Vonovia SE — Call Transcript 2017

Nov 8, 2017

9M 2017 Earnings CallNovember 8, 2017

Rolf Buch, CEODr. A. Stefan Kirsten, CFO

Highlights

l d F i G i n a a n c e u 2 0 1 7	Co f irm d ds d to n e w ar u p p er e n Or h d he d f he h % ic t g t te t t to t i t ~4 g an re n ro ex p ec a p en o an g e w r w ( ha ). F F O 1 € 9 1 0m € 9 2 0m € 1. 8 8 € 1. 9 0 p er s re - - 1 S f € 3 2 ( 8 % ). D P 1. 1 + o
h O i G t g a n c o r r w	i l in ic h in in 9 2 0 d be d Bu t- t tu t M 1 7 o rg an g ro w m om en m c on ue s an y on h f ( ). Or ic 3. 9 % io 2. 8 % t g t g an re n ro w o y -o -y p r r y ea r: A d j. E B I T D A Op io 1 0. 8 % t er a ns u p y -o -y ha ( 8. ). F F O 1 1 5. 4 % 1 7 % N O S H p er s re p -o o n av er ag e u y -y Gr h i de in ly iso t tu t e t te ow m om en m m os v n q ua r r co m p ar n.
l V i t a a o n u	irs in d ic io fo fu l l-y lu io ho i iv fu da ls in in la F t t t t ta a n r ea r v a a n s w s p os e n m en re m a p ce ly fo d l d dr Co in im in in in in ie io iv t tm ts n uo us p ro v g p er rm an ce g ro w g ve s en a n on g o g y co m p re ss n e , lu h lso da lo in io t t va e g ro w a se co n ry ca ns d fa ir lu h be € 0 bn € bn fo fu l l y 2 0 1 ( € 1. bn in 1 2 0 1 ). Ex te t tw 4. 4. 5 7 5 H 7 p ec va e g ro w ee n r ea r -
I t t n e s m e n s v	br d fo in ic h ia l In tm t t ts t te t ve s en p ro g ra m o n a oa o g su p p or o rg an g ro w p o n du d d l f lec ' e lu In in I R R i io K P I in io im tro t to t tm t p t t c g as a na r e ve s en ro g ra m s vo n ov er e. Su f f ic ie in ia l i de i f ie d fo t tm t p te t t to n ve s en o n n r m an y y ea rs c om e.
l G d I i t i i n a u a n c e 2 0 8 1	i da fo ho in l s h in fo d Gu 2 0 1 8 te tr t nc e s s rn a en g g o g ar r w rw Or ic h 4. 6 % 4. 8 % t g t g an re n ro w - S b le l du d ls 2 0 d 2 0 8. ta to in to isp in 1 7 1 p e e n on -c or e os a an ( ha 2) F F O 1 € 9 6 0m € 9 8 0m € 1. 9 8 € 2. 0 2 p er s re - -

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

Final Guidance 2017 - Confirmed towards Upper End

	2 0 1 6 Ac ls tu a	2 0 1 7 Gu i da e nc ( Ma rch 20 17 , cl. ) ert ex co nw	2 0 1 7 Gu i da e nc ( Au 20 17 g. , inc l. ) ert co nw	2 0 1 7 F in l Gu i da a e nc ( No 20 17 v. , inc l. ) ert co nw
Or h ( ) ic t g t g an re n ro w eo p	3. 3 %	3. % 3. % 5 7 -	3. 8 % 0 % 4. -	% ~4
( ) Va ca nc y eo p	2. % 4	2. % 5 <	2. % 5 <	~2 % 5
l ( ) Re ta In €m n co me	3 8. 1, 5 1	3 0 0 1, 5 1, 5 5 -	0 8 0 1, 6 6 1, 6 -	0 8 0 1, 6 6 1, 6 -
( ) F F O 1 €m	7 6 0. 8	8 3 0 8 5 0 -	9 0 0 9 2 0 -	9 1 0 9 2 0 - (to rds th d) wa e u ppe r en
( / ha ) F F O 1 € s re	1. 6 3	1. 7 8 1. 8 2 -	1. 8 6 1. 9 0 -	1. 8 8 1. 9 0 - (to rds th d) wa e u ppe r en
Ma in ( €m ) te na nc e	3 2 0. 1	~3 4 0	~3 4 0	~3 5 0
Mo de iza ion & In ( €m ) t tm ts rn ve s en	4 7 2. 3	7 0 0 7 3 0 -	~7 3 0	~7 5 0
Pr iva iza ion ( be f u i ) t t ts nu m r o n	2, 7 0 1	~2 3 0 0 ,	~2 3 0 0 ,	~2 6 0 0 ,
( ) F V te Pr iva t iza t ion s p- up	3 6. 2 %	~3 % 5	~3 0 %	~3 0 %
( be f u i ) No ts n- co re nu m r o n	2 3, 9 3 0	is ic tu t op p or n	is ic tu t op p or n	0 k to 1 up
( ) F V te No Co s p- up n- re	5. 4 %	0 % >	0 % >	~7 %
de d / ha D iv i n s re	€ 1. 1 2	f ~7 0 % F F O 1 o	f ~7 0 % F F O 1 o	1 € 1. 3 2

Intended to be proposed to the 2018 Annual General Meeting.

