18 Investment Properties

The values as of June 30, 2026, include assets of € 1,235.5 million (December 31, 2025: € 1,124.1 million) that are measured at cost, as their fair value cannot be reliably calculated on a continuing basis. There were additions in the amount of € 96.8 million (December 31, 2025: € 904.9 million) in the reporting period, no disposals (December 31, 2025: € 5.2 million) and reclassifications including changes in value due to currency translation of € 35.8 million (December 31, 2025: € 82.7 million). There were also impairment losses recognized on these assets in the amount of € 23.1 million (December 31, 2025: € 392.2 million) and reversals of impairment losses of € 1.9 million (December 31, 2025: € 48.3 million). The impairment losses were reported under depreciation and amortization losses, with the reversal of impairment losses being disclosed under Other operating income.

Fair Values

Vonovia determines fair value in accordance with the requirements of IAS 40 in conjunction with IFRS 13. We refer to the detailed information set out in the consolidated financial statements for 2025.

Vonovia measures its portfolio in Germany, Sweden and Austria internally on the basis of the discounted cash flow (DCF) method. Under the DCF methodology, the expected future cash inflows and outflows associated with a property are forecast over a period of ten years and discounted to the date of valuation as the net present value. Furthermore, the terminal value of the property at the end of the ten-year period is determined using the expected stabilized net operating income and again discounted to the date of valuation as the net present value. In addition, the valuation of the portfolio in Austria is based on the assumption of sales strategies for the recurring sales of apartments for a subportfolio. Attainable revenues are calculated based on sales prices for comparable apartments (market approach) and are reported in the appropriate period in the DCF model. In order to take the sales potential into account, the DCF detailed period is extended to 100 years for the Austrian portfolios and no terminal value is used.

In order to reflect changes in value during the year, Vonovia performs a new valuation on the existing residential real estate portfolio at the time of the interim financial statements.

The value developments and values for the real estate assets in Germany, Sweden and Austria were also subjected to a plausibility check performed by the experts CBRE GmbH and Savills Sweden SE. They confirmed that the portfolio value as of June 30, 2026, is plausible and consistent with the market.

The real estate portfolio of Vonovia is to be found in the items investment properties, property, plant and equipment (owner-occupied properties), real estate inventories, contract assets and assets held for sale. The fair value of the portfolio comprising residential buildings, commercial properties, garages and parking spaces, project developments, undeveloped land, hereditary building rights granted and nursing care facilities was € 85,675.7 million as of June 30, 2026 (December 31, 2025: € 84,448.2 million). This corresponds to a net initial yield for the real estate portfolio of 3.0 % (December 31, 2025: 3.0 %). For Germany, this results in an in-place rent multiplier of 24.2 for the portfolio (December 31, 2025: 24.0) and a fair value per m² of € 2,412 (December 31, 2025: € 2,361 per m²). The in-place rent multiplier for the Swedish portfolio comes to 17.0 (December 31, 2025: 17.3) and a fair value per m² of € 2,259 (December 31, 2025: € 2,293 per m²), and for Austria to 22.4 (December 31, 2025: 22.3) and a fair value per m² of € 1,724 (December 31, 2025: € 1,695 per m²). We report the in-place rents as well as other key indicators relevant to the valuation of our portfolio in the Portfolio Structure section of the management report, broken down by regional market.

The inflation rate used in the valuation is 2.0 % (December 31, 2025: 2.0 %). For the Austrian portfolio, a sales strategy with an average selling price of € 2,698 per m² (December 31, 2025: € 2,646 per m²) was assumed for 63.9 % of the portfolio (December 31, 2025: 63.6 %). We report the in-place rents as well as other key indicators relevant to the valuation of our portfolio in the Portfolio Information section, broken down by regional market.

Net income from the valuation of investment properties amounted to € 848.1 million in the first half of 2026 (H1 2025: € 520.3 million).

The material valuation parameters for the investment properties (Level 3) in the residential real estate portfolio are as follows as of June 30, 2026, on average, broken down by regional markets:

Sensitivity Analyses

The sensitivity analyses performed on Vonovia’s real estate portfolio show the impact of value drivers dependent upon market developments. Those influenced in particular are the market rents and their development, the amount of recognized administrative and maintenance expenses, cost increases, the vacancy rate and interest rates. The effect of possible fluctuations in these parameters is shown separately for each parameter according to regional market in the following.

Interactions between the parameters are possible but cannot be quantified owing to the complexity of the interrelationships. The vacancy and market rent parameters, for example, can influence each other. If rising demand for housing is not met by adequate supply developments, then this can result in lower vacancy rates and, at the same time, rising market rents. If, however, the rising demand is compensated for by a high vacancy reserve in the location in question, then the market rent level does not necessarily change.

Changes in the demand for housing can also impact the risk associated with the expected payment flows, which is then reflected in adjusted amounts recognized for discounting and capitalized interest rates. The effects do not, however, necessarily have to have a favorable impact on each other, for example, if the changes in the demand for residential real estate are overshadowed by macroeconomic developments.

In addition, factors other than demand can have an impact on these parameters. Examples include changes in the portfolio, in seller and buyer behavior, political decisions and developments on the capital market.

Due to the particular effect that changes in inflation will have on future rent increases in Sweden, it has been assumed, for the purposes of calculating sensitivities, that one-third of any change in inflation will spill over into rental growth.

The table below shows the percentage impact on values in the event of a change in the valuation parameters. The absolute impact on values is calculated by multiplying the percentage impact by the fair value of the investment properties.