Vonovia SE

Investor Presentation • Mar 27, 2017

Company Presentation

Non-deal Roadshow to China March 28-30, 2017

Market

Company

Strategy & Execution

German Residential – Safe Harbor and Low Risk

German residential market: important pillar of the German economy

• With a GDP contribution of more than €500bn the German residential real estate industry represents more than 18% of Germany's GDP.
• Germany and its resilient economy provide a comparatively safe harbor for foreign investments.
• Germany is the economic powerhouse and growth engine of Europe.
• Due to its regulatory structure, the German residential rental market is largely immune to macro-economic fluctuations and offers high cash flow visibility.
• Residential market provides superior returns especially in low interest rate environment.

Sources: Federal Statistics Office, GdW (German Association of Professional Homeowners), REIS, BofA Merrill Lynch Global Research; BIP USA: IMF, Statista 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

New Supply falls short of demand

• After record construction volumes in the 1990s, new volumes have plummeted as Germany has reduced its building capacity.
• While volumes have been recovering from all-time lows in 2009 and 2010, the current levels are still short of demand.
• Large gap between building permits and actual new constructions during last seven years.
• Discrepancy between new demand and new supply is forecast to continue and add to supply/demand imbalance already evident in many urban areas.
• Substantial disconnect between in-place values and market replacement cost.

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

German Residential – Favorable Fundamentals

Low home ownership ratio – Germans prefer to rent Rental housing very affordable in Germany

• With the exception of Switzerland, Germany has the lowest homeownership ratio in Europe.
• Rental regulation, favorable tenant laws, the general perception that home buying is a life-time decision and comparatively stringent financing requirements are main drivers for low homeownership rate.

Home ownership rate 2015 in %

• Affordability in Germany is higher than in the UK or France.
• Whereas most other European countries saw an increase, the share of rent-related payments in relation to disposable income declined in Germany between 2005 and 2015.

Rent as % of disposable household income

Sources: Federal Statistics Office, Eurostat

German Residential – Favorable Fundamentals

• 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.

Ownership structure (million units)

Listed sector represents ~4% of total rental market.

Fragmented ownership structure 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 2030 with a clear trend towards smaller households.
• The household growth is driven by various demographic and social trends including divorce rates, employment mobility etc.

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

Asset yields outperformed interest rates by 2.2% on average since 1992 and 5.4% in June 2015.

¹ Yearly asset yields vs. rolling 200d average of 10y interest rates Sources: Thomson Reuters, bulwiengesa

Market

Company

Strategy & Execution

If You Want to Know Where Germans Live - Follow the Light

Illustration of Germany at Night

Strong Overlap with Vonovia Portfolio

Illustration of Germany at Night

Strategic Portfolio

Vonovia Location

High-influx cities ("Schwarmstädte")

Non-deal Roadshow China, March 28-30, 2017

Frankfurt, Odenwaldstr. 2-4b

Frankfurt, Am Lindenbaum 15-85A

Frankfurt, Friedlebenstr. 32

Essen, Meistersingerstrasse 20-24C

Impressions

Dresden, Niederseidewitzer Weg, 32-40

Dortmund, Binsengarten 8-24 A Dresden, Kipsdorfer Strasse, 123-139

Dresden, Berzdorfer Str. 20-24

Impressions

Essen, Feldwiese 16-30 Dortmund, Doerwerstr, 68-70

Dortmund, Lippmannstr. 2-14 Essen, Bonnekampstr. 18-43 B

Attractive Dividend Policy

1 Rental income + EBITDA Extension and Other; excluding sales effects; ² To be proposed to the Annual General Shareholder Meeting. ³ Vonovia standalone guidance for 2017, excluding impact from conwert acquisition and based on NOSH YE2016.

Non-deal Roadshow China, March 28-30, 2017

Vonovia at a Glance

Germany's largest residential landlord with national footprint in urban regional markets

Strategic Portfolio

• Vonovia Location
• High-influx cities ("Schwarmstädte")

Munich Karlsruhe Dortmund

Residential real estate company with B-to-C characteristics.

• Industrialized approach leverages economies of scale in a highly homogeneous asset class.
• Strong internal growth profile via sustainable market rent growth, additional rent growth from portfolio investments and dynamic extension business.
• Market leadership with nationwide footprint offers additional growth opportunities.
• Robust business model delivers highly stable and growing cash flows.
• Predictable top and bottom line with downside protection and upside potential.
• 333k apartments¹
• Average apartment size of ~61 sqm
• Vacancy ~2.4% almost fully let
• 13.5 years average tenure
• ~ €1,540m stable rental income²
• ~ €840m operating profit before sales² (FFO 1)
• Dividend policy: approx. 70% of FFO 1

¹ Excluding conwert; ² mid-point 2017 guidance excl. conwert

Vonovia History

• 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.

Non-deal Roadshow China, March 28-30, 2017

Liquid Large-cap Stock

Non-deal Roadshow China, March 28-30, 2017

Market

Company

Strategy & Execution

Proven and Unchanged Strategy since IPO

VONOVIA

		Reputation & Customer Satisfaction
al n o diti Tra	Property Management 1	Systematic optimization of operating performance and core business productivity through leveraging scaling effects High degree of standardization and industrialization throughout the entire organization
	2 Financing	Ensure well-balanced financing mix and maturity Mergers & 5 profile with low financing costs, investment Acquisitions grade credit rating and adequate liquidity at all times Fast and unfettered access to equity and debt capital markets at all times Continuous review of on- and
	Portfolio Management 3	off-market opportunities to lever economies of scale and apply Portfolio optimization by way of tactical strategic pillars 1-4 to a growing acquisitions and non-core/non-strategic portfolio disposals to ensure exposure to strong local markets All acquisitions must meet the stringent acquisition criteria Pro-active development of the portfolio through investments to offer the right products in the right markets and on a long-term basis
e v ati v o n n I	4 Extension	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 Insourcing of services to ensure maximum process management and cost control

Property Management

Cost per unit: (Rental Income – EBITDA Operations + Maintenance) / average # units.

³ Rounded figures.

Development of Unencumberance Ratio / Impact on Financing Strategy

¹ Figures as of Dec. 31, 2016, prepayment of TAURUS CMBS in February 2017 and €1.0bn bond issuance from January 2017 considered.

Non-deal Roadshow China, March 28-30, 2017

Established Player in Debt Capital Markets

• Maturity profile further smoothened through most recent bond issuances (€2.5bn unsecured corporate bonds in 2016 and €1.0bn in January 2017).
• Redemption of all 3 CMBS structures inherited in the Gagfah takeover now completed (early redemption of third and last CMBS "Taurus" was Feb. 14, 2017).
• Average interest rate now down to 2.1% from 2.6% at the end of 2015.
• Unencumberance ratio up from 0% in June 2013 to currently 69%.
• Vonovia has established itself as one of the Top 15 Euro Investment Grade Corporate Issuers between 2014 and 2016 and has substantially reduced the issuance costs in the process.