Built-in Organic FFO1 Growth Continues in 9M

• The average portfolio size was of a broadly similar size y-o-y.
• Organic rent growth, better average portfolio quality and increased contribution from Value-add Business drove Adj. EBITDA Operations growth to 10.8%.
• 15.4% FFO1 per share growth despite slight dilution from conwert, scrip dividend and Gagfah merger.

		9 M 2 0 1 7	9 M 2 0 1 6	l De 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, 1 3 4	2 1, 6 8 5	2. 1 % +
be f r de l u Av i ia i t ts er ag e nu m r o es n n	#	3 5 4, 0 9 5	3 4 7, 6 9 0	1. 8 % +
Or h ( ) ic t g t g an re n ro w y- o- y	%	3. 9	2. 8	0 bp 1 1 + s
la ( ) In t -p ce en eo p r	/ h / € t m on sq m	6. 1 9	5. 9 4	4. 2 % +
Va ( ) te ca nc y ra eo p	%	2. 9	2. 8	1 0 bp + s
l Re ta in n co m e	€m	1, 2 4 9. 4	1, 1 5 6. 1	8. 1 % +	€ 9 3. 3m +
Ma in te na nc e ex p en se s	€m	-1 9 2. 2	-1 8 4. 1	4. 4 % +
Op in t er a g ex p en se s	€m	9 3 -1 1.	9 -1 7 7.	% 7. 5 +
A d j. E B I T D A Re l ta n	€m	8 6 5. 9	7 9 4. 1	9. 0 % +	€ 7 1. 8m +
d j. lu d d bu in A E B I T D A Va e- a s es s	€m	6. 0 7	1 4 5.	6 8. % 5 +
A d j. E B I T D A Op io t er a ns	€m	9 2 2. 1	8 3 2. 3	1 0. 8 % +	€ 8 9. 8m +
O F F in te t e re s xp en se s	€m	-2 6. 1 5	-2 9. 4 1	3. % -1 1
Cu in F F O 1 t ta rre n co m e xe s	€m	-1 5. 1	-1 1. 6	3 0. 2 % +
O F F 1	€m	6 9 0. 5	6 5 7 1.	2 0. 8 % +	€ 8. 9m 1 1 +
F F O 1 ha ( N O S H ) p er s re eo p	€	1. 4 2	1. 2 3	1 5. 4 % +
F F O 1 ha ( N O S H ) p er s re av g.	€	1. 4 6	1. 2 3	1 8. 7 % +

Quarterly Analysis Reveals Organic Growth Momentum

• Comparing this year's Q3 vs. Q1 emphasizes the organic growth momentum.
• Adj. EBITDAs and FFO are growing due to operational improvements and an increasing contribution from Value-add Business, in spite of a declining portfolio as a result of non-core disposals.

		Q 3 2 0 1 7	Q 1 2 0 1 7	l De 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 1, 9 5 0	2 2, 2 7 6	-1 5 %
be f r de l u Av i ia i t ts er ag e nu m r o es n n	#	3 5 1, 1 4 5	3 5 6, 4 1 1	-1 5 %
Or ic h ( ) t g t g an re n ro w y- o- y	%	3. 9	3. 4	5 0 b + p s
la ( ) In t -p ce en eo p r	/ h / € t m on sq m	6. 1 9	6. 0 6	2. 1 % +
( ) Va te ca nc y ra eo p	%	2. 9	2. 7	b 2 0 + p s
l Re ta in n co m e	€m	4 1 6. 2	4 1 7. 2	-0 2 %	-€ 1. 0m
Ma in te na nc e ex p en se s	€m	-6 4. 9	-6 3. 1	2. 9 % +
Op in t er a g ex p en se s	€m	8. 9 -5	-6 8. 5	0 % -1 4.
d l A j. E B I T D A Re ta n	€m	2 9 2. 4	2 8 5. 6	2. 4 % +	€ 6. 8m +
A d j. E B I T D A Va lu d d bu in e- a s es s	€m	3 0. 4	9. 8 1	3. % 5 5 +
d A j. E B I T D A Op io t er a ns	€m	3 1 4. 5	3 0 0. 1	4. 8 % +	€ 1 4. 4m +
O F F in te t e re s xp en se s	€m	8. -7 5	8 -7 6.	2. 2 % +
Cu in F F O 1 t ta rre n co m e xe s	€m	-3 2	-5 1	-3 7. 3 %
O F F 1	€m	2 3 2. 8	2 8. 2 1	6. 7 % +	€ 1 4. 6m +
ha ( ) F F O 1 N O S H p er s re eo	€	0. 4 6	0. 4 7	-2 1 %
p F F O 1 ha ( N O S H ) p er s re av g.	€	0. 8 4	0. 4 7	2. % 1 +

