Details on Results of Operations by Segment

Rental Segment

At the end of December 2024, the portfolio in the Rental segment had a vacancy rate of 2.0 % (end of December 2023: 2.0 %), meaning that it was again nearly fully occupied.

In the 2024 fiscal year, revenue in the Rental segment increased by 2.2 % year-on-year (2023: 2.1 %) to € 3,323.5 million (2023: € 3,253.4 million). Of the segment revenue in the Rental segment in the 2024 fiscal year, € 2,837.6 million is attributable to rental income in Germany (2023: € 2,790.1 million), € 360.7 million to rental income in Sweden (2023: € 341.6 million) and € 125.2 million to rental income in Austria (2023: € 121.7 million). Organic rent growth (twelve-month rolling) totaled 4.1 % at the end of December 2024 (3.8 % at the end of December 2023). The current rent increase due to market-related factors came to 2.8 % at the end of December (2.3 % at the end of December 2023), while the increase from property value improvements translated into a further 0.9 % (1.0 % at the end of December 2023). All in all, this produced a like-for-like rent increase of 3.7 % at the end of December 2024 (3.3 % at the end of December 2023). New construction and vertical expansion measures also contributed 0.4 % to organic rent growth at the end of December 2024 (0.5 % at the end of December 2023).

The average monthly in-place rent in the residential real estate portfolio within the Rental segment at the end of 2024 came to € 8.01 per m² compared to € 7.74 per m² at the end of 2023. The monthly in-place rent in the German portfolio at the end of 2024 came to € 7.89 per m² (end of 2023: € 7.63 per m²), with a figure of € 10.48 per m² (end of 2023: € 10.18 per m²) for the Swedish portfolio and € 5.71 per m² for the Austrian portfolio (end of 2023: € 5.47 per m²). The rental income from the portfolio in Sweden reflects all-inclusive rents, meaning that the amounts contain operating, heating and water supply costs. Moreover, the rental income from the Austrian real estate portfolio includes maintenance and improvement contributions (EVB).

Total maintenance, modernization, investments in the existing portfolio and new construction in the 2024 fiscal year came in at € 1,601.0 million, up by around 5% on the prior-year value of € 1,527.0 million.

Operating expenses in the Rental segment in the 2024 fiscal year amounted to € -467.3 million and were thus up by 9.8 % on the figure for 2023 of € -425.5 million.

At € 2,385.7 million, Adjusted EBITDA in the Rental segment in the 2024 fiscal year was almost on a par with the previous year (2023: € 2,401.7 million) despite the sales completed in 2024 and higher maintenance expenses.

Value-add Segment

In the 2024 fiscal year, the Value-add segment was hit by the general price increases for construction services and materials, as well as productivity losses due to smaller-scale investments. Modernization and continuous investments in the existing portfolio showed positive development, up by 19.2 % on the 2023 value in the 2024 fiscal year. This was also thanks to our increased investment in new photovoltaic facilities and heat pumps. In the multimedia business, the conclusion of an agreement to lease the existing coax network had a positive effect of € 58.0 million in the 2024 fiscal year.

All in all, revenue from the Value-add segment came to € 1,359.4 million in the 2024 fiscal year, up by 11.0 % on the value of € 1,224.7 million seen in 2023. External revenue from our Value-add activities with our end customers in the 2024 fiscal year amounted to € 179.6 million and had thus increased by 37.2 % on 2023, when the figure was € 130.9 million. This was mainly due to a positive effect in the multimedia business resulting from the leasing of coax networks. Intra-Group revenue came to € 1,179.8 million in the 2024 fiscal year, 7.9 % higher than the value of € 1,093.8 million for 2023.

Operating expenses in the Value-add segment in the 2024 fiscal year amounted to € -1,191.0 million and were thus up by 6.4 % on the figure for 2023 of € -1,119.2 million.

Adjusted EBITDA Value-add came to € 168.4 million in the 2024 fiscal year, up significantly on the figure of € 105.5 million reported in 2023.

Recurring Sales Segment

In the Recurring Sales segment, the income from disposal of properties came to € 441.3 million in the 2024 fiscal year with 2,470 units sold (2023: 1,590), up by 38.2 % on the value of € 319.3 million reported in 2023; with 2,037 units sold in Germany (2023: 1,201) and 433 in Austria (2023: 389). Income of € 339.5 million is attributable to sales in Germany (2023: € 214.6 million) and € 101.8 million to sales in Austria (2023: € 104.7 million).

The fair value step-up was down by 22.6 % on the previous year’s value of 33.4 % due to a decision to prioritize liquidity and profitability in the 2024 fiscal year. This was also due to lower step-ups for sales in Germany and Austria.

Selling costs in the Recurring Sales segment came in at € -23.9 million in the 2024 fiscal year, up by 44.8 % on the value of € -16.5 million for the previous year.

Adjusted EBITDA Recurring Sales came in at € 57.6 million in the 2024 fiscal year, down by 9.1 % on the prior-year value of € 63.4 million.

In the 2024 fiscal year, 5,184 units from the No Core/Other portfolio (2023: 2,248) were also sold as part of our portfolio adjustment measures, with proceeds totaling € 662.5 million (2023: € 553.7 million). At 2.3 %, the fair value step-up for Non Core/Other disposals in the 2024 fiscal year was higher than the figure for the previous year (1.1 %).

Development Segment

The Development segment was impacted primarily by high construction costs and high interest rates for construction in the 2024 fiscal year.

In the Development to sell area, a total of 2,471 units were completed in the 2024 fiscal year (2023: 1,128 units), all of them in Germany (2023: 769). No units were completed in Austria in 2024 (2023: 359). In the 2024 fiscal year, income from the disposal of Development to sell properties amounted to € 889.4 million (2023: € 348.6 million), with € 795.4 million attributable to project development in Germany (2023: € 296.7 million) and € 94.0 million to project development in Austria (2023: € 51.9 million). The resulting gross profit for Development to sell came to € 47.8 million in the 2024 fiscal year with a margin of 5.4 % (2023: gross profit of € 47.7 million, margin of 13.7 %).

Development operating expenses came to € -41.7 million in the 2024 fiscal year, 5.3 % above the comparative value of € -39.6 million seen in the previous year.

Adjusted EBITDA in the Development segment amounted to € 13.4 million in the 2024 reporting period (2023: € 13.2 million).

In the “Development to hold” area, a total of 1,276 units were completed in the 2024 fiscal year (2023: 1,332 units), of which 1,264 were in Germany (2023: 851 units), with none in Austria (2023: 307 units) and 12 in Sweden (2023: 174 units).