40 Non-derivative Financial Liabilities

Accounting Policies

Deferred interest is presented as current in order to show the cash effectiveness of the interest payments transparently. In principle, the deferred interest is part of the non-derivative financial liability. Of the deferred interest from non-derivative financial liabilities, € 222.1 million (December 31, 2024: € 228.0 million) is from bonds reported under non-derivative financial liabilities to other creditors.

The non-derivative financial liabilities developed as follows in the fiscal year under review:

The non-derivative financial liabilities developed as follows in the previous year:

The AUD, NOK and SEK bonds issued in 2025 and the existing CHF and GBP bonds were translated at the exchange rate at the end of the reporting period in line with applicable IFRS Accounting Standards. Allowing for the hedging rate prescribed through the interest hedging transaction entered into, these financial liabilities would be € 4.2 million (December 31, 2024: € 19.8 million) lower overall than the recognized value.

The maturities and average interest rates of the nominal obligations of the liabilities to banks and the liabilities to other creditors are as follows during the fiscal year:

In the previous year, the maturities and average interest rates of the nominal obligations were as follows:

The loan repayments shown for the following years contain contractually fixed minimum repayment amounts.

Of the nominal obligations to creditors, € 13,161.9 million (December 31, 2024: € 12,963.4 million) are secured by land charges and other collateral (account pledge agreements, assignments, pledges of company shares and guarantees of Vonovia SE or other Group companies). In the event that payment obligations are not fulfilled, the securities provided are used to satisfy the claims of the banks.

Financial liabilities to banks and other creditors have an average interest rate of approximately 2.10% (2024: 1.89%). The financial liabilities as a whole do not contain any significant short-term interest rate risks as they relate either to loans with long-term fixed interest rates or variable-interest liabilities that are hedged using suitable derivative financial instruments (see [G54] Financial Risk Management).

Repayment of Bonds Under the European Medium-Term Notes Program (EMTN)

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

Another bond with an outstanding nominal volume of € 429.2 million was also repaid as scheduled on June 29, 2025.

The partial buyback of bonds with a total volume of € 800 million was completed on June 6, 2025. This involved buying back a social bond with an issue volume of € 750.0 million and a term expiring in 2027 in the amount of € 435.7 million (selling price € 454.3 million). This bond has a 4.75% coupon rate. A further bond, a green bond, with an issue volume of € 750.0 million and a term expiring in 2030 was bought back in the amount of € 364.3 million (selling price € 399.5 million). This bond has a 5.00% coupon rate.

On September 8, 2025, a bond with a nominal volume of € 429.8 million was repaid as scheduled.

Another buyback of an outstanding bond in the amount of € 559.6 million was completed on November 17, 2025. This involved buying back a bond maturing in 2026 (coupon of 0.625%), two bonds maturing in 2027 (coupons of 1.75% and 0.75%) and another bond maturing in 2027 (coupon of 4.75%). In early December 2025, early termination was announced with effect from January 15, 2026 for the outstanding volume of this bond totaling around € 217 million, and repayment was made.

In addition, Vonovia concluded the scheduled repayment of a bond with an outstanding volume of € 1,250 million on December 1, 2025.

Repayment of Deutsche Wohnen Bonds

Deutsche Wohnen repaid a bond in the amount of € 589.7 million as planned on April 30, 2025.

Bonds Under the European Medium Term Notes Program (EMTN)

Vonovia 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%. 

Vonovia issued a € 2,250 million bonds on November 12, 2025, in three tranches with terms of 7, 11 and 15 years. The tranche with an 11-year term was issued as a green note. The average coupon is 3.96% p.a.

Foreign Currency Bonds

On April 1, 2025, Vonovia issued an NOK 1.0 billion (approx. € 88.3 million) bond with an eight-year term and a coupon of 5.51% p.a. (4.12% p.a. after currency hedging). 

On June 13, 2025, Vonovia issued two green bonds in Swedish krona, each with a volume of SEK 500.0 million (around € 45.6 million each). Both bonds will run until June 2028. The first bond is a floating-rate bond, with Vonovia paying a fixed coupon of 3.0885% after currency hedging. The second bond has an original fixed coupon of 3.308%. SEK 200.0 million of the nominal volume was hedged using a foreign currency derivative (3.1455% p.a. after currency hedging).

On September 3, 2025, Vonovia issued a bond in the amount of AUD 850.0 million for the first time. One tranche of the bond, in an amount of AUD 300.0 million (approximately € 168.3 million) has a term expiring in seven years and a 5.266% coupon (3.677% p.a. after currency hedging). The term of the second AUD 550.0 million (approx. € 308.6 million) tranche is ten years and this tranche has a coupon of 5.717% (3.980% after currency hedging).

Convertible Bonds

On May 13, 2025, Vonovia placed two new convertible bonds with a total volume of € 1.3 billion. The first bond in the amount of € 650.0 million will mature in May 2030 and does not bear any periodic interest. The second bond – also with a volume of € 650.0 million – will fall due in May 2032 and has a coupon rate of 0.875% p.a. The first convertible bond can be converted into shares in Vonovia as of November 21, 2029, and the second convertible bond as of November 21, 2031. The bonds can either be converted into shares in Vonovia or settled in cash. The bond terms and conditions are such that the convertible bonds are treated as borrowed capital in full. For accounting purposes, the conversion rights are separated, as a derivative component, from the debt transaction and are measured and reported separately as a derivative within financial liabilities. Upon initial recognition not affecting net income, the value of the derivative came to € 143.7 million. The value came to € 79.4 million as of December 31, 2025. The change in value in the period since initial recognition was recognized affecting net income in the amount of € 64.3 million in other interest result from derivatives.

Secured Financing

On September 5, 2025, Vonovia took out secured financing with Hessische Landesbank in the amount of € 150.0 million with a maturity of ten years.

Repayment of European Investment Bank Loan

On December 8, 2025, Vonovia SE repaid a loan taken out with the European Investment Bank, with an outstanding amount of € 330.0 million, in line with the contractual provisions.

Secured Deutsche Wohnen Financing

Secured financing of around € 582 million fell due for repayment in the Deutsche Wohnen subgroup as of September 30, 2025. Of that amount, € 338.0 million was refinanced with the same lenders, with the remaining € 244.0 million being repaid.

On September 22, 2025, Deutsche Wohnen SE took out secured financing with BERLINER SPARKASSE in the amount of € 130.0 million with a maturity of ten years.