Accelerating Rent Growth Momentum

i iv h j Po t t g t tra to s e re n ro w ec ry h dr iv ( la ) l Re 1 2 M 9 M 2 0 1 7 9 M 2 0 1 6 De t g t t ta n ro er s s w
		2 0 1 3	2 0 14	2 0 15	2 0 1 6	2 0 17 ( ) E	2 0 1 8+ ( ) E
S i ing t t te ts na n ( inc l. bs i d ize d ) ts su re n	1. 2 %	0. 9 %	+3 0 bp s	Ma ke dr ive t n r	1. 6 %	1. 6 %	1.7 %	1.5 %
Ne le ing t t w s	0. 5 %	0. 7 %	-2 0 bp s	de Mo iza t ion rn	0. 4 %	0. 9 %	1. 2 %	1. 8 %
Su b l to ta ke dr iv h t- t g t m ar en re n ro w	% 1. 7	% 1. 5	bp +2 0 s	Sp t ion ac e c rea	---	---	---	---
de Mo iza t ion rn	2. 1 %	1. 3 %	+8 0 bp s	Or ic nt g an re h wt g ro	9 % 1.	2. % 5	2. 9 %	3. 3 %	0 % ~4	4. 6 % - 4. 8 %
f- Su b l l- l r h to ta t g t en ro w	3. 8 %	2. 8 %	bp +1 0 0 s
Sp t ion ac e cr ea	0. 1 %	0. 0 %	+1 0 bp s	In tm t tra ve en s	k re co c	d ( ) €m r				1, 0 0 ~
Su b l o ic h to ta t g t rg an re n ro w	3. 9 %	2. 8 %	+1 1 0 bp s					~	7 5 0
Po fo l io t t r ma na g em en ( is i ion /. les ) t + ac q u s sa	0. 3 %	1. 6 %	3 0 bp -1 s		1 7 2	3 5 6	4 7 2
To l r h ta t g t en ro w	4. 2 %	4. 4 %	-2 0 bp s	7 1 2 0 1 3	2 0 1 4	2 0 1 5	2 0 1 6	2 0	1 7 ( E ) 2	0 1 8+ (

9M 2017 Earnings Call

Continued EBITDA Expansion

• 9.0% EBITDA Rental growth translates into an EBITDA Operations growth of 10.8% y-o-y because of the growing contribution from the Value-add Business.
• EBITDA Operations margin expansion (excl. maintenance) continues with 200 bps ytd.

€m (un les dic d o the ) s in ate ise rw	9 M 2 0 1 7	9 M 2 0 1 6	l De ta
l Re ta inc n om e	1, 2 4 9. 4	1, 1 5 6. 1	8. 1 % +
Ma in te na nc e ex p en se s	9 2. 2 -1	8 -1 4. 1	% 4. 4 +
Op ing t er a e xp en se s	-1 9 1. 3	-1 7 7. 9	7. 5 % +
d j. l A E B I T D A Re ta n	8 6 9 5.	9 7 4. 1	9. 0 % +
In co me	9 7 5. 4	5 7 4. 4	3 8. 5 % +
f w h ic h l te o ex rn a	1 1 5. 1	9 1. 6	2 5. 7 % +
f w h h l ic in te o rn a	6 8 0. 3	8 2. 8 4	0. 9 % 4 +
Op ing t er a e xp en se s	-7 1 9. 4	-5 2 9. 3	3 5. 9 % +
d j. lu d d bu in A E B I T D A Va e- a s es s	7 6. 0	4 5. 1	6 8. 5 % +
1 d O he A j. E B I T D A t r	9. 8 -1	9 -6	0 0 1 % >
d j. io A E B I T D A Op t er a ns	9 2 2. 1	8 3 2. 3	1 0. 8 % +

Mainly consolidation

LTV Well within Target RangeDebt/EBITDA Multiple of 10.9x

LTV down to 42.4% and well within target range of 40%-45%.

€m ( les in d ica d o he ise ) te t un s rw	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.
No de iv iv f in ia l l ia b i l i ies t t n- r a e an c	1 3, 9 2 1. 1	1 4, 2 5 7. 6	1 4, 4 3 5. 3	1 3, 3 7 1. 0
ha f fe Fo ig te ts re n ex c ng e ra e c	-2 6. 5	-1 3 7. 2	-1 9 4. 8	-2 0 9. 9
Ca h d h iv le ts s an ca s eq u a n	-3 3 9. 8	-3 8. 1 7	-1 0 0 9 7. ,	-1 0. 8 5 4 ,
de b Ne t t	1 3, 5 5 4. 8	1 3, 7 4 2. 3	1 3, 2 3 2. 6	1 1, 6 2 0. 3
Sa les b les iv re ce a	-1 7 7. 6	8 0. 0 -1	-1 4 4. 4	3 -1 5. 4
d d i io l lo fo d in is i io A t t ts ta t na an a m ou n r o u n g ac q u ns	-- -	-- -	2 0 7 5.	-- -
d j. de b A t t ne	1 3, 3 7 7. 2	1 3, 5 6 2. 3	1 3, 3 6 3. 2	1 1, 4 8 4. 9
f r fo Fa ir lu l e l io ta te t va e o ea s p or	3 0, 9 4 8. 1	3 0, 8 3 0. 2	2 9, 6 0 7. 6	2 7, 1 1 5. 6
ha he l e S in ie t ta te re s o r r ea s c om p an s	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	3 3. 1, 5 5 5	3 3 9 8 1, 4.	3 0, 2 8. 0 1	2 6 8. 7, 1 7
L T V	2. % 4 4	3. 2 % 4	% 4 4. 4	6 % 4 1.