Top 15 Euro IG Corporate Issuers 2014-2016 (€m)
Issuer	2016	2015	2014	Total 2014-2016	Average Funding p.a.
1 BMW	5,919	8,205	6,170	20,294	6,765
2 VW	-	8,910	10,700	19,610	6,537
3 Anheuser-Busch inBev	13,250	3,000	2,500	18,750	6,250
4 Total SA	7,000	5,000	5,300	17,300	5,767
5 Daimler AG	10,980	3,077	3,070	17,127	5,709
6 Royal Dutch Shell	4,000	3,450	5,825	13,275	4,425
7 Telefonica SA	5,900	1,467	5,650	13,017	4,339
8 Vodafone	7,750	750	3,410	11,910	3,970
9 Coca-Cola	500	8,500	2,000	11,000	3,667
10 BP pic	3,775	2,500	4,000	10,275	3,425
11 Sanofi	4,800	2,260	3,000	10,060	3,353
12 Renault	3,830	3,200	2,200	9,230	3,077
13 Bayer AG	1,500	1,300	6,250	9,050	3,017
14 Vonovia SE	2,500	4,000	2,200	8,700	2,900
15 Verizon	3,250	-	5,400	8,650	2,883

Source: Bank of America Merrill Lynch

Pro-active Portfolio Management

Operate	88,359	6.28	2.2	7.6	38%	28%
Dec. 31, 2016 (unless indicated otherwise)	Residential Units	In-place rent (€/sqm)	Vacancy rate (%)	Fair value (€bn)	Fair value (%) at IPO in 20131	Fair value (%)
Acquisition			Acquisition of more than 220k units (2013- 2017 YTD, incl. conwert) in attractive regions and complementary to the existing portfolio.				from strong underlying fundamentals of entire German residential market.
							Well-positioned to benefit
Disposal		Sale of ~42k Non-core	and Non-strategic assets (2013-2016) with below-average quality, location and/or strategic potential.				quality of assets and locations.
Investments		More than €1bn invested	modernization* between 2013 and 2016.	in value-enhancing			Pro-active portfolio management results in material improvements in

(unless indicated otherwise)		(€/sqm)	(%)	(€bn)	at IPO in 20131
Operate	88,359	6.28	2.2	7.6	38%	28%
Upgrade Buildings (UB)	125,016	5.89	2.2	9.5	22%	35%	64% of fair value in OA and UB
Optimize Apartments (OA)	89,335	6.12	1.8	7.8	13%	29%
Subtotal Strategic Clusters	302,710	6.07	2.1	24.9	73%	92%	Non-core and
Privatize	17,195	5.97	4.2	1.6	14%	6%	non-strategic volume down to
Non-strategic	7,480	4.70	7.3	0.3	8%	1%	2% (~€0.6bn) of total asset
Non-core	5,996	4.96	7.1	0.3	5%	1%	value.
Total	333,381	6.02	2.4	27.0	100%	100%

¹ The cluster "Non-strategic" was introduced after the IPO. For comparison purposes, locations considered Non-strategic as of Sep 30, 2016, were defined as Non-strategic as of the IPO date as well.

Substantial Reduction of Portfolio Locations

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

Increasing Organic Growth through Extension Strategy

FFO

• Extension business with increasing significance and compelling growth rates.
• Contribution to Adj. EBITDA Operations* expected to grow from ~5% in 2016 to ~8% in 2017.
• Built-in growth for future years as successful programs are applied to the entire portfolio and new initiatives are tested and rolled out.

Acquisitions – Disciplined with Strong Track Record

	2015 Actuals	2016 Actuals	2017 Guidance
L-f-l rent growth (eop)	2.9%	3.3%	3.5%-3.7%	Accelerating rent growth
Vacancy (eop)	2.7%	2.4%	<2.5%	Stable top line inspite of
Rental Income (€m)	1,414.6	1,538.1	1,530-1,550	~24,000 non-core sales in 2016
FFO1 (€m)	608.0	760.8	830-850	Double digit % organic growth
Maintenance (€m)	330.7	~320.1	~340
Modernization & Investments (€m)	355.6	472.3	700-730
Privatization (#)	2,979	2,701	~2,300
FV step-up* (Privatization)	30.5%	36.2%	~35%
Non-core (#)	12,195	23,930	opportunistic
FV step-up* (Non-Core)	9.2%	5.4%	>0%
Dividend/share	€0.94	€1.121	70% of FFO 1

¹ To be proposed to the Annual General Shareholder Meeting.

Non-deal Roadshow China, March 28-30, 2017

		EUR		CNY
	2015	2016 2017			2015	2016	2017
	Actuals	Actuals	Guidance		Actuals	Actuals	Guidance
L-f-l rental growth (eop)	2.9%	3.3%	3.5% - 3.7%		2.9%	3.3%	3.5% - 3.7%
Occupancy (eop)	97.3%	97.6%	>97.5%		97.3%	97.6%	>97.5%
Rental Income (m)	1,415	1,538	1,530 - 1,550		10,411	11,316	11,257 - 11,404
FFO1 (m)	608	761	830 - 850		4,473	5,598	6,107 - 6,254
Maintenance (m)	331	~320	~340		2,435	~2,355	~2,502
Modernization & Investments (m)	356	472	700 - 730		2,619	~3,475	5,150 - 5,371
Privatization (#)	2,979	2,701	~2,300		2,979	2,701	~2,300
FV step-up (Privatization)	30.5%	36.2%	~35%		30.5%	36.2%	~35%
Non-core (#)	12,195	23,930	opportunistic		12,195	23,930	opportunistic
FV step-up (Non-Core)	9.2%	5.4%	>0%		9.2%	5.4%	>0%
Dividend/share	0.94	1.121	70% of FFO 1		6.92	8.241	70% of FFO 1

¹ To be proposed to Annual General Shareholder Meeting 2017 Exchange rates as of Mar 15, 2017 (EUR1.00 : CNY 7.36)

Non-deal Roadshow China, March 28-30, 2017

Three Valuation Layers with Different Volatilities

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.

¹ To be proposed to the Annual General Shareholder Meeting. ² Based on 2016 eop number of shares and excluding impact from conwert acquisition.

More than just a Bond Proxy

¹ To be proposed to the Annual General Shareholder Meeting. ² Based on 2016 eop number of shares and excluding impact from conwert acquisition

Non-deal Roadshow China, March 28-30, 2017

• Predictable top and bottom line with downside protection and upside potential.
• Only residential company in German Blue Chip Index DAX; ca. €15bn market cap.
• Liquid stock with 92% free float and ca. €45m daily turnover on Xetra.
• Market leadership with nationwide footprint offers additional growth opportunities.
• Strong internal growth profile via sustainable market rent growth, additional rent growth from portfolio investments and dynamic extension business.
• Industrialized approach leverages economies of scale in a highly homogeneous asset class.
• Proven track record of sustainable and growing free cash flow from operations ("FFO") and dividends.

