Economic Development in the First Nine Months of 2026
Key Events During the Reporting Period
In the first nine months of 2026, geopolitical conditions, especially the war in Ukraine, the Middle East conflict and the confrontational U.S. trade and tariff policy, led to heightened uncertainty in capital markets worldwide, rising energy prices, 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 conflicts are creating further uncertainty in the interest rate and capital markets as well as among our customers. This is reflected, in particular, in a reluctance to purchase real estate, which is hitting our sales-oriented Recurring Sales and Development segments as a result. We are actively monitoring and managing, as part of our refinancing activities, indirect effects, in particular risks resulting from energy price-driven inflation and the associated rise in interest rates, as well as other impacts on the capital markets. This is reflected accordingly in our forecast.
The results of the elections to Berlin’s House of Representatives (Abgeordnetenhaus) have once again intensified the debate surrounding the socialization of housing portfolios held by large private residential real estate companies. It is not yet possible to predict the specific details or the legal feasibility of potential measures. At the same time, the German government’s coalition committee has announced a federal statutory limit on the socialization of private rental housing portfolios. As a result, Vonovia does not expect any immediate impact on the Group’s economic development.
Our core business remains characterized by a high level of demand for rental apartments and favorable rent growth. With a vacancy rate of 2.3% at the end of the third quarter of 2026 (end of Q3 2025: 2.2%), Vonovia’s residential real estate portfolio was virtually fully occupied.
At 76.2%, the Customer Satisfaction Index (CSI) as of September 30, 2026, was 1.1 percentage points below the previous quarter’s figure of 77.3%, but 0.2 percentage points higher than the figure for the prior-year period.
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). 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 entirely as a financial liability. The conversion rights are recognized and measured separately as a derivative component.
Vonovia issued a € 2,000.0 million bond on July 6, 2026, in three tranches with terms of five, eight-and-a-half and twelve years. The tranche with a five-year term was structured as a social bond, while the tranche with an 8.5-year term was structured as a green bond. The average coupon is 3.87% p.a.
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.
All in all, around € 4.2 billion (excluding the 2NC1 bond) was refinanced with an average term of approximately eight years and an average EUR coupon of around 3.2%.
After the third quarter of 2026, on September 30, 2026, Vonovia took out unsecured financing in the amount of € 400.0 million with a maturity of five years. The financing was disbursed in October 2026, refinancing existing financing arrangements ahead of time.
Vonovia unveiled the new Veveus brand at the EXPO REAL on October 5, 2026. Under the Veveus umbrella, Vonovia will in the future bundle the services it offers institutional owners and investors in the areas of investment management, asset management, property management and facility management. Vonovia will use Veveus as part of its quest to expand its third-party market activities outside of its own portfolio with a minimal impact on the capital market and tap into new sources of commission/service-based income. Vonovia already manages approximately 75,000 apartments for other owners. The new brand will see Vonovia further expand its business beyond the conventional rental segment, supporting its strategic goal of further increasing the share of non-rental activities in relation to Adjusted EBITDA Total.