Stop parsing PDFs. Get the API. Request Access

AI Terminal

MODULE: AI_ANALYST
Interactive Q&A, Risk Assessment, Summarization
MODULE: DATA_EXTRACT
Excel Export, XBRL Parsing, Table Digitization
MODULE: PEER_COMP
Sector Benchmarking, Sentiment Analysis
SYSTEM ACCESS LOCKED
Authenticate / Register Log In

Vonovia SE

Investor Presentation • Apr 11, 2018

477_ip_2018-04-11_b83499ad-33e9-4711-9f30-da1e77edc550.pdf

Investor Presentation

Open in Viewer

Opens in native device viewer

1 d
l
k
f
d
l
R
i
i
t
t
t
e
s
e
n
a
m
a
r
e
u
n
a
m
e
n
a
s
2 k
d
V
i
5
i
I
P
O
t
o
n
o
v
a
-y
e
a
r
r
a
c
r
e
c
o
r
s
n
c
e
3 2
0
l
h
h
l
h
F
Y
1
7
i
i
t
t
r
e
s
u
s
g
g
s
5 d
A
i
p
p
e
n
x

German Residential – Safe Harbor and Low Risk

  1. Resi market fundamentals 2. Vonovia 5-year track record 3. FY2017 results highlights 5. Appendix

Rental regulation safeguards high degree of stability

  • Contrary to most other jurisdictions such as the USA, rental growth in Germany is regulated and not directly linked to CPI, GDP development etc.
  • Rents are regulated via "Mietspiegel" (city-specific rent indices), which look at the asking rents of the previous four years to determine a rent growth level for existing tenants for the next two years.

Sources: Federal Statistics Office, GdW (German Association of Professional Homeowners), REIS, BofA Merrill Lynch Global Research, OECD. Note: Due to lack of q-o-q US rent growth data, the annual rent growth for a year is assumed to also be the q-o-q rent growth of that year.

German Residential – Landlords Benefit from Structural Imbalance between Supply and Demand

  1. Resi market fundamentals 2. Vonovia 5-year track record 3. FY2017 results highlights 5. Appendix

New supply falls short of demand

  • Consensus estimates see a current shortage of around 1 million apartments in urban areas. Three main constraints stand in the way of material changes in the short and even medium term:
  • Building permits often take several years because city administrations lack qualified personnel.
  • Severe shortage of building capacity after years of downsizing.
  • Substantial gap between in-place values and market replacement cost render construction in affordable segment economically unfeasible.

Sources: Federal Statistics Office, IW Köln, GdW (German Association of Professional Homeowners)

German Residential – Favorable Fundamentals

  1. Resi market fundamentals 2. Vonovia 5-year track record 3. FY2017 results highlights 5. Appendix

Growing number of smaller households

  • While the overall population in Germany is expected to slightly decline, the number of households is forecast to grow until at least 2035 with a clear trend towardssmaller households.
  • The household growth is driven by various demographic and social trends including divorce rates, employment mobility etc.

Fragmented ownership structure

  • Germany is the largest housing market in Europe with ~42m housing units, of which ~23m are rental units.
  • Ownership structure is highly fragmented and majority of owners are non-professional landlords.
  • Listed sector represents ~4% of total rental market.

Distribution of household sizes (million)

Ownership structure (million units)

Sources: German Federal Statistics Office, GdW (German Association of Professional Homeowners). 2035(E) household numbers are based on trend scenario of the German Federal Statistics Office.

Sources: JLL Research, European Commission, Federal Statistics Office, Eurostat

1. R
esi
rke
t fu
nda
ls
2. V
via
nta
ma
me
ono		 5-y
ck
ord
3. F
Y20
17
ults
hig
hlig
hts
tra
ear
rec
res		 5. A
ndi
ppe
x
fa
Re
io
&
Cu
Sa
is
io
ta
t
to
t
t
p
u
n
s
m
er
c
n
l
a
n
o
i
it
d
a
r
T		 Pr
Ma
ty
t
1
op
er
na
g
em
en		 Sy
f o
te
t
ic
t
im
iza
t
ion
t
ing
s
ma
op
o
p
er
a
fo
d
bu
du
ine
t
iv
i
ty
p
er
rm
an
ce
a
n
co
re
s
ss
p
ro
c
hr
h
lev
l
f
fe
t
ing
ing
ts
ou
g
er
ag
sc
a
e
c
h
de
f s
da
d
d
H
ig
ta
iza
t
ion
g
re
e o
n
r
a
n
du
l
hr
ho
he
in
tr
ia
iza
t
ion
t
t
t
t
ire
s
ou
g
u
e
n
iza
t
ion
or
g
an		 Me
&
rg
er
s
5
Ac
is
i
t
io
q
ns
u
Co
inu
iew
f o
t
n
ou
s
re
v
o
n-
d
f
f-m
ke
t
an
o
ar
F
in
in
2
an
c
g		 l
l-
ba
lan
d
f
ina
ing
ix
d
i
En
tu
ty
su
re
w
e
ce
nc
m
an
ma
r
f
le
h
low
f
i
i
t
ina
ing
ts
inv
tm
t
p
ro
w
nc
c
os
es
en
,
de
d
d
de
l
d
l
l
i
t r
t
ing
te
iq
i
i
ty
t a
g
ra
c
re
a
a
n
a
q
ua
u
a
t
im
es
d
fe
d
i
d
de
b
Fa
t a
t
te
to
ty
t
s
n
un
re
ac
ce
ss
e
q
u
a
n
l m
ke
l
l
i
ta
ts
t a
t
im
ca
p
ar
a
es		 lev
tu
i
t
ies
to
op
p
or
n
er
f s
le
d
ies
ec
on
om
o
ca
an
ly
l
lar
tra
te
ic
i
1-
4
ap
p
s
g
p
s
fo
l
to
ing
t
io
a
g
ro
w
p
or
l
l a
A
is
i
t
ion
t m
t
cq
u
s m
us
ee
he
t
tr
ing
t a
is
i
t
ion
s
en
cq
u
i
te
ia
cr
r
Po
fo
l
io
Ma
t
t
3
r
na
g
em
en		 Po
fo
l
io
im
iza
ion
by
f
ica
l
t
t
t
ta
t
r
op
w
ay
o
c
is
i
ion
d
/
ic
t
tra
te
ac
q
u
s a
n
no
n-
co
re
no
n-
s
g
d
isp
ls
loc
l
to
to
tro
os
a
e
ns
ur
e
ex
p
os
ur
e
s
ng
a
ke
ts
ma
r
Pr
ive
de
lop
f
he
fo
l
io
hr
h
t
t o
t
t
t
o-
ac
ve
me
n
p
or
ou
g
inv
f
fe
he
ig
h
du
in
he
tm
ts
to
t
t p
ts
t
es
en
o
r
r
ro
c
ig
h
ke
d
lon
ba
is
t m
ts
te
r
ar
an
on
a
rm
s		 6
Eu
Ac
iv
i
ie
t
t
ro
p
ea
n
s
e
v
ti
a
v
o
n
n
I		 lu
d
d
4
Va
Bu
in
e-
a
s
es
s		 g-
Ex
ion
f c
bu
ine
d
he
lue
to
te
t
p
an
s
o
or
e
s
ss
e
x
n
v
a
ha
in
by
f
fe
ing
d
d
i
ion
l s
ice
d
t
c
o
r
a
a
er
v
s a
n
du
ha
d
ire
ly
l
in
ke
d
ts
t
t a
t
to
p
ro
c
re
c
o
ur
d
/
he
to
t
t
ies
cu
s
me
rs
an
or
p
ro
p
er
In
ing
f s
ice
im
to
so
ur
c
o
er
v
s
e
ns
ur
e
ma
x
um
d
l
t a
t c
tro
p
ro
ce
ss
m
an
ag
em
en
n
co
s
on		 Bu
i
l
d
ing
is
ing
t
o
n
ex
Ge
ion
t
rm
an
o
p
er
a
s
Me
d
h
as
e
ap
p
ro
ac
ur
l
len
fo
Ex
t p
tn
ce
ar
er
s
r
ion
t
co
op
er
a
kn
ho
Le
ing
ve
ra
g
ow
w,
d
be
ien
t
ex
p
er
ce
a
n
s
ice
t
p
ra
c
s
C S
i
t
t
o
e
a
e
g
e
s
r
r		 O
i
i
S
i
t
t
t
t
p
p
o
n
s
c
a
e
g
e
s
r
u
r

Proven 4+1 Strategy is Evolving into 4+2 Strategy

3. Portfolio Management 4. Value-add BusinessCore Strategies with Impeccable Track Record More than 51k non-core units sold since IPO (28% of IPO portfolio volume)Number of portfolio locations reduced by 29%; portfolio now concentrated across 15 Insourcing of services to increase customer satisfaction and extend the value chain Leveraging the B-to-C nature of the business and the longterm customer relationship1. Resi market fundamentals 2. Vonovia 5-year track record 3. FY2017 results highlights 5. Appendix

Most dynamic and innovative part of the business

growth regions

forward

Investment program grown from €71m for 2013 to €1bn for 2018 and annually going

Adj. EBITDA Value-add Business (€m)

Rental income + EBITDA Value-add Business and Other; excluding sales effects. 2 Intended to be proposed to the Annual General Meeting. 3 Midpoint guidance.

Vonovia location

High-influx cities ("Schwarmstädte"). For more information: http://investoren.vonovia.de/websites/vonovia/English/4050/financial-reports-_-presentations.html

Growing Contribution from Value-add Business

  1. Resi market fundamentals 2. Vonovia 5-year track record 3. FY2017 results highlights 5. Appendix

Concept

  • Expansion of core business to extend the value chain by offering additional services and products that are directly linked to our customers and/or the properties and offer the same cash flow stability as the rental business.
  • Insourcing of services to ensure maximum process management and cost control.
  • Two types of Value-add Business
    1. External income (e.g. multimedia, smart metering)
    1. Internal savings (e.g. craftsmen, resi environment)
  • New initiatives always follow same low risk pattern of
  • Prototype development
  • Proof of concept in pilot phase
  • Roll-out across portfolio

Economics

  • NAV does not account for Vonovia's Value-add Business.
  • Applying the impairment test WACC1 to the 2018E Adj. EBITDA Value-add Business translates into an additional value of ~€5.3 per share (~14% on top of current Adj. NAV).
io
Pe
tr
t
ne
a
n
l
d
Mu
t
im
ia
e		 8
0
%
ca
Sm
t
te
in
ar
m
e
g
r		 2
3
%
ca
2
de
l e
Re
i
t
ia
iro
t
s
n
nv
nm
en		 3
0
%
ca
En
er
g
y		 %
1
<
Cr
f
S
ts
V
T
a
m
en		 0
%
(
in
)
7
te
ca
m
a
na
nc
e
(
de
)
3
0
%
iza
io
t
ca
m
o
rn
n
is
d
7
0
%
l
low
for
tar
et
to
g
aro
un
a
h
f
lex
b
lity
he
lum
i
i
in
t
en
ou
g
vo
es
d t
b
le
inu
nt
an
o e
na
co
ou
s
be
hm
kin
ke
to
t p
ric
nc
ar
g
ma
r
es
h
l
h
H
i
i
t
g
g
s
rke
t fu
nda
ls
1. R
esi
nta
ma
me		 ck
ord
ults
hig
hlig
hts
ndi
2. V
via
5-y
tra
3. F
Y20
17
5. A
ono
ear
rec
res
ppe
x
R
i
t
e
p
o
n
g
a
n
n
r
u		 l
l
f
h
f
f
h
h
d
l
d
l
l
i
i
i
I
P
O
V
i
i
i
t
t
t
t
t
a
e
s
s
o
e
m
e
s
n
c
e
e
o
n
o
a
o
n
c
e
a
g
a
n
e
e
e
o
n
a
r
u
r
v
v
r
,
d
d
b
l
h
i
i
i
i
j
t
t
t
t
t
t
t
m
e
r
c
s
a
n
c
o
n
n
u
e
o
n
s
s
u
s
a
n
a
e
g
r
o
w
r
a
e
c
o
r
y
O
i
t
p
e
a
o
n
s
r		 Or
ic
h
le
d
4.
2
%
in
2
0
1
7
(
9
0
bp
)
t g
t
te
to
+
g
an
re
n
ro
w
ac
ce
ra
s
f
3.
2
%
l.
(
2
3
0
bp
)
E
B
I
T
D
A
in
7
in
in
te
+
m
ar
g
o
c
m
a
na
nc
e
s
do
(-
)
Co
i
€
5
2
6
7.
7
%
t p
t
to
s
er
u
n
w
n
d
j.
Op
io
€
2
2
2m
(
9
%
)
A
E
B
I
T
D
A
t
1,
4.
1
1.
+
er
a
ns
F
F
O
1		 €
9
2
0.
8m
(
2
1
%
)
+
ha
(
)
€
1.
9
0
N
O
S
H
1
6.
3
%
+
p
er
s
re
eo
p
,
€
1.
9
3
ha
N
O
S
H
(
1
8.
4
%
)
+
p
er
s
re
av
g.
,
l
V
i
t
a
u
a
o
n
d
a
n
d
j.
A
N
A
V		 lu
h
f
(
l-
f-
l
),
f w
h
h
fro
fo
Ag
te
t
€
4,
2
2
9m
in
2
0
1
7
1
4.
8
%
ic
3.
0
%
3.
0
%
+
g
re
g
e
g
ro
o
o
m
p
er
rm
an
ce
a
v
a
w
,
fro
d
fro
l
d
in
8.
9
%
ie
io
tm
ts
m
ve
s
en
a
n
m
y
co
m
p
re
ss
n
Fa
ir
lu
f
€
1,
4
7
5
d
1
9.
7x
in
la
l
ip
le
t m
t
va
e
o
p
er
s
q
m
an
-p
ce
re
n
u
d
f
8.
ha
(
)
A
j.
N
A
V
€
3
4
9
2
5.
2
%
+
o
p
er
s
re
G
o
v
e
r
n
a
n
c
e		 he
d
f
l
l p
he
be
he
l
d
he
T
Su
iso
Bo
Vo
ia
S
E
i
A
G
M
Ma
9,
2
0
1
8,
to
t
to
t
p
er
v
ry
ar
o
no
v
w
ro
p
os
e
on
y
lec
f
he
be
f
he
d.
f e
lec
d,
he
d
io
J
ür
F
i
Me
Su
iso
Bo
I
Su
iso
Bo
t
ts
t
te
t
e
n
o
g
en
c
n
as
m
r o
p
er
v
ry
ar
p
er
v
ry
ar
in
ds
lec
ür
i
he
i
C
ha
irm
te
to
t
J
F
ts
ts
n
e
g
en
c
n
as
an
fa
l
l s
do
fro
's
d
h
C
F
O
Dr
S
te
K
irs
te
i
te
Vo
ia
Ma
t
Bo
t
is
t,
n
n
p
n
m
no
na
g
em
en
ar
a
ow
n
re
q
ue
s
w
w
v
f
fe
fro
he
d
f
he
b
le
he
ke
he
iv
2
0
1
8
A
G
M
in
i
t
t
t
to
t
to
ta
t
t s
te
ts
e
c
e
m
e
n
o
e
na
c
om
p
an
y
n
ex
p
s

16.3% FFO 1 Growth on a Broadly Stable Portfolio

  1. Resi market fundamentals 2. Vonovia 5-year track record 3. FY2017 results highlights 5. Appendix

On a broadly stable portfolio (+2.3% more residential units on average), Vonovia delivered 8.4% rentalincome growth, 11.9% Adj. EBITDA Operations growth and €160m FFO 1 growth, equaling +16.3% FFO 1 growth per share (in spite of 4.1% NOSH growth as a result of scrip dividend, conwert acquisition and Gagfah legal merger)