IR Contact & Financial Calendar

Rene Hoffmann Head of Investor Relations Vonovia SE Philippstraße 3 44803 Bochum Germany

+49 234 314 1629 rene.hoffmann@vonovia.de www.vonovia.de

Contact Financial Calendar 2017

Mar 28-30	Management Roadshow (China)
Mar 29	BofAML European Real Estate Conference (London), IR only
Mar 30	Bankhaus Lampe Deutschlandkonferenz (Baden Baden), IR only
May 9	Estimated record day for dividend entitlement
May 16	Annual General Meeting
May 24	Interim results 3M 2017
May 24	Berenberg European Conference (USA)
June 1	Kepler Cheuvreux German Property Day (Paris)
Jun 7	Goldman Sachs European Financials Conference (Madrid)
June 8	Kempen European Property Seminar (Amsterdam)
~ June 12	Estimated dividend payment date
June 19-20	Capital Markets Day (Bochum)
June 22	dBAccess Berlin Conference (Berlin)
Aug 2	Interim results 6M 2017
Nov 8	Interim results 9M 2017

Vonovia Investor Relations Tablet App

Now available for iOS and Android

Appendix

Optimize Apartment

Optimize Apartment

Upgrade Building

Upgrade Building

Upgrade Building

Modernization - Impressions

Addition of new floor plus modernization investment Addition of new floor plus modernization investment

Non-deal Roadshow China, March 28-30, 2017

Upgrade Building Upgrade Building

Before After

Floor Addition

Pictures taken at the production site of our cooperation partner Modulbau Lingen.

Non-deal Roadshow China, March 28-30, 2017

Neighbourhood Development "Eltingviertel"

Non-deal Roadshow China, March 28-30, 2017

TGS Van

Full-year Results 2016

Highlights

FFO Growth

• 2016 FFO1 per share up 25.1%, driven by internal growth.
• 10% organic FFO1 growth guided for 2017 (i.e. excluding conwert).
• Sustainable organic FFO1 growth built in for 2018 and beyond.

NAV Growth

• 2016 Adj. NAV per share* up 27.1%, driven by performance improvements, investments and yield compression from exposure to dynamic regional markets.
• Further substantial fair value growth potential to be unlocked in 2017 and beyond.

Improvements across all KPIs

Compelling Guidance 2017

• Vonovia standalone guidance confirmed confident to reach upper end.
• Initial assumption for FFO1 contribution from conwert acquisition expected to be at least €60m.

Updates on Several Housekeeping Topics

Built-in Sustainable Organic FFO Growth

• FFO is expected to grow organically, as rental income and EBITDA growth continue to accelerate.
• Broadly stable interest rate levels would be an additional contributor to FFO growth.

¹ Including Adj. EBITDA Other; ² Based on internal 5-year plan as of Sep. 2016

		2016	2015	Delta
In-place rent l-f-l (eop)	€/month/sqm	6.01	5.82	+3.3%
In-place rent (eop)	€/month/sqm	6.02	5.75	+4.7%

Rent growth driver	2016 Contribution	2015 Contribution
Sitting tenants (incl. subsidized rents)	0.9%	1.1%
New lettings	0.6%	0.6%
Subtotal market-driven rent growth	1.5%	1.7%
Modernization	1.8%	1.2%
Subtotal l-f-l rent growth	3.3%	2.9%
Space creation	0.0%	0.0%
Subtotal organic rent growth	3.3%	2.9%
Portfolio management (+ acquisitions ./. sales)	1.4%	0.1%
Total rent growth	4.7%	3.0%

Note: 2015 includes 0.1% contribution from subsidized rents

Stable Maintenance – Growing Modernization

• Stable maintenance expenses on a per sqm basis y-o-y.
• The maintenance capitalization ratio* is not an input factor but an outcome; i.e. what type of work is expensed vs. capitalized is determined by the accounting rules implemented as a pre-defined SAPprocess.

€m (unless indicated otherwise)	2016	2015	Delta	€/sqm	2016	2015	Delta
Expenses for maintenance	247.4	242.2	+2.1%	Expenses for maintenance	11.50	11.66	-1.3%
Capitalized maintenance	72.7	88.5	-17.9%	Capitalized maintenance	3.38	4.26	-20.7%
Total	320.1	330.7	-3.2%	Total	14.88	15.92	-6.5%
Maintenance capitalization ratio	23%	27%

Growing Investment Program

• Modernization investments and space creation are increasingly meaningful organic growth drivers.
• Investments in year one generally lead to rent growth in year two.

¹ Program year; ² Additional rental income from investment yield. Illustrative as portion of the additional rent may shift between years.

Continued EBITDA Margin Expansion

• Adj. EBITDA Operations margin* of 70.9% in 2016, up from 67.7% in 2015.
• Expensed vs. capitalized maintenance varies between companies and is a major discretionary factor in the EBITDA margin, which is why Vonovia reports Adj. EBITDA margins incl. and excl. maintenance.
• Excluding expensed maintenance and including operating costs and corporate SG&A the margin was 87.0% in 2016 up from 84.8% in 2015.

¹ Cost per unit: (Rental Income – EBITDA Operations + Maintenance) / average # units. ² Mainly consolidation

FFO

Substantial LTV Reduction

€m (unless indicated otherwise)	Dec. 31, 2016	Dec. 31, 2015	Delta
Non-derivative financial liabilities	13,371.0	14,939.9	-10.5%
Foreign exchange rate effects	-209.9	-179.4	17.0%
Cash and cash equivalents	-1,540.8	-3,107.9	-50.4%
Net debt	11,620.3	11,652.6	-0.3%
Sales receivables	-135.4	-330.0	-59.0%
Additional loan amount for outstanding acquisitions	---	134.9
Adj. net debt	11,484.9	11,457.5	0.2%
Fair value of real estate portfolio	27,115.6	24,157.7	12.2%
Fair value of outstanding acquisitions	---	240.0
Shares in other real estate companies	503.1	13.7	>100%
Adj. fair value of real estate portfolio	27,618.7	24,411.4	13.1%
LTV	41.6%	46.9%	-530bps

Depending on the final outcome of the second offer period for conwert, the pro forma LTV will be around 45% and therefore below the 2015YE level and towards the upper end of our target range.

Vonovia uses the valuation uplift to buy conwert in a predominantly all-cash transaction, effectively translating value growth into an accretive acquisition.

25.1% FFO1 per Share Growth

• Increased Adj. EBITDA Operations and reduced financing costs lead to 25.1% FFO1 growth.
• AFFO of €689.2m is approx. 1.3x proposed dividend amount.