Debt/EBITDA multiple is adj. net debt as of Sep 30 over 9M EBITDA Operations annualized.

FFO1 per Share +15.4%

Driven by better operational performance and lower interest expenses, FFO1 per share was up 15.4% y-o-y for eop NOSH and up 18.7% for avg. NOSH¹.

€m ( les d d o he ) in ica te t ise un s rw	9 M 2 0 1 7	9 M 2 0 1 6	l De ta
d A j. E B I T D A Op ion t er a s	9 2 2. 1	8 3 2. 2	0. 8 % 1
F F O in te t e re s xp en se	-2 6. 1 5	-2 9. 4 1	3. % -1 1
Cu inc F F O 1 t ta rre n om e xe s	-1 5. 1	6 -1 1.	3 0. 2 %
F F O 1	6 9 0. 5	5 7 1. 6	8 2 0. %
f w h ic h i bu b le Vo ia 's ha ho l de t tr ta to o a no v s re rs	6 5 0. 6	5 3 6. 2	2 1. 3 %
f w h ic h i bu b le ia 's hy br i d i l inv t tr ta to Vo ta to o a no v ca p es rs	3 0. 0	3 0. 0	-
f w h ic h i bu b le l l ing in t tr ta to tro te ts o a n on -c on re s	9. 9	5. 4	8 3. 3 %
Ca l d i ta ize in te p ma na nc e	-5 0. 3	-4 7. 3	6. 3 %
O A F F	6 0. 2 4	2 3 5 4.	2 2. % 1
Cu inc F F O 2 t ta rre n om e xe s	-2 3. 8	-3 3. 1	-2 8. % 1
A d j d E B I T D A Sa les te us	8 3 1.	6 5. 5	2 % 4. 1
F F O 2	8. 7 4 0	6 0 4. 0	8 2 3. %
F F O 1 € / ha ( N O S H ) s re eo p	1. 4 2	1. 2 3	1 5. 4 %
O € / ha ( O S ) F F 1 N H s re av g.	1. 4 6	1. 2 3	1 8. 7 %

Adj. NAV per Share Up 9.0% YTD

Adj. NAV per share is up 9.0% in the first nine months driven by the operating performance, the inclusion of conwert and the H1 valuation and in spite of the 4.1% increase in the number of shares outstanding¹ following the Gagfah cross-border merger, scrip dividend and conwert squeeze out.

€ m ( les d d o he ) in ica te t ise un s rw	3 0, 2 0 S 1 7 e p.	3 0, 2 0 J 1 7 u n.	3 2 0 M 1, 1 7 a r.	3 2 0 6 D 1, 1 e c.
Eq i i bu b le Vo ia 's ha ho l d ty t tr t t u a a o no v s re er s	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 d De in ie t t t t rr e ax e s o n ve s m e n p ro p er s a n he l d fo le t a s s e s r s a	8 5, 3 5. 4	3 0 9 5, 7.	8 2 4, 7. 4	0. 3 4, 5 5
2 lu f d f l Fa ir iv iv in ia in t tr t va e o er a e a nc s u m e n s	3 6. 2	3 9. 0	2 9. 0	4 4. 4
De fe d d iv iv f in ia l t t e ax e s o n er a e a nc rr in tr t s u m e n s	-1 0. 3	2. -1 1	3 -1 4.	-1 5. 4
E P R A N A V	1 9, 1 9 5. 3	1 8, 7 0 2. 8	1 7, 5 4 8. 6	1 7, 0 4 7. 1
dw l l G i o o	-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	1 6, 2 6 3. 5	1 5, 7 7 1. 0	1 4, 6 1 6. 8	1 4, 3 2 8. 2
/ h E P R A N A V € s a r e	3 9. 5 7	3 9. 2 5	3 7. 4 3	3 6. 5 8
A d j. N A V € / h s a r e	3 3. 3 5	3 3. 1 0	3 1. 1 8	3 0. 7 5

See page 59 for reconciliation of number of shares.² Adjusted for effects from cross currency swaps.

