Economic Development in the First Three Months of 2026

Key Events During the Reporting Period

In the first three months of the 2026 fiscal year, geopolitical conditions, especially the wars in Ukraine and Iran and the confrontational US trade and tariff policy, led to heightened uncertainly on capital markets worldwide and dampened growth prospects and investment. Many economists believe there is a risk of a prolonged recession if the tariff conflicts continue to escalate and the wars in Ukraine and Iran persist.

Vonovia’s business model is not affected directly by protectionist measures. Nevertheless, the Group’s economic development is heavily reliant on other economic parameters, such as interest rate and inflation trends, as well as energy price developments. The current conflict in the Middle East is creating further uncertainty for our customers, as well as on the interest rate and capital markets. At present, however, we have not identified any direct impact of the crisis on Vonovia’s business development to date. We are keeping an eye on, and managing, indirect effects, in particular risks resulting from energy price-driven inflation and an associated rise in interest rates, as well as other impacts on the capital markets. This is reflected accordingly in our forecast.

Our core business remains characterized by a high level of demand for rental apartments and a positive rent trend. With a vacancy rate of 2.3% at the end of the first quarter of 2026 (end of the first quarter of 2025: 2.1 %), Vonovia’s residential real estate portfolio was virtually fully occupied.

At 75.2%, the Customer Satisfaction Index (CSI) as of March 31, 2026, was down by 1.6 percentage points compared with the previous quarter at 76.8%.

Further climate project milestones were reached in March 2026. In early March 2026, for example, the first completed heat pump cubes rolled off the new production line of our cooperation partner EnerCube GmbH and DFA Demonstrationsfabrik Aachen GmbH. Vonovia also launched a neighborhood-based power-to-heat project in Hamburg in March 2026 in collaboration with decarbon1ze, which involves the installation of additional electric heating systems.

As regards modernization measures, a facade project was implemented based on the Energiesprong principle, using prefabricated solar facades and infrared heating windows to replace gas heating. Vonovia also launched a large-scale series facade renovation project: To reduce the energy consumed for heating, prefabricated timber wall panels, which already feature thermal insulation and ventilation properties, are installed on exterior building walls.

Katja Wünschel joined the company as a new Management Board member on April 1, 2026. She will step into the role of Chief Development Officer (CDO) on the Management Board effective June 1, 2026, succeeding Daniel Riedl, who will leave Vonovia’s Management Board by mutual agreement on May 31, 2026, following a two-month induction period for Katja Wünschel.

The 2NC1 bond in an amount of € 750.0 million issued on April 14, 2025 was called early on March 12, 2026 and repaid as of April 14, 2026.

Vonovia issued a new floating-rate 2NC1 bond in an amount of € 1,000.0 million with a term of two years on April 20, 2026.

On April 22, 2026, Vonovia also issued a 2NC1 bond in Swedish kronor, in an amount of SEK 750.0 million, with a two-year term.

The Supervisory Board of Vonovia SE will propose Dr. Anne-Marie Großmann-Minkwitz for election to the Supervisory Board at the upcoming Annual General Meeting, which will be held as a face-to-face event in Bochum on May 21, 2026. She is to succeed Matthias Hünlein, who is not running for reelection. Jürgen Fenk, who has been a member of the Supervisory Board since April 2022, is also standing for election.

With the publication of the 2025 annual financial statements on March 19, 2026, the Management Board and the Supervisory Board reported that they would provide the Annual General Meeting of Vonovia SE with a proposal to distribute a dividend of € 1.25 per share for the 2025 fiscal year, up by 2.5% compared to the previous year.