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 June 2026, the portfolio in the Rental segment had a vacancy rate of 2.3% (end of June 2025: 2.1%), meaning that it was nearly fully occupied.

In the first half of 2026, Rental segment revenue increased by 3.4% (H1 2025: 2.6%) compared to the first half of 2025 to € 1,749.7 million (H1 2025: € 1,692.7 million). Of the segment revenue in the Rental segment in the 2026 reporting period, € 1,478.5 million is attributable to rental income in Germany (H1 2025: € 1,436.5 million), € 209.2 million to rental income in Sweden (H1 2025: € 195.5 million) and € 62.0 million to rental income in Austria (H1 2025: € 60.7 million). The organic rent growth (twelve-month rolling) stood at 3.6% at the end of the first half of 2026 (4.4% at the end of the first half of 2025). The increase in rent due to market-related factors came to 2.1% as of the end of the first half of 2026 (2.9% at the end of the first half of 2025). The increase from property value improvements stood at 1.2% at the end of the first half of 2026 (1.2% at the end of the first half of 2025). All in all, this produced a like-for-like rent increase of 3.3% at the end of the first half of 2026 (4.1% at the end of the first half of 2025). New construction measures and measures to add extra stories also contributed 0.3% at the end of the first half of 2026 (0.3% at the end of the first half of 2025) to organic rent growth.

The average monthly in-place rent in the residential portfolio in the Rental segment came to € 8.51 per m² at the end of June 2026 as against € 8.22 per m² at the end of June 2025. The monthly in-place rent in the German portfolio at the end of June 2026 came to € 8.32 per m² (end of June 2025: € 8.05 per m²), with a figure of € 11.82 per m² (June 2025: € 11.30 per m²) for the Swedish portfolio and € 5.87 per m² for the Austrian portfolio (June 2025: € 5.76 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 measures, modernization and portfolio investments and new construction (to hold) in the first half of 2026 came in at € 933.2 million, up by 9.0% on the prior-year value of € 856.4 million at the end of the first half of 2025. An increase in modernization and portfolio investments played a key role in this trend.

Operating expenses in the Rental segment in the first half of 2026 amounted to € -242.8 million, up by 5.8% compared to the figure for the first half of 2025 of € -229.4 million.

At € 1,268.6 million, Adjusted EBITDA in the Rental segment in the first six months of 2026 was up 3.5% on the prior-year value of € 1,225.6 million despite the sales completed in 2025 and in the first six months of 2026.

Value-add Segment

Earnings increased substantially in the Value-add segment in the 2026 reporting period. This was due in particular to the positive business development within the company’s own craftsmen’s organization and in energy distribution. Modernization and portfolio investments in the first half of 2026 amounted to € 441.4 million, up by 19.8% compared to the figure for the first half of 2025 of € 368.3 million.

All in all, revenue from the Value-add segment in the 2026 reporting period amounted to € 800.1 million, up by 9.4% compared to the figure for the first half of 2025 of € 731.2 million. External revenue from our Value-add activities with our end customers in the first half of 2026 amounted to € 79.2 million, up by 13.8% compared to the figure for the first half of 2025 of € 69.6 million. Intra-Group revenue in the first half of 2026 amounted to € 720.9 million, up by 9.0% compared to the figure for the first half of 2025 of € 661.6 million.

Operating expenses in the Value-add segment in the first half of 2026 amounted to € -671.6 million and were thus up by 6.5% on the figure for the first half of 2025 of € -630.5 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 € 128.5 million in the first half of 2026, 27.6% higher than the value of € 100.7 million seen in the first half of 2025.

Recurring Sales Segment

In the Recurring Sales segment, income from disposal of properties came to € 157.2 million in the 2026 reporting period with 687 units sold (H1 2025: 1,134), 463 units in Germany (H1 2025: 938) and 224 in Austria (H1 2025: 196). This corresponds to a drop in income of 26.9% compared to the € 215.0 million seen in the first half of 2025. Income of € 91.6 million is attributable to sales in Germany (H1 2025: € 161.6 million) and € 65.6 million to sales in Austria (H1 2025: € 53.4 million).

Fair value step-up came to 43.8% in the first half of 2026 (H1 2025: 29.4%). 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 € -8.6 million in the first half of 2026, down by 15.7% on the value of € -10.2 million seen in the first half of 2025.

Adjusted EBITDA Recurring Sales came in at € 39.3 million in the first half of 2026, 1.6% higher than the value of € 38.7 million seen in the first half of 2025.

In addition, in the 2026 reporting period, outside the Recurring Sales segment, 2,902 units from the Non Core/Other portfolio (H1 2025: 7,151) were sold as part of our portfolio adjustment measures, with proceeds totaling € 217.0 million (H1 2025: € 842.7 million).

Development Segment

Earnings in the Development segment were down by 65.0% year on year in the 2026 reporting period. In particular, the economic transfer of a property sale to two state-owned Berlin housing associations in the amount of € 53.3 million had a positive impact in the first half of the previous year.

In the Development to sell area, a total of 550 units were completed in the 2026 reporting period, all of them in Germany (H1 2025: 280 units, all of them in Germany). In the first half of 2026, income from the disposal of development properties amounted to € 161.7 million (H1 2025: € 209.1 million). With € 134.5 million attributable to project development in Germany (H1 2025: € 176.5 million) and € 27.2 million to project development in Austria (H1 2025: € 32.6 million). The gross profit for Development to sell came to € 30.3 million in the first half of 2026 with a margin of 18.7% (H1 2025: € 70.2 million, margin of 33.6%).

Operating expenses in the Development segment in the first half of 2026 amounted to € -19.2 million, up by 18.5% compared to the figure for the first half of 2025 of € -16.2 million.

Adjusted EBITDA in the Development segment amounted to € 20.1 million in the first half of 2026, down by 65.0% year on year (H1 2025: € 57.4 million).

In the Development to hold area, a total of 84 units were completed in the first half of 2026 (H1 2025: 335 units), of which 79 units were in Germany (H1 2025: 330) and 5 units were in Sweden (H1 2025: 5 units).