Risks Related to Financing

With regard to financing, we identified four amber risks (2024: four) explained below at the end of 2025.

Restricted access to the bond market and a poorer rating could give rise to refinancing risks for Vonovia, meaning that too little liquidity might be available temporarily.

In the 2025 financial year, the refinancing measures and ratings grades remained within expectations. Details can be found in the chapter The Company and Its Shares in the management report. The risk with an impact on profit and loss “Higher refinancing costs due to changes in risk profile” was assessed once more as having an expected amount of loss of € 450-900 million (2024: € 450-900 million) and an expected probability of occurrence of 5-39% (2024: 5-39%) and therefore remains in the amber risk category. While additional margins are to be expected in a scenario of higher refinancing costs, active and timely management of refinancing maturities allows Vonovia to ensure a balanced maturity profile so as to avoid cluster risks. Vonovia continues to use all financing instruments that are used as standard on the market and has the internal expertise to place these instruments. This prevents any one-sided reliance on specific types of financing. Being awarded an investment-grade rating is the very top priority in all strategic decisions. In the very unlikely event that refinancing via the capital market is temporarily impossible, Vonovia can resort to existing available credit lines.

A further increase in capital market interest rates could give rise to risks for Vonovia’s growth and result in planned investments being cut back, suspended or canceled completely. In addition, an increasing interest burden due to unfavorable interest rate developments could translate into lower growth or even a drop in Adjusted EBT. As the updated interest rates have again been taken into account for planning purposes, the financing risk with an impact on profit and loss classified as amber “unfavorable interest rate developments” remains in 2025 with an expected amount of loss of € 450-900 million based on the latest assessment (2024: € 450-900 million). The expected probability of occurrence remains unchanged at 5-39%. As well as diversifying borrowed capital instruments and maintaining a balanced maturity profile, risks are limited by ensuring a long-term average maturity/fixed-interest period of approximately six years. Debt reduction by freeing up liquidity is another measure used to limit risk.

Vonovia is obliged to report certain key figures and adhere to certain covenants in connection with bonds, secured loans and transactions. If these covenants are not adhered to or these reporting obligations are not fulfilled on time, Vonovia could be subject to payment obligations and additional negative effects on earnings could result from new financing arrangements. The amber financing risk with an impact on profit and loss associated with a “failure to fulfill obligations (from bonds, secured loans, transactions)” was assessed, at the end of the 2025 reporting period, as still having an expected amount of loss of >€ 900 million (2024: >€ 900 million) and an expected probability of occurrence of <5% (2024: <5% ). In order to counter this risk, Vonovia has implemented standardized processes for monitoring and managing its obligations.

The amendments to the German Real Estate Transfer Tax Act that came into force on July 1, 2021, lowering the participation threshold from 95% to 90% and increasing the observation period from five to ten years, could give rise to a subsequent liability to pay real estate transfer tax. This also includes the refinancing risk associated with existing co-investor structures. The amber risk with an impact on profit and loss, the “risk of legislative interpretation (real estate transfer tax for share deals and the effects of a tax rate reduction on the minimum tax)” (2024: “amendment to the German Real Estate Transfer Tax Act due to share deals”) was assessed, at the end of the reporting period, as still having an expected amount of loss of >€ 900 million (2024: >€ 900 million) and an expected probability of occurrence of <5% (2024: <5%). In addition to monitoring court decisions and legislation on an ongoing basis, Vonovia also limits this risk by raising awareness among decision-makers in the context of capital market transactions. This ensures the involvement of the internal Tax department in acquisition processes and other capital market transactions.

At the end of 2025 (previous years in parentheses), the net risks identified can be summarized as follows:

Net Risks