects

Stifterverband, Jewish Museum in Frankfurt, Acker e.V., Dialog mit der Jugend, Freundeskreis Schauspielhaus Bochum, Freunde & Förderer Zollverein Essen

€ 306,185

Stifterverband, Jewish Museum Frankfurt,
Acker e.V., Dialog mit der Jugend, Josef Albers Museum, Freundeskreis Schauspielhaus Bochum, Freunde & Förderer Zollverein Essen

€ 347,594

Various funding projects, among others Vonovia-Foto-Award, Stifter­verband, Jewish Museum Frankfurt, Josef Albers Museum, Acker e.V., Silbernetz e.V., Lichtblicke

€ 447,402

Units targeted via the central funding program for social projects

146 projects

181,600 units 3)

167 projects

296,921 units 4)

215 projects

456,078 units 5)

Rent-free or discounted commercial premises provided to social/charitable organizations

89 commercial units

8,782 m²

80 commercial units6)

9,869 m² 6)

108 commercial units

13,373 m²

  1. 1)2021 and 2022 excl. Deutsche Wohnen, from 2023 incl. Deutsche Wohnen (excl. Care segment).
  2. 2)Includes both cash and in-kind contributions.
  3. 3)51% of the 353,963 units in Germany.
  4. 4)85% of the 347,373 units in Germany.
  5. 5)94% of the 485,074 units in Germany.
  6. 6)2022 incl. Deutsche Wohnen (excl. Care Segment).

Adjusted EBITDA Total

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 and Adjusted EBITDA Development.

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 Value-add

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

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 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.

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.

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 (ERM) Framework was published. Since then, it has been used to structure and develop risk management systems.

CSI (Customer Satisfaction Index)

The CSI is determined at regular intervals by means of systematic customer surveys and reflects how our services are perceived and accepted by our customers. The CSI is determined on the basis of points given by the customers for our properties and their neighborhood, customer service and commercial and technical support as well as maintenance and modernization management.

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.

EPRA NAV/Adjusted NAV

The presentation of the NAV based on the EPRA definition aims to show the net asset value in a long-term business model. The equity attributable to Vonovia’s shareholders is adjusted to reflect deferred taxes on investment properties, the fair value of derivative financial instruments and the deferred taxes on derivative financial instruments. In order to boost transparency, an adjusted NAV, which involves eliminating goodwill in full, is also reported.

EPRA NAV/Adjusted NAV

The presentation of the NAV based on the EPRA definition aims to show the net asset value in a long-term business model. The equity attributable to Vonovia’s shareholders is adjusted to reflect deferred taxes on investment properties, the fair value of derivative financial instruments and the deferred taxes on derivative financial instruments. In order to boost transparency, an adjusted NAV, which involves eliminating goodwill in full, is also reported.

EPRA Key Figures

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

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.

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 and Development 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.

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.

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.

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.

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 (in € per square meter) on a like-for-like basis refers to the monthly in-place rent for the residential portfolio that was already held by Vonovia 12 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. A performance indicator introduced at Vonovia in January 2021 consisting of key figures on the CO2 intensity of the portfolio, primary energy requirements in new buildings, (partial) modernization measures to make apartments fully accessible, customer and employee satisfaction, and diversity within the management ranks.

Non-core Disposals

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 Disposals) 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.

Recurring Sales

The Recurring Sales segment includes the regular and sustainable disposals of individual condominiums from our portfolio. It does not include the sale of entire buildings or land (Non-core Disposals). 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.

Cash-generating Unit (CGU)

The cash-generating unit refers, in connection with the impairment testing of goodwill, to the smallest group of assets that generates cash inflows and outflows independently of the use of other assets or other cash-­generating units (CGUs).