€m (unless indicated otherwise)	FY 2016	FY 2015	Delta
Adj. EBITDA Operations	1,094.0	957.6	+14.2%
FFO interest expense	-322.7	-339.4	-4.9%
Current income taxes FFO1	-10.5	-10.2	+2.9%
FFO1	760.8	608.0	+25.1%
of which attributable to Vonovia's shareholders	713.4	555.5	+28.4%
of which attributable to Vonovia's hybrid capital investors	40.0	33.0	+21.2%
of which attributable to non-controlling interests	7.4	19.5	-62.1%
Capitalized maintenance	-71.6	-87.5	-18.2%
AFFO*	689.2	520.5	+32.4%
Current income taxes FFO2	-29.5	-17.0	+73.5%
Adjusted EBITDA Sales	92.5	71.1	+30.1%
FFO2	823.8	662.1	+24.4%
FFO1 € / share (eop NOSH)	1.63	1.30	+25.1%
FFO1 € / share (avg. NOSH)	1.63	1.51	+8.5%
AFFO € / share (eop NOSH)	1.48	1.12	+32.4%
AFFO € / share (avg. NOSH)	1.48	1.29	+14.8%

Privatization Margin Up; Record Non-core Volume

• Privatization volume slightly below prior year but improved margin of 36.2%.
• Increased non-core and non-strategic volume for a combined total of 36,125 units over last two years, actively tapping the transaction market to clean up the portfolio.

€m (unless indicated otherwise)	2016	2015	2016	2015	2016	2015
	Privatization		Non-core/Non-strategic		Total
No. of units sold	2,701	2,979	23,930	12.195	26,631	15,174
Income from disposal	267.4	262.7	960.5	463.3	1,227.9	726.0
Fair value of disposal*	-196.3	-201.3	-911.4	-424.4	1,107.7	625.7
Adj. profit from disposal	71.1	61.4	49.1	38.9	120.2	100.3
Fair value step-up (%)	36.2%	30.5%	5.4%	9.2%

Selling costs		-27.7	-29.2
Adj. EBITDA Sales		92.5	71.1

Estimated Value Growth Potential to be Unlocked

Our portfolio management strategy of modernization investments, space creation and a focus on growth markets is expected to result in substantial value creation going forward.

NAV

1) What we can influence

• Value growth potential from modernization investments.
• 30% valuation uplift for properties following modernization work in Upgrade Building Cluster.
• 30% rent growth for Modernization Clusters³.
• 10% rent growth for Operate Cluster.
• Value growth potential from space creation.
• 26k units at average letting rent of €10 per sqm and month and a market multiple of 25x.

2) Market dynamics beyond our influence

Assumption for value growth potential from exposure to growth markets with positive dynamics through additional yield compression / multiple expansion.

Note: Value growth shown on this page is indicative. While we believe the underlying assumptions are reasonable, the actual future development may differ. ¹ Strategic portfolio only incl. privatization properties in strategic locations; ² Market comparables; ³ (i) Upgrade Buildings plus (ii) Optimize Apartments plus (iii) Optimize Apartments within Upgrade Buildings Cluster (Total volume of currently ~290k units)

Valuation uplift of 16.2% contributes to 27.1% Adj. NAV per share growth.

€m (unless indicated otherwise)	Dec. 31, 2016	Dec. 31, 2015	Delta
Equity attributable to Vonovia's shareholders	12,467.8	10,620.5	+17.4%
Deferred taxes on investment properties and assets held for sale	4,550.3	3,241.2	+40.4%
Fair value of derivative financial instruments1	44.4	169.9	-73.9%
Deferred taxes on derivative financial instruments	-15.4	-43.4	-64.5%
EPRA NAV	17,047.1	13,988.2	+21.9%
Goodwill	-2,718.9	-2,714.7	+0.2%
Adj. NAV	14,328.2	11,273.5	+27.1%
EPRA NAV €/share	36.58	30.02	+21.9%
Adj. NAV €/share	30.75	24.19	+27.1%

¹ Adjusted for effects from cross currency swaps.

Valuation Uplift Across All Regional Markets – But Varying Magnitudes

Strongest valuation uplift in Berlin, Munich and Freiburg.

NAV

B locations such as Bremen, Kiel and Hannover with above-average valuation gains, but Northern Ruhr Area with only 5.6% uplift underperformed all other Regional Markets.

Strategic Clusters – Highest Yield Compression in Modernization Clusters

• The highest uplift from both yield compression and overall was in the two modernization clusters Upgrade buildings and Optimize apartments, confirming our modernization strategy.
• Yield compression also in Non-core and Non-strategic locations but substantially higher in strategic markets.

Strategic Cluster	Fair value (€ million)	Fair value (€/sqm)	Multiple (in-place-rent)	Change in value (€ million)	Change in value (l-f-l in %)	of which yield compression
Operate	7,602	1,281	16.4	887.8	13.5%	8.8%
Upgrade buildings	9,470	1,236	17.9	1553.7	19.8%	12.2%
Optimize apartments	7,800	1,370	19.0	1087.6	16.5%	11.4%
Strategic	24,872	1,290	17.7	3,529.2	16.8%	10.9%
Privatize	1,586	1,323	18.9	189.1	13.5%	10.4%
Non-Strategic	265	576	11.0	14.2	5.4%	3.8%
Non-Core	290	685	12.5	13.5	5.5%	2.7%
Total	27,013	1,264	17.6	3,745.9	16.3%	10.7%

Value Growth of Acquisition Portfolios Exceeds Goodwill

• Aggregate value growth of close to €3bn across acquisition portfolios.
• Acquisition premium already fully recovered through value accretion.

€m	Acquisition year	Fair Value at acquisition (l-f-l current portfolio)1	Fair value Dec. 31, 2016	Value growth since acquisition	Goodwill	Value growth vs. goodwill
Dewag	2014	980	1,259	279	11	268
Vitus	2014	988	1,260	272	95	177
Gagfah	2015	7,714	9,753	2,039	2,265	-226
Franconia	2015	284	361	77	-	77
Südewo	2015	1,732	1,966	234	346	-112
Grainger Portfolio	2016	251	263	12	-	12
Total		11,949	14,862	2,913	2,717	196

NAV

¹ Acquisition portfolio adjusted for sales and shown on a like-for-like basis for better comparison. Delta to total goodwill results from IVV acquisition with a goodwill of €2.1m.

Non-deal Roadshow China, March 28-30, 2017

Goodwill – Headroom Grown, Value Up, Performance Assumptions Confirmed

• While the fair value grew across all cash generating units (CGU) in 2016, the impairment test still resulted in a 1.1% increase of the headroom for the goodwill, as most regions saw the increase in fair value supported by an increase in the underlying cash flows.
• Except for the Region East (predominantly Berlin), the change in the headroom for the goodwill was considerably smaller than the respective fair value uplift; i.e. the fair value uplift in most regions was also driven by a stronger cash flow profile.

