Management System

Management Model

The management system tools are geared toward implementing the strategy through our sustainable business activities.

Vonovia made no significant changes to its management model in the 2025 fiscal year. The definition of the key figure OFCF was amended in the 2025 fiscal year. In the derivation, the item “Change in net working capital” was refined as “Change in net working capital Development to sell/Manage to Green”. The item “Intragroup profits/losses” was also supplemented to reflect the cash advantage associated with services rendered in-house. Adjusted EBITDA is used for greater transparency of impairment losses/reversal of impairments in Development to sell projects that may arise until the time of completion. By adjusting impairment losses and reversals of impairments, only earnings whose proceeds exceed acquisition costs plus capitalized amortized costs as of the balance sheet date will be recognized in Adjusted EBITDA. Over time, the key figures that are relevant for corporate management correspond to the internal planning forecasts for the projects.

The model’s underlying value driver approach is set out and explained in detail under in the chapter Fundamental Information about the Group.

Consequently, Vonovia will manage its business via the four segments: Rental, Value-add, Recurring Sales and Development.

The Rental segment combines all of the business activities that are aimed at the value-enhancing management of our own residential real estate. It includes our property management activities in Germany, Austria and Sweden.

The Value-add segment bundles all of the housing-related services that we have expanded our core rental business to include. These services include both the maintenance and modernization work on our residential properties and services that are closely related to the rental business and our customers. We allocate the activities relating to the craftsmen’s and residential environment organization, the condominium administration business, the multimedia business, metering services, the energy service, including tenant electricity, energy supplies and our insurance services to the Value-add segment. By insourcing these services, we aim to ensure availability and high-quality service. At Vonovia, high-quality service, which promotes a high level of customer satisfaction, is characterized first and foremost by accessibility, speed and transparency for our customers.

The Recurring Sales segment includes the regular and sustainable disposals of individual condominiums and single-family houses from our portfolio.

Sales of entire buildings, plots of land or larger portfolios that are not part of the strategically relevant portfolio (Non Core and the MFH Sales cluster that was dissolved at the end of 2024) are pursued as and when opportunities arise, meaning that they are not part of the Recurring Sales segment. We report these opportunistic sales in the Other column of the segment report.

The Development segment includes project development to build new homes. This covers the value chain starting with the purchase of land without any development plan/dedicated purpose and ending with completion and sale. The Development segment deals with projects in selected attractive locations.

We have an integrated Group-wide planning and controlling system in place that is based on central performance indicators. Based on the medium-term plans derived from our strategy, which are subject to an annual review and are updated during the year in the event of significant transactions, we prepare a budget for all areas of the Group. In the course of the fiscal year, current economic developments are compared with these targets and the current forecasts on a regular basis for all key figures that are relevant to control. The business is then steered accordingly in a targeted manner, with any necessary countermeasures being initiated and tracked.

We make a distinction between financial and non-financial performance indicators.