Dear Shareholders, Dear Friends of Vonovia,

This is my first opportunity to thank you personally for the trust you have placed in Vonovia. It is a great honor for me to have been at the helm of this company since the start of the year. The past few months have made it clear to me just how much innovative strength, entrepreneurial passion and sense of social responsibility we have here at Vonovia. Upholding these values, safeguarding the commercial potential that they offer our company and systematically building on both in your interests is my top priority.

From left to right: Arnd Fittkau, Member of the Management Board (CRO); Ruth Werhahn, Member of the Management Board (CHRO); Luka Mucic, Chair of the Management Board (CEO); Philip Grosse, Member of the Management Board (CFO); Daniel Riedl, Member of the Management Board (CDO)

The 2025 fiscal year serves as clear testimony to how Vonovia has further improved its economic performance in a challenging market environment, reliably creating value.

Despite sustained high construction and financing costs, a portfolio that is around 9,000 units smaller and regulatory uncertainties, we were able to improve our results across all of our segments, keep our cash flow stable and continue to pursue our strategic priorities successfully. With an operating result (Adjusted EBITDA Total) of € 2,800.8 million, up by 6% year over year, our growth initiatives are bearing fruit. Our property values also showed positive development over the year as a whole for the first time since 2022, mirroring the emerging recovery in the real estate sector. All of these factors give us confidence in the company’s potential for economic performance in the current fiscal year and beyond. Further details are provided in the report that follows.

Dear shareholders, we could not have written these success stories without you. As co-owners, you support us on our growth path. It is with the help of your capital that we can ensure proximity to, and the loyalty of, our customers. You provide us with constructive support as we strive to ensure that our business activities always strike the right balance between commercial success, the sustainable development of our portfolio and our social responsibility. This is something that we are, and I am, very grateful for.

With this in mind, we will be proposing a dividend to the Annual General Meeting that underscores our commitment to continuously increasing value for our shareholders. At the Annual General meeting on May 21, 2026, together with the Supervisory Board, we will be proposing a dividend of € 1.25 per share, up by 2.5% compared to the previous year. 

Despite our economic success over the past year and the opportunity that this has created in terms of enabling our shareholders to participate in the company's success in the form of an increased dividend, we cannot yet be satisfied with the current performance of our share price. It is important to me to engage in closer dialogue with you, our shareholders and with the capital market, and to communicate the strengths and associated advantages of our business model even more effectively and transparently. My team and I will listen to you equally attentively and take your suggestions on board, because understanding how others see Vonovia’s business activities is important to me. I have been following the company’s development since last year, initially from outside and, in recent months, from within Vonovia.

Based on this perspective, I can tell you that the company’s strengths and the opportunities that these strengths open up are still far from being recognized on the capital market as they deserve to be.

Let me give you one example: together with the Management Board team, my predecessor Rolf Buch has transformed the company into a market leader over the past twelve years. Vonovia’s management platform boasts productivity levels that are unparalleled in the sector. Since its IPO back in 2013, Vonovia has been continuously improving the quality of its processes and services to the benefit of its customers and owners alike. And it was always customer needs or social responsibilities that provided the impetus for these improvements. The fact that our customer satisfaction figures reached an all-time high of 76.5% last year confirms that we are on the right track. 

As Europe’s largest residential real estate company, we will continue to leverage the opportunities open to us in 2026 to achieve profitable development and further strengthen social cohesion. This is not a contradiction in terms for us, because our economic growth and the fulfillment of our social responsibility go hand in hand.

So what is on our agenda for this year?

First, we will be expanding the range of services we offer our customers so that we can continue to grow significantly. We will continue to develop the potential offered by our unique platform, always asking ourselves: “How can we offer our customers greater added value?” This will open up new fields of business, similar to those we have already established successfully with our energy and multimedia activities. Expanding our services includes, for example, offering our entire value chain to other market participants for their real estate portfolios. This will allow us to scale our core business in a manner that preserves capital.