		% of total headroom Dec. 31, 2016	Headroom 2016 vs. 2015	Fair Value 2016 vs. 2015
CGU 1	North (Hamburg, Kiel, etc.)	13%	-5.1%	+16.7%
CGU 2	East (predominantly Berlin)	6%	-27.0%	+26.2%
CGU 3	Southeast (Dresden, Leipzig, etc.)	9%	-2.5%	+12.5%
CGU 4	West (Dortmund, Essen, etc.)	16%	-4.9%	+6.3%
CGU 5	Middle (Frankfurt, Cologne, etc.)	19%	+5.3%	+13.8%
CGU 6	South (Munich, Stuttgart, etc.)	17%	+19.3%	+14.5%
CGU 7	Central	2%	n/a	n/a
CGU 8	Extension segment	19%	n/a	n/a
	Total	100%

Development of Fair Value and Headroom

CGU = cash generating unit

Goodwill and Impairment Mechanics

Σ CF1-n / Market WACC

• Impairment test compares
• fair value (determined by CBRE) + goodwill vs.
• capitalized earnings value calculated by external auditor, using cash flow projections from Vonovia's internal 5 year business plan, applying a market WACC
• No impairment as long as headroom exists; i.e. as long as capitalized earnings value exceeds fair value plus goodwill

Modular Construction – Pilot Project Completed

• Pilot project in Bochum with 14 residential units.
• Factory-based construction of modules with construction costs of €1,800 per sqm (all-in, excl. land, which we already owned).
• On-site assembly of modules within only 5 days.
• Construction completed in mid December 2016 and fully let by mid January 2017.
• In-place rent of slightly above €9 per sqm (vs. €7.20 for Vonovia properties in immediate vicinity).
• Estimated completion of ~1,000 units in 2017¹.

All Regional Markets Show Upward Potential

	Fair Value						In-place rent
Regional Markets	(€ million)	(€/sqm)	Multiple (in-place rent)	Residential units	Living area ('000 sqm)	Vacancy (%)	Total (p.a. € million)	Residential (p.a. € million)	(€/ month/ sqm)	Change like-for-like (%)	Average p.a. rent growth forecast CBRE (5 yrs) (%)	Average rent growth (%) from Optimize Apartments
Berlin	3,448	1,640	22.6	32,454	2,034	1.5	152	145	6.02	3.2	3.1	40.7
Rhine Main Area (Frankfurt, Darmstadt, Wiesbaden)	3,100	1,695	19.0	28,203	1,799	2.2	163	157	7.42	3.7	3.3	37.9
Rhineland (Cologne, Düsseldorf, Bonn)	2,847	1,437	18.2	28,669	1,928	2.6	157	149	6.60	4.0	2.9	31.5
Dresden	2,439	1,070	16.4	37,983	2,155	1.8	149	139	5.47	3.7	3.2	36.8
Southern Ruhr Area (Dortmund, Essen, Bochum)	2,371	889	13.8	42,834	2,606	2.7	172	165	5.43	3.5	1.9	29.5
Hamburg	1,733	1,595	20.0	16,644	1,054	1.8	87	82	6.55	3.5	3.1	34.8
Munich	1,652	2,497	26.8	9,773	643	0.7	62	57	7.50	3.8	4.6	51.9
Stuttgart	1,585	1,701	19.3	14,303	901	1.7	82	78	7.36	2.2	2.9	35.2
Northern Ruhr Area (Duisburg, Gelsenkirchen)	1,291	758	12.4	27,097	1,680	3.2	104	101	5.18	3.5	1.8	24.1
Hanover	1,027	1,167	16.6	13,668	866	2.3	62	60	5.88	2.8	2.9	33.3
Kiel	861	1,020	15.4	13,989	813	1.3	56	53	5.49	2.4	2.3	33.9
Bremen	762	1,070	17.1	11,339	691	3.1	45	42	5.27	3.7	3.1	33.8
Westphalia (Münster, Osnabrück)	589	929	14.5	9,652	625	2.3	41	39	5.38	3.7	2.6	28.6
Freiburg	493	1,759	21.6	4,063	278	1.0	23	22	6.72	3.0	3.8	41.2
Leipzig	261	1,010	15.3	4,089	255	2.6	17	17	5.61	1.4	2.4	23.5
Other Strategic Locations	1,882	1,243	17.1	23,514	1,490	2.3	110	106	6.10	3.5	3.1	35.0
Total Strategic Locations	26,341	1,293	17.8	318,274	19,817	2.2	1,480	1,412	6.07	3.4	2.9	34.2

Non-deal Roadshow China, March 28-30, 2017

First Indication for FFO1 Contribution from conwert

• Full Vonovia guidance for 2017 including conwert will be published with Q1 2017 results on May 24.
• Vonovia stand-alone guidance for FFO1 is €830m - €850m.
• Conservative first assessment based on conwert 2016 FFO1 guidance of €80m as a starting point gives in an initial assumption of approx. €60m FFO1 contribution from conwert for 2017.
• In any scenario second offer period all cash or all shares and irrespective of acceptance ratio – the conwert acquisition is FFO1 per share and NAV per share accretive from day 1.

I	Conwert update
II	Scrip dividend as alternative
III	Next portfolio valuation at the end of Q2 2017
IV	Gagfah: cross-border merger
V	Vonovia's stake in Deutsche Wohnen
VI	CEO contract extended to Feb. 2023

Housekeeping I conwert Meets All Acquisition Criteria

• One of the largest European RE transactions in 2016 with €2.8bn transaction volume.
• After four failed takeover attempts in recent years by third parties, Vonovia successfully completed the transaction within only four months.
• Terms communicated upon announcement in September were never changed even when markets turned negative.
• Flawless execution from preparation to the announcement and all the way to the settlement; no leakage, no delays, no interloper, no regulatory intervention, no changes to deal structure or timing.

Smooth transaction What has changed since the announcement

	At Announcement	Since Announcement / Today
Share vs. cash	Share alternative at €17.58 per share substantially more attractive than mandatory cash offer at €16.16 per share	Of the 72.9m shares, only 0.7m were tendered for shares with the remaining 72.2 for cash
Financial synergies	€5m (€61m break costs to realize synergies)	Current interest rate environment makes realization of these synergies difficult to achieve
Operational synergies	Operational synergies of €7m	First view indicates higher operational synergies than anticipated
conwert non core portfolio	~€600m	~€330m have been closed or announced since Sep 5
conwert NAV	€16.40 as per Q2 2016	~€17 (est.) as per YE2016

Next update with Q1 earnings release on May 24

	Sep 5, 2016	Announcement of the intention to make a voluntary take-over offer Support from conwert board and management Commitment from Adler to tender all its conwert shares
	Oct 6 & Oct 28, 2016	Approval from German Federal Cartel Office; Clearance from Austrian Federal Competition Authority
	Nov 17, 2016	Publication of the offer document
	Nov 18 – Dec 19, 2016	Acceptance period
	Dec 22, 2016	Publication of final results of acceptance period: 71.54% acceptance ratio
	Dec 23, 2016	Start of second acceptance period
	Jan 16, 2017	Payment and settlement (conwert fully consolidated as of Jan 10, 2017)
	Jan 27, 2017	conwert EGM (Vonovia holds 4 of the 6 seats on conwert's Administrative Board)
	Mar 23, 2017	End of second acceptance period
	Apr 2017	Payment and settlement second acceptance period
	Jul 2017	All relevant conwert data and systems fully integrated in Vonovia platform

Future dates are indicative and subject to change.

Choice	Scrip dividend as an alternative to cash dividends offers choice to investors.
Increasingly best practice	Well established in many international markets like the US or UK and increasingly popular in Germany as well. E.ON, Deutsche Telekom, Lufthansa and others have been offering their shareholders for some years now cash dividends and as an alternative an equal dividend amount in the form of shares.
Process	Supervisory Board defines scrip dividend structure and price. Annual General Meeting approves total dividend amount. Shareholders choose cash or shares until early June. Payout date will be mid-June.

