Details on results of operations by segment

Rental segment

In the Rental segment, overall conditions on the residential real estate market remained virtually unchanged in the 2026 reporting period. A severe housing shortage and strong demand for rental apartments continue to define the business environment. At the end of March 2026, the portfolio in the Rental segment had a vacancy rate of 2.3 % (end of March 2025: 2.1 %), meaning that it was nearly fully occupied.

Rental segment revenue increased by 4.0 % (3M 2025: 2.0 %) to € 873.6 million in the first three months of 2026 from € 840.4 million in the first three months of 2025. Of the segment revenue in the Rental segment in the 2026 reporting period, € 737.8 million is attributable to rental income in Germany (3M 2025: € 714.2 million), € 105.6 million to rental income in Sweden (3M 2025: € 96.0 million) and € 30.2 million to rental income in Austria (3M 2025: € 30.2 million). The organic rent growth (twelve-month rolling) stood at 4.0 % at the end of the first quarter of 2026 (4.3 % at the end of the first quarter of 2025). The increase in rent due to market-related factors came to 2.6 % as of the end of the first quarter of 2026 (2.9 % at the end of the first quarter of 2025). The increase from property value improvements stood at 1.0 % at the end of the first quarter of 2026 (1.0 % at the end of the first quarter of 2025). All in all, this produced a like-for-like rent increase of 3.6 % at the end of the first quarter of 2026 (3.9 % at the end of the first quarter of 2025). New construction measures and measures to add extra stories also contributed 0.4 % at the end of the first quarter of 2026 (0.4 % at the end of the first quarter of 2025).

The average monthly in-place rent in the residential portfolio in the Rental segment came to € 8.46 per m² at the end of March 2026 as against € 8.15 per m² at the end of March 2025. The monthly in-place rent in the German portfolio at the end of March 2026 came to € 8.26 per m² (end of March 2025: € 7.96 per m²), with a figure of € 11.96 per m² (end of March 2025: € 11.49 per m²) for the Swedish portfolio and € 5.84 per m² for the Austrian portfolio (end of March 2025: € 5.72 per m²). The rental income for the Swedish portfolio is reported as inclusive rent, i.e. including ancillary and heating costs as well as water costs. Moreover, the rental income from the Austrian real estate portfolio includes maintenance and improvement contributions (EVB).

Total maintenance, modernization, investments in the existing portfolio and new construction in the first three months of 2026 came in at € 441.9 million, up by 7.9 % on the prior-year value of € 409.6 million at the end of the first three months of 2025. An increase in modernization and portfolio investments as well as greater investment in new builds (to hold) played a key role in this trend.

Operating expenses in the Rental segment in the first three months of 2026 amounted to € -127.4 million, up by 2.8 % compared to the figure for the first three months of 2025 of € -123.9 million.

At € 629.7 million, Adjusted EBITDA in the Rental segment in the first three months of 2026 was up 6.3 % on the prior-year value of € 592.6 million despite the sales completed in 2025 and in the first three months of 2026.

Value-add segment

The Value-add segment recorded a significant increase in earnings during the 2026 reporting period. This was due in particular to the positive business performance within the company’s own craftsmen’s organization and in energy distribution. Modernization and portfolio investments in the first quarter of 2026 were up 11.3 % on the volume of the previous year.

All in all, revenue from the Value-add segment in the 2026 reporting period amounted to € 424.0 million, up by 9.5 % compared to the figure for the first three months of 2025 of € 387.1 million. External revenue from our Value-add activities with end customers in the first three months of 2026 amounted to € 38.5 million and had thus increased by 23.8 % on the first three months of 2025, for which the figure was € 31.1 million. Intra-Group revenue in the first three months of 2026 amounted to € 385.5 million, up by 8.3 % compared to the figure for the first three months of 2025 of € 356.0 million.

Operating expenses in the Value-add segment in the first three months of 2026 amounted to € -373.9 million and were thus up by 7.3 % on the figure for the first three months of 2025 of € -348.6 million. The increase can be traced back primarily to higher personnel expenses due to the ongoing measures to expand the workforce.

Adjusted EBITDA Value-add came in at € 50.1 million in the first three months of 2026, 30.1 % higher than the value of € 38.5 million seen in the first three months of 2025.

Recurring Sales segment

In the Recurring Sales segment, income from the disposal of properties came to € 75.0 million in the 2026 reporting period with 348 units sold (3M 2025: 689), 246 units in Germany (3M 2025: 600) and 102 in Austria (3M 2025: 89). This corresponds to a drop in income of 38.5 % compared to the € 122.0 million seen in the first three months of 2025. Income of € 45.3 million is attributable to sales in Germany (3M 2025: € 98.9 million) and € 29.7 million to sales in Austria (3M 2025: € 23.1 million).

Fair value step-up came to 42.5 % in the first three months of 2026 (3M 2025: 25.0 %). Whereas much higher step-ups were achieved in Germany in the reporting period in a year-on-year comparison, the step-ups in Austria were down slightly as against the previous year.

Selling costs in the Recurring Sales segment came in at € -4.2 million in the first three months of 2026, down by 20.8 % on the value of € -5.3 million seen in the first three months of 2025.

Adjusted EBITDA Recurring Sales came in at € 18.2 million in the first three months of 2026, 4.7 % lower than the value of € 19.1 million seen in the first three months of 2025.

In addition, in the 2026 reporting period, outside the Recurring Sales segment, 902 units from the Non Core/Other portfolio (3M 2025: 5,371) were sold as part of our portfolio adjustment measures, with proceeds totaling € 80.9 million (2025: € 722.9 million).

Development segment

Earnings in the Development segment were down by 73.7% year on year in the 2026 reporting period. In particular, the economic transfer of a property sale to two state-owned Berlin housing associations had a positive impact in the first quarter of the previous year.

In the Development to sell area, a total of 282 units were completed in the 2026 reporting period, all of them in Germany (3M 2025: 48 units, all of them in Germany). In the first three months of 2026, income from the disposal of development properties amounted to € 39.2 million (3M 2025: € 113.5 million), with € 29.0 million attributable to project development in Germany (3M 2025: € 100.4 million) and € 10.2 million to project development in Austria (3M 2025: € 13.1 million). The gross profit for Development to sell came to € 19.4 million in the first three months of 2026 with a margin of 49.6 % (3M 2025: € 61.2 million, margin of 53.9 %).

Operating expenses in the Development segment in the first three months of 2026 amounted to € -10.4 million, down by 4.6 % compared to the figure for the first three months of 2025 of € -10.9 million.

Adjusted EBITDA in the Development segment came in at € 13.6 million in the first three months of 2026, 73.7% lower than the value of € 51.7 million seen in the first three months of 2025.

In the Development to hold area, a total of 21 units were completed in the first three months of 2026 (3M 2025: 38 units), of which 16 were in Germany (3M 2025: 33 units), and 5 were in Sweden (3M 2025: 5 units).