Opportunities and Risks

Compared with the opportunities and risks set out in detail in the 2025 Annual Report, there were no material changes as of the end of the first half of 2026.

The opportunities described in detail in the 2025 Annual Report have remained unchanged so far.

The assessment of the overall risk position is similar to that at the 2025 year-end. The number of overall risks at the end of the first half of 2026 was 108 compared to 104 at the end of 2025.

Currently there are no (red) risks that could pose a threat to the company’s existence and none are discernible for the future.

The number of amber risks came to eight at the end of the first half of 2026, unchanged as against the end of 2025. These eight amber risks were assessed as follows compared to the assessment made at the end of 2025:

Risks Related to Operating Business

The risk “future market development leads to a drop in property values” is unchanged with a potential amount of loss affecting the balance sheet of € 2,400–6,000 million and an expected probability of occurrence of 5–39%. 

The risk “deteriorating residential property market situation with regard to supply and demand for the sale of apartments” is unchanged with a potential amount of loss with an impact on profit and loss of € 450–900 million and an expected probability of occurrence of 5–39%. 

The “development sale risk” is unchanged with a potential amount of loss with an impact on profit and loss of € 180–450 million and an expected probability of occurrence of 40–59%. 

Risks Related to Regulatory Environment & Overall Statutory Framework

The risk “disadvantageous changes in the regulatory framework”, as a qualitative risk, is unchanged with a “high” expected amount of financial loss and a probability of occurrence of 5–39%. 

Risks Related to Financing

The risk “higher refinancing costs due to changes in risk profile” is unchanged with a potential amount of loss with an impact on profit and loss of € 450–900 million and an expected probability of occurrence of 5–39%. 

The risk “unfavorable interest rate developments” is unchanged with a potential amount of loss with an impact on profit and loss of € 450–900 million and an expected probability of occurrence of 5–39%. 

The risk “failure to fulfill obligations (from bonds, secured loans, transactions)” is unchanged with a potential amount of loss with an impact on profit and loss of >€ 900 million and an expected probability of occurrence of <5%. 

The “risk of legislative interpretation (real estate transfer tax for share deals and the effects of a tax rate reduction on the minimum tax)” with a potential amount of loss with an impact on profit and loss of >€ 900 million now has an increased expected probability of occurrence, which has risen from <5% to 5–39%. A moderate adjustment was made to the probability of occurrence taking recent regulatory developments into account. This was triggered by increasing details of potential statutory changes becoming available.