Valuation & Timing	Gross asset real estate value represents more than 83% of total assets. Equity capital markets continue to use the NAV as share price proxy. NAV guidance without yield compression is of limited use. So far no need to conduct more than one valuation a year, but with more pronounced yield compression in many local markets in 2016 and most likely beyond the annual valuation cycle is too long. Next portfolio valuation will be as of June 30, 2017.
Methodology & Process	Same Methodology for half-year valuation as for the year-end valuation. For practical purposes, the valuation pool will comprise the largest 20 cities plus any other location for which there is indication of strong valuation movements. Data set and result of mid-year valuation will be meaningful enough to ensure that majority of the valuation movements of first two quarters is captured and reflected in financial accounts. Process and timing agreed with our auditors. Half-year valuations to be conducted for as long as there is market evidence of material valuation changes over a 6-months period.
	NAV guidance suspended

Vonovia ownership	Vonovia holds 93.8% of all Gagfah shares.
Redemption of CMBS completed	After redeeming the last Gagfah CMBS in Feb 2017, Vonovia is currently analyzing the final step of the integration by way of a cross-border merger of Gagfah S.A. into Vonovia SE, effectively completing the last leg of the integration and further reducing legal and governance complexities.
Cross-border merger	A successful merger would lead to a mandatory exchange of all outstanding shareholders' Gagfah shares against Vonovia shares in a fixed exchange ratio. After completing the company valuations and after a merger audit by a court-appointed, independent auditor, the governing bodies of Vonovia SE and Gagfah S.A. will deliberate on the merger and the exchange ratio.

Non-deal Roadshow China, March 28-30, 2017

Vonovia's stake in Deutsche Wohnen	Vonovia owns 16.8m shares in Deutsche Wohnen. This equals 4.74% based on the 354.7m shares outstanding.
Purchase price & unrealized gains	The shares were purchased at an average purchase price of €24.10 for a total consideration of €405.5m. Based on the €31.67 closing price on March 3, 2017, the stake has a market value of €532.6m, resulting in a book gain of €127.1m (+31%).
Deutsche Wohnen	Deutsche Wohnen shares are accounted for under "available-for-sale securities" in IFRS (in non-current assets). Accounting on a mark-to-market basis, with adjustments to fair market value accounted for in "Other comprehensive income."
stake in Vonovia's numbers	Included with market value in LTV denominator. FFO interest expense includes interest expense for share purchase (approx. €6m) and dividend payment of €9.1m for 2016.

Built-in sustainable organic FFO1 growth going forward.

• FFO1 is expected to grow organically, as rental income and EBITDA growth continue to accelerate.
• Broadly stable interest rate levels would be an additional contributor to FFO1 growth.
• Positive FFO1 trajectory even in an immediate 200bps interest rate hike scenario.

Fair value growth potential to be unlocked.

• Our portfolio management strategy has put the portfolio on a growth track.
• Modernization investments and space creation are expected to be the main drivers of future value growth.
• Yield compression / multiple expansion from exposure to growth markets expected to be additional value driver.

*Other shared services: Internal Audit, Communications, Central Procurement, Insurances, Investor Relations, Accounting

Management Board

CFO Dr. A. Stefan Kirsten

• Since 2011 CFO of Vonovia
• Former CEO of Majid Al Futtaiim Group LLC (real estate development company focusing mainly on retail and entertainment ventures in the Emirates)
• Former CFO of Metro AG and ThyssenKrupp AG in Germany
• Contract expires Dec. 31, 2020

CEO Rolf Buch

• Since 2013 CEO of Vonovia
• Former management board member of Bertelsmann SE
• Former CEO of Arvato AG (global BPO service provider with more than 60,000 employees in over 40 countries)
• Contract expires Feb. 28, 2023

COO Klaus Freiberg

• Board member since 2010
• Responsible for the property management (customer care service, management and letting of portfolio)
• Former senior manager of Arvato Group; supervised and optimized the service centers of Deutsche Post and Deutsche Telekom
• Contract expires Jan. 31, 2022

CCO Gerald Klinck

• Board member since 2012
• Former CFO of GAGFAH Group
• 20+ years experience in leading positions in the real estate industry
• Contract expires at the AGM 2018

			2016	2015	Delta
	Average number of residential sqm	`000	21,509	20,773	+3.5%
	In-place rent (eop)	€/month/sqm	6.02	5.75	+4.7%
	In-place rent l-f-l (eop)	€/month/sqm	6.01	5.82	+3.3%
	Vacancy rate (eop)	%	2.4%	2.7%	-30bps
+10.2% per avg. unit	Rental income	€m	1,538.1	1,414.6	+8.7%
(€3,172 vs. €2,878)	Cost per average unit	€	570	645	-11.6%
	Adj. EBITDA Operations	€m	1,094.0	957.6	+14.2%
	Rental	€m	1,046.2	924.4	+13.2%
	Extension	€m	57.0	37.6	+51.6%
	Other (i.e. consolidation)	€m	-9.2	-4.4	>100%
+20.7%	FFO 1	€m	760.8	608.0	+25.1%
per sqm (€2,206 vs.	FFO 1 per share (eop NOSH)	€	1.63	1.30	+25.1%
€1,827)	FFO 1 per share (avg. NOSH)	€	1.63	1.51	+8.5%
	AFFO	€m	689.2	520.5	+32.4%
	Adj. EBITDA Sales	€m	92.5	71.1	+30.1%
	Adj. EBITDA (Total)	€m	1,186.5	1,028.7	+15.3%
	FFO 2	€m	823.8	662.1	+24.4%
+19.9% per sqm (€1,264 vs.			Dec. 31, 2016	Dec. 31, 2015	Delta
€1,054)	Fair value of real estate portfolio	€m	27,115.6	24,157.7	+12.2%
	EPRA NAV	€/share	36.58	30.02	+21.9%
	Adj. NAV	€/share	30.75	24.19	+27.1%
	LTV	%	41.6%	46.9%	-530bps
	Dividend paid	€m	438.0	276.2	€161.8m

