Results of Operations
Overview
All in all, Vonovia’s performance was in line with expectations in the first nine months of 2026. The Rental and Value-add segments saw positive earnings development. Earnings in the Recurring Sales and Development segments lagged behind the original guidance for the current fiscal year and the figures for the same nine-month period of 2025 due to subdued real estate purchases.
Solid business development in the Rental segment is characterized by high demand for rental apartments and rising rental income. Although the portfolio was around 5,000 units smaller at the end of the third quarter of 2026 than it had been a year earlier, the earnings contribution in the 2026 reporting period was up by 3.5% on the prior-year figure.
The Value-add segment reported a year-on-year increase in earnings of 31.4% in the first nine months of 2026. 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 came to € 747.2 million in the first nine months of 2026, which was 26.5% higher than the value of € 590.5 million for the first nine months of 2025.
In the Recurring Sales segment, the reporting period saw an 11.8% dip in earnings from € 56.6 million in the first nine months of 2025 to € 49.9 million in the first nine months of 2026. 965 units (9M 2025: 1,553 units) were sold in the first nine months of 2026 with an average fair value step-up of 42.2 % (9M 2025: 31.2 %). The sales reported in the previous year (496 units) included a large number of units for which ownership was transferred after the corresponding contracts had already been concluded at the end of 2024.
Earnings in the Development segment were down by 56.4% 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 nine months of the previous year.
In detail, Adjusted EBT from continuing operations developed as follows in the reporting period:
Adjusted EBT (Continuing Operations)
Adjusted EBT (Continuing Operations) | ||||||||
in € million | 9M 2025 | 9M 2026 | Change in % | 12M 2025 | ||||
Revenue in the Rental segment | 2,551.1 | 2,627.7 | 3.0 | 3,417.2 | ||||
Expenses for maintenance | -366.1 | -360.8 | -1.4 | -484.1 | ||||
Operating expenses in the Rental segment | -338.0 | -354.7 | 4.9 | -488.1 | ||||
Adjusted EBITDA Rental | 1,847.0 | 1,912.2 | 3.5 | 2,445.0 | ||||
Revenue in the Value-add segment | 1,093.6 | 1,203.9 | 10.1 | 1,471.5 | ||||
thereof external revenue | 101.5 | 115.5 | 13.8 | 139.5 | ||||
thereof internal revenue | 992.1 | 1,088.4 | 9.7 | 1,332.0 | ||||
Operating expenses in the Value-add segment | -943.5 | -1,006.7 | 6.7 | -1,274.0 | ||||
Adjusted EBITDA Value-add | 150.1 | 197.2 | 31.4 | 197.5 | ||||
Revenue in the Recurring Sales segment | 299.6 | 216.8 | -27.6 | 439.6 | ||||
Fair value of properties sold adjusted to reflect effects | -228.5 | -152.5 | -33.3 | -333.5 | ||||
Adjusted result Recurring Sales | 71.1 | 64.3 | -9.6 | 106.1 | ||||
Selling costs in the Recurring Sales segment | -14.5 | -14.4 | -0.7 | -22.9 | ||||
Adjusted EBITDA Recurring Sales | 56.6 | 49.9 | -11.8 | 83.2 | ||||
Revenue from disposal of Development to sell properties | 278.6 | 267.4 | -4.0 | 422.2 | ||||
Cost of Development to sell | -183.1 | -229.7 | 25.5 | -323.1 | ||||
Carrying amount of assets sold of Development to sell | -4.9 | -1.0 | -79.6 | -5.0 | ||||
Gross profit Development to sell | 90.6 | 36.7 | -59.5 | 94.1 | ||||
Rental revenue Development | 6.7 | 13.3 | 98.5 | 11.0 | ||||
Operating expenses in the Development segment* | -32.9 | -21.9 | -33.4 | -30.0 | ||||
Adjusted EBITDA Development* | 64.4 | 28.1 | -56.4 | 75.1 | ||||
Adjusted EBITDA Total (continuing operations)* | 2,118.1 | 2,187.4 | 3.3 | 2,800.8 | ||||
Adjusted net financial result | -546.4 | -636.6 | 16.5 | -739.9 | ||||
Straight-line depreciation** | -85.7 | -95.7 | 11.7 | -116.7 | ||||
Intragroup profit/losses | -26.4 | -47.1 | 78.4 | -39.9 | ||||
Adjusted EBT (continuing operations)* | 1,459.6 | 1,408.0 | -3.5 | 1,904.3 | ||||
Adjusted EBT (continuing operations) per share in €*** | 1.76 | 1.66 | -5.9 | 2.29 | ||||
Tax expenses (core business) | -142.3 | -143.7 | 1.0 | -197.8 | ||||
Adjusted earnings for the period | 1,317.3 | 1,264.3 | -4.0 | 1,706.5 | ||||
Attributable to: | ||||||||
Minorities | 116.5 | 142.9 | 22.7 | 165.5 | ||||
Vonovia’s shareholders | 1,200.8 | 1,121.4 | -6.6 | 1,541.0 | ||||
Adjusted earnings for the period attributable to Vonovia’s shareholders per share in €*** | 1.45 | 1.32 | -8.9 | 1.85 | ||||
- *In accordance with the current definition of key figures including restatements for impairment losses/reversals of impairment losses from development-to-sell projects 9M 2026: € -4.2 million (previous year adjustment 9M 2025: € +3.4 million).
- **Depreciation on photovoltaic systems, concessions/property rights/licenses, self-developed software, self-used real estate, technical equipment and machinery, as well as other equipment/ operating and business equipment, excl. Non Core business.
- ***Based on the weighted average number of shares carrying dividend rights.
The drop in EBT and the adjusted profit for the period can be explained, despite improved EBITDA, primarily by an adjusted net financial result that was up by € 90.2 million year over year.
At the end of the third quarter of 2026, Vonovia employed 13,162 people (end of Q3 of 2025 in continuing operations: 12,521; end of 2025 in continuing operations: 12,708). The increase in staff occurred primarily within the craftsmen’s organization and the Residential Environment Service.
As of the end of the third quarter of 2026, Vonovia managed a portfolio comprising 527,488 of its own residential units (end of Q3 2025: 532,558), 164,004 garages and parking spaces (end of Q3 2025: 162,466) and 8,375 commercial units (end of Q3 2025: 8,576). Furthermore, Vonovia managed 74,967 residential units (end of Q3 2025: 75,692) on behalf of third parties as of the end of the third quarter of 2026.