Details on Results of Operations by Segment

Rental segment

In the Rental segment, overall conditions on the residential real estate market remained virtually unchanged in the 2025 reporting period. The business environment was dominated by a pronounced shortage of housing and a high level of demand. At the end of March 2025, the portfolio in the Rental segment had a vacancy rate of 2.1 % (end of March 2024: 2.2 %), meaning that it was nearly fully occupied.

Rental segment revenue increased by 2.0 % (3M 2024: 2.2 %), from € 824.2 million in the first three months of 2024 to € 840.4 million in the first three months of 2025. Of the segment revenue in the Rental segment in the 2025 reporting period, € 714.2 million is attributable to rental income in Germany (3M 2024: € 704.3 million), € 96.0 million to rental income in Sweden (3M 2024: € 89.8 million) and € 30.2 million to rental income in Austria (3M 2024: € 30.1 million). Organic rent growth (twelve-month rolling) totaled 4.3 % (3.8 % at the end of the first quarter of 2024). The current rent increase due to market-related factors came to 2.9 % (2.1 % at the end of the first quarter of 2024), while the increase from property value improvements translated into a further 1.0 % (1.4 % at the end of the first quarter of 2024). All in all, this produced a like-for-like rent increase of 3.9 % at the end of the first quarter of 2025 (3.5 % at the end of the first quarter of 2024). New construction measures and measures to add extra stories also contributed 0.4 % at the end of the first quarter of 2025 (0.3 % at the end of the first quarter of 2024).

The average monthly in-place rent in the residential real estate portfolio within the Rental segment at the end of March 2025 came to € 8.15 per m² compared to € 7.78 per m² at the end of March 2024. The monthly in-place rent in the German portfolio at the end of March 2025 came to € 7.96 per m² (March 31, 2024: € 7.67 per m²), with a figure of € 11.49 per m² (March 31, 2024: € 10.21 per m²) for the Swedish portfolio and € 5.72 per m² for the Austrian portfolio (March 31, 2024: € 5.51 per m²). The rental income from the portfolio in Sweden reflects 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 first three months of 2025 came in at € 409.6 million, up by 29.4 % on the prior-year value of € 316.6 million.

Operating expenses in the Rental segment in the first three months of 2025 amounted to € -123.9 million and were thus up by 5.3 % on the figure for the first three months of 2024 of € -117.7 million.

At € 592.6 million, Adjusted EBITDA in the Rental segment in the first three months of 2025 was almost on a par with the previous year (3M 2024: € 592.9 million) despite the sales completed in 2024 and in the first three months of 2025, and despite higher maintenance expenses.

Value-add Segment

The Value-add segment reported an extraordinary increase in earnings in the first three months of 2025. The increase in modernization and portfolio investments as well as positive business developments in energy sales made a particular contribution to this trend. In the first three months of 2025, modernization and portfolio investments were up by 68.6% year-on-year. This was also thanks to our increased investment in new photovoltaic facilities and heat pumps.

All in all, revenue from the Value-add segment came to € 387.1 million in the 2025 reporting period, up by 19.1 % on the value of € 325.1 million seen in the first three months of 2024. External revenue from our Value-add activities with our end customers in the first three months of 2025 amounted to € 31.1 million and had thus increased by 10.3 % on the first three months of 2024, for which the figure was € 28.2 million. Intra-Group revenue came to € 356.0 million in the first three months of 2025, 19.9 % higher than the value of € 296.9 million for the first three months of 2024.

Operating expenses in the Value-add segment in the first three months of 2025 amounted to € -348.6 million, an increase of 11.2 % by comparison with the figure for the first three months of 2024 of € -313.6 million.

Adjusted EBITDA Value-add came to € 38.5 million in the first three months of 2025, very significantly higher than the figure of € 11.5 million reported for the first three months of 2024, an exceptional development.

Recurring Sales Segment

In the 2025 reporting period, the Recurring Sales segment switched from the liquidity-oriented sales strategy pursued in 2024 to a returns-oriented approach. The income from disposal of properties came to € 122.0 million in the first three months of 2025 with 689 units sold (3M 2024: 407), up by 63.5 % on the value of € 74.6 million reported in the same period of 2024; with 600 units sold in Germany (3M 2024: 340) and 89 in Austria (3M 2024: 67). Income of € 98.9 million is attributable to sales in Germany (3M 2024: € 57.3 million) and € 23.1 million to sales in Austria (3M 2024: € 17.3 million).

The fair value step-up for the first three months of 2025 came to 25.0 %, up on the prior-year figure of 22.4 %. This is due to higher step-ups for sales in Germany.

Selling costs in the Recurring Sales segment came in at € -5.3 million in the first three months of 2025, up by 15.2 % on the value of € -4.6 million for the first three months of 2024.

Adjusted EBITDA Recurring Sales came in at € 19.1 million in the first three months of 2025, up considerably on the value of € 9.1 million seen in the first three months of 2024.

In the 2025 reporting period, 5,371 units from the Non Core/Other portfolio (3M 2024: 2,409) were also sold as part of our portfolio adjustment measures, with proceeds totaling € 722.9 million (3M 2024: € 265.6 million).

Development Segment

In the Development segment, economic conditions in the 2025 reporting period were influenced primarily by the development in interest rates for construction. Price increases on the construction and commodity markets, in particular, continued to have a moderate impact. In the segment result, the main positive effect came from the transfer of economic ownership resulting from the sale of land to two state-owned Berlin housing companies agreed in April 2024.

In the Development to sell area, a total of 48 residential units were completed in the 2025 reporting period (3M 2024: 692 units), all 48 units in Germany (3M 2024: 692). No units were completed in Austria in the 2025 reporting period, as in the first three months of 2024. In the first three months of 2025, income from the disposal of Development to sell properties amounted to € 113.5 million (3M 2024: € 30.6 million). With € 100.4 million attributable to project development in Germany (3M 2024: € 23.3 million) and € 13.1 million to project development in Austria (3M 2024: € 7.3 million). The gross profit for Development to sell came to € 61.2 million in the first three months of 2025 with a margin of 53.9 % (3M 2024: € 3.3 million, margin of 10.8 %).

Development operating expenses came to € -14.3 million in the first three months of 2025, which was 24.3 % higher than the value of € -11.5 million for the first three months of 2024.

Adjusted EBITDA in the Development segment amounted to € 48.3 million in the 2025 reporting period (3M 2024: € -6.5 million).

In the Development to hold area, a total of 38 units were completed by way of vertical expansion measures in the first three months of 2025 (3M 2024: 153 units), of which 33 were in Germany (3M 2024: 153 units), none were in Austria (3M 2024: none) and 5 were in Sweden (3M 2024: none).