€ m	F Y 2 0 1 6	H 1 2 0 1 7	H 2 2 0 1 7 E	F Y 2 0 1 7 E
f P e r o r m a n c e	8 6 2	3 9 3	5 5 0 7 5 0 -	9 4 0 1, 1 4 0 -
R l d l t t e n a e e o p m e n v		3 6 3	4 5 0 6 5 0 -	8 1 0 1, 0 1 0 –
I t t n v e s m e n s		3 0	1 0 0 ~	1 3 0 ~
I t t n e s m e n s v	4 4 0	2 9 0	4 6 0 ~	7 5 0 ~
V T S i m a r g n	9	0 1	0 1 ~	2 0 ~
I ( h ) t t t n e s m e n s c a s o v u	4 3 1	2 8 0	4 5 0 ~	7 3 0 ~
i l d i Y e c o m p r e s s o n	2, 0 4 7	8 3 0	0 0 8 0 0 1, 5 1, -	2, 3 3 0 2, 6 3 0 -
l T t o a	3, 7 7 2	1, 5 1 3	2, 5 0 0 3, 0 0 0 -	4, 0 0 0 4, 5 0 0 -

• Strong rental development in Vonovia's portfolio and the market
• Investments with approximately 20% additional valuation uplift
• Effect of Yield Compression more differentiated than in 2015:
• Less momentum in prime locations (e.g. Berlin, Hamburg, Cologne)
• Significant increase in secondary locations (e.g. Leipzig, Hanover, Bremen)
• Considerable yield compression also in formerly weaker markets (e.g. Potsdam, Magdeburg)

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

Investment Program on an Increasingly Broader Footing

	Ne ig h bo ho d o r De lop t ve me n	l l-s le h t de lop Fu ing t ire in ity ca ap p roa c o ve en are as a c , kin ic d s ia l c rit ia int ta t. g ec on om an oc er o a cco un
n o ti lu o v E	Sp Cr t ion ac e ea	Ne ion be xis ing bu i l d ing d tru ct tw t w co ns s ee n e s a n d d l f loo bu l d d o lan d t ha it ion i ing t w on n n e a a rs s a lre dy a a ow n.
m a r g o r P	i ia ive Ne In t t w s	ly ba hro d kit he de d u Pri ri t ize ma om s a n c ns mo rn p on ' in it iat ive l l a lac f o l d he ing ten ts t o at an s a s w e s r ep em en h m de l lat ste it ins ta ion sy ms w o rn s.
t n e m t s e	Up de g ra Bu i l d ing ( U B )	f fic de f t he bu l d he l l a d En ien t m iza t ion i ing erg y- e o rn o s n l a ( he ins lat ion for fac de d r fs, at co mm un a rea s u a s a n oo do he ). wi at ing ste n ws sy ms ,
v n I	Op im ize t Ap tm t ar en ( O A )	fur b hm f t ( ba hro Re is t o art nts t en no ve r a p me om ur , f fri loo rin wi rin ), l ly nio d ly de iza ion t g, g us ua se r- en mo rn

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.

Multitude of Attractive Neighborhood Development Projects Identified and Underway

Growing Contribution from Value-add Business

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 2017E Adj. EBITDA Value-add Business translates into an additional value of ~€5 per share (~15% on top of current Adj. NAV).

io Pe tr t ne a n
l d Mu t im ia e	7 5 % ca
Sm t te in ar m e g r	1 5 % ca
de l e Re i t ia iro t s n nv nm en	2 % 5 ca
Cr f S ts V T a m en	0 % ( ) 7 in te ca m a na nc e 3 0 % ( de iza io ) t ca m o rn n is d 0 % l low for tar et 7 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

Sales – Steady Cash Flow at Attractive Margins

• Overall sales volume lower than in prior-year period mostly as a result of portfolio transaction with LEG including privatizations in 9M 2016.
• Non-core / Non-strategic sales include a relatively large share of commercial properties from conwert portfolio.

	P R I V A T I Z A T I O N		/ N O N- C O R E N O N- S T R A T E G I C		T O T A L
€m (un less ind icat ed o the rwis e)	9 2 0 1 M 7	9 2 0 1 6 M	9 2 0 1 M 7	9 2 0 1 6 M	9 2 0 1 M 7	9 2 0 1 6 M
Un i l d ts so	1, 7 0 4	2, 1 5 0	6, 6 0 0	1 9, 7 7 2	8, 3 0 4	2 1, 9 2 2
fro d ls In isp co me m os a	2 1 4. 4	2 0 5. 5	3 6. 8 7	8 2. 7 7	9 2 5 1.	9 8 8. 2
lue f d ls Fa ir isp va o os a	-1 6 1. 6	8 -1 5 1.	8 8. -6 5	-7 5 3. 0	-8 5 0. 1	8 -9 0 4.
f fro A d j. i d isp ls t p ro m os a	5 2. 8	5 3. 7	4 8. 3	2 9. 7	1 0 1. 1	8 3. 4
Fa ir lue ( % ) te va s p- up	3 2. 7 %	3 5. 4 %	7. 0 %	3. 9 %