Reconciliation IFRS Profit to FFO

€m (unless indicated otherwise)	FY 2016	FY 2015	Delta
0				Increase due to fair value
PROFIT FOR THE PERIOD	2,512.9	994.7	152.6%	adjustment of investment
Financial result	433.0	414.0	4.6%	properties vs. increase of deferred tax liabilities
Income taxes	1,346.9	739.8	82.1%
Depreciation and amortization	27.0	13.4	>100%
Net income from fair value adjustments of investment properties	-3,236.1	-1,323.5	>100%	EBITDA increase mainly driven
= EBITDA IFRS	1,083.7	838.4	29.3%	by rental business
Non-recurring items	94.5	209.4	-54.9%
Total period adjustments from assets held for sale	17.9	-18.7	>100%
Financial income from investments in other real estate companies	-9.6	-0.4	>100%	Increase of adjusted EBITDA
= ADJUSTED EBITDA	1,186.5	1,028.7	15.3%	sales* due to higher Non-core
Adjusted EBITDA Sales	-92.5	-71.1	30.1%	sales volume and higher core step-ups
= ADJUSTED EBITDA OPERATIONS	1,094.0	957.6	14.2%
Interest expense FFO	-322.7	-339.4	-4.9%
Current income taxes FFO 1	-10.5	-10.2	2.9%	Adjusted EBITDA Operations*
= FFO 1	760.8	608.0	25.1%	reflects operational performance as well as
Capitalized maintenance	-71.6	-87.5	-18.2%	acquisitions* and expansion
= AFFO	689.2	520.5	32.4%	strategy in Extension Segment
Current income taxes FFO2	-29.5	-17.0	73.5%
FFO 2 (FFO 1 incl. Adjusted EBITDA Sales/current income taxes Sales)	823.8	662.1	24.4%
FFO 1 per share in € (eop NOSH)	1.63	1.30	25.1%
AFFO per share in € (eop NOSH)	1.48	1.12	32.4%
Number of shares (million) eop	466	466	---

P&L

VONOVIA
---------	--	--

€m (unless indicated otherwise)	FY 2016	FY 2015	Delta	L-f-l-rent increase of 3.3%,
0				thereof 1.8% due to modernization*. Vacancy rate
Income from property letting	2,170.0	2,035.3	6.6%	down from 2.7% in 2015 to
Other income from property management	39.3	28.2	39.4%	2.4% in 2016
Income from property management	2,209.3	2,063.5	7.1%
Income from disposal of properties	1,227.9	726.0	69.1%	Increase in sales from 15,174 in 2015 to 26,631 in 2016
Carrying amount of properties sold	-1,177.7	-658.7	78.8%	(thereof 23,930 non-core);
Revaluation of assets held for sale	52.0	51.7	0.6%	lower non-core step-up in
Profit on disposal of properties	102.2	119.0	-14.1%	2016 5.4% (2015: 9.2%)
Net income from fair value adjustments of investment properties	3,236.1	1,323.5	>100%	Positive operational development and high market
Capitalized internal expenses	341.0	174.9	95.0%	dynamics for residential property market in Germany
Cost of materials	-1,081.9	-972.5	11.2%
Personnel expenses	-353.8	-359.7	-1.6%
Depreciation and amortization	-27.0	-13.4	>100%	Significant expansion of value
Other operating income	105.3	73.1	44.0%	accretive modernization
Other operating expenses	-249.5	-263.5	-5.3%
Financial income	27.1	8.0	>100%
Financial expenses	-449.0	-418.4	7.3%
Earnings before tax	3,859.8	1,734.5	>100%
Income taxes	-1,346.9	-739.8	82.1%
Profit for the period	2,512.9	994.7	>100%
Attributable to:
Vonovia's shareholders	2,300.7	923.5	>100%
Vonovia's hybrid capital investors	40.0	40.0	0.0%
Non-controlling interests	172.2	31.2	>100%
Earnings per share (basic and diluted) in €	4.94	2.29	>100%

Balance Sheet (1/2 – Total Assets)

€m (unless indicated otherwise)	Dec. 31, 2016	Dec. 31, 2015	Delta
Assets
Intangible assets	2,743.1	2,724.0	0.7%
Property, plant and equipment	115.7	70.7	63.6%
Investment properties	26,980.3	23,431.3	15.1%
Financial assets	585.9	221.7	>100%
Other assets	15.2	158.5	-90.4%
Income tax receivables	-	0.1	-100%
Deferred tax assets	19.6	72.3	-72.9%
Total non-current assets	30,459.8	26,678.6	14.2%
Inventories	5.0	3.8	31.6%
Trade receivables	164.4	352.2	-53.3%
Financial assets	153.2	2.0	>100%
Other assets	102.7	113.4	-9.4%
Income tax receivables	34.6	23.1	49.8%
Cash and cash equivalents	1,540.8	3,107.9	-50.4%
Assets held for sale	61.6	678.1	-90.9%
Total current assets	2,062.3	4,280.5	-51.8%
Total assets	32,522.1	30,959.1	5.0%

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

€m (unless indicated otherwise)	Dec. 31, 2016	Dec. 31, 2015	Delta
Equity and liabilities
Subscribed capital	466.0	466.0	0.0%	Increase results from
Capital reserves	5,334.9	5,892.5	-9.5%	revaluation of Deutsche
Retained earnings	6,665.4	4,309.9	54.7%	Wohnen shares partly
Other reserves	1.5	-47.9	>100%	compensated by the valuation of cash flow hedges
Total equity attributable to Vonovia's shareholders	12,467.8	10,620.5	17.4%
Equity attributable to hybrid capital investors	1,001.6	1,001.6	0.0%
Total equity attributable to Vonovia's shareholders and hybrid capital investors	13469.4	11,622.1	15.9%
Non-controlling interests	419.0	244.8	71.2%	Mainly repayment
Total equity	13,888.4	11,866.9	17.0%	of CMBS GRF 1 and CMBS GRF2 and repayments of
Provisions	607.9	612.9	-0.8%	portfolio loans, issue of EMTN
Trade payables	1.3	0.9	44.4%	bonds of total € 2.5bn
Non derivative financial liabilities	11,643.4	13,951.3	-16.5%
Derivatives	19.1	144.5	-86.8%	Decrease mainly due to
Liabilities from finance leases	94.7	94.9	-0.2%	contractual reductions and
Liabilities to non-controlling interests	9.9	46.3	-78.6%	premature terminations
Other liabilities	83.3	25.9	>100%
Deferred tax liabilities	3,769.5	2,528.3	49.1%
Total non-current liabilities	16,229.1	17,405.0	-6.8%	The 2016 figures include purchase price liabilities in the
Provisions	370.8	429.5	-13.7%	amount of € 76.1m
Trade payables	138.8	91.6	51.5%
Non derivative financial liabilities	1,727.6	988.6	74.8%	The increase results from the
Derivatives	57.5	58.8	-2.2%	final maturity of two Bonds in
Liabilities from finance leases	4.5	4.4	2.3%	2017
Liabilities to non-controlling interests	2.7	9.8	-72.4%
Other liabilities	102.7	104.5	-1.7%
Total current liabilities	2,404.6	1,687.2	42.5%
Total liabilities	18,633.7	19,092.2	-2.4%
Total equity and liabilities	32,522.1	30,959.1	5.0%

Non-deal Roadshow China, March 28-30, 2017

	FY 2016 /	FY 2015 /
	Dec. 31, 2016	Dec. 31, 2015
Headcount (eop)	7,437	6,368
EPRA vacancy rate (eop)	2.2%	2.5%
IFRS profit for the period (€/share)	4.94	2.29
Number of units acquired	2,815	168,632
Number of units sold	26,631	15,174
Total residential sqm ('000; eop)	20,781	22,271

Valuation parameters	2016	2015
Management costs per residential unit p.a.	€255	€252
Maintenance costs (ongoing + apt. improvement per sqm) p.a.	€13.66 p.a.	€13.41 p.a.
Discount rate	5.5%	5.8%
Capitalization rate	4.3%	4.7%
Market rent increase p.a.	1.2% p.a.	1.2% p.a.
Stabilized vacancy rate	2.4%	2.7%
Valuation results	2016	2015
Net initial yield	4.0%	4.5%
Gross yield	5.7%	6.5%
In-place rent multiple	17.6x	15.4x
Fair Value (€/sqm)	1,264	1,054

Substantial value growth across the portfolio but yield compression clearly more pronounced in some regions than others.