F
Y
2
0
1
7		 F
Y
2
0
1
6		 De
l
ta
be
f r
de
l s
Av
i
t
ia
er
ag
e
nu
m
r o
es
n
q
m		 `0
0
0		 2
2,
0
5
6		 2
1,
5
0
9		 2.
5
%
+
be
f r
i
de
ia
l u
i
Av
t
ts
er
ag
e
nu
m
r o
es
n
n		 # 3
2,
8
8
5
4		 3
8
8
4
4,
4		 2.
3
%
+
Or
ic
h
(
)
t g
t
g
an
re
n
ro
w
o-		 % 2
4.		 3.
3		 9
0
bp
+
y-
y
In
la
(
ce
r
en
eo		 €
/m
h
/sq
t
on
m		 6.
2
7		 6.
0
2		 s
4.
2
%
+
)
t
-p
p
Va
te		 % 2.
5		 2.
4		 1
0
+
(
)
ca
nc
y
ra
eo
p		 bp
s
l
Re
ta
in
n
co
m
e		 €m 1,
6
6
7.
9		 8.
1,
5
3
1		 8.
4
%
+		 8m
€
1
2
9.
+
Ma
in
te
na
nc
e
ex
p
en
se
s		 €m -2
8.
0
5		 -2
4
7.
4		 3
%
4.
+
Op
t
in
er
a
g
ex
p
en
se
s		 €m -2
9.
9
5		 -2
4
4.
5		 6.
3
%
+
A
d
j.
E
B
I
T
D
A
Re
l
ta
n		 €m 1,
1
5
0.
0		 1,
0
4
6.
2		 9.
9
%
+		 €
1
0
3.
8m
+
d
lu
d
d
bu
A
j.
E
B
I
T
D
A
Va
in
e-
a
s
es
s		 €m 1
0
2.
1		 5
7.
0		 7
9.
1
%
+
d
A
j.
E
B
I
T
D
A
Op
io
t
er
a
ns		 €m 1,
2
2
4.
2		 1,
0
9
4.
0		 1
1.
9
%
+		 €
1
3
0.
2m
+
O
F
F
in
te
t e
re
s
xp
en
se		 €m -2
8
7.
5		 -3
2
2.
7		 0.
9
%
-1
Cu
O
t
in
ta
F
F
1
rre
n
co
m
e
xe
s		 €m 9
-1
5.		 0.
-1
5		 %
5
1.
4
+
F
F
O
1		 €m 9
2
0.
8		 7
6
0.
8		 2
1.
0
%
+		 €
1
6
0.
0m
+
ha
(
)
F
F
O
1
N
O
S
H
p
er
s
re
eo
p		 € 1.
9
0		 1.
6
3		 1
6.
3
%
+
ha
(
)
F
F
O
1
N
O
S
H
p
er
re
g.
s
av		 € 1.
9
3		 1.
6
3		 1
8.
4
%
+
G
h
S
l
l
R
i
i
A
t
t
t
e
n
o
n
r
w
1. R
esi
rke
t fu
nda
nta
ls
ma
me		 l
c
c
e
e
a
r
2. V
via
5-y
ono
ear		 h
i
P
t
o
n
tra
ck
ord
rec		 a
s
e
3. F
Y20		 17
ults
hig
hlig
hts
res		 5. A
ndi
ppe		 x
h
dr
iv
(
la
1
2
)
Re
t g
t
t
M
n
ro
w
er
s
s		 2
0
1
7		 2
0
1
6		 l
De
ta		 Po
i
iv
h
j
t
t g
t
tra
to
s
e
re
n
ro
w
ec
ry
2
0
1
3		 2
0
14		 2
0
15		 2
0
1
6		 2
0
17		 (
)
2
0
1
8
E
S
i
t
t
ing
te
ts
na
n
(
l.
bs
d
d
)
inc
i
ize
ts
su
re
n		 1.
2
%		 0.
9
%		 +3
0 b
ps		 Ma
ke
dr
ive
t
n
r		 1.
6
%		 1.
6
%		 1.7
%		 1.5
%		 1.
6
%		 ≈
Ne
le
ing
t
t
s
w		 0.
4
%		 0.
6
%		 -20
bp
s		 Mo
de
iza
ion
t
rn		 0.
4
%		 0.
9
%		 1.
2
%		 1.
8
%		 2.5
%
Su
b
l
to
ta
ke
dr
iv
h
t-
t g
t
m
ar
en
re
n
ro
w		 6
%
1.		 %
1.
5		 0 b
+1
ps		 Sp
ion
t
ac
e c
rea		 --- --- --- --- 0.
1
%
de
Mo
iza
t
ion
rn		 2.
5
%		 1.
8
%		 0 b
+7
ps		 Or
ic
nt
g
an
re
h
wt
g
ro		 9
%
1.		 2.
%
5		 2.
9
%		 3.
3
%		 2
%
4.		 4.
6
%
-
4.
8
%
Su
b
l
l-
f-
l r
h
to
ta
t g
t
en
ro
w		 4.
1
%		 3.
3
%		 +8
0 b
ps
Sp
ion
t
ac
e
cr
ea		 0.
1
%		 0.
0
%		 0 b
+1
ps		 In
tm
t
tra
ve
s
en
io
t
sp
ac
e
cr
ea
n		 k
c
re
co
)		 d
(
€m
r
;		 in
lu
de
c		 de
s
m
o
rn		 iza
io
t
n		 d
an
1,
0
0
0
~
b
l o
ic
h
Su
to
ta
t g
t
rg
an
re
n
ro
w		 2
%
4.		 3.
3
%		 +9
0 b
ps		 7 7
9
fo
l
Po
t
io
t
r
ma
na
g
em
en
(
/.
les
)
is
i
t
ion
+
ac
q
u
s
sa		 0.
0
%		 1.
4
%		 -14
0 b
ps		 1
7
2		 3
5
6		 4
7
2
To
l r
h
ta
t g
t
en
ro
w		 4.
2
%		 4.
7
%		 -50
bp
s		 7
1
2
0
1
3		 2
0
1
4		 2
0
1
5		 2
0
1		 6
2		 0
1
7		 (
)
2
0
1
8+
E

Continued EBITDA Margin Expansion

9.9% EBITDA Rental growth translates into an EBITDA Operations growth of 11.9% y-o-y because of €102.1m contribution from Value-add Business.

EBITDA Operations margin expansion (incl. maintenance) to 73.2% (+230 bps y-o-y).

  1. Resi market fundamentals 2. Vonovia 5-year track record 3. FY2017 results highlights 5. Appendix
2
0
1
7		 2
0
6
1		 l
De
ta
1,
6
6
7.
9		 1,
5
3
8.
1		 8.
4
%
+
-2
8.
0
5		 -2
4
7.
4		 3
%
4.
+
-2
5
9.
9		 -2
4
4.
5		 6.
3
%
+
0.
0
1,
1
5		 0
6.
2
1,
4		 9.
9
%
+
0.
1,
1
7
5		 8
2
5
1.		 3
7.
5
%
+
1
6
1.
6		 1
0
8.
1		 4
9.
5
%
+
0
0
8.
9
1,		 3.
7
4
1		 3
8
%
5.
+
-1
0
6
8.
4
,		 -7
9
4.
2		 3
4.
5
%
+
1
0
2.
1		 5
7.
0		 7
9.
1
%
+
-2
9
7.		 -9
2		 2
0
3.
3
%
+
1,
2
2
4.
2		 1,
0
9
4.
0		 1
1.
9
%
+

Mainly consolidation

b
l
L
T
V
T
R
t
e
o
w
a
r
g
e
a
n
g
e
1. R
esi
rke
t fu
nda
ls
2. V
via
5-y
ck
ord
3. F
Y20
17
ults
hig
hlig
hts
5. A
ndi
nta
tra
ma
me
ono
ear
rec
res
ppe
x
€m
(un
les
ind
ted
oth
)
ica
ise
s
erw		 De
3
1,
2
0
1
7
c		 Se
3
0,
2
0
1
7
p.		 Ju
3
0,
2
0
1
7
n.		 M
3
1,
2
0
1
7
ar		 De
3
1,
2
0
1
6
c.
de
f
l
l
b
l
No
iva
t
ive
ina
ia
ia
i
i
t
ies
n-
r
nc		 0
6
0.
1
4,
5		 3,
9
2
1
1.
1		 2
6
1
4,
5
7.		 3
3
1
4,
4
5.		 3,
3
0
1
7
1.
ha
f
fe
Fo
ig
te
ts
re
n e
xc
ng
e
ra
e
c		 -2
3.
5		 -2
6.
5		 -1
3
7.
2		 -1
9
4.
8		 -2
0
9.
9
Ca
h
d
h
iva
len
ts
s
an
ca
s
eq
u		 -2
6
6.
2		 -3
3
9.
8		 -3
7
8.
1		 -1
0
0
7.
9
,		 -1
5
4
0.
8
,
de
b
Ne
t
t		 1
3,
0.
8
7
7		 1
3,
8
5
5
4.		 1
3,
2.
3
7
4		 1
3,
2
3
2.
6		 1
1,
6
2
0.
3
les
b
les
Sa
iva
re
ce		 -2
0
2
1.		 6
-1
7
7.		 8
0.
0
-1		 -1
4
4.
4		 3
-1
5.
4
A
d
d
i
ion
l
loa
fo
d
ing
t
t
ts
ta
a
n a
mo
un
r o
n
u
is
i
ion
t
q
ac
u
s		 --- --- --- 2
0
7
5.		 ---
d
j.
de
b
A
t
t
ne		 1
3,
5
6
9.
6		 1
3,
3
7
7.
2		 1
3,
5
6
2.
3		 1
3,
3
6
3.
2		 1
1,
4
8
4.
9
ir
lue
f r
l e
fo
l
io
Fa
ta
te
t
va
o
ea
s
p
or		 3
3,
3
6.
3
4		 3
0,
9
8.
4
1		 3
0,
8
3
0.
2		 2
9,
6
0
6
7.		 2
6
7,
1
1
5.
ha
he
l e
S
in
t
ta
te
ies
re
s
o
r r
ea
s
co
m
p
an		 6
4
2.
2		 6
0
5.
4		 5
6
4.
6		 5
2
0.
4		 5
0
3.
1
d
j.
fa
ir
lu
f r
l e
fo
l
io
A
ta
te
t
va
e
o
ea
s
p
or		 8.
3
4,
0
7
5		 3
1,
5
5
3.
5		 8
3
1,
3
9
4.		 8.
3
0,
1
2
0		 8.
2
7,
6
1
7
L
T
V		 3
9.
8
%		 4
2.
4
%		 4
3.
2
%		 4
4.
4
%		 4
1.
6
%
b
/
De
t
E
B
I
T
D
A		 1
1.
1x		 0.
1
5x

FFO1 per Share +16.3%1. Resi market fundamentals 2. Vonovia 5-year track record 3. FY2017 results highlights 5. Appendix

Driven by better operational performance and lower interest expenses, FFO1 per share was up 16.3% y-o-y for eop NOSH and up 18.4% for avg. NOSH1.

€
m
(
les
d
d
he
)
in
ica
te
t
ise
un
s
o
rw		 2
0
1
7		 2
0
6
1		 l
D
t
e
a
A
d
j.
E
B
I
T
D
A
O
io
t
p
er
a
ns		 1,
2
2
4.
2		 1,
0
9
4.
0		 1
1.
9
%
O
in
F
F
t
t
er
e
s
ex
p
e
ns
e		 -2
8
7.
5		 -3
2
2.
7		 -1
0.
9
%
Cu
in
F
F
O
1
t
t
rr
e
n
c
o
m
e
ax
e
s		 -1
5.
9		 -1
0.
5		 5
1.
4
%
F
F
O
1		 9
2
0.
8		 7
6
0.
8		 2
1.
0
%
f w
h
ic
h
i
bu
b
le
Vo
ia
ha
ho
l
d
t
tr
t
t
o
a
a
o
no
v
s
re
er
s		 8
6
6.
2		 7
1
3.
4		 2
1.
4
%
f w
h
ic
h
i
bu
b
le
Vo
ia
hy
br
i
d
i
l
in
t
tr
t
t
t
t
o
a
a
o
no
v
c
a
p
a
ve
s
or
s		 4
0.
0		 4
0.
0		 0.
0
%
f w
h
h
bu
b
le
l
l
ic
i
in
in
t
tr
t
t
tr
t
t
o
a
a
o
no
n-
c
o
n
o
g
er
e
s
s		 1
4.
6		 7.
4		 9
7.
3
%
l
d
C
i
ize
in
t
t
a
p
a
m
a
e
na
nc
e		 -8
5.
7		 -7
1.
6		 1
9.
7
%
A
F
F
O		 8
3
5.
1		 6
8
9.
2		 2
1.
2
%
d
d
le
A
j
t
E
B
I
T
D
A
S
u
s
e
a
s		 8
1
1
0.		 9
2.
5		 8
1
9.
%
le
Cu
t
in
t
S
rr
e
n
c
o
m
e
ax
e
s
a
s		 -1
9.
2		 -2
9.
5		 -3
4.
9
%
F
F
O
2		 1,
0
1
2.
4		 8
2
3.
8		 2
2.
9
%
O
€
/
ha
(
O
S
)
F
F
1
N
H
s
re
e
o
p		 9
0
1.		 6
3
1.		 6.
3
%
1
O
€
/
ha
(
O
S
)
F
F
1
N
H
s
re
av
g.		 9
3
1.		 6
3
1.		 8.
%
1
4
S
1
e 5
9 fo
cilia
tion
of
sha
ee
pag
r re
con
res

Adj. NAV per Share +25.2%1. Resi market fundamentals 2. Vonovia 5-year track record 3. FY2017 results highlights 5. Appendix

  • Adj. NAV grew by 30.3% in 2017 driven by the operating performance, value-enhancing investments and yield compression.
  • In spite of the 4.1% increase in NOSH1, the Adj. NAV per share is up 25.2% y-o-y.
€m
(un
les
ind
ica
ted
oth
ise
)
s
erw		 De
3
1,
c.
2
0
1
7		 Se
3
0,
p.
2
0
1
7		 Ju
3
0,
n.
2
0
1
7		 M
3
1,
ar
2
0
1
7		 De
3
1,
c.
2
0
1
6
Eq
i
i
bu
b
le
Vo
ia
's
ty
t
tr
ta
to
u
a
no
v
ha
ho
l
de
re
s
rs		 1
5,
0
8
0.
8		 1
3,
7
8
4.
0		 1
3,
3
6
8.
0		 1
2,
7
0
6.
5		 1
2,
4
6
7.
8
fe
d
De
ta
in
tm
t p
t
ie
rre
xe
on
ve
en
ro
p
er
s
s
s
d
he
l
d
fo
le
ts
an
as
se
r s
a		 6,
8
1
5.
7		 3
8
5,
5.
4		 3
0
9
5,
7.		 8
2
4,
7.
4		 0.
3
4,
5
5
lu
f
de
f
l
Fa
ir
iv
t
iv
in
ia
e
o
e
an
va
r
a
c
2
in
tr
ts
s
um
en		 2
6.
9		 3
6.
2		 3
9.
0		 2
9.
0		 4
4.
4
fe
d
de
f
l
De
ta
iv
t
iv
in
ia
rre
xe
s
on
a
e
an
c
r
in
tr
ts
s
um
en		 -8
8		 -1
0.
3		 -1
2.
1		 -1
3
4.		 -1
5.
4
E
P
R
A
N
A
V		 2
1,
2
8
6
4.		 1
9,
1
9
3
5.		 1
8,
0
2.
8
7		 1
8.
6
7,
5
4		 1
0
1
7,
4
7.
Go
dw
i
l
l
o		 -2
6
1
3.
5
,		 -2
9
3
1.
8
,		 -2
9
3
1.
8
,		 -2
9
3
1.
8
,		 -2
7
1
8.
9
,
d
A
j.
N
A
V		 8,
6
1
7
1.
1		 6,
2
6
3.
1
5		 0
1
5,
7
7
1.		 6
6.
8
1
4,
1		 3
2
8.
2
1
4,
3
0.
3
%
+
/
ha
E
P
R
A
N
A
V
€
s
re		 4
3.
8
8		 3
9.
5
7		 3
9.
2
5		 3
7.
4
3		 3
6.
5
8
d
j.
/
ha
A
N
A
V
€
s
re		 3
8.
4
9		 3
3.
5
3		 3
3.
1
0		 3
1.
1
8		 3
0.
7
5
S
1
e 5
9 fo
cilia
tion
of
ber
of
sha
2 A
dju
d fo
r ef
ste
ee
pag
r re
con
num
res		 fec
ts f
rom
cro
ss c
urr
enc
y s
wa
ps.		 2
5.
2
%
+
De
3
1,
2
0
17
c.		 de
l
Re
i
nt
ia
s		 lac
In
t
-p
e r
en		 Va
rat
ca
nc
y
e		 lue
Fa
ir v
a
its
un		 (
/sq
/m
h
)
€
t
m
on		 (
)
%		 (
bn
)
€		 f t
l
%
ota
o
Op
te
era		 1
0
1,
6
97		 6.
5
5		 2.
3		 1
0,
25
2.
9		 3
1
%
Inv
t
es		 21
7,
3
17		 6.
2
2		 2.
2		 2
0,
25
5.
1		 6
1
%
bt
l S
ic
lus
Su
ot
tra
te
C
te
a
g
rs		 3
1
9,
0
14		 6.
3
3		 2.
3		 3
0,
5
0
8.
0		 9
2
%
Pri
ize
t
va		 14
0
9
9
,		 6.
1
3		 3.
4		 1,
5
0
9.7		 5
%
Se
l
l		 11
47
3
,		 4.
9
3		 8.
4		 5
3
5.
6		 2
%
l
Ge
To
ta
rm
an
y		 3
8
6
44
5
,		 6.
27		 2.
5		 3
2,
3.
3
5
5		 9
8
%
Au
str
ia		 2,
0
8
5		 6.
5
1		 2.
9		 6
5
5
1.		 2
%
To
l R
i
de
ia
l P
fo
l
io
ta
nt
t
es
or		 3
4
6,
6
44		 6.
27		 2.
5		 3
3,
1
0
4.
9		 1
0
0
%
lue
of
the
de
vel
d la
nd
lud
mil
lion
for
Fai
ing
€3
31.
4
r va
ope
exc		 dev
elo
ped
lan
d, i
nhe
ble
bu
ildi
righ
rita
un
ng		 ted
d o
the
ts g
ran
an
r.

