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. A severe housing shortage and high demand continued to shape the business environment. As of the end of September 2025, the portfolio in the Rental segment had a vacancy rate of 2.2 % (end of September 2024: 2.1 %), meaning that it was once again virtually fully occupied.

Rental segment revenue increased by 2.8 % (9M 2024: 2.2 %) to € 2,551.1 million in the first nine months of 2025 from € 2,481.8 million in the first nine months of 2024. Of the segment revenue in the Rental segment in the 2025 reporting period, € 2,164.7 million is attributable to rental income in Germany (9M 2024: € 2,120.5 million), € 293.7 million to rental income in Sweden (9M 2024: € 270.2 million) and € 92.7 million to rental income in Austria (9M 2024: € 91.1 million). The organic rent growth (twelve-month rolling) stood at 4.2 % at the end of the third quarter of 2025 (3.8 % at the end of the third quarter of 2024). The increase in rent due to market-related factors came to 2.8 % as of the end of the third quarter of 2025 (2.2 % at the end of the third quarter of 2024). The increase from property value improvements stood at 1.0 % at the end of the third quarter of 2025 (1.3 % at the end of the third quarter of 2024). All in all, this produced a like-for-like rent increase of 3.8 % at the end of the third quarter of 2025 (3.5 % at the end of the third quarter of 2024). New construction measures and measures to add extra stories also contributed 0.4 % at the end of the third quarter of 2025 (0.3 % at the end of the third quarter of 2024).

The average monthly in-place rent in the residential portfolio in the Rental segment came to € 8.28 per m² at the end of September 2025 as against € 7.94 per m² at the end of September 2024. The monthly in-place rent in the German portfolio at the end of September 2025 came to € 8.11 per m² (end of September 2024: € 7.81 per m²), with a figure of € 11.41 per m² (September 2024: € 10.59 per m²) for the Swedish portfolio and € 5.78 per m² for the Austrian portfolio (September 2024: € 5.69 per m²). The rental income for the Swedish portfolio is reported as inclusive rent, i.e. including ancillary and heating costs as well as water 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 nine months of 2025 came in at € 1,356.5 million, up by 29.0 % on the prior-year value of € 1,051.3 million at the end of the first nine months of 2024.

Operating expenses in the Rental segment in the first nine months of 2025 amounted to € -338.0 million, up slightly by 0.9 % compared to the figure for the first nine months of 2024 of € -335.1 million.

At € 1,847.0 million, Adjusted EBITDA in the Rental segment in the first nine months of 2025 was up slightly on the prior-year value of € 1,801.9 million despite the sales completed in 2024 and in the first nine months of 2025, and despite higher maintenance expenses.

Value-add Segment

Earnings increased slightly in the Value-add segment in the 2025 reporting period. This was driven, in particular, by an increase in modernization and portfolio investments as well as positive business developments in energy sales. In the first nine months of 2025, modernization and portfolio investments were up by 44.0 % year-on-year, also thanks to our increased investment in new photovoltaic facilities and heat pumps.

All in all, revenue from the Value-add segment in the 2025 reporting period amounted to € 1,093.6 million, up by 8.3 % compared to the figure for the first nine months of 2024 of € 1,009.7 million. External revenue from our Value-add activities with end customers in the first nine months of 2025 amounted to € 101.5 million and had thus decreased by 31.9 % on the first nine months of 2024, for which the figure was € 149.1 million. The previous year had featured a one-off positive effect in the multimedia business resulting from the leasing of coax networks. Intra-Group revenue in the first nine months of 2025 amounted to € 992.1 million, up by 15.3 % compared to the figure for the first nine months of 2024 of € 860.6 million.

Operating expenses in the Value-add segment in the first nine months of 2025 amounted to € -943.5 million and were thus up by 9.2 % on the figure for the first nine months of 2024 of € -863.8 million. The increase can be traced back primarily to higher personnel expenses due to the ongoing measures to expand the workforce.

Adjusted EBITDA Value-add came in at € 150.1 million in the first nine months of 2025, slightly higher than the value of € 145.9 million seen in the first nine months of 2024.

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 € 299.6 million in the first nine months of 2025 with 1,553 units sold (9M 2024: 1,516), with 1,258 units sold in Germany (9M 2024: 1,214) and 295 in Austria (9M 2024: 302). This corresponds to a rise in income of 11.7 % compared to the € 268.3 million seen in the first nine months of 2024. Income of € 219.6 million is attributable to sales in Germany (9M 2024: € 200.2 million) and € 80.0 million to sales in Austria (9M 2024: € 68.1 million).

Fair value step-up came to 31.2 % in the first nine months of 2025 (9M 2024: 25.3 %). In a year-on-year comparison, higher step-ups were achieved both in Germany and Austria in the reporting period.

Selling costs in the Recurring Sales segment came in at € -14.5 million in the first nine months of 2025, down by 4.6 % on the value of € -15.2 million seen in the first nine months of 2024.

Adjusted EBITDA Recurring Sales came in at € 56.6 million in the first nine months of 2025, significantly higher than the value of € 38.9 million seen in the first nine months of 2024.

In the 2025 reporting period, 7,485 units from the Non Core/Other portfolio (9M 2024: 3,913) were sold as part of our portfolio adjustment measures, with proceeds totaling € 862.8 million (9M 2024: € 456.2 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, particularly on the construction and commodity markets, continued to have a moderate impact. The main positive effect on the segment result 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 1,024 units were completed in the 2025 reporting period, all of them in Germany (9M 2024: 1,534 units, all of them in Germany). In the first nine months of 2025, income from the disposal of development properties amounted to € 278.6 million (9M 2024: € 190.6 million), with € 240.7 million attributable to project development in Germany (9M 2024: € 125.6 million) and € 37.9 million to project development in Austria (9M 2024: € 65.0 million). The gross profit for Development to sell came to € 90.6 million in the first nine months of 2025 with a margin of 32.5 % (9M 2024: € 26.2 million, margin of 13.8 %).

Operating expenses in the Development segment in the first nine months of 2025 amounted to € -36.3 million, up by 17.1 % compared to the figure for the first nine months of 2024 of € -31.0 million. The increase was driven primarily by higher personnel expenses and additions to project provisions.

Adjusted EBITDA in the Development segment amounted to € 61.0 million in the first nine months of 2025 (9M 2024: € 0.0 million).

In the Development to hold area, a total of 531 units were completed in the first nine months of 2025 (9M 2024: 875 units), of which 517 were in Germany (9M 2024: 864 units), none were in Austria (9M 2024: none) and 14 were in Sweden (9M 2024: 11 units).