2015				2016				Delta
								Fair Value
(€ million)	(€/sqm)	Multiple (in-place rent)	Residential units	(€ million)	(€/sqm)	Multiple (in-place rent)	Residential units	(€/sqm)	Multiple (in-place rent)
								28%	24%
2,708.4	1,479	17.2	28,262	3,099.8	1,695	19.0	28,203	15%	10%
2,460.9	1,256	16.5	28,214	2,847.4	1,437	18.2	28,669	14%	10%
2,108.7	923	14.7	38,047	2,438.6	1,070	16.4	37,983	16%	11%
2,169.1	808	12.9	43,224	2,370.7	889	13.8	42,834	10%	7%
1,455.3	1,341	17.5	16,622	1,733.2	1,595	20.0	16,644	19%	14%
1,292.4	1,996	22.8	9,543	1,651.9	2,497	26.8	9,773	25%	18%
1,355.3	1,529	17.5	13,743	1,584.7	1,701	19.3	14,303	11%	10%
1,245.5	719	12.2	27,531	1,290.8	758	12.4	27,097	5%	2%
877.8	1,003	14.6	13,575	1,027.1	1,167	16.6	13,668	16%	14%
719.5	850	13.2	14,009	861.2	1,020	15.4	13,989	20%	17%
630.9	898	14.7	11,170	761.6	1,070	17.1	11,339	19%	16%
513.9	812	13.2	9,638	588.9	929	14.5	9,652	14%	10%
389.8	1,386	17.5	4,076	493.3	1,759	21.6	4,063	27%	23%
234.2	900	14.1	4,116	260.7	1,010	15.3	4,089	12%	9%
1,655.0	1,075	15.3	23,931	1,882.5	1,243	17.1	23,514	16%	12%
22,525.7	1,106	15.7	318,264	26,340.7	1,293	17.8	318,274	17%	13%
	2,709.2	Fair Value 1,282 Note: Excluding Non-strategic locations; Changes are real case, not like-for-like	18.2	32,563	3,448.3	Fair Value 1,640	22.6	32,454

Y-o-y Valuation Growth

Substantial value growth across the portfolio but movements clearly more pronounced in some regions than others.

Note: Excluding Non-strategic locations; Changes are real case, not like-for-like

Corporate Investment grade rating as of 2015-09-30

Rating agency	Rating	Outlook	Last Update
Standard & Poor's	BBB+	Stable	06 September 2016

Bond ratings as of 2015-09-30

Name	Tenor & Coupon	ISIN	Amount	Issue price	Coupon	Final Maturity Date	Rating
Bond 002 (EUR-Bond)	6 years 3.125%	DE000A1HNW52	€ 600m	99.935%	3.125%	25 July 2019	BBB+
Bond 003 (USD-Bond)	4 years 3.200%	US25155FAA49	USD 750m	100.000%	2.970%*	02 Oct 2017	BBB+
Bond 004 (USD-Bond)	10 years 5.000%	US25155FAB22	USD 250m	98.993%	4.580%*	02 Oct 2023	BBB+
Bond 005 (EMTN)	8 years 3.625%	DE000A1HRVD5	€ 500m	99.843%	3.625%	08 Oct 2021	BBB+
Bond 006 (Hybrid)	60 years 4.625%	XS1028959671	€ 700m	99.782%	4.625%	08 Apr 2074	BBB
Bond 007 (EMTN)	8 years 2.125%	DE000A1ZLUN1	€ 500m	99.412%	2.125%	09 July 2022	BBB+
Bond 008 (Hybrid)	perpetual 4%	XS1117300837	€ 1,000m	100.000%	4.000%	perpetual	BBB
Bond 009A (EMTN)	5 years 0.875%	DE000A1ZY971	€ 500m	99.263%	0.875%	30 Mar 2020	BBB+
Bond 009B (EMTN)	10 years 1.500%	DE000A1ZY989	€ 500m	98.455%	1.500%	31 Mar 2025	BBB+
Bond 010A (EMTN)	2 years 0.950%+3M EURIBOR	DE000A18V120	€ 750m	100.000%	0.835% hedged	15 Dec 2017	BBB+
Bond 010B (EMTN)	5 years 1.625%	DE000A18V138	€ 1,250m	99.852%	1.625%	15 Dec 2020	BBB+
Bond 010C (EMTN)	8 years 2.250%	DE000A18V146	€ 1,000m	99.085%	2.250%	15 Dec 2023	BBB+
Bond 011A (EMTN)	6 years 0.875%	DE000A182VS4	€ 500m	99.530%	0.875%	10 Jun 2022	BBB+
Bond 011B (EMTN)	10 years 1.500%	DE000A182VT2	€ 500m	99.165%	1.500%	10 Jun 2026	BBB+
Bond 012 (EMTN)	2 years 0.380%+3M EURIBOR	DE000A185WC9	€ 500m	100.000%	0.140% hedged	13 Sep 2018	BBB+
Bond 013 (EMTN)	8 years 1.250%	DE000A189ZX0	€ 1,000m	99.037%	1.250%	06 Dec 2024	BBB+
Bond 14A (EMTN)	5 years 0.750%	DE000A19B8D4	€ 500m	99.863%	0.750%	25 Jan 2022	BBB+
Bond 14B (EMTN)	10 years 1.750%	DE000A19B8E2	€ 500m	99.266%	1.750%	25 Jan 2027	BBB+

* EUR-equivalent Coupon

Bond KPIs	Covenant	Level	Dec. 31, 2016
	LTV
	Total Debt / Total Assets	<60%	41%
	Secured LTV	<45%	11%
	Secured Debt / Total Assets
	ICR Last 12M EBITDA / Last 12M Interest Expense Unencumbered Assets		3.68x
			225%
	Unencumbered Assets / Unsecured Debt	>125%

Rating KPIs	Covenant	Level (BBB+)
	Debt to Capital Total Debt / Total Equity + Total Debt	<60%
	ICR	>1.80x
	Last 12M EBITDA / Last 12M Interest Expense

Conservative Valuation

In-place valuations are still only half of replacement values, in spite of accelerating valuation growth in recent years.

Note: VNA 2010 – 2014 refers to Deutsche Annington Portfolio at the time.

Acquisitions – Opportunistic but Disciplined

conwert Immobilien SE transaction closed in Q1 2017.

Extension - Innovation as Growth Driver

Continuous flow of innovative projects that are all immediately linked to the apartment or customer/rental contract.

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Tables and diagrams may include rounding effects.