Performance, Investments and Yield Compression Drove Values in 2017

  • Overall l-f-l value growth of €4,229m (14.8%) driven by
  • Performance: €1,079m (3.0%)
  • Investments: €695m (3.0%)
  • Yield compression: €2,455m (8.9%)
  • Above 10% yield compression in the Regional MarketsBerlin (13.2%), Hanover (12.4%), Rhine Main (11.6%), Kiel (11.5%), Bremen (11.2%) and Southern Ruhr Area(10.5%)
  • High single-digit yield compression in the Regional Markets of Leipzig (9.1%), Westphalia (8.7%) and Freiburg (8.2%)
  • Lowest yield compression in the Regional Markets ofMunich (4.3%), which continues to have the highest multiple, and Northern Ruhr Area (6.0%)
€
m		 F
Y
2
0
1
6		 H
1
2
0
1
7		 H
2
2
0
1
7		 F
Y
2
0
1
7
f
P
e
o
rm
a
nc
e
r		 8
6
2		 3
9
3		 6
8
6		 0
9
1,
7
l
d
lo
Re
t
t
n
a
ev
e
p
m
e
n		 3
6
3		 5
8
6		 9
4
9
In
t
t
ve
s
m
e
n
s		 3
0		 0
0
1		 3
0
1
In
t
t
v
e
s
m
e
n
s		 4
4
0		 2
9
0		 4
0
5		 6
9
5
V
T
S
in
m
ar
g		 9 1
0		 1
5		 2
5
(
h
)
In
t
t
t
ve
s
m
e
n
s
c
a
s
ou		 4
3
1		 2
8
0		 3
9
0		 6
7
0
i
l
d
i
Y
e
c
o
m
p
r
e
s
s
o
n		 2,
4
7
0		 8
3
0		 1,
6
2
5		 2,
4
5
5
l
T
t
o
a		 3,
7
7
2		 1,
5
1
3		 2,
6
7
1		 4,
2
2
9

Note: Based on recent forecast of Vonovia calculations. Valuation results are subject to change during the ongoing valuation process.

Top 3 Regional Markets by individual value drivers

Y
ie
l
d
io
co
m
p
re
ss
n		 Mo
de
iza
io
t
rn
n		 fo
Pe
rm
an
ce
r
Be
l
in
(
1
3.
2
%
)
r		 S.
Ru
hr
Ar
(
6.
0
%
)
ea		 Le
ip
ig
(
6.
0
%
)
z
Ha
(
1
2.
4
%
)
no
ve
r		 Ha
(
4.
9
%
)
no
ve
r		 Dr
de
(
5.
9
%
)
es
n
R
h
ine
Ma
in
(
1
1.
6
%
)		 W
ha
l
ia
(
4.
5
%
)
tp
es		 Be
l
in
(
5.
8
%
)
r

Total fair value growth from performance, investments and yield compression

C
l
i
V
t
o
n
s
e
a
e
a
r
v
v
1. R
esi
rke
t fu
nda
ls
nta
ma
me		 2. V
via
5-y
ck
ord
tra
ono
ear
rec		 3. F
Y20
17
ults
hig
hlig
hts
res		 5. A
ndi
ppe
x

In-place values are still way below replacement values, in spite of accelerating valuation growth in recent years.

Note: VNA 2010 – 2014 refers to Deutsche Annington Portfolio at the time; construction costs excluding land. The land value refers to share of total fair value allocated to land. Source for market costs: Arbeitsgemeinschaft für zeitgemäßes Bauen e.V.

C
l
l
G
d
f
2
0
8
h
i
i
1
U
o
m
p
e
n
g
u
a
n
c
e
o
r
n
c
a
n
g
1. R
esi
rke
t fu
nda
ls
2. V
via
5-y
ck
ord
3. F
nta
tra
ma
me
ono
ear
rec		 d
e
Y20
17
ults
hig
hlig
hts
res
2
0
1
7
ls
Ac
tu
a		 2
0
1
8
i
da
Gu
nc
e
Or
ic
h
(
)
t g
t
g
an
re
n
ro
eo
p
w		 4.
2
%		 4.
6
%
4.
8
%
-
(
)
Va
ca
nc
y
eo
p		 2.
5
%		 2.
5
%
<
Re
l
In
(
€m
)
ta
n
co
me		 1,
6
6
7.
9		 1,
6
6
0
1,
6
8
0
-
(
)
F
F
O
1
€m		 9
2
0.
8		 9
6
0
9
8
0
-
O
(
€
/
ha
)
F
F
1
s
re		 9
0
1.		 2
9
8
2.
0
2
1.
-
Ma
in
(
€m
)
te
na
nc
e		 3
4
6.
2		 ~3
6
0
de
(
)
Mo
iza
t
ion
&
In
tm
ts
€m
rn
ve
s
en		 8.
6
7
7		 ~1
0
0
0
,
iva
iza
ion
(
be
f u
i
)
Pr
t
t
ts
nu
m
r o
n		 2,
6
0
8		 ~2
3
0
0
,
F
V
(
Pr
iva
iza
ion
)
te
t
t
s
p-
up		 3
2.
7
%		 ~3
0
%
(
be
f u
)
No
i
ts
n-
co
re
nu
m
r o
n		 8
0
1
1,
7		 tu
is
t
ic
op
p
or
n
F
V
(
Se
l
l
Po
fo
l
io
)
te
t
p-
up
s
r		 7.
9
%		 0
%
>
D
iv
i
de
d
/
ha
n
s
re		 1
€
1.
3
2		 f
~7
0
%
F
F
O
1
o

Note: Excluding any impact from potential Buwog acquisition.

Intended to be proposed to the 2018 Annual General Meeting. 2 Based on current number of 485.1m shares outstanding.

d
i
A
p
p
e
n
x
1. R
esi
rke
ma		 t fu
nda
nta
ls
2. V
via
5-y
tra
ck
ord
3. F
Y20
17
ults
hig
hlig
hts
5. A
ndi
me
ono
ear
rec
res
ppe
x
P
A
G
E
S		 C
O
N
T
E
N
T
2
6-
4
4		 l
F
Y
2
0
1
7
re
su
4
5-
4
6		 ts
Go
ve
rn
an
4
7		 ce
da
Bu
Up
wo
4
8		 te
g
S
N
Up
da
9-
0
4
5		 I
te
is
ic
H
to
K
P
r
5
1		 Is
ke
Ca
i
Ma
Da
ta
ts
r
5
2		 l
p
y
W
ra
5
3		 p-
up
du
la
Mo
io
tr
t
r c
on
s
uc
n
5
4		 Or
iza
io
ha
t
an
na
c
r
5
5-
5
7		 l
t
g
F
in
in
an
c
5
8		 g
Eu
l
i
tro
ta
ro
ea
n
m
e
o
ar
ea
9-
6
0
5		 p
p
n
s
Ge
ig
h
t n
rm
an
a
6
1-
6
3		 t
y
ha
Vo
ia
no
s
re
v
6
4-
6
7		 s
Su
in
b
i
l
i
ta
s
a
8-
6
7
1		 ty
he
la
d
he
ho
ke
As
t o
t
t r
t
in
t
in
se
ss
m
en
n
m
os
ec
en
ov
er
nm
en
ns
re
ar
us
m
ar
7
2		 t g
t
p
g
g
g
No
la
io
be
Ge
i
de
ia
ie
l
ds
d
in
t
tw
t
te
t r
te
3
7		 l y
c
or
re
n
ee
n
rm
an
r
es
n
a
n
re
s
a
s
hr
T
t
io
7
4		 lay
f p
ee
er
s
o
er
ce
p
n
le
da
F
in
ia
l
an
c
ca
n
r
8
7
5-
4		 ic
P
tu
re
s
&
I
F
R
S
P
L
1. R
esi
rke
t fu
nda
ls
2. V
via
5-y
ck
ord
3. F
Y20
17
nta
tra
ma
me
ono
ear
rec		 ults
hig
hlig
hts
res		 5. A
ndi
ppe
x
€m
(
les
in
d
ica
d o
he
ise
)
te
t
un
s
rw		 2
0
17		 2
0
1
6		 De
l
ta
fro
let
Inc
ert
t
ing
om
e
m
p
rop
y		 2,
3
44
0		 2,
17
0.
0		 +8
0
%
Ot
he
r in
fro
ert
t
co
me
m
p
rop
y
ma
na
g
em
en		 47
6		 3
9.
3		 +2
1.1
%
In
fro
ty
t
co
me
m
p
ro
p
er
m
an
ag
em
en		 2,
3
9
6
1.		 2,
2
0
9.
3		 8.
3
%
+
fro
d
l o
f p
Inc
isp
ert
ies
om
e
m
os
a
rop		 1,
2
0
6.
4		 1,
2
27
9		 8
%
-1
Ca
ing
f p
ies
l
d
nt
ert
am
ou
o
rop
so
rry		 -1
1
3
6.
0
,		 -1
17
7.7
,		 -3
.5
%
lua
f a
he
l
d
for
le
Re
t
ion
ts
va
o
sse
sa		 8
1.1		 2.
0
5		 +5
6.
0
%
Pr
f
it
d
isp
l o
f p
ies
t
o
on
os
a
ro
p
er		 15
1.5		 1
0
2.
2		 +4
8.
2
%
inc
fro
fa
ir
lue
d
j
f
inv
ies
Ne
t
tm
ts
tm
t p
t
om
e
m
va
a
us
en
o
es
en
ro
p
er		 3,
4
3
4.
1		 3,
2
3
6.
1		 6.
1
%
+
Ca
ita
lize
d
int
l e
p
er
na
xp
en
se
s		 45
8.
1		 3
41
0		 +3
4.
3
%
f m
ls
Co
st
ate
ria
o		 -1
17
6.
4
,		 -1
0
8
1.
9
,		 +8
%
.7
Pe
l e
rso
nn
e
xp
en
se
s		 -4
1
6.
0		 -3
5
3.
8		 +1
7.
6
%
d a
De
iat
ion
rt
iza
t
ion
p
rec
an
mo		 -3
2.
2
7		 -2
0
7.		 >1
0
0
%
Ot
he
t
ing
in
r o
p
era
co
me		 11
6.
2		 1
0
5.
3		 +1
0.
4
%
Ot
he
ing
t
r o
p
era
ex
p
en
se
s		 -2
7
3.
3		 -2
4
9.5		 +9
.5
%
l in
Fin
ia
an
c
co
me		 6.
8
4		 27
.1		 2.7
%
+7
Fin
ia
l e
an
c
xp
en
se
s		 -3
5
3.
0		 -4
4
9.
0		 -2
1.4
%
ing
be
fo
Ea
ta
rn
s
re
xe
s		 0
0
4,
7.4		 3,
8
9.
8
5		 3.
8
%
+
Inc
e t
om
ax
es		 -1
44
0.
5
,		 -1
3
4
6.
9
,		 +6
9
%
Pr
f
it
fo
he
io
d
r t
o
p
er		 2,
5
6
6.
9		 2,
5
1
2.
9		 2.
1
%
+
bu
b
le
At
tr
i
ta
to
:
Vo
via
's
ha
ho
l
de
no
s
re
rs		 2,
41
0.
7		 2,
3
0
0.
7		 +4
8
%
's
hy
br
d c
l in
Vo
via
i
ita
sto
no
ap
ve
rs		 4
0.
0		 4
0.
0
No
l
lin
int
tro
sts
n-c
on
g
ere		 11
6.
2		 17
2.
2		 -3
2.5
%
Ea
ing
ha
(
ba
ic
d
d
i
lut
d
)
in
€
rn
s p
er
s
re
s
an
e		 0
6
5.		 94
4.		 2.4
%
+
l
h
(
/
l
)
I
F
R
S
B
S
1
2
T
A
t
t
t
a
a
n
c
e
e
e
o
a
s
s
e
s
–
rke
t fu
nda
ls
ck
ord
ults
hig
hlig
hts
1. R
esi
nta
2. V
via
5-y
tra
3. F
Y20
17
ma
me
ono
ear
rec
res		 ndi
5. A
ppe
x
€m
(
les
in
d
ica
d o
he
ise
)
te
t
un
s
rw		 De
3
1,
2
0
17
c.		 De
3
1,
2
0
1
6
c.		 De
lta
As
ts
se
i
b
le
Int
ts
an
g
as
se		 2,
6
3
7.
1		 2,
74
3.
1		 -3
9
%
lan
d e
Pro
ert
t a
ip
nt
p
y,
p
n
q
u
me		 17
7.
6		 11
5.
7		 +5
3.
5
%
Inv
ies
tm
t p
ert
es
en
rop		 3
3,
8
2.
8
1		 2
6,
9
8
0.
3		 +2
3.
0
%
l a
Fin
ia
ts
an
sse
c		 6
9
8.
0		 5
8
5.
9		 9.
%
+1
1
he
Ot
ts
r a
sse		 1
3.
8		 15
2		 -9
2
%
De
fer
d t
ts
re
ax
as
se		 1
0.
3		 1
9.
6		 -4
7.4
%
l n
To
ta
nt
et
on
-c
ur
re
a
ss
s		 3
6,
71
9.
6		 3
0,
45
9.
8		 2
0.
6
%
+
Inv
rie
to
en
s		 6.
2		 0
5.		 +2
4.
0
%
de
b
les
Tr
iva
a
re
ce		 2
3
4.
9		 1
6
4.4		 2.
9
+4
%
Fin
ia
l a
ts
an
c
sse		 0.
5		 3.
2
15		 -9
9.7
%
Ot
he
ts
r a
sse		 9
8.
4		 1
0
2.7		 -4
2
%
b
les
Inc
e t
iva
om
ax
re
ce		 47
9		 3
4.
6		 +3
8.
4
%
Ca
h a
d c
h e
iva
len
ts
s
n
as
q
u		 2
6
6.
2		 0.
8
1,
5
4		 -8
2.7
%
he
l
d
for
le
As
ts
se
sa		 14
2.
6		 6
1.
6		 0
0
%
>1
l c
To
ta
nt
et
ur
re
a
ss
s		 7
9
6.
7		 2,
0
6
2.
3		 -6
1.4
%
To
l a
ta
et
ss
s		 3
7,
5
1
6.
3		 3
2,
5
2
2.
1		 +1
5.
4
%
rke
t fu
nda
ls
2. V
ck
ord
3. F
Y20
ults
hig
hlig
hts
1. R
esi
nta
via
5-y
tra
17
ma
me
ono
ear
rec
res		 ndi
5. A
ppe
x
€m
(u
nle
ind
ica
ted
he
ise
)
ot
ss
rw		 De
31
20
17
c.
,		 De
31
20
16
c.
,		 De
lta
Eq
uit
nd
lia
bil
itie
y a
s
Su
bsc
rib
ed
l
ita
cap		 4
8
5.
1		 4
6
6.
0		 +4
.1
%
Ca
ita
l re
p
ser
ve
s		 5,
9
6
6.
3		 5,
3
3
4.
9		 +1
1.
8
%
ned
Re
tai
rni
ea
ng
s		 8,
47
1.
6		 6,
6
6
5.
4		 +2
7.
1
%
Ot
he
r re
ser
ve
s		 15
7.
8		 1.5 >1
0
0
%
tal
uit
ibu
tab
le
via
's
sh
ho
lde
To
ttr
to
Vo
eq
y a
no
are
rs		 15
0
8
0.
8
,		 1
2,
4
6
7.
8		 21
0
%
+
Eq
uit
ibu
tab
le t
o h
bri
d c
ita
l in
ttr
sto
y a
y
ap
ve
rs		 1,
0
0
1.
6		 1,
0
0
1.
6		 0.
0
%
tal
uit
ibu
tab
le
via
's
sh
ho
lde
d h
bri
d c
ita
l in
To
ttr
to
Vo
sto
eq
y a
no
are
rs
an
ap
ve
rs
y		 6,
0
8
2.4
1		 3,
6
9.
1
4
4		 +1
9.
4
%
llin
int
No
tro
sts
n-c
on
g
ere		 6
0
8.
8		 41
9.
0		 3
%
+4
5.
To
tal
uit
eq
y		 6,
6
9
2
1
1.		 8
8
8.
1
3,
4		 2
0.
2
%
+
Pro
vis
ion
s		 6
0
7.
2		 6
0
7.
9		 -0
.1
%
Tra
de
ab
les
pay		 2.4 1.
3		 +8
4.
6
%
n d
fin
l lia
bili
No
eri
vat
ive
cia
tie
an
s		 1
2,
45
9.4		 11
6
4
3.
4
,		 +7
0
%
De
riv
ati
ve
s		 8.
7		 1
9.
1		 -5
4.
5
%
bili
s f
fin
lea
Lia
tie
rom
an
ce
ses		 94
.7		 94
.7		 0.
0
%
Lia
bili
tie
olli
int
s t
ntr
sts
o n
on
-co
ng
ere		 24
9		 9.
9		 0
0
%
>1
he
r li
ab
iliti
Ot
es		 6
5.
3		 8
3.
3		 -2
1.
6
%
De
fer
red
x l
iab
iliti
ta
es		 5,
3
2
2.
6		 3,
7
6
9.5		 +4
1.
2
%
To
tal
t l
iab
ilit
ies
no
n-c
ren
ur		 1
8,
8
2
5
5.		 6,
2
2
9.
1
1		 +1
4.
5
%
Pro
vis
ion
s		 3
7
6.
5		 3
7
0.
8		 %
+1
.5
de
ab
les
Tra
pay		 3
0.
1
7		 3
8.
8
1		 -5
8
%
n d
fin
l lia
bili
No
eri
vat
ive
cia
tie
an
s		 1,
6
0
1.1		 1,
7
27
6		 3
%
-7
De
riv
ati
ve
s		 4.4 5
7.5		 -9
2.
3
%
Lia
bili
tie
s f
fin
lea
rom
an
ce
ses		 4.
6		 4.
5		 +2
2
%
Lia
bili
tie
olli
int
s t
ntr
sts
o n
on
-co
ng
ere		 9.
0		 2.7 >1
0
0
%
liab
iliti
Inc
e t
om
ax
es		 0.
4		 - -
Ot
he
r li
ab
iliti
es		 11
3.
2		 1
0
2.7		 +1
0.
2
%
tal
lia
bil
itie
To
nt
cu
rre
s		 2,
2
3
9.
9		 2,
0
6
4
4.		 -6
8
%
To
tal
lia
bil
itie
s		 2
0,
8
25
.1		 1
8,
6
3
3.
7		 8
%
+1
1.
tal
uit
nd
lia
bil
itie
To
eq
y a
s		 3
7,
5
1
6.
3		 3
2,
5
2
2.
1		 +1
5.
4
%

