37 Total Equity
Accounting Policies
Other comprehensive income includes changes in total comprehensive income not affecting net income except that resulting from capital transactions with equity holders (e.g., capital increases or dividend distributions). Vonovia includes under this item unrealized gains and losses from the fair value measurement of equity instruments and derivative financial instruments that are designated as cash flow hedges. The item also includes actuarial gains and losses from defined benefit pension commitments as well as certain currency translation differences.
The other reserves contain cumulative changes in equity not affecting income. At Vonovia, the effective portion of the net change in the fair value of cash flow hedging instruments, the equity instruments at fair value as well as currency translation differences are recognized in other comprehensive income.
The other reserves from cash flow hedges and from currency translation differences can be reclassified. When the underlying hedged item of the cash flow hedge affects net income, the reserves attributable thereto are reclassified to profit or loss. If a foreign business is disposed of, the reserves attributable thereto are reclassified.
Development of the Subscribed Capital
Development of the Subscribed Capital | |||
in € | |||
As of Dec. 31, 2024 | 822,852,925.00 | ||
Capital increase against non-cash contributions on Jun. 24, 2025 (scrip dividend) | 12,768,562.00 | ||
Capital increase against non-cash contributions until Dec. 31, 2025 | 12,594,898.00 | ||
As of Dec. 31, 2025 | 848,216,385.00 | ||
Development of the Capital Reserves
Development of the Capital Reserves | |||
in € | |||
As of Dec. 31, 2024 | 2,451,083,465.14 | ||
Premium from capital increase against non-cash contributions on Jun. 24, 2025 | 343,959,523.14 | ||
Share premium from the capital increase against non-cash contributions | 375,831,756.32 | ||
Transaction costs on the issue of new shares (after allowing for deferred taxes) | -355,731.18 | ||
Withdrawal from capital reserve | -548,412,973.73 | ||
Other changes not affecting net income | -13,165,453.86 | ||
As of Dec. 31, 2025 | 2,608,940,585.83 | ||
Dividend
The Annual General Meeting held on May 28, 2025, resolved to pay a dividend for the 2024 fiscal year in the amount of € 1.22 per share. The total amount came to € 1,003,880,568.50.
As in previous years, shareholders could opt to receive either a cash dividend or new shares. During the subscription period, shareholders holding a total of 35.53% of the shares carrying dividend rights opted for the scrip dividend instead of the cash dividend. As a result, 12,768,562 new shares were issued using the company’s authorized capital pursuant to Section 5b of the Articles of Association (“2022 authorized capital”) at a subscription price of € 27.938, i.e., a total amount of € 356,728,085.14. The total amount of the dividend distributed in cash therefore came to € 647,152,483.36.
Authorized Capital
The 2022 authorized capital was canceled. New 2025 authorized capital totaling € 246,855,877.00 has been created. After being used in connection with the stock exchange for shares in Deutsche Wohnen SE, this capital fell by € 12,594,898.00 to € 234,260,979.00 as of December 31, 2025. Shareholder subscription rights for the 2025 authorized capital can also be excluded.
Capital Reserves
Deferred taxes in the capital reserves were reduced by € 13.5 million (2024: € 0.0 million), as the tax rate was adjusted above all as a result of the reduction in corporation tax decided for the years ahead. This effect is reported under other changes not affecting income.
Retained Earnings and Non-controlling Interests
Retained earnings as of December 31, 2025, came to € 24,130.8 million (December 31, 2024: € 21,149.1 million). This figure includes actuarial gains and losses of € 43.8 million (December 31, 2024: € 10.3 million), which cannot be reclassified and therefore may no longer be recognized in profit or loss in subsequent reporting periods.
Shares of third parties in Group companies are recognized under non-controlling interests.
The neutral effects in retained earnings and non-controlling interests are due largely to transactions with the co-investor Apollo Capital Management L.P.
In the third quarter of 2025, Apollo Capital Management L.P. indirectly acquired 10.2% of the shares in Deutsche Wohnen SE for € 1.0 billion via a subsidiary. This transaction increased non-controlling interests by € 1.3 billion, while retained earnings fell by € 0.3 billion.
Under the control and profit and loss transfer agreement between Vonovia SE and Deutsche Wohnen SE, 12,594,898.00 shares in Vonovia SE were created using the 2025 authorized capital and exchanged for shares in Deutsche Wohnen. This reduced non-controlling interests by € 483.0 million.
The shareholders who have not converted will receive a guaranteed dividend. Based on the term of the profit and loss transfer agreement, this was stated in liabilities at its net present value of € 157.3 million and reduced the total equity of the non-controlling interests.
The new Deutsche Wohnen SE minority shareholder Apollo Capital Management L.P. will also receive a guaranteed dividend. Based on the term of the profit and loss transfer agreement, this was also stated in liabilities at its net present value of € 310.9 million and also reduced the total equity of the non-controlling interests.
An amount of € 165.2 million was distributed to the non-controlling interests of Apollo Capital Management L.P. as of June 30, 2025 in connection with the investments in the Südewo portfolio and the northern Germany portfolio. As a result, the ratio between retained earnings and non-controlling interests in total equity was adjusted by € 98.7 million.
The allocation of additional guaranteed dividends reduced non-controlling interests by € 153.5 million (December 31, 2024: € 8.9 million).
The combined subgroup financial information, prepared in accordance with Vonovia’s accounting policies, for the Deutsche Wohnen Group as a major subsidiary with non-controlling interests and its registered headquarters in Berlin is as follows:
The Combined Financial Information for the Deutsche Wohnen Group
in € million | Dec. 31, 2024 Deutsche Wohnen Group | Dec. 31, 2025 Deutsche Wohnen Group | |||
Revenue | 1,574.6 | 1,499.7 | |||
Profit for the period | 550.3 | 926.1 | |||
attributable to non-controlling interests | 66.3 | 239.2 | |||
Other comprehensive income | 2.1 | 3.8 | |||
attributable to non-controlling interests | -0.3 | 0.6 | |||
Total non-current assets | 23,161.2 | 24,670.0 | |||
Total current assets | 3,184.3 | 1,751.0 | |||
thereof cash and cash equivalents | 388.6 | 442.2 | |||
Total non-current liabilities | 11,438.0 | 10,780.5 | |||
Total current liabilities | 2,042.1 | 1,836.5 | |||
Total equity | 12,865.4 | 13,804.0 | |||
Cash flow from operating activities | 725.5 | 793.6 | |||
Cash flow from investing activities | -77.8 | -295.2 | |||
Cash flow from financing activities | -417.1 | -488.3 | |||
Net changes in cash and cash equivalents of | -0.9 | -43.5 | |||
Net changes in cash and cash equivalents | 230.6 | 10.1 | |||
Dividend per share in € | 0.04 | 0.04 | |||
Other Reserves
Changes in other comprehensive income during the period in the amount of € 291.1 million (2024: € -93.9 million) are mainly the result of currency translation differences due to changes in the exchange rate for the Swedish krona against the euro in the amount of € 276.0 million (2024: € -143.0 million).