Se l l ing ts co s	-1 9. 8	-1 7. 9
d Sa les A j. E B I T D A	8 3 1.	6 5. 5

2018 Guidance Underlines Organic Growth Potential

	2 0 6 1	2 0 1 7	2 0 8 1
	Ac ls tu a	Gu i da nc e	Gu i da nc e
Or ic h ( ) t g t g an re n ro eo p w	3. 3 %	~4 %	4. 6 % 4. 8 % -
( ) Va ca nc y eo p	2. 4 %	~2 % 5	2. 5 % <
Re l In ( €m ) ta n co me	1, 5 3 8. 1	1, 6 6 0 1, 6 8 0 -	1, 6 6 0 1, 6 8 0 -
O ( ) F F 1 €m	0. 8 7 6	9 1 0 9 2 0 - (to rds th d) wa e u ppe r en	9 0 9 8 0 6 -
( / ha ) F F O 1 € s re	1. 6 3	1. 8 8 1. 9 0 - (to rds th d) wa e u ppe r en	2 1. 9 8 2. 0 2 -
( €m ) Ma in te na nc e	3 2 0. 1	~3 0 5	~3 6 0
Mo de iza ion & In ( €m ) t tm ts rn ve s en	4 7 2. 3	~7 5 0	~1 0 0 0 ,
iva iza ion ( be f u i ) Pr t t ts nu m r o n	2, 0 7 1	~2 6 0 0 ,	~2 3 0 0 ,
F V ( Pr iva iza ion ) te t t s p- up	3 6. 2 %	~3 0 %	~3 0 %
No ( be f u i ) ts n- co re nu m r o n	2 3, 9 3 0	1 0 k to up	is ic tu t op p or n
( ) F V No Co te s p- up n- re	5. 4 %	~7 %	0 % >
D iv i de d / ha n s re	€ 1. 1 2	1 € 1. 3 2	~7 0 % f F F O 1 o

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

Organic Growth Drives FFO 2018

~€55m FFO growth (+6.0%) from organic improvements in spite of €48m less FFO contribution as a result of non-core disposals.

Note: 2017E and 2018E FFO numbers reflect mid points of guidance ranges.

Housekeeping

f h G a g a - c b d r o s s- o r e r m e r g e r	O l 1 2, h i l i d i J t t t t n e a p a n e a s e a s e n e e n u y c c r w r h d h h V i i t i t t o n o v a s a r e s r e q u r e o e x c a n g e a g a n s f h f f l l h b G i i i i i t t t a g a m n o r e s, e e c v e y c o s n g e c r o s s l l i t t e g a e n y.	h i l i i h t t t t o e o m m e a e g s e e a n g e n e c r c r r, c r w d h h l d b i i t t i e r e m a n n g o u s a n n g s a r e s e y d d f h i i G t t o r e r m e r g e r a n e r m n a n g a g a a s a
t c o n e w r - t s q u e e z e o u	h l d O A 2 9, E G M t t t n u g. e c o n w e r r e s o v e o s q u e e z f f h h i d i € 1 7. 0 8 t e c a n g e o a c a s c o n s e a o n o p e x r r r h d i h i T t t t t e s q u e e z e o u w a s e n e r e n o e c o m m e r c a b f f O b 2 t i t 5. e c a m e e e c v e o n c o e r l l l l d A i i i i t, t t t s a r e s u a p r e v o u s y o u s a n n g m n o r y s f d V i S E. t t a n s e e o o n o a r r r v h h d l i d f h i T t t t A t e c o n w e r s a r e s w e r e e s e r o m e u s r	h h h l d i i i i i t t t e o u e r e m a n n g m n o r y s a r e o e r s n h t c o n e s a e. w r r l i i i O b 2 d t A t t 4 r e g s e r n u s r a o n c o e r a n h b l i I i i I S E t t a r e s n c o n w e r m m o e n n v e s w e r e k h f O b 2 t t 5. a n s o c e x c a n g e a s o c o e r
t c o n e w r - i s y n e r g e s	d f l l l b d l B i t i t t i i i a s e o n n a e s m a e s, c o n w e r w e e v e r d i t t t t a s c o m p a r e o o u r e x p e c a o n s a a n n o u n c e m e Sy ies ( €m ) ta ne rg p re ; x 2 3 1 2 vie at nt nt an no un ce me cu rre w	h h l l i i t i t i t n g g e r s y n e r g e s a o w e r r e a z a o n c o s s i S 2 0 1 6. t n n e p Sy l iza ion ( €m ) t ts ne rg re a co s y 11 8 6 6 at nt nt vie an no un ce me cu rre w

Proven 4+1 Strategy is Evolving into 4+2 Strategy to Include European Metropolitan Areas

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

9M 2017 Earnings Call

Wrap-up

2017 guidance confirmed towards upper end.

Built-in organic growth momentum continues in 9M 2017 and beyond.

First indication for full-year valuation shows positive fundamentals remain in place. €4.0bn - €4.5bn value uplift expected for the full year.

Investment Program on a broad footing supports organic growth potential.