IFRS Balance Sheet (2/2 – Total Equity and Liabilities)

l
f
R
i
i
i
I
F
R
S
P
i
F
F
O
t
t
t
e
c
o
n
c
a
o
n
o
o
r
rke
t fu
nda
ls
ck
ord
1. R
esi
nta
2. V
via
5-y
tra
ma
me
ono
ear
rec		 ults
hig
hlig
hts
3. F
Y20
17
res		 ndi
5. A
ppe
x
(u
nle
ind
ted
he
)
€m
ica
ot
ise
ss
rw		 20
17		 20
16		 lta
De
IF
RS
PR
OF
IT
FO
R T
HE
PE
RI
OD		 2,
6
6.
9
5		 2,
2.
9
5
1		 +2
%
.1
1
l re
sul
Fin
cia
t
an		 3
2
6.
3		 4
3
3.
0		 -2
4.
6
%
Inc
e t
om
axe
s		 1,
44
0.
5		 1,
3
4
6.
9		 +6
9
%
nd
De
cia
tio
ort
iza
tio
pre
n a
am
n		 3
7
2.
2		 27
0		 >1
0
0
%
e f
fa
alu
dju
of
Ne
t in
ir v
stm
ts
inv
est
nt
rtie
com
rom
e a
en
me
pro
pe
s		 -3
4
3
4.
1
,		 -3
2
3
6,
1
,		 +6
.1
%
= E
BI
TD
A I
FR
S		 27
8
1,
1.		 0
8
3.
1,
7		 %
+1
7.4
No
rrin
ite
n-r
ecu
g
ms		 8
6.
9		 94
.5		 -8
0
%
To
tal
rio
d a
dju
stm
ts
fro
ets
he
ld f
sal
pe
en
m
ass
or
e		 -1
0.
7		 17
9		 1
0
0
%
>-
l in
e f
the
al
Fin
cia
in
stm
ts
in o
est
ate
ies
an
com
rom
ve
en
r re
co
mp
an		 -1
3.
0		 -9
6		 +3
5.
4
%
= A
DJ
US
TE
D E
BI
TD
A		 1,
3
3
5.
0		 1,
1
8
6.
5		 +1
2.
5
%
Ad
jus
ted
EB
ITD
A S
ale
s		 0.
8
-1
1		 -9
2.5		 9.
8
%
+1
= A
DJ
US
TE
D E
BI
TD
A O
PE
RA
TI
ON
S		 1,
2
24
2		 1,
0
94
0		 +1
1.
9
%
2
FFO
in
ter
est
ex
pe
nse		 -2
8
7.5		 -3
2
2.7		 -1
0.
9
%
FO
Cu
nt
inc
e t
s F
1
rre
om
axe		 -1
5.
9		 -1
0.
5		 +5
1.4
%
= F
FO
1		 9
2
0.
8		 7
6
0.
8		 21
0
%
+
Ca
ita
lize
d m
ain
ten
p
an
ce		 -8
5.
7		 6
-7
1.		 9.7
%
+1
= A
FF
O		 8
3
5.
1		 6
8
9.
2		 21
2
%
+
Cu
inc
s S
ale
nt
e t
rre
om
axe
s		 -1
9.
2		 -2
9.5		 -3
9
%
4.
FF
O2
(
FF
O1
in
cl.
Ad
jus
ted
EB
IT
DA
Sa
les
/
Cu
inc
Sa
les
)
nt
e t
rre
om
ax
es		 1,
0
1
2.4		 8
2
3.
8		 2
2.
9
%
+
1.
9		 1.
6
3		 +1
6.
3
%
sha
(eo
)
FFO
1 p
in €
NO
SH
er
re
p		 0
1.7		 1.4
8		 +1
6.
4
%
AF
FO
ha
in €
(eo
NO
SH
)
pe
r s
re
p		 2
of
Nu
mb
sha
(m
illio
n)
er
res
eo
p		 4
8
5.
1		 4
6
6.
0		 +4
.1
%

Excluding income from investments. 2 Including financial income from investments in other real estate companies.

h
l
S
C
I
F
R
F
a
s
o
w
t fu
1. R
esi
rke
nda
nta
ls
2. V
via
5-y
tra
ck
ord
3. F
Y20
17
ults
hig
hlig
hts
ma
me
ono
ear
rec
res		 5. A
ndi
ppe		 x
€m 2
0
1
7		 2
0
1
6		 l
D
t
e
a
h
f
lo
fr
C
in
iv
i
ie
t
t
t
a
s
w
o
m
o
p
er
a
g
a
c
s		 9
4
6.
0		 8
2
8.
9		 1
4.
1
%
f
fr
C
h
lo
in
in
iv
i
ie
t
t
t
a
s
w
o
m
ve
s
g
a
c
s		 3
0.
-1
5
1
,		 6.
4
1
4		 -
h
f
lo
fr
f
C
in
in
t
iv
i
t
ie
a
s
w
o
m
a
nc
g
a
c
s		 -8
7
0.
5		 -2
8
1
2.
4
,		 -6
9.
0
%
h
in
h
d
h
iv
l
N
t
t
e
c
a
ng
e
s
c
a
s
a
n
c
a
s
e
q
u
a
e
n
s		 -1
2
7
4.
6
,		 -1
5
6
7.
1
,		 -1
8.
7
%
C
h
d
h
iv
le
he
b
in
in
f
he
io
d
t
t
t
t
a
s
a
n
c
a
s
e
q
a
n
s
a
e
g
n
g
o
p
er
u		 0.
8
1,
5
4		 3,
0
9
1
7.		 0.
%
-5
4
h
d
h
iv
l
h
d
f
h
i
d
C
t
t
t
t
a
s
a
n
c
a
s
e
q
u
a
e
n
s
a
e
e
n
o
e
p
e
r
o		 2
6
6.
2		 1,
5
4
0.
8		 -8
2.
7
%
f
I
P
M
t
t
n
c
o
m
e
o
m
o
p
e
a
n
a
g
e
m
e
n
r
r
r
y
1. R
esi
rke
t fu
nda
nta
ls
2. V
via
5-y
tra
ck
ord
ma
me
ono
ear
rec		 3. F
Y20
17
ults
hig
hlig
hts
res		 5. A
ndi
ppe
x
€
m
(
les
d
d o
he
)
in
ica
te
t
ise
un
s
rw		 2
0
1
7		 2
0
6
1		 l
D
t
e
a
l
Re
in
t
n
a
c
o
m
e		 1,
6
7
2.
1		 1,
5
4
2.
5		 8.
4
%
l
la
An
i
t
c
ry
c
o
s		 6
7
1.
9		 6
2
7.
5		 7.
1
%
fr
In
Pr
L
in
ty
t
t
c
o
m
e
o
m
o
p
e
r
e
g		 2,
3
0
4
4.		 2,
1
7
0.
0		 8.
0
%
fr
O
he
in
t
ty
t
r
c
o
m
e
o
m
p
ro
p
er
m
a
na
g
e
m
e
n		 6
4
7.		 3
9.
3		 2
%
1.
1
fr
In
ty
t
c
o
m
e
o
m
p
o
p
e
m
a
n
a
g
e
m
e
n
r
r		 2,
3
9
1.
6		 2,
2
0
9.
3		 8.
3
%

Rental income under IFRS definition. Includes €4.2m of rental income attributable to Value-add Business.

f
l
C
i
t
M
t
o
s
o
a
e
a
s
r
1. R
esi
rke
t fu
nda
nta
ls
2. V
via
5-y
tra
ck
ord
ma
me
ono
ear
rec		 3. F
Y20
17
ults
hig
hlig
hts
res		 5. A
ndi
ppe
x
€
m
(
les
d
d o
he
)
in
ica
te
t
ise
un
s
rw		 2
0
1
7		 2
0
6
1		 l
D
t
e
a
fo
i
l
la
Ex
t
p
e
ns
e
s
r a
nc
c
o
s
s
ry		 6
2
5.
6		 6
1
1.
9		 2.
2
%
+
Ex
fo
in
t
p
e
ns
e
s
r m
a
e
na
nc
e		 4
4
6.
8		 3
8
3
7.		 1
%
5.
4
+
he
f p
ha
d
d
d
O
ic
t
t
r c
o
s
o
ur
c
s
e
g
o
o
s
a
n
s
er
v
e
s		 1
0
4.
0		 8
2.
7		 2
5.
8
%
+
l c
f
i
ls
T
t
t
t
o
a
o
s
o
m
a
e
r
a		 1,
1
7
6.
4		 1,
0
8
1.
9		 8.
7
%
+

Sales – Steady Cash Flow at Attractive Margins 1. Resi market fundamentals 2. Vonovia 5-year track record 3. FY2017 results highlights 5. Appendix

  • In spite of value growth of the portfolio, privatization margins are still above 30% and the margin on noncore sales increased to 7.9% from 5.4% in 2016.
  • The fair value step-up in privatization excl. smaller package deals was 35.0%.
iv
ize
Pr
t
a		 fo
l
io
Po
t
r		 l
l
Se
Po		 fo
l
io
t
r		 T
O
T
A
L
€m
(un
less
ind
ed o
the
e)
icat
rwis		 2
0
1
7		 2
0
1
6		 2
0
1
7		 2
0
1
6		 2
0
1
7		 2
0
1
6
de
l u
l
d
Re
i
t
ia
i
ts
s
n
n
so		 2,
0
8
6		 2,
0
7
1		 9,
2
1
7		 2
3,
9
3
0		 8
0
1
1,
7		 2
3
6,
6
1
fro
In
d
isp
ls
co
me
m
os
a		 3
0
5.
9		 2
6
7.
4		 9
0
0.
5		 9
6
0.
5		 1,
2
0
6.
4		 1,
2
2
7.
9
Fa
ir
lue
f
d
isp
ls
va
o
os
a		 -2
3
0.
6		 -1
9
6.
3		 -8
3
4.
9		 -9
1
1.
4		 -1
0
6
5.
5
,		 -1
1
0
7.
7
,
d
f
fro
d
ls
A
j.
i
t
isp
p
ro
m
os
a		 3
7
5.		 1.
1
7		 6
6
5.		 9.
1
4		 1
0.
9
4		 1
2
0.
2
lue
(
)
Fa
ir
te
%
va
s
p-
up		 3
2.
7
%		 3
6.
2
%		 7.
9
%		 5.
4
%
Se
l
l
ing
ts
co
s		 -3
0.
1		 -2
7.
7
d
les
A
j.
E
B
I
T
D
A
Sa		 1
1
0.
8		 9
2.
5

All Strategic Markets Show Upward Potential

rke
t fu
nda
1. R
esi
nta
ma
me		 ls 2. V
via
ono		 ck
5-y
tra
ear
rec		 ord 3. F Y20
ults
17
res		 hig
hlig
hts		 ndi
5. A
ppe
x
Re
ion
l
Ma
ke
t
g
a
r		 Fai
r va
(€m
)		 lue
(€/
)
sqm		 Res
ide
l uni
ntia
ts		 Liv
ing
a ('00
are
0 s
)
qm		 Vac
anc
y (%
)		 al (p.a
Tot
., €
m)		 Res
l (p.a
ide
ntia
., €
m)		 pla
In-
t
ce
ren
Res
ide
ntia
l
(€/
/m
h)
ont
sqm		 Org
ani
nt gro
c re
wth (%
)		 le (in-
Mu
ltip
pla
t)
ce
ren		 nt gro
Ave
rag
e re
st CB
wth
for
eca
RE
(5 y
rs) (%
)		 Ave
nt
rag
e re
wth
(%
) fr
gro
om
Opt
imi
ze Apa
rtm
ent
s
Be
rlin		 5,
18
2		 2,
03
5		 38
66
4
,		 2,
44
9		 1.5 19
5		 184 6.3
5		 3.9 26
.6		 4.3 51
.2
Rh
(
nkf
ine
M
ain
Ar
Fra
urt
ea
,
dt,
ies
bad
)
Da
sta
W
rm
en		 3,
52
5		 94
6
1,		 27
92
1
,		 78
1,
1		 1.4 168 16
2		 0
7.7		 3.8 21
.0		 3.4 41
.7
Rh
lan
d (
log
ine
Co
ne
,
ldo
rf,
)
Dü
Bo
sse
nn		 3,
24
0		 58
1,
1		 29
75
3
,		 1,
99
2		 2.6 16
7		 159 6.8
2		 3.8 19
.4		 3.1 27
.3
So
uth
Ru
hr
Are
ern
a
(
Do
rtm
d,
Ess
Bo
chu
m)
un
en
,		 2,
88
4		 1,
05
1		 43
90
0
,		 2,
68
2		 2.9 18
3		 176 5.6
4		 4.2 15
.8		 2.9 28
.1
Dre
sde
n		 2,
87
5		 1,
23
0		 38
56
3
,		 2,
19
3		 2.4 159 148 5.7
9		 5.7 18
.1		 3.7 35
.4
Ha
mb
urg		 1,
94
0		 1,
79
5		 16
53
4
,		 1,
04
8		 2.0 90 85 6.8
6		 5.2 21
.6		 3.3 42
.4
nic
h
Mu		 82
0
1,		 2,
77
1		 9,
70
8		 63
9		 0.8 62 59 7.7
1		 3.1 29
.1		 4.8 .0
51
Stu
ttg
art		 2
1,
74		 89
3
1,		 2
14
15
,		 89
1		 1.5 83 79 3
7.5		 2.4 20
.9		 3.1 39
.8
rth
hr
a (
isb
No
Ru
Are
Du
ern
urg
,
lse
nk
he
n)
Ge
irc		 1,
41
8		 85
4		 26
53
2
,		 1,
64
0		 3.4 10
5		 10
2		 5.3
7		 3.6 13
.4		 2.5 22
.7
Ha
nov
er		 1,
29
7		 1,
37
4		 14
59
2
,		 92
6		 2.7 70 67 6.2
1		 5.2 18
.5		 2.9 39
.1
Kie
l		 99
2		 1,
19
2		 13
80
1
,		 80
2		 1.8 58 55 5.8
1		 5.7 17
.2		 3.2 40
.1
Bre
me
n		 91
4		 1,
23
0		 11
90
5
,		 72
2		 2.9 48 45 5.4
2		 3.2 19
.1		 3.6 29
.3
Lei
ig
pz		 76
3		 22
9
1,		 9,
174		 58
8		 4.0 41 39 5.7
4		 2.6 18
.4		 2.9 23
.1
ha
lia
(
We
stp
Mü
nst
er,
brü
ck)
Os
na		 66
7		 1,
07
5		 9,
47
1		 61
3		 1.9 42 41 5.6
4		 4.1 16
.0		 3.0 35
.3
ibu
Fre
rg		 54
5		 1,
94
9		 4,
04
8		 27
7		 0.9 24 23 6.9
8		 3.8 23
.0		 4.1 44
.6
Ot
he
r S
tra
teg
ic L
tio
oca
ns		 2,
10
3		 1,
40
4		 23
17
2
,		 1,
46
4		 2.3 114 110 6.4
0		 5.2 18
.4		 3.3 37
.7
To
tal
St
ic
Lo
tio
rat
eg
ca
ns		 31
90
8
,		 1,
49
5		 33
1,
89
0		 20
70
5
,		 2.3 1,
60
8		 1,
53
4		 6.3
2		 4.2 19
.8		 3.4 35
.6

Note: Difference between number of resi units in strategic locations and number of resi units in strategic clusters is due to privatization units that are included in the strategic locations but not in the strategic clusters.

