Opportunities and Risks

In addition to the opportunities and risks set out in detail in the 2024 Annual Report, there were essentially no changes in the first half of 2025.

The opportunities described in detail in the 2024 Annual Report remain unchanged to date.

The assessment of the overall risk position is comparable to the end of 2024. The number of overall risks at the end of the first half of 2025 was 110 compared to 115 at the end of 2024.

There are currently no indications of any (red) risks that could pose a threat to the company’s existence, and no such risks are expected to arise in the future.

The number of amber risks at the end of the first half of 2025 was unchanged from the end of 2024 at 7; the 7 amber risks were assessed unchanged. These are listed according to their net assessment and the assigned risk categories:

Risks from the Operating Business

The risk “Future market development leads to a drop in property values” with a potential amount of loss affecting the balance sheet of € 2,400–6,000 million and an expected probability of occurrence of 5–39%. 

The risk “Deteriorating residential property market situation” with a potential amount of loss with an impact on profit and loss of € 450–900 million and an expected probability of occurrence of 5–39%. 

The risk “Development sale risk” with a potential amount of loss with an impact on profit and loss of € 180–450 million and an expected probability of occurrence of 40–59%. 

Risks from Financing

The risk “Unfavorable interest rate developments” with a potential amount of loss with an impact on profit and loss of € 450–900 million and an expected probability of occurrence of 5–39%. 

The risk “Higher refinancing costs due to changes in risk profile” with a potential amount of loss with an impact on profit and loss of € 450–900 million and an expected probability of occurrence of 5–39%. 

The risk “Failure to fulfill obligations (from bonds, secured loans, transactions)” with a potential amount of loss with an impact on profit and loss of >€ 900 million and an expected probability of occurrence of <5%. 

The risk “Amendments to the German Real Estate Transfer Tax Act (Grunderwerbsteuergesetz) due to share deals” with a potential amount of loss with an impact on profit and loss of >€ 900 million and an expected probability of occurrence of <5%.