Second, we will continue to strengthen our operational excellence in day-to-day business and drive innovation forward. Customer proximity and customer loyalty are our most important corporate values. Our aim is to be the best landlord and the best partner for other companies. This is an area in which I look forward to contributing my experience from other industries. In order to realize our ambitions, we will be investing heavily in areas such as digitalization and artificial intelligence. This will not only open up potential for further efficiency gains, but will also create manifold opportunities to accelerate our business processes and bring us closer to the people we interact with – within the team, with our business partners and with our customers.

Third, we will be driving forward our company’s transformation, prioritizing returns-oriented investments and reducing our debt. We will be focusing on reducing construction costs and on standardization. Agility and the ability to question the status quo are what guarantee that Vonovia will remain a driving force in the housing industry in the future.

We will be systematically pursuing our investment and innovation strategy to achieve the climate-neutral transformation of our housing stock. We made key progress last year, both by significantly ramping up our investments in energy-efficient building upgrades and by implementing the first set of innovative pilot projects, including serial modernization and the installation of new heat pump cubes in our neighborhoods.

We will be pressing ahead with measures to scale these measures in the current fiscal year by once again increasing our investment budgets considerably. At the same time, we will continue to step up our close cooperation with municipal authorities with regard to heating planning in order to connect additional neighborhoods to municipal district heating networks.

We want to remain a central and constructive partner for policymakers at the municipal, state and federal levels in order to effectively address the massive shortage of housing by building new and affordable homes. The ramp-up of our pipeline of new construction projects, which began last year, will once again pick up considerable speed this year. We will be focusing increasingly innovative serial new construction technologies, including those developed by our partner Gropyus, with their impressive sustainable timber construction, short construction times and high levels of cost efficiency.

At the same time, we will remain committed to calling for necessary political support – from the use of the “construction turbo” at the municipal level and simplified regulations for cost-effective construction types, such as the new building type E, to pragmatic type approvals for standardized new construction projects. This is the only way to achieve the urgently-needed increase in new construction volumes at the required speed while keeping costs affordable.

We remain committed to our ambition of being a fair partner for affordable housing. We adhere stringently to the statutory requirements regarding rent levels and rent adjustments and engage in dialogue with policymakers to further evolve rent regulation with the aim of further strengthening protection for particularly vulnerable customer groups while at the same time creating reliable investment incentives for the housing industry. With average rents of € 8.19 per m² in our portfolio in Germany, we continue to offer responsible rent levels that are well below the German market average.

My goal is and remains to ensure that customers choose Vonovia because we offer the best homes and the best service. Trust and performance are the foundation for achieving this. Trust in us as a landlord, in our service promise and in our offering can only be built if we keep this service promise day in, day out.

This is where our 12,700 or so colleagues play a particularly key role. All Vonovia employees contribute to our success. It’s all about being there for customers, listening to them and finding pragmatic solutions. This is something our colleagues do every day with passion and a strong sense of belonging to the company, as is evidenced by the increase in employee satisfaction to 85% last year, which also marks an all-time high for Vonovia. I would like to take this opportunity to thank them most sincerely.

We have big plans for the near future. Our financial outlook remains unchanged: in the current fiscal year 2026, we will increase our Adjusted EBITDA Total to € 2.95 - 3.05 billion. By 2028, it is set to grow much further (to € 3.2 - 3.5 billion), with the non-rental business becoming increasingly significant and contributing at least 15% to total EBITDA in 2026 and between 20% and 25% in 2028. One new feature is that we are planning to achieve these targets while at the same time reducing our leverage ratio significantly to around 40% by 2028. This will allow us to aim, in the medium term, to increase our growth rates in adjusted earnings before tax (Adj. EBT) by reducing our interest burden.

Finally, I would like to thank you, our customers and all my colleagues in #TeamVonovia for the trust and support you have all shown me during my first few weeks as CEO. On behalf of the entire Management Board, I look forward to working with you and am confident that we will craft a successful future together.

Vonovia isn’t just about a product, it’s about an idea: partnership through and through. Partnership is the cornerstone of our growth strategy.

And on that note, I convey my most sincere regards.

Sincerely,

Luka Mucic

Bochum, March 2026

Chair of the Management Board

Luka Mucic (CEO)