Investment Program Evolution

The investment program has not only grown in size but also in complexity.

  • While a yield-to-cost calculation is appropriate for investments that generate relatively quick pay-backperiods, such as OA or UB, the larger investments space creation and neighborhood development generate value only over a longer period of time.
  • For these types of projects, an IRR calculation is more adequate and after using it for internal reporting purposes already from the program inception, we will now use this metric in the external reporting as well.
  • The target IRR for the overall investment program is >8%.

  • OA and UB will continue to be measured against a 7%yield-to-cost target.

  • Vonovia gave investors the choice between a cash dividend and a scrip dividend for the first time in the context of the 2017 AGM.

  • Nearly half of all shareholders opted for the scrip dividend.
  • For the 2018 AGM to be held on May 9, 2018, in Bochum, Vonovia intends to once again propose an optional scrip dividend, provided that the share price is not materially below the Adj. NAV per share when the final decision is taken.
  • The specifics will be laid out in the convening notice and related documentation to be published on orbefore March 29.

  • The final decision on whether to offer a scrip dividend alternative will be taken by the Supervisory Board just before the AGM.

  • As part of the preparation of the IFRS annual accounts, an impairment test was conducted to test if any of the goodwill on the balance sheet needs to be impaired.

  • The 2017 WACC (post tax) was 3.60% after 3.10% for 2016.
  • The increase in WACC is primarily driven by a higher base rate and lower debt leverage.
  • The higher WACC results in an impairment of the full goodwill amount allocated to Vonovia's Region East (predominantly Berlin) of €337m.
  • No impairment in any other region.
  • A WACC level similar to last year would have resulted in the same headroom as last year, supporting the view that the value growth seen in 2017 is supported by operating cash flow growth.

No impact on Adj. NAV, as the impairment only affects the goodwill and hence the EPRA NAV

Valuation Results and Parameters1. Resi market fundamentals 2. Vonovia 5-year track record 3. FY2017 results highlights 5. Appendix

  • Value growth results in compression of net initial yield to 3.6% (after 4.0% for YE 2016)
  • Future rent growth potential is evidenced by rent growth CAGR
G
l
d
ie
ro
s
s
y		 %
5.
7		 %
5.
1
l
ip
le
(
in
la
)
M
t
t
-p
c
e
re
n
u		 6x
1
7.		 9.
1
7x
lu
/
Fa
ir
Va
€
e
s
q
m		 1,
2
6
4		 1,
4
7
5
lu
i
(
V
t
P
t
a
a
o
n
a
a
m
e
e
rs
av
e
a
g
e
r
r
G
)
o
e
r
e
rm
a
ny
v		 2
0
6
Y
E
1		 2
0
Y
E
1
7
ke
(
€
/
)
Ma
t r
t
e
n
q
m
r
s		 6.
6
6		 6.
9
6
ke
h
Ma
t r
t
t
e
n
g
ro
p.
a.
r
w		 2
%
1.		 3
%
1.
h
(
l.
Re
C
A
G
R
1
0y
t
t
n
g
ro
w
rs
ex
c
)
in
t
t
ve
s
m
e
n		 2.
0
%		 2.
1
%
S
b
i
l
ize
d
t
t
a
va
c
a
nc
y
ra
e		 2.
4
%		 2.
1
%
d
l
Ma
i
ia
t
t
t
na
g
e
m
e
n
c
o
s
re
s
e
n		 2
5
5		 2
5
9
d
l
(
/
)
Ma
in
i
ia
€
t
t
t
e
na
nc
e
c
o
s
re
s
e
n
s
q
m		 1
3.
6
6		 1
3.
8
1
is
D
t r
t
c
ou
n
a
e		 %
5.
5		 2
%
5.
C
t
a
p
ra
e		 4.
3
%		 3.
9
%

Valuation Results YE2016 YE2017

4.0% 3.6%

Net Initial Yield

  • Vonovia expects to perform a portfolio valuation update as per June 30, 2018, as
  • ongoing value growth can be observed in many markets throughout Germany;
  • Vonovia's internal accounting policies call for an interim valuation at the end of Q2 if the expected value shift is considered material; and
  • current market observations suggest a significant value uplift
  • For practical reasons and similar to Q2 2017, the valuation exercise will not cover the entire portfolio but a meaningful subset.
  • The valuation scope is currently envisaged to include
  • The 20 largest German cities by fair value
  • Additional locations for which meaningful value growth is expected
  • Vienna

incl. Jan 2018 Bonds and secured debt prolongation 2 Average financing cost of debt maturing in the relevant year. 3 Weighted avg. financing costs excl. Equity Hybrid. Including Equity Hybrid avg. interest rate of debt maturing in 2021 is 3.6%. 4 Net Debt as of December 31 over Q4 2017 EBITDA Operations annualized. 5 excl. Equity Hybrid.

Corporate Investment grade rating

f 20
15-
09-
30
as o
tin
Ra
g a
ge
nc
y		 tin
Ra
g		 tlo
ok
Ou		 da
La
st
Up
te
nd
ard
or'
Sta
&
Po
s		 BB
B+		 ble
Sta		 19
De
c 2
01
7

Bond ratings

d
in
Bo
t
n
ra
g
s		 f 20
15-
09-
as o		 30
Na
me		 Te
r &
Co
no
on
up		 IS
IN		 Am
nt
ou		 ice
Iss
ue
pr		 Co
on
up		 Fin
al
rit
Ma
tu
y Da
te		 tin
Ra
g
nd
2 (
d)
Bo
00
EU
R-B
on		 6 y
3.1
25
%
ea
rs		 DE
00
0A
1H
NW
52		 € 6
00
m		 99
.93
5%		 3.1
25
%		 ly
25
Ju
20
19		 BB
B+
Bo
nd
00
4 (
US
D-
Bo
nd
)		 10
5
.00
0%
ye
ars		 US
25
15
5FA
B2
2		 US
D 2
50
m		 98
.99
3%		 1
4.5
80
%		 02
O
ct
20
23		 BB
B+
Bo
nd
00
5 (
EM
TN
)		 8 y
3.6
25
%
ea
rs		 DE
00
0A
1H
RV
D5		 € 5
00
m		 99
.84
3%		 3.6
25
%		 08
O
20
21
ct		 BB
B+
Bo
nd
00
6 (
Hy
bri
d)		 60
4
.62
5%
ye
ars		 XS
10
28
95
96
71		 € 7
00
m		 99
.78
2%		 4.6
25
%		 08
A
20
74
pr		 BB
B
Bo
nd
00
7 (
EM
TN
)		 8 y
2.1
25
%
ea
rs		 DE
00
0A
1Z
LU
N1		 € 5
00
m		 99
.41
2%		 2.1
25
%		 09
Ju
ly
20
22		 BB
B+
Bo
nd
00
8 (
Hy
bri
d)		 l 4
%
tua
pe
rpe		 XS
11
17
30
08
37		 €
1,
00
0m		 10
0.0
00
%		 4.0
00
%		 l
tua
pe
rpe		 BB
B
Bo
nd
00
9A
(
EM
TN
)		 5 y
0.8
75
%
ea
rs		 DE
00
0A
1Z
Y9
71		 € 5
00
m		 99
.26
3%		 0.8
75
%		 30
M
20
20
ar		 BB
B+
Bo
nd
00
9B
(
EM
TN
)		 10
1
.50
0%
ye
ars		 DE
00
0A
1Z
Y9
89		 € 5
00
m		 98
.45
5%		 1.5
00
0%		 31
M
20
25
ar		 BB
B+
nd
0
10
B (
)
Bo
EM
TN		 1.6
25
%
5 y
ea
rs		 00
0A
18
38
DE
V1		 €
25
0m
1,		 99
.85
2%		 1.6
25
%		 c 2
02
0
15
De		 BB
B+
nd
0
10
C (
)
Bo
EM
TN		 8 y
2.2
50
%
ea
rs		 00
0A
18
DE
V1
46		 00
0m
€
1,		 99
.08
5%		 2.2
50
0%		 c 2
02
3
15
De		 BB
B+
nd
(
)
Bo
0
11
A
EM
TN		 6 y
0.8
75
%
ea
rs		 DE
00
0A
18
2V
S4		 € 5
00
m		 99
.53
0%		 0.8
75
%		 10
Ju
n 2
02
2		 BB
B+
nd
0
B (
)
Bo
11
EM
TN		 10
.50
0%
1
ye
ars		 00
0A
18
2V
T2
DE		 00
€ 5
m		 99
.16
5%		 00
0%
1.5		 10
n 2
02
6
Ju		 BB
B+
nd
(
)
Bo
0
12
EM
TN		 2 y
0.3
80
%+
3M
EU
RI
BO
R
ea
rs		 DE
00
0A
18
5W
C9		 € 5
00
m		 10
0.0
00
%		 he
dg
ed
0.1
40
%		 13
Se
20
18
p		 BB
B+
nd
(
)
Bo
0
13
EM
TN		 8 y
1.2
50
%
ea
rs		 DE
00
0A
18
9Z
X0		 €
1,
00
0m		 99
.03
7%		 1.2
50
%		 06
D
20
24
ec		 BB
B+
Bo
nd
0
14
A
(
EM
TN
)		 5 y
0.7
50
%
ea
rs		 DE
00
0A
19
B8
D4		 € 5
00
m		 99
.86
3%		 0.7
50
%		 25
Ja
n 2
02
2		 BB
B+
Bo
nd
0
14
B (
EM
TN
)		 10
1
.75
0%
ye
ars		 DE
00
0A
19
B8
E2		 € 5
00
m		 99
.26
6%		 1.7
50
%		 25
Ja
n 2
02
7		 BB
B+
Bo
nd
0
15
(
EM
TN
)		 8 y
1.1
25
%
ea
rs		 DE
00
0A
19
NS
93		 € 5
00
m		 99
.38
6%		 1.1
25
%		 08
Se
20
25
p		 BB
B+
Bo
nd
0
16
(
EM
TN
)		 2 y
0.3
50
%+
3M
EU
RI
BO
R
ea
rs		 DE
00
0A
19
SE
11		 € 5
00
m		 10
0.4
48
%		 0.3
50
%+
3M
EU
RI
BO
R		 20
N
20
19
ov		 BB
B+
Bo
nd
0
17
A
(
EM
TN
)		 6 y
0.7
50
%
ea
rs		 DE
00
0A
19
UR
61		 € 5
00
m		 99
.33
0%		 0.7
50
%		 15
Ja
n 2
02
4		 BB
B+
Bo
nd
0
17
B (
EM
TN
)		 10
1
.50
0%
ye
ars		 DE
00
0A
19
UR
79		 € 5
00
m		 10
0.8
05
%		 1.5
00
%		 14
Ja
n 2
02
8		 BB
B+

1 EUR-equivalent Coupon

Covenants and KPIs (December 31, 2017)

B
d
K
P
I
o
n
s		 C
t
o
e
n
a
n
v		 L
l
e
e
v		 D
3
1,
2
0
1
7
e
c
L
T
V
T
l
D
b
/
T
l
A
t
t
t
t
o
a
e
o
a
s
s
e
s		 0
6
%
<		 3
8
%
d
S
L
T
V
e
c
u
r
e
d
b
/
l
S
D
t
T
t
A
t
e
c
u
r
e
e
o
a
s
s
e
s		 4
5
%
<		 8
%
I
C
R
L
1
2
M
E
B
I
T
D
A
/
L
1
2
M
I
E
t
t
t
t
a
s
a
s
n
e
e
s
p
e
n
s
e
r
x		 8
0
1.
>
x		 6
4.
x
b
d
U
A
t
n
e
n
c
u
m
e
r
e
s
s
e
s
b
d
/
d
b
U
A
t
U
D
t
n
e
n
c
u
m
e
r
e
s
s
e
s
n
s
e
c
u
r
e
e		 1
2
5
%
>		 2
3
4
%
  1. Resi market fundamentals 2. Vonovia 5-year track record 3. FY2017 results highlights 5. Appendix
R
t
i
K
P
I
a
n
g
s		 C
t
o
v
e
n
a
n		 l
(
)
L
B
B
B
+
e
v
e
b
C
i
l
D
t
t
t
e
o
a
p
a
l
b
/
l
l
b
T
t
D
t
T
t
E
i
t
T
t
D
t
+
o
a
e
o
a
q
u
y
o
a
e		 6
0
%
<
I
C
R
/
L
1
2
M
E
B
I
T
D
A
L
1
2
M
I
E
t
t
t
t
a
s
a
s
n
e
r
e
s
x
p
e
n
s
e		 8
0
1.
>
x
  • Following the passing of Vonovia SE's former Chairman of the Supervisory Board, Dr. Wulf H. Bernotat, in late August 2017, Supervisory Board Member Prof. Dr. Edgar Ernst had been appointed Interim Chairman until the next Annual General Meeting.
  • The next AGM is scheduled for May 9, 2018, in Bochum, and Vonovia's Supervisory Board will propose Jürgen Fitschen as new member of the Supervisory Board. Following an approval by the AGM, Jürgen Fitschen is expected to be elected as the new Chairman of the Supervisory Board.

  • As previously announced, if the tender offer for Buwog AG is successful, Vitus Eckert, currently Chairman of Buwog AG's Supervisory Board, will be proposed as new member to the Supervisory Board of Vonovia SE.

  • As announced on August 4, 2017, Gerald Klinck will not seek an extension of his contract as Member of the Management Board of Vonovia SE and leave the Board upon termination of his current contract following the Annual General Meeting on May 9, 2018.

  • As announced on January 23, 2018, Helene von Roeder has been appointed to Vonovia SE's Management Board and will take over Gerald Klinck's responsibilities during this year.
  • CFO Dr. Stefan Kirsten will step down from Vonovia's Management Board at his own request, effective from the end of the AGM on May 9, 2018. Dr. Kirsten wants to enable the company to take the next stepsin its development under the financial leadership of Helene von Roeder as CFO of Vonovia SE, who will assume joint responsibility for all financial functions. Dr. Kirsten will maintain ties with Vonovia as a supervisory board member of various relevant holdings as well as in a consulting role.
  • As previously announced, if the tender offer for Buwog AG is successful, Daniel Riedl, Chairman of Buwog AG's Management Board, will join Vonovia SE's Management Board at the next Annual General Meeting.