Guidance for 2018 shows internal strength going forward.

C t t o n a c		F i i l C l d 2 0 1 7 n a n c a a e n a r
	20 17
f f R H e n e o m a n n	v 8 No	ult Int eri s 9 M 20 17 m res
d l H I R i t t e o n e o e o n a v s r a s	No v 1 3- 16	Ro ad sh ( Eu e) ow rop
f V i S E o n o a v	No v 1 7	Ro ad sh ( Bru ls) * ow sse
h l ß P i i 3 t s a e r	v 2 8 No	S G lob al al C EO / CF O C fer ( nd ) UB Re Est ate Lo on en ce on
p p h 4 4 8 0 3 B	No v 2 8	Ro ad sh ( Ge ) * ow ne va
o c u m	De c 1	ét é én éra le Th nfe ( ) So ci G e P ium Re vie Co Pa ris rem w ren ce
G e r m a n y	De c 5	be n C Co nfe ( hil l) * Be Eu te Pe ren rg rop ea orp ora ren ce nn y
	De c 1 1	HS BC G lob al Re al Est Co nfe ( Ca To ) ate ren ce pe wn
9 2 3 3 6 2 9 4 4 1 4 1 +	De c 1 4	ad sh ( lan o) * Ro Mi ow
h f f d @ i e n e o m a n n o n o a e r v v	20 18
d i o n o a e w w w v v	Ja n 9 -10	Co ba nk G In t S ina r ( NY C) stm mm erz erm an ve en em
	Ja n 1 0	l E nfe ( nd ) J.P .M Eu n R sta te CE O Co Lo org an rop ea ea ren ce on
	Ja n 1 5	ler Ch G Co e C fer ( nk fur t) Ke rat Fra p eu vre ux erm an rpo on en ce
	Ma r 6	FY 20 17 lts re su
	Ma 3 y	ult Int eri 3M 20 18 m res s
	Ma 9 y	An al Ge ral M tin nu ne ee g
	Ju 4- 5 ne	Ca ita l M ark Da ets p y
	2 Au g	ult 6M 20 18 Int eri m res s
	No v 6	Int eri ult 9M 20 18 m res s

Appendix

	f l d f k l d f d h f b A i i t t t t g e e m e n o n e o o o p e o n, n o e g e n e n e c a n g e o e s r s c r a w r a s r a x i t a e p r c c s.
	f f f f f P V i 's l h i l i i i i i t t t t t t t t t a r o o n o v a e o r s o a n a y z e e p o e n a o r a n e x p a n s o n o a c v e s n o
	E l i t t u r o p e a n m e r o p o a n a r e a s.
d M U i o s g n e	h i f l l i 's l i i l i i h i d i l l T V t t t t t t s o o w s o n o v a p r e m n a r y a n a y s s s u g g e s n g a r e s e n a r e a e s a e
i h S t N I w o n O 1 8, t. c	k l f d d l d t i E t i t t i i t m a r e s n u r o p e a n m e r o p o a n a r e a s u n c o n n w a y s a n u n e r r e g u a o r y a n
2 0 1 7	f k h l h G d l k t i t t i i t t i t i t. o p e r a n g r a m e w o r s a a r e s m a r o e e r m a n r e s e n a m a r e
	h h f f 's l "E T t i i t S N I t V i t t i t e c o o p e a o n o m s p a o o n o a n e s a e g c e e m e n o p e a n r w r r v w r u r
	" h h l k "M " d l A i i i i i i i j i & A i i i i t t t t t t t c e s, c s o p p o n s c s e e g e s c q s o n s a n c o m p m e n a v w r u u r r u r y
	h f i t t t t o e o c o e s a e g e s. u r r r
	b N i G i t o m p a c o n e m a n c o e s n e s s. r r u

Recent activities

• 1 workshop with Vonovia and SNI representatives conducted in Montpellier.
• 7 workshops planned in Paris and Bochum for the remainder of the year.
• Preliminary findings to be presented to management at the end of January 2018.

Attractive Dividend Policy

¹ Rental income + EBITDA Value-add Business and Other; excluding sales effects. ² Midpoint guidance.

Track Record

Smooth Maturity Profile with Diverse Funding Mix

Average financing cost of debt maturing in the relevant year. ² Weighted avg. financing costs excl. Equity Hybrid. Including Equity Hybrid avg. interest rate of debt maturing in 2021 is 3.6%. ³ Net Debt as of Sep 30 over 9M EBITDA Operations annualized.

