Business Development in the First Three Months of 2025

Key Events During the Reporting Period

US trade policy provoked strong reactions on capital markets across the globe in the first quarter of 2025. Fears of a new trade war and increasing protectionism cast a shadow over global economic development. Many economists believe there is a risk of a prolonged recession if the tariff conflicts continue to escalate.

Vonovia’s business model is not affected directly by protectionist measures. Nevertheless, the Group’s economic development is heavily reliant on other economic parameters, such as interest rate and inflation trends, which are more volatile as a result of the tariff measures. It is not, however, possible to predict or quantify any specific development at the moment.

Our core business remains characterized by a high level of demand for rental apartments and a positive rent trend. With a vacancy rate of 2.1 % at the end of the first quarter of 2025 (end of the first quarter of 2024: 2.2 %), Vonovia’s residential real estate portfolio was virtually fully occupied.

The Customer Satisfaction Index (CSI) in the first quarter of 2025 was 3.5 percentage points above the value seen in the previous year. The level of customer satisfaction has increased by 0.8 percentage points by comparison with the average for the year 2024 as a whole.

On September 18, 2024, Vonovia SE and Deutsche Wohnen SE initiated a process to conclude a control and profit and loss transfer agreement between the two companies. This process will involve Vonovia making an offer to external shareholders of Deutsche Wohnen SE to acquire their shares in return for compensation in the form of newly issued shares in Vonovia SE, or to grant the remaining shareholders of Deutsche Wohnen SE an annual compensation payment for the term of the intercompany agreement.

At the extraordinary general meetings of Vonovia SE and Deutsche Wohnen SE on January 23 and 24, 2025, the control and profit-transfer agreement between Vonovia SE and Deutsche Wohnen SE was approved by the respective shareholders of both companies. The control and profit- transfer agreement takes effect upon entry into the commercial register of Deutsche Wohnen SE. The agreement has not yet been entered into the commercial register due to an action for annulment brought against the resolution passed by the Annual General Meeting of Vonovia SE. Once it has been entered, Deutsche Wohnen SE will, in future, transfer its total annual profit to Vonovia SE or Vonovia SE will cover any losses incurred by Deutsche Wohnen SE. The shareholders who do not accept the exchange agreement will receive a guaranteed dividend of € 1.03 per share (net).

Ownership of 19 nursing care properties and the “Katharinenhof” nursing care businesses was transferred in the first quarter of 2025. The purchase agreement concluded on October 2, 2024, involves the sale of a total of 27 nursing care properties and the Katharinenhof nursing care businesses.

On January 17, 2025, Vonovia signed a notarized contract for the acquisition of PFLEGEN & WOHNEN HAMBURG GmbH (P&W), including the associated properties, by the City of Hamburg. The acquisition comprises 13 nursing homes in Hamburg with around 2,000 employees and around 2,400 nursing places. The acquisition was made via HGV Hamburger Gesellschaft für Vermögens- und Beteiligungsmanagement (HGV), the city’s largest group holding company, which belongs to the tax authorities and is an umbrella for the majority of the City of Hamburg’s private law companies. The purchase price is € 380.0 million.

In the first quarter of 2025, 820 apartments and 261 commercial units from the QUARTERBACK Immobilien Group, accounting for a volume of around € 0.3 billion, were transferred to Vonovia’s portfolio. The acquisition of land to build on with a volume of around € 0.5 billion was also completed within the first quarter of 2025.

As part of the planned further acquisitions of land to build on from the QUARTERBACK Immobilien Group, further purchase contracts with a volume of around € 165 million were concluded on April 14, 2025. The conclusion of these purchase contracts covered the planned total volume of the transaction.

A notarized sales contract for a portfolio in Berlin was successfully concluded on April 23, 2024. The transaction executed with two state-owned Berlin housing construction companies saw around 4,500 residential units with a value of around € 700 million being sold as part of a share deal. The transaction was closed with the transfer of beneficial ownership on January 1, 2025.

In April 2025, the Supervisory Board of Vonovia SE decided to nominate Michael Rüdiger and Dr. Marcus Schenck to the Annual General Meeting on May 28, 2025, for election to the Supervisory Board of Vonovia SE. They are to replace Dr. Ute Geipel-Faber and Hildegard Müller, whose mandates are set to end at the time of this year’s Annual General Meeting.

In the invitation to Vonovia’s ordinary Annual General Meeting, shareholders are given the option to choose a scrip dividend – in the form of shares – as part of the proposed appropriation of profit for the 2024 fiscal year.

A bond in the amount of € 485.4 million was repaid as scheduled on March 31, 2025.

On April 1, 2025, Vonovia issued an NOK 1.0 billion (approx. € 88.2 million) bond with an eight-year term and a coupon of 5.51% p.a. (4.12% p.a. after currency hedging).

Vonovia also issued a floating rate 2NC1 bond in the amount of € 750.0 million on April 14, 2025. After interest rate hedging, the coupon for one year is 2.89%.