Update on Tender Offer for Buwog

  1. Resi market fundamentals 2. Vonovia 5-year track record 3. FY2017 results highlights 5. Appendix
1
8
De
2
0
1
7
c		 f
he
ke
lu
ke
f
fe
An
t
t
in
t
t
io
t
t
t
no
u
nc
e
m
e
n
o
e
n
n
o
m
a
a
v
o
n
ar
y
a
-o
ve
r o
r
0
b
2
0
8
5
Fe
1		 b
l
f
he
f
fe
d
Pu
ic
t
io
t
t
a
n
o
o
r
o
cu
m
e
n
0
6
Fe
b
2
0
1
8		 S
f
he
in
i
ia
l a
io
d
t
t
t
t
t
ar
o
c
c
e
p
a
nc
e
p
er
1
2
Ma
2
0
1
8
r		 f
En
d
he
in
i
ia
l a
io
d
t
t
t
o
c
c
e
p
a
nc
e
p
er
1
5
Ma
2
0
1
8
r		 b
l
f
f
l r
l
f
l a
d
by
Pu
ic
io
in
in
i
ia
io
Vo
ia
t
t
t
t
a
n
o
a
e
su
o
c
c
e
p
a
nc
e
p
er
no
v
1
6
Ma
2
0
1
8
r		 b
l
f
f
l r
l
f
l a
d
he
f
f
l g
(
)
Pu
ic
io
in
in
i
ia
io
in
ic
ia
W
ie
Ze
i
t
t
t
t
t
t
t
tu
a
n
o
a
e
su
o
c
c
e
p
a
nc
e
p
er
o
az
e
e
ne
r
ng
8
1
6
Ma
2
0
1
r		 f
he
d
d
l a
d
S
t
t
t
i
t
io
t
io
ar
o
a
na
c
c
e
p
a
nc
e
p
er
2
6
Ma
2
0
1
8
r		 Pa
d
le
(
la
in
du
in
in
i
ia
l a
io
d
)
t
t
t
t
t
t
t
t
t
m
e
n
a
n
s
e
m
e
n
re
g
o
a
c
c
e
p
a
nc
e
g
c
c
e
p
a
nc
e
p
er
y
r
0
7
Ma
2
0
1
8
y		 C
l
i
d
d
Q
1
in
in
l.
Bu
t
t
o
ns
o
a
e
re
p
or
g
c
w
o
g
1
8
Ju
2
0
1
8
n		 d
f
he
d
d
l a
d
En
i
io
io
t
t
t
o
a
na
c
c
e
p
a
nc
e
p
er

Assuming a tender ratio of at least 50% plus 1 share during the initial acceptance period and hence a successful transaction, Vonovia would take control just a few days prior to the end of the first quarter. In this case, for the release of Vonovia's Q1 results, Buwog would be consolidated in terms of balance sheet numbers but not in terms of income and cash flow statements.

While a detailed guidance for Vonovia including Buwog would not be possible at that point, we would be looking to provide the market with our best estimate for 2018 FFO 1.

Update on Cooperation with SNI

Since indicating international interest Vonovia has seen a steady level of interest from Europe-wide brokers with investment opportunities. So far, these opportunities are mostly small in scale

  • Cooperation with cdc habitat in France (formerly "SNI"):

  • Benchmarking workshops carried out between November 2017 and January 2018

  • Resi market fundamentals 2. Vonovia 5-year track record 3. FY2017 results highlights 5. Appendix

  • Basics of operations considered very similar (e.g. demand profile and type of tenants)

  • Supply side structures differ in the regulation of social housing
  • Vonovia more advanced in industrialization and efficiencies in leveraging its platform (Value-add Business)
  • Next steps: Detailed areas of co-operation currently being considered

Vonovia will continue to explore opportunities in large European metropolitan areas in line with our established acquisition criteria

rke
t fu
nda
ls
ck
ord
1. R
esi
nta
2. V
via
5-y
tra
ma
me
ono
ear
rec		 ults
hig
hlig
hts
3. F
Y20
17
res		 ndi
5. A
ppe
x
l K
s (
€m
les
ed
oth
)
Fin
cia
Fig
tat
ise
an
ey
ure
un
s s
erw
,		 2
0
17		 2
0
1
6		 2
0
15		 2
0
14		 2
0
1
3
l in
Re
nta
co
me		 1,
6
6
7.
9		 1,
5
3
8.
1		 1,
41
4.
6		 7
8
9.
3		 7
2
8.
0
d
j
d
Op
ion
A
te
EB
IT
DA
t
us
era
s		 1,
2
24
2		 1,
0
94
0		 95
7.
6		 5
0
3.
4		 44
2.4
d
d
l
A
j
te
EB
IT
DA
R
ta
us
en		 1,
15
0.
0		 1,
0
4
6.
2		 9
24
.4		 4
8
2.
6		 4
3
3.
0
A
d
j
d
EB
IT
DA
V
lue
d
d
Bu
ine
te
us
a
-a
s
ss		 1
0
2.
1		 0
5
7.		 3
6
7.		 2
3.
6		 1
0.
5
d
d
he
A
j
te
EB
IT
DA
Ot
us
r		 -2
7.
9		 -9
2		 -4
.4		 -2
8		 -1
.1
Inc
fro
d
isp
l o
f p
ies
ert
om
e
m
os
a
rop		 1,
2
0
6.
4		 1,
2
27
9		 2
6.
0
7		 2
8
3
7.		 3
3.
5
5
d
d
les
A
j
te
EB
IT
DA
S
us
a		 11
0.
8		 9
2,
5		 71
.1		 5
0.
1		 27
.7
A
d
j
d
EB
IT
DA
te
us		 1,
3
3
0
5.		 1,
1
8
6.
5		 1,
0
2
8.
7		 3.
5
5
5		 0.
1
47
EB
IT
DA
IF
RS		 1,
27
1.
8		 1,
0
8
3.
7		 8
3
8.
4		 5
0
0.
3		 4
3
1.
0
FF
O
1		 9
2
0.
8		 7
6
0.
8		 6
0
8.
0		 2
8
6.
6		 2
2
3.
5
he
f a
bu
b
le
ha
ho
l
de
t
ttr
i
ta
to
Vo
via
reo
no
s
re
rs		 8
6
6.
2		 71
3.
4		 5
5
5.
5		 27
5.
1		 21
8.
4
he
f a
i
bu
b
le
Vo
via
hy
br
i
d c
ita
l in
t
ttr
ta
to
sto
reo
no
ap
ve
rs		 4
0.
0		 4
0.
0		 3
3.
0		 - -
he
f a
bu
b
le
l
lin
t
ttr
i
ta
to
No
tro
int
sts
reo
n-c
on
g
ere		 14
6		 7.4 1
9.5		 11
.5		 5.
1
FF
O
2		 1,
0
1
2.4		 8
2
3.
8		 6
6
2.
1		 3
3
6.
7		 25
1.
2
O
AF
F		 8
3
5.
1		 6
8
9.
2		 5
2
0.
5		 25
8.
3		 2
0
3.
5
FF
O
1 p
ha
in
€
er
s
re		 1.
9
0		 1.
6
3		 1.
3
0		 1.
0
0		 0.
95
fro
fa
lue
d
f in
Inc
ir v
j
tm
ts
stm
t p
ert
ies
om
e
m
a
a
us
en
o
ve
en
rop		 3,
4
3
4.
1		 3,
2
3
6.
1		 1,
3
2
3.
5		 3
71
.1		 5
5
3.
7
EB
T		 4,
0
0
7.4		 3,
8
5
9.
8		 1,
7
3
4.
5		 5
8
9.
1		 6
8
9.
6
Pro
fit
for
he
io
d
t
p
er		 2,
6
6.
9
5		 2,
2.
9
5
1		 9
94
.7		 0
9.7
4		 8
2
4
4.
h
f
low
fro
Ca
t
ing
t
ivi
t
ies
s
m
op
era
ac		 94
6.
0		 8
2
8.
9		 6
8
9.
8		 45
3.
2		 25
9.
6
Ca
h
f
low
fro
inv
ing
ivi
ies
t
t
t
s
m
es
ac		 3
0.
-1
5
1
,		 6.
41
4		 -3
2
3
9.
8
,		 9
-1
17
7.
,		 3
17
1.
h
f
low
fro
fin
Ca
ing
t
ivi
t
ies
s
m
an
c
ac		 -8
7
0.
5		 -2
8
1
2.4
,		 4,
0
9
3.
1		 1,
74
1.7		 -3
5
3.
2
d m
de
Ma
int
iza
t
ion
en
an
ce
a
n
o
rn		 1,
1
24
8		 7
9
2.4		 6
8
6.
3		 3
45
.5		 2
2
8.
4
he
f
for
int
d c
ita
lize
d m
int
t
reo
m
a
en
an
ce
ex
p
en
se
s a
n
ap
a
en
an
ce		 3
4
6.
2		 3
2
0.
1		 3
3
0.
7		 17
3.
8		 15
7.
6
he
f
for
de
t
iza
t
ion
reo
m
o
rn		 77
8.
6		 47
2.
3		 3
5
5.
6		 17
1.7		 7
0.
8

Historical Key Figures (1/2)

The key figures of prior years have been adjusted to match the definitions of the 2017 fiscal year. The key figures per share are based on the shares carrying dividend rights on the corresponding reporting date. Values for 2013 and 2014 are TERP-adjusted.

l
(
/
)
H
i
i
K
F
i
2
2
t
s
o
r
c
a
e
y
g
u
r
e
s
rke
t fu
nda
ls
ck
ord
1. R
esi
nta
2. V
via
5-y
tra
ma
me
ono
ear
rec		 ults
hig
hlig
hts
3. F
Y20
17
res		 ndi
5. A
ppe
x
Ke
Ba
lan
Sh
eet
Fig
s (
€m
les
tat
ed
oth
ise
)
ce
ure
un
erw
y
s s
,		 3
De
1,
c.
2
0
17		 3
De
1,
c.
2
0
1
6		 3
De
1,
c.
2
0
15		 3
De
1,
c
2
0
14		 3
De
1,
c
2
0
1
3
lue
f r
l e
fo
lio
Fa
ir v
sta
te
ort
a
o
ea
p		 3
3,
4
3
6.
3		 27
11
5.
6
,		 24
15
7.7
,		 1
2,
75
9.
1		 1
0,
3
2
6.
7
d
d
A
j
te
NA
V
us		 1
8,
6
71
.1		 14
3
2
8.
2
,		 11
27
3.
5
,		 6,
47
2.
0		 5,
1
2
3.
4
d
d
ha
A
j
te
NA
V
in
€
us
p
er
s
re		 3
8.
4
9		 3
0.
75		 24
.1
9		 2
2.
6
7		 21
.74
LT
V
(
%
)		 3
9.
8		 6
41		 6.
9
4		 9.
3
4		 8.
4
1
No
n-F
ina
nci
al
Ke
Fig
y
ure
s		 2
0
17		 2
0
1
6		 2
0
15		 2
0
14		 2
0
1
3
be
f u
nit
d
Nu
m
r o
s m
an
ag
e		 4
0
9,
27
5		 3
9
2,
3
5
0		 3
97
7
9
9
,		 2
3
2,
24
6		 2
0
1,
7
3
7
he
f o
t
art
nts
reo
wn
ap
me		 3
4
6,
6
44		 3
3
3,
3
8
1		 3
5
7,
11
7		 2
0
3,
0
2
8		 17
5,
25
8
f a
he
d
by
he
t
art
nts
ot
reo
p
me
ow
ne
rs		 6
2,
6
3
1		 5
8,
9
6
9		 4
0,
6
8
2		 2
9,
21
8		 2
6,
47
9
Nu
be
f u
nit
bo
ht
m
r o
s
ug		 24
8
47
,		 2,
8
15		 6
8,
6
3
2
1		 3
8
8
1,
5		 0
be
f u
l
d
Nu
nit
m
r o
s s
o		 11
7
8
0
,		 2
6,
6
3
1		 15
17
4
,		 4,
0
8
1		 6,
7
2
0
he
f P
t
riv
at
ize
reo		 2,
6
0
8		 2,
7
0
1		 2,
97
9		 2,
2
3
8		 2,
5
7
6
f S
he
l
l
t
reo
e		 9,
17
2		 2
3,
9
3
0		 1
2,
1
95		 1,
8
4
3		 4,
14
4
Va
(
in
%
)
rat
ca
nc
y
e		 2.5 2.4 2.7 3.
4		 3.
5
h
ly
in-
lac
in
€
/sq
Mo
nt
t
p
e r
en
m		 6.
27		 6.
0
2		 5.
75		 5.
5
8		 5.
4
0
h
ly
lac
h
(
%
)
Mo
nt
in-
t o
ic
t
p
e r
en
rg
an
g
row		 4.
2		 3.
3		 2.
9		 2.5 1.
9
be
f e
loy
Nu
m
r o
mp
ee
s		 8,
44
8		 7,
4
3
7		 6,
3
6
8		 3,
8
5
0		 2,
9
3
5
EP
RA
Ke
Fig
y
ure
s		 2
0
17		 2
0
1
6		 2
0
15		 2
0
14		 2
0
1
3
EP
RA
N
AV		 21
2
8
6
4.
,		 0
17
47
.1
,		 3,
9
8
8.
2
1		 6,
8.
0
5
7		 2
3.
5,
1
4
ha
in
€
EP
RA
N
AV
p
er
s
re		 8
8
4
3,		 8
3
6.
5		 3
0.
0
2		 2
3.
0
4		 21
.74
EP
RA
N
NN
AV		 14
6
5
7.5
,		 1
2,
0
3
4.4		 9,
7
3
9.
8		 - -
EP
RA
Ea
ing
rn
s		 5
7
3.
1		 45
0.
0		 3
2
9.
2		 - -
EP
RA
N
In
it
ia
l Y
ie
l
d
in
%
et		 3.
7		 4.
1		 4.
5		 - -
EP
RA
"to
d-
" N
In
it
ia
l Y
ie
l
d
in
%
et
p
p
e
up		 3.
7		 4.
1		 4.
5		 - -
%
EP
RA
V
te
in
ac
an
ra
cy		 2.
3		 2.
2		 2.5 3.
0		 3.
1
EP
RA
C
t R
io
(
inc
l.
d
ire
)
in
%
at
ct
sts
os
va
ca
nc
y
co		 2
6.
2		 2
8.
4		 3
1.
9		 - -
EP
RA
C
t R
io
(
l.
d
ire
)
in
%
at
ct
sts
os
ex
c
va
ca
nc
y
co		 24
.7		 27
0		 3
0.
2		 - -

The key figures of prior years have been adjusted to match the definitions of the 2017 fiscal year. The key figures per share are based on the shares carrying dividend rights on the corresponding reporting date. Values for 2013 and 2014 are TERP-adjusted.

  • Vonovia's 2018 Capital Markets Day will take place in Berlin
  • Agenda
  • June 4: Dinner at ca. 20:00
  • June 5:
    • Presentations and Workshops
    • Neighborhood Development Project in Berlin Tegel
    • Development Business
    • Value-add Business: Energy
    • Property Tour
  • CMD will finish in time for flights out of Berlin starting at around 18:30
  • An invitation including the agenda, the exact location and the registration link will be sent out in April.

  • Following the CMD, we will be starting our bi-annual perception study and appreciate your cooperation in case you are contacted by h2glenfern.

  • The successful development since the IPO continued in 2017, resulting in a compelling 5-year positive track record.

  • In light of the sustainable growth trajectory on which we have put the company, we remain confident in our outlook for 2018 and beyond.
  • Market fundamentals continue to be supportive.
  • Q1 reporting on May 3 with first estimate on FFO 1 contribution from Buwog if tender offer is successful.
  • Changes in the Supervisory Board and Management Board represent a smooth transition that safeguards the long-term stewardship of the company.

Company Presentation April 2018

page 53

Sources: Dealogic, Bloomberg, Broker research, Deutsche Bundesbank, Verband deutscher Pfandbriefbanken (VdP), FactSet

1 Quarterly Mortgage Pfandbrief issuances for 2005-2012 based on equal distribution of annual issuances based on VdP data; 2013 -1Q2017 figures based on Deutsche Bundesbank

2 Corporate bond issuance volume includes senior unsecured and hybrid bonds ≥ €50m, issued in EUR in Western Europe

Currently used by Vonovia

i
i
i
D
T
F
e
c
s
o
n
e
e
r		 i
S
n
a
n
c
n
g
o
c
e
s
u
r
1. R
esi
rke
t fu
nda
nta
ls
ma
me		 2. V
via
5-y
tra
ck
ord
ono
ear
rec		 3. F
Y20
17
ults
hig
hlig
hts
res		 5. A
ndi
ppe
x

Sources: Federal Statistics Office, Eurostat, JLL Research, own calculations

Illustration of Germany at Night

Illustration of Germany at Night

Note: Vonovia Strategic Portfolio

High-influx cities ("Schwarmstädte"). For more information: http://investoren.vonovia.de/websites/vonovia/English/4050/financial-reports-_-presentations.html

  • Seed portfolios of today's Vonovia have origin in public housing provided by government, large employers and similar landlords with a view towards offering affordable housing.
  • At beginning of last decade, private equity invested in German residential on a large scale including into what is Vonovia today (mainly Deutsche Annington and Gagfah then).
  • IPO in 2013.
  • Final exit of private equity in 2014.

