Economic Development in the First Half-Year of 2026

Key Events During the Reporting Period

In the first six months of 2026, geopolitical conditions, especially the war in Ukraine, the Middle East conflict and the confrontational US trade and tariff policy, led to heightened uncertainty in capital markets worldwide and dampened growth prospects and investment.

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 so far. We are actively monitoring 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 favorable rental growth. With a vacancy rate of 2.3% at the end of the first half of 2026 (end of the first half of 2025: 2.1%), Vonovia’s residential real estate portfolio was virtually fully occupied.

At 77.3%, the Customer Satisfaction Index (CSI) as of June 30, 2026, was up 2.1 percentage points on the value of 75.2% seen in the previous quarter.

Katja Wünschel joined the company as a new Management Board member on April 1, 2026. She stepped into the role of Chief Development Officer (CDO) on the Management Board effective June 1, 2026, succeeding Daniel Riedl, who left Vonovia’s Management Board 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 krona, in an amount of SEK 750.0 million, with a two-year term. On May 20, 2026, this bond was increased by SEK 250.0 million (approximately € 23.0 million) to SEK 1,000.0 million (approximately € 92.0 million). It still has a term of two years. The bond is not currency-hedged.

On June 23, 2026, Vonovia placed a new convertible bond with a total volume of € 850 million. The bond will mature in June 2031 and does not bear any periodic interest. The bond can either be converted into shares in Vonovia or settled in cash. The bond terms and conditions are such that the convertible bond is treated as entirely as a financial liability. The conversion rights are recognized and measured separately as a derivative component.

The Annual General Meeting held as a face-to-face event on May 21, 2026, resolved to pay a dividend for the 2025 fiscal year in the amount of € 1.25 per share (previous year: € 1.22 per share). The total amount of the dividend distributed in cash therefore came to € 1,060,538,816.25.

The Annual General Meeting also elected Dr. Anne-Marie Großmann-Minkwitz to the Supervisory Board as a replacement for Matthias Hünlein, who opted not to run for reelection. Jürgen Fenk, who has been a member of the Supervisory Board since April 2022, was also reelected.

On June 30, 2026, Vonovia accepted a binding offer made on May 12, 2026 regarding the acquisition of an additional 40.0% of the shares in QUARTERBACK New Energy Holding GmbH, Leipzig, at a purchase price of € 1.00.  As of June 30, 2026, Vonovia held a total stake of 80.0% in QUARTERBACK New Energy Holding GmbH, Leipzig.  The acquisition of control over QUARTERBACK New Energy Holding GmbH means that the QUARTERBACK New Energy Group, which includes a total of 63 companies, was included by way of full consolidation in Vonovia’s consolidated financial statements for the first time as of June 30, 2026.