Reconciliation of Shares Outstanding1. Resi market fundamentals 2. Vonovia 5-year track record 3. FY2017 results highlights 5. Appendix

D
t
a
e		 N
O
S
H
(
i
l
l
i
)
m
o
n		 C
t
o
m
m
e
n
b
D
3
1,
2
0
1
6
e
c
e
m
e
r		 4
6
6
0
h
3
2
0
M
1,
1
7
a
r
c		 8
8
4
6		 i
i
i
t
t
c
o
n
w
e
r
a
c
q
u
s
o
n
J
3
0
2
0
1
7
n
e
u
,		 4
7
6
5		 d
d
d
S
i
i
i
c
p
e
n
r
v
S
b
3
0
2
0
1
7
t
e
p
e
m
e
r
,		 8
4
5
1		 G
f
h
b
d
a
g
a
c
r
o
s
s-
o
r
e
r
m
e
r
g
e
r
b
D
3
1,
2
0
1
7
e
c
e
m
e
r		 4
8
5
1

The number of outstanding shares is always available at http://investoren.vonovia.de/websites/vonovia/English/2010/key-share-information.html

Sustainability at a Glance

  1. Resi market fundamentals 2. Vonovia 5-year track record 3. FY2017 results highlights 5. Appendix

Integrated element of Vonovia's business model

  • With ca. 350,000 apartments throughout Germany, Vonovia is the country's leading residential real estate company. This role in the housing landscape imposes on us a particular responsibility to actively shape the development of the housing industry.
  • We aim to live up to the responsibility by pursuing a continuous dialogue with our stakeholder groups, and by considering social and ecological issues in our core activities. A key priority for us is to use our business model and our holistic approach to help resolve the most urgent challenges in the housing industry and make a positive contribution to social development.

Sustainability reporting at Vonovia

  • Separate Sustainability Reporting Unit at Vonovia.
  • Start Sustainability Reporting in 2015 with our first sustainability report published in 2016, based on GRI G4 guidelines.
  • Publication of second Sustainability Report in 2017, based on the new GRI standards (published in October 2016), report is available at:http://investoren.vonovia.de/websites/vonovia/English/7033/sustainability.html
  • Vonovia received the EPRA Silver Award for the 2016 Sustainability Report

Sustainability Report for 2017 to be published in June 2018

S
i
b
i
l
i
t
t
A
s
a
n
a
u
y		 p
p
r		 h
o
a
c
1. R
esi
rke
t fu
nda
ls
nta
ma
me		 2. V
via
5-y
ck
ord
tra
ono
ear
rec		 3. F
Y20
17
ults
hig
hlig
hts
res		 5. A
ndi
ppe
x

"Our sustainability approach results directly from our business model, on the one hand, and also addresses developments that influence our business, or which we can influence, on the other."

Vonovia's Sustainability approach

• Vonovia implements extensive measures to maintain and develop its portfolio, in particular, measures to improve the energy efficiency of the stock. This allows us to make a significant contribution to protecting our climate. At the same time, wellinsulated apartments increase efficiency and simultaneously reduce ancillary expenses for our customers.

• A nice, stable environment is part of a good residential atmosphere. Therefore, we become involved beyond our buildings and set trends with cities, companies and city planners, as well as with associations, initiatives and, last but not least, with ourlocal customers for the sustainable development of entire neighborhoods.

Sustainability: Establishment within Vonovia

  • • At the highest level, the CEOof Vonovia SE is responsible for sustainability.
  • •The Audit Committee in particular handles sustainability on behalf of the Supervisory Board.
  • • Vonovia established a new function, sustainability specialist, in 2017, in order to ensure that sustainability issues can be tackled in a more structured, cross-departmental manner and to expand our dialogue with stakeholders.

Sustainability Key Topics

  1. Resi market fundamentals 2. Vonovia 5-year track record 3. FY2017 results highlights 5. Appendix

Materiality Matrix

Sustainable Corporate Governance:

  • Long-term growth: Basis to Vonovia Business Model.
  • •Compliance and Anti-Corruption: Implemented Code of Conduct within Vonovia.
  • Adherence to Labor, Social and Environmental Standards in the Supply Chain: Business Partner Code for subcontractors and suppliers: e.g. ruling out of illicit employment, payment of at least legal minimum wage.

Society and Customer Interests:

  • • CSI (Customer Satisfaction Index) is an element used in determining Management Board remuneration.
  • Neighbourhood development: not only maintenance, modernization, shaping the residential environment, but also supporting social or cultural facilities or educational institutions
  • Social Commitment: several initiatives, e.g. Vonovia Foundation, Vonovia Mieterstiftung e.V.

Climate and Environmental Protection:

Reduction of energy and emission consumption: e. g. modernization of energy systems, modern boilers, intelligent thermostats. Further measures against climate change: e. g. expansion of renewable energy sources, targeted purchasing of renewable energies, entry into own electricity production via photovoltaic systems

Employees:

  • •Several health programs, support work-life-balance, participation in company's success
  • Employees from 60 different nations
  • 2016: GdW: Award as an exemplary training company and from Focus Money the award "Germany's best training companies".
  • • German Olympic Sports Federation, representatives of the Sports Ministers' Conference and the German Chambers of Industry and Commerce honouredVonovia as a top sports-friendly company in 2017

On February 7, the coalition partners CDU, CSU and SPD signed a coalition agreement1 that will serve as the basis for their work in the current legislative period. The following is an overview of the main elements of the coalition agreement as far as the housing market is concerned.

The overriding objective of the coalition agreement is to secure the affordability of housing for tenants while safeguarding modernization investments that are aimed towards successfully coping with climate change and demographic challenges. The proposed measures in terms of regulation suggest that the coalition partners are specifically targeting rogue landlords, who push the envelope by carrying out costly modernization at the expense of their tenants, as well as speculative land buyers.

Co
l
i
t
io
Ag
t
a
n
re
em
en		 d
Ex
te
Im
t
p
ec
p
ac
he
l
i
io
ke
i
da
fo
la
d
lo
ds
T
t
tn
t
to
t m
to
c
oa
n
p
ar
er
s
w
an
m
a
an
ry
r
n
r		 h
is
ha
he
ie
is
br
i
l
l n
d
isa
T
ts
t
t
t
M
tp
t
t.
su
g
g
es
re
em
se
w
o
p
p
ea
r a
s a
co
nc
ep
d
isc
lo
he
io
l
le
l.
to
t
ta
se
p
re
v
us
re
n
ve		 l
l m
ke
d
f
f
l
fo
lan
d
lor
ds
la
ha
he
I
t w
i
i
t m
i
icu
t
to
im
t
t
t
a
or
e
r r
og
ue
c
kg
d:
le
ing
ly
be
ha
0
%
Ba
A
t
t
t c
t
t n
t
t
1
c
ro
un
ne
w
re
n
ur
re
n
m
us
o
m
or
e
n		 iou
ha
0
%
bo
he
loc
l c
b
le.
t w
t
1
t
p
re
v
s r
en
as
m
or
e
n
a
ve
a
om
p
ar
a
bo
he
loc
l c
b
le
h
l
law
ha
l
d
by
t
t.
T
is
is
t
ion
t
t
is
ie
a
ve
a
om
p
ar
a
re
n
na
a
ap
p
fe
de
l s
in
ha
de
f
ine
d
"s
ine
d
ho
ing
ke
"
ta
te
t
t a
tra
ts
ra
s
ar
ea
s
re
as
us
m
ar		 ia
ha
d
he
is
ing
leg
is
la
ion
d
i
l
l c
inu
do
Vo
te
t
t
t
t
to
no
v
s r
es
p
ec
e
x
a
n
w
on
e
so
by
he
l
h,
he
br
do
t
t
ive
ic
ip
i
t
ies
As
t
M
ie
tp
is
t
re
sp
ec
m
un
a
s
uc
re
em
se
es
n
o		 do
h
d
los
ha
Vo
ia
t e
t
t
is
isc
ire
t
to
no
v
es
n
o
xp
ec
ne
w
ur
e
re
q
u
me
n
ve
a
ly
loc
ion
in
Ge
fe
de
l s
d
to
t
Tw
ta
te
N
R
W
ap
p
e
ve
ry
a
rm
an
y.
o
ra
s,
a
n		 ia
l
im
i
bu
ine
te
t o
ts
ma
r
p
ac
n
s
ss
h
les
ls
ha
d
leg
la
d
he
Sc
ig
Ho
te
in,
is
t
ion
to
isc
t
inu
t
w
ve
e
ve
n
p
as
se
on
e
ie
is
br
in
he
ir
j
is
d
ic
ion
d
lor
ds
ho
fo
d
M
tp
t
t
La
t
re
em
se
ur
n
we
ve
r,
ar
e
no
rce
,
le
be
low
he
ly
he
ha
to
t
t
iou
t.
Cu
t
t
is
ism
to
re
p
re
v
s r
en
rre
n
re
no
m
ec
n
ke
he
iou
ia
l n
t
t
tra
t
to
te
t
te
ts
ma
p
re
v
s r
en
ns
p
ar
en
p
o
n
ew
na
n

Rental cap ("Mietpreisbremse")

See https://www.cdu.de/system/tdf/media/dokumente/koalitionsvertrag_2018.pdf?file=1for the full text of the coalition agreement (German only)

  1. Resi market fundamentals 2. Vonovia 5-year track record 3. FY2017 results highlights 5. Appendix
d
l
l
M
i
t
i
t
i
o
e
r
n
z
a
o
n
a
o
c
a
o
n
Co
l
i
io
t
Ag
t
a
n
re
em
en		 d
Ex
te
Im
t
p
ec
p
ac
Ar
ic
le
5
5
9
f
he
Ge
C
iv
i
l
Co
de
i
de
ha
1
1
%
f
he
t
t
t
t u
to
t
o
rm
an
p
ro
v
s
p
o
f a
de
be
l
loc
d
he
inv
tm
t a
t o
iza
t
ion
j
t c
te
to
t
es
en
mo
un
m
o
rn
p
ro
ec
an
a
a
l r
f
he
in
i
i
de
d
he
de
ly
ing
k
t o
t
ty
tu
ty
t
an
nu
a
en
p
ro
p
er
p
er
p
e
p
ro
v
u
n
r
w
or
,
de
/
lue
ha
(
).
is
iza
t
ion
ing
i.e
t m
in
te
mo
rn
va
e
n
nc
. n
o
a
na
nc
e		 T
h
is
i
l
l
ha
lar
im
lan
d
lor
ds
ha
t o
t
t c
t
me
as
ur
e
w
ve
a
g
er
p
ac
n
ar
ry
ou
de
d
l
ler
lan
d
lor
ds
ha
do
ive
iza
t
ion
im
t o
t
t
ex
p
en
s
m
o
rn
s a
n
a
sm
a
p
ac
n
f
f
ic
ien
de
iza
ion
k.
t m
t
mo
re
e
o
rn
w
or
T
he
l
i
io
du
he
1
1
%
8
%
T
h
is
ha
l
l
t
tn
t
to
t
to
c
oa
n
p
ar
er
s
w
an
re
ce
s
ly
ly
i
h
lo
"K
"
loc
to
t
i.e
t
ion
on
ap
p
a
re
as
w
a
w
er
ap
p
un
g
sg
re
nz
e,
a
s
he
h
is
ing
ies
be
ha
1
5
%
t g
t
t
te
t
w
re
re
n
ro
w
on
e
x
na
nc
ca
n
n
o
mo
re
n
o
ve
r
hr
(
d
f
2
0
).
1
h
h
he
d
f
he
t
ins
te
%
T
is
is
i
t
in
t
isc
t
ion
t
ee
y
ea
rs
a
o
w
re
o
fe
de
l s
d
im
lem
d
in
iou
by
d
by
ta
te
te
t
ra
s a
n
p
en
va
r
s w
ay
s
so
me
a
n
no
he
he
l
i
io
ha
h
is
ha
l
l
be
t
T
t
t s
ta
te
t
t
t
o
rs
c
oa
n
ag
re
em
en
s
m
ea
su
re
s
ie
d
f
f
iv
te
re
v
w
e
a
r
e
y
ea
rs		 H
is
ica
l
ly,
Vo
ia
ha
ha
d
l
loc
ion
f a
d
7
%
f
he
to
t
t
r
no
v
s
an
a
ve
ra
g
e
a
a
o
ro
un
o
h
h
lso
he
d
hu
d
le
fo
inv
tm
t a
t,
ic
is
t
ire
te
es
en
mo
un
w
a
re
q
u
av
er
ag
e
r
ra
r
ing
he
l m
de
iza
ion
bu
dg
He
du
ion
fro
t
t
t.
t
ap
p
ro
v
a
nn
ua
o
rn
e
nc
e,
a
re
c
m
8
l
d
ha
1
1
%
to
%
ino
im
t o
Vo
ia.
w
ou
ve
a
m
r
p
ac
n
no
v
As
h
is
l
ies
d
he
ion
Vo
ia
i
l
l a
lso
ha
t
to
t
to
t
ap
p
so
me
a
n
no
o
r r
eg
s,
no
v
w
ve
he
d
fu
ds
ho
ha
t
tu
i
ty
to
ire
t
inv
tm
t
to
t
ion
t
t a
t
o
p
p
or
n
c
es
en
n
se
re
g
s
re
n
o
f
fe
d.
te
a
c

€3.00 per sqm rent growth cap following a modernization

Coalition Agreement Expected Impact The coalition partners want to cap the absolute rent growth after a modernization to a maximum of €3.00 per sqm and extend the moratorium on modernization-related rent growth form currently three to six years.

This measure appears to be primarily aimed towards rogue landlords who use the modernization allocation to carry out luxury modernizations in order to implement excessive rent growth. Business models that push the envelope on the back of tenants by carrying out costly modernizations will find this to be more difficult going forward.

Historically, out of thousands of modernization projects carried out by Vonovia only a small fraction have led to a rent growth of more than €3 per square meter, so this measure will not impact Vonovia.

See https://www.haufe.de/immobilien/verwaltung/mietpreisdeckel-regelungen-der-bundeslaender-zur-kappungsgrenze/mietrechtsaenderung-ermoeglicht-laendern-senkung-der-kappungsgrenze_258_275652.html for more detail on the Kappungsgrenze (German only)

  1. Resi market fundamentals 2. Vonovia 5-year track record 3. FY2017 results highlights 5. Appendix
f
l
d
d
f
l
E
t
i
i
i
t
i
M
i
t
i
x
e
n
s
o
n
o
v
a
y
p
e
r
o
o
r
e
s
p
e
g
e
Co
l
i
io
Ag
t
t
a
n
re
em
en		 Ex
d
Im
te
t
p
ec
p
ac
T
he
l
i
io
d
he
l
i
d
i
io
d
f
t
tn
t
to
te
t
ty
c
oa
n
p
ar
er
s
an
e
n
a
p
er
o
w
x
v		 Ou
f a
l o
f
2
7
5
M
ie
ieg
l
in
Ge
1
0
5 a
De
i
le
d
t o
to
ta
ts
ta
p
e
rm
an
y,
re
ie
ie
l
fr
ly
hr
h
is
ha
l
l
M
ts
t
tw
to
t
T
p
g
e
om
c
ur
re
n
o
y
ea
rs
ee
y
ea
rs
s		 l
d
l
d
be
f
fe
d;
he
0
S
le
M
ie
ts
ieg
te
t
in
ing
1
7
im
p
e
an
wo
u
a
c
re
ma
ar
e
p
ly
ly
De
i
le
d
M
ie
ie
l
(
"q
l
i
f
iz
ie
M
ie
ie
l
")
to
ta
ts
te
ts
on
ap
p
p
g
e
ua
p
g
e
r		 M
ie
ieg
l
d
l
d
be
f
fe
d.
ts
t
te
p
e
an
wo
u
no
a
c
ke
h a
le
d
l
h
de
lay
l
Ma
ts
i
t
De
ta
i
M
ie
ts
ieg
ig
t s
t
im
in
ta
r
w
p
e
m
ee
a
e
re
n
h
ion
f
he
im
fra
de
h
ic
h
h
t
t
t
t g
t
g
ro
w
or
a
n e
xp
an
s
o
e
me
u
n
r w
re
n
ro
w
ca
n
be
lem
d.
l
ke
ly
ha
he
de
d
low
im
te
I
t
is
i
t
t
t
in
in
te
im
t,
p
en
un
m
a
n
p
ac
er
fo
ic
ip
l
i
ies
i
l
l a
l
ly
ia
l
ize
ts
t
tu
te
co
s
r m
un
a
w
c
a
ma
r
,
T
h
is
leg
is
la
ion
l
d
ha
l
im
i
d
im
Vo
ia
d
ly
t
te
t o
t
w
ou
ve
a
p
ac
n
no
v
an
mo
s
f
fe
he
f r
h.
t
t
t
im
ing
t g
t
a
c
o
en
ro
w
f
f
E
i
t
x
e
n
s
o
n
o
r
e
e
r
e
n
c		 d
f
l
i
M
i
i
t
e
p
e
r
o
o
r
e
s
p
e
g
e
l
Co
i
t
io
Ag
t
a
n
re
em
en		 d
Ex
te
Im
t
p
ec
p
ac
he
l
i
io
ie
he
le
h
f
he
fe
T
t
tn
t
to
t
t
t
c
oa
n
p
ar
er
s
w
an
re
v
w
ng
o
re
re
nc
e
io
d
ha
ba
is
fo
dr
f
in
ie
ie
l.
he
M
T
t
t s
t
ts
p
er
er
ve
s
as
a
s
r
a
g
a
ne
p
g
e
w
fe
io
d
is
t r
4
cu
rr
en
e
re
nc
e
p
er
y
ea
rs		 he
l
ly
lu
de
he
T
i
t
ion
t o
inc
te
ing
t
co
a
a
g
re
em
en
n
s o
ne
se
n
nc
e,
ex
p
re
ss
'
"r
"
he
fe
d
ho
fu
he
ies
in
ion
iew
io
i
t
te
t
to
t
t
t a
t
p
ar
n
s
ev
re
re
nc
e
p
er
ny
w
u
r
r
f
he
bs
f a
lan
lan
ha
i
ics
T
te
ts
t
t
sp
ec
a
en
ce
o
ny
co
nc
re
g
ua
g
e
or
p
s s
ug
g
es
he
l
le
d
du
he
l
l
ks
he
he
i
ing
i
ion
t
t
t
t
t
ta
t
re
as
co
m
mo
n
g
ro
un
co
a
nc
e
w
r
,
he
f
fe
he
la
da
t
i
ic
to
iew
t
iss
t a
te
te
ra
r u
ns
p
ec
re
re
nc
e
re
v
ue
a
r
leg
la
ha
d
l
d
l
ke
ly
be
he
An
is
ion
in
ire
ion
i
t
t
t
t
t
to
t
c
ou
mo
s
p
ro
ve
ra
y
w
r
d
f
f
l
he
bs
f c
b
le
da
ba
i
icu
t g
ive
t
ta
t
inu
is,
n
a
en
ce
o
om
p
ar
a
o
n
a
co
n
ou
s
s
a
s
d
he
he
d
f
fe
l
ke
ha
i
ia
in
i
M
ie
ieg
ing
te
t
te
t
t
ts
cr
an
o
r p
ar
am
e
rs
re
n
p
e
ep
c
ng
r
he
bs
f a
f
h
b
he
l
h
In
i
ics
is
j
im
is
t
t
t,
t
tu
t
t
a
en
ce
o
ny
s
p
ec
o
n
su
ec
a
c
a
p
ac
l
d
ha
be
d
h
lea
Vo
ia
t
t
im
te
t
t
is
in
t.
I
t
is
co
u
ve
o
n
no
v
ca
nn
o
e
s
a
a
p
o
c
r,
ho
ha
f
he
fe
d
l
d
ha
l
ion
io
ia
t
t a
te
t
te
we
ve
n
ex
ns
o
re
re
nc
e
p
er
wo
ve
m
a
r,
u
r
he
du
d
l
d
lso
t
ive
t
t
ire
in
try
Vo
ia
ne
g
a
co
ns
eq
ue
nc
es
o
n
e
n
s
an
no
v
wo
u
a
,
be
f
fe
d.
te
a
c
  1. Resi market fundamentals 2. Vonovia 5-year track record 3. FY2017 results highlights 5. Appendix
f
S
b
i
d
h
b
s
o
o
m
e
e
s
u
y
r
u
y
r
Co
l
i
io
Ag
t
t
a
n
re
em
en		 Ex
d
Im
te
t
p
ec
p
ac
T
he
l
i
io
€
1,
2
0
0
d
t
tn
t
to
t
c
oa
n
p
ar
er
s
an
g
ra
n
p
er
a
nn
um
a
n
p
er
w		 f
In
l
ig
h
he
ice
in
ba
h
is
is
l
i
ke
ly
t o
t
t u
t
to
p
s
mo
s
n
ar
ea
s
me
as
e
un
r
r
ur
h
i
l
d
fo
fa
i
l
ie
ho
lo
k
in
bu
to
te
to
to
c
r u
p
n
y
ea
rs
m
s w
a
re
o
g
y
or		 he
lp
fa
i
l
ies
f
fo
d
ho
in
i
ty
ma
ny
m
a
r
a
me
a c
bu
i
l
d,
i
de
d
he
ir
b
le
ho
ho
l
d
inc
do
d
in
t
ta
t e
ta
p
ro
xa
us
e
om
e
es
n
o
xc
ee
ce
v
r
hr
ho
l
ds
(
€
9
0
k
in
f
fa
i
l
ies
i
h o
h
i
l
d
d
d
d
i
ion
l
t
t
t
es
ca
se
s o
m
w
ne
c
an
an
a
a		 ia
do
bs
ia
l u
d
ice
fo
Vo
t e
t a
ta
t
no
v
es
n
o
xp
ec
ny
s
u
n
p
wa
r
p
re
ss
ur
e
on
p
r
s
r
fo
€
1
5
k
h
d
d
i
ion
l c
h
i
l
d
)
t
r e
ac
a
a		 f
i
he
ba
is
he
lan
ts
ts
t
t
as
se
on
s
o
se
p
s.
b
d
S
i
i
u
s
e
s
Co
l
i
io
Ag
t
t
a
n
re
em
en		 Ex
d
Im
te
t
p
ec
p
ac
T
he
l
i
ion
inc
lu
de
iou
les
ho
he
t
t
t
co
a
a
g
re
em
en
s v
ar
s e
xa
m
p
w
n
ew		 Mo
de
iza
ion
f
he
ho
ing
k a
d
f
fo
da
b
le
ion
f
t
t
to
tru
t
rn
o
us
s
c
n
mo
re
a
r
co
ns
c
o
l
d
bs
d
f
f
de
d
t w
im
to
i
ize
ic
ien
t m
iza
t
ion
g
ov
er
nm
en
ou
a
s
u
e
ne
rg
y
e
o
rn
s a
n		 ke
fo
he
Ge
ho
ke
tm
ts
t
ing
t.
ne
w
ap
ar
en
ar
e
y
r
rm
an
us
m
ar
ion
b
le
he
l
de
ly
l
ive
in
he
ir
ho
lon
t
to
t
to
t
re
no
va
s
e
na
e
r
me
s
g
er
he
l
ha
lso
d
l a
d
du
lar
T
i
t
ion
tn
to
te
ia
co
a
p
ar
er
s
ve
a
a
g
re
e
p
ro
mo
se
r
n
mo		 f e
f
f
de
Vo
ia
is
tro
te
ic
ien
t m
iza
t
ion
no
v
a
s
ng
s
up
p
or
r o
ne
rg
y-
e
o
rn
,
ion
d
d
he
ir
in
ion
he
in
d
iv
i
du
l
tru
t
t
te
t
to
t
t
co
ns
c
a
n
ex
p
re
ss
e
n
s
up
p
or
a		 ion
f a
fo
he
l
de
ly
d
in
l
l
ig
f
fo
da
b
le
t
tm
ts
t
te
t,
re
no
va
o
p
ar
en
r
e
r
an
en
a
r
fe
de
l s
l
he
bu
l
d
d
ta
te
to
tre
ine
t
i
ing
i
t p
to
ra
s
s
am
p
er
m
ro
ce
ss
a
n		 d
d
by
he
l
€
bn
t
ion
in
ica
te
t
1
inv
tm
t p
sp
ac
e
cr
ea
as
a
nn
ua
es
en
ro
g
ra
m
,
inv
ig
i
b
i
l
i
ies
fo
ia
l c
ion
iss
ion
(
ia
l
ly
t
te
t
tru
t
te
t
es
a
p
os
s
r s
er
on
s
c
p
er
m
s
p
o
n		 An
fu
he
d
d
i
ion
l s
in
h
is
d
ire
ion
l
d
be
t
t
t
t
t
y
r
r p
ro
g
re
ss
o
r a
a
up
p
or
c
w
ou
d
lar
he
du
he
de
l r
t
iss
im
i
to
t
in
try
ta
in
ive
no
ca
r
s
w
re
a
ce
r
mo
ec
e
s
,		 lco
d
fo
he
bu
i
t
ive
t
ine
we
me
as
a
p
os
r
s
ss
da
d
l r
he
ha
h v
h
ic
le
be
ing
d
ta
t
t
s
n
r
ap
p
ro
va
a
r
n
ea
c
e
a
p
p
ro
ve
d
du
l
ly
).
in
iv
i
a

No Correlation between Interest Rates and Asset Yields

Valuation methodology for German residential properties is primarily based on market prices for assets – not on interest rates

  • While market prices are affected by general interest rate levels, there is no significant correlation.
  • Other factors such as supply/demand imbalance, rental regulation, market rent growth, location of assets etc. outweigh the impact of interest rates when it comes to pricing residential real estate.
  • The steep decline in interest rates (down by 760bps since 1992) is not mirrored by asset yields (down by 120bps since 1992).
  • Asset yields outperformed interest rates by 240bps on average since 1992 and 550bps in June 2016.

Yearly asset yields vs. rolling 200d average of 10y interest ratesSources: Thomson Reuters, bulwiengesa

Three Valuation Layers with Different Volatilities1. Resi market fundamentals 2. Vonovia 5-year track record 3. FY2017 results highlights 5. Appendix

High degree of stability and predictability of underlying business (layer 1) and portfolio valuation (layer 2) is not reflected in share price development (layer 3), as equity markets appear to apply valuation parameters that are substantially less material for Vonovia's operating performance.

To be proposed to the Annual General Meeting.

IR Contact & Financial Calendar

  1. Resi market fundamentals 2. Vonovia 5-year track record 3. FY2017 results highlights 5. Appendix
C
t
t
o
n
a
c		 F
i
i
l
C
l
d
2
0
8
1
n
a
n
c
a
a
e
n
a
r
f
f
R
H
e
n
e
o
m
a
n
n
f
d
l
i
H
I
t
R
t
e
o
n
e
o
e
o
n
a
v
s
r
a
s
V
i
S
E
o
n
o
a
v
h
l
ß
P
i
i
3
t
p
p
s
a
e
r
h
4
4
8
0
3
B
o
c
u
m
G
e
r
m
a
n
y		 Ap
1
8
r		 Ro
ds
ho
(
Se
l
)
a
ou
w
Ap
1
9
r		 Ro
ds
ho
(
Ho
Ko
)
a
w
ng
ng
Ap
2
0
r		 Ro
ds
ho
(
S
ing
)
a
w
ap
or
e
3
Ma
y		 im
l
3
2
0
8
In
te
ts
M
1
r
re
su
Ma
9
y		 l
l
in
An
Ge
Me
t
nu
a
ne
ra
e
g
Ma
1
4-
1
5
y		 ds
ho
(
do
)
Ro
Lo
a
n
n
w
Ma
1
7
y		 fu
Ro
ds
ho
(
Fr
k
)
t
a
an
w
r
9
2
3
3
6
2
9
4
4
1
4
1
+		 Ma
2
4
y		 1
Be
be
Co
fe
(
Ta
)
to
re
n
rg
n
re
nc
e
rry
wn
h
f
f
d
@
i
e
n
e
o
m
a
n
n
o
n
o
a
e
r
v
v		 2
2
6
Ma
5-
y		 1
ds
ho
(
h
ica
)
Ro
No
t
Am
a
w
r
er
l
d
i
i
@
i
t
t
n
e
s
o
e
a
o
n
s
o
n
o
a
e
v
r
r
v
v		 2
9
Ma
y		 1
Cr
d
Ge
&
(
)
Un
i
i
t
Au
tr
ian
Pr
ty
Da
Pa
is
e
rm
an
s
op
er
y
r
d
i
o
n
o
a
e
w
w
w
v
v		 Ma
3
0
y		 (
da
)
Ke
Eu
Se
ina
Am
te
m
p
en
ro
p
ea
n
m
r
s
r
m
Ju
4-
5
n		 l
ke
(
l
)
Ca
i
Ma
Da
Be
in
ta
ts
p
r
y
r
Ju
6
n		 D
B
Ac
Co
fe
(
Be
l
in
)
ce
ss
n
re
nc
e
r
Ju
1
4
n		 Ex
Eu
C
E
O
Co
fe
(
Pa
is
)
an
e
ro
p
ea
n
n
re
nc
e
r
3
Au
1
g		 im
l
6
2
0
8
In
te
ts
M
1
r
re
su

Dortmund

Frankfurt

Essen

Dresden

Elmshorn

Köln

This presentation has been specifically prepared by Vonovia SE and/or its affiliates (together, "Vonovia") for internal use. Consequently, it may not be sufficient or appropriate for the purpose for which a third party might use it.

This presentation has been provided for information purposes only and is being circulated on a confidential basis. This presentation shall be used only in accordance with applicable law, e.g. regarding national and international insider dealing rules, and must not be distributed, published or reproduced, in whole or in part, nor may its contents be disclosed by the recipient to any other person. Receipt of this presentation constitutes an express agreement to be bound by such confidentiality and the other terms set out herein.

This presentation includes statements, estimates, opinions and projections with respect to anticipated future performance of Vonovia ("forward-looking statements") which reflect various assumptions concerning anticipated results taken from Vonovia's current business plan or from public sources which have not been independently verified or assessed by Vonovia and which may or may not prove to be correct. Any forward-looking statements reflect current expectations based on the current business plan and various other assumptions and involve significant risks and uncertainties and should not be read as guarantees of future performance or results and will not necessarily be accurate indications of whether or not such results will be achieved. Any forward-looking statements only speak as at the date the presentation is provided to the recipient. It is up to the recipient of this presentation to make its own assessment of the validity of any forward-looking statements and assumptions and no liability is accepted by Vonovia in respect of the achievement of such forward-looking statements and assumptions.

Vonovia accepts no liability whatsoever to the extent permitted by applicable law for any direct, indirect or consequential loss or penalty arising from any use of this presentation, its contents or preparation or otherwise in connection with it.

No representation or warranty (whether express or implied) is given in respect of any information in this presentation or that this presentation is suitable for the recipient's purposes. The delivery of this presentation does not imply that the information herein is correct as at any time subsequent to the date hereof.

Vonovia has no obligation whatsoever to update or revise any of the information, forward-looking statements or the conclusions contained herein or to reflect new events or circumstances or to correct any inaccuracies which may become apparent subsequent to the date hereof.

This presentation does not, and is not intended to, constitute or form part of, and should not be construed as, an offer to sell, or a solicitation of an offer to purchase, subscribe for or otherwise acquire, any securities of the Company nor shall it or any part of it form the basis of or be relied upon in connection with or act as any inducement to enter into any contract or commitment or investment decision whatsoever.

This presentation is neither an advertisement nor a prospectus and is made available on the express understanding that it does not contain all information that may be required to evaluate, and will not be used by the attendees/recipients in connection with, the purchase of or investment in any securities of the Company. This presentation is selective in nature and does not purport to contain all information that may be required to evaluate the Company and/or its securities. No reliance may or should be placed for any purpose whatsoever on the information contained in this presentation, or on its completeness, accuracy or fairness.

This presentation is not directed to or intended for distribution to or use by, any person or entity that is a citizen or resident or located in any locality, state, country or other jurisdiction where such distribution, publication, availability or use would be contrary to law or regulation or which would require any registration or licensing within such jurisdiction.

Neither this presentation nor the information contained in it may be taken, transmitted or distributed directly or indirectly into or within the United States, its territories or possessions. This presentation is not an offer of securities for sale in the United States. The securities of the Company have not been and will not be registered under the US Securities Act of 1933, as amended (the "Securities Act") or with any securities regulatory authority of any state or other jurisdiction of the United States. Consequently, the securities of the Company may not be offered, sold, resold, transferred, delivered or distributed, directly or indirectly, into or within in the United States except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and in compliance with any applicable securities laws of any state or other jurisdiction of the United States unless registered under the Securities Act.

Tables and diagrams may include rounding effects.

More from Vonovia SE

Board/Management Information 2025
Dec 9
Declaration of Voting Results & Voting Rights Announcements 2025
Nov 28
Declaration of Voting Results & Voting Rights Announcements 2025
Nov 17
Capital/Financing Update 2025
Nov 5
Earnings Release 2025
Nov 5
Investor Presentation 2025
Nov 5
Quarterly Report 2025
Nov 5
Declaration of Voting Results & Voting Rights Announcements 2025
Oct 31
Report Publication Announcement 2025
Oct 23
Environmental & Social Information 2025
Oct 1
View all filings →

Talk to a Data Expert

Have a question? We'll get back to you promptly.