Corporate Investment grade rating

f 20 15-0 9-3 0 as o
tin Ra g a ge nc y	tin Ra g	tlo ok Ou	da La st Up te
nd ard r's Sta & Poo	BB B+	ble Sta	06 Se 20 16 p

Bond ratings¹ as of 2015-09-30

Na me	Te r & Co no up on	IS IN	Am nt ou	ice Iss ue pr	Co up on	Fin al rit Ma tu Da te y	tin Ra g
Bo nd 00 2 ( EU R-B d) on	6 y 3.1 25 % ea rs	DE 00 0A 1H NW 52	€ 60 0m	99 .93 5%	3.1 25 %	25 Jul 20 19 y	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%	2 4.5 80 %	02 Oc t 2 02 3	BB B+
Bo nd 00 5 ( EM TN )	8 y 3.6 25 % ea rs	DE 00 0A 1H RV D5	€ 50 0m	99 .84 3%	3.6 25 %	08 Oc t 2 02 1	BB B+
Bo nd 00 6 ( Hy bri d)	60 4. 62 5% ye ars	XS 10 28 95 96 71	€ 70 0m	99 .78 2%	4.6 25 %	08 Ap r 2 07 4	BB B
Bo nd 00 7 ( EM TN )	8 y 2.1 25 % ea rs	DE 00 0A 1Z LU N1	€ 50 0m	99 .41 2%	2.1 25 %	09 Jul 20 22 y	BB B+
nd 00 8 ( bri d) Bo Hy	l 4 % tua pe rpe	XS 30 08 37 11 17	€ 00 0m 1,	100 .00 0%	4.0 00 %	l tua pe rpe	BB B
nd 00 9A ( ) Bo EM TN	0.8 % 5 y 75 ea rs	00 0A 1ZY 97 1 DE	€ 50 0m	99 .26 3%	0.8 % 75	30 r 2 02 0 Ma	BB B+
Bo nd 00 9B ( EM TN )	10 1. 50 0% ye ars	DE 00 0A 1ZY 98 9	€ 50 0m	98 .45 5%	1.5 00 0%	31 Ma r 2 02 5	BB B+
nd 01 0A ( ) Bo EM TN	2 y 0.9 50 %+ 3M OR EU RIB ea rs	00 0A 18V 120 DE	€ 0m 75	100 .00 0%	0.8 35 % hed d ge	c 2 01 15 De 7	BB B+
Bo nd 01 0B ( EM TN )	5 y 1.6 25 % ea rs	DE 00 0A 18V 138	€ 1, 25 0m	99 .85 2%	1.6 25 %	15 De c 2 02 0	BB B+
nd ( ) Bo 01 0C EM TN	8 y 2.2 50 % ea rs	DE 00 0A 18V 146	€ 1, 00 0m	99 .08 5%	2.2 50 0%	15 De c 2 02 3	BB B+
nd ( ) Bo 01 1A EM TN	6 y 0.8 75 % ea rs	DE 00 0A 18 2V S4	€ 50 0m	99 .53 0%	0.8 75 %	10 Jun 20 22	BB B+
Bo nd 01 1B ( EM TN )	10 1. 50 0% ye ars	DE 00 0A 18 2V T2	€ 50 0m	99 .16 5%	1.5 00 0%	10 Jun 20 26	BB B+
Bo nd 01 2 ( EM TN )	2 y 0.3 80 %+ 3M EU RIB OR ea rs	DE 00 0A 18 5W C9	€ 50 0m	100 .00 0%	0.1 40 % hed d ge	13 Se 20 18 p	BB B+
Bo nd 01 3 ( EM TN )	8 y 1.2 50 % ea rs	DE 00 0A 189 ZX 0	€ 1, 00 0m	99 .03 7%	1.2 50 %	06 De c 2 02 4	BB B+
Bo nd 14A ( EM TN )	5 y 0.7 50 % ea rs	DE 00 0A 19 B8 D4	€ 50 0m	99 .86 3%	0.7 50 %	25 Jan 20 22	BB B+
nd B ( ) Bo 14 EM TN	10 0% 1. 75 ye ars	00 0A 19 B8 E2 DE	€ 50 0m	99 .26 6%	50 % 1.7	25 20 27 Jan	BB B+
nd 15 ( ) Bo EM TN	8 y 1.1 25 % ea rs	00 0A 19 NS 93 DE	€ 50 0m	99 .38 6%	1.1 25 %	08 Se 20 25 p	BB B+

Bond 003 (USD-Bond) USD 750m repaid 02 Oct 2017 already considered

2EUR-equivalent Coupon

d B K P I o n s	C t o v e n a n	l L e v e	S 3 0, 2 0 1 7 e p.
	L T V l b / l T D T A t t t t o a e o a s s e s	6 0 % <	3 9 %
	S d L T V e c e u r S d b / l D t T t A t e c e e o a s s e s u r	4 5 % <	9 %
	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 s	1. 8 0 > x	4. 5 x
	b d U A t n e n c m e e s s e s u r b d / d b U A t U D t n e n c m e e s s e s n s e c e e u r u r	1 2 5 % >	2 2 3 %

R i K P I t a n g s	C t o e n a n v	L l ( B B B ) + e e v
	b C i l D t t t e o a p a	0 %
	l b / l i l b T t D t T t E t T t D t + o a e o a q o a e u y	6 <
	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	1. 8 0 > x

Neighborhood Development Project Berlin Reinickendorf

• 1,107 resi units built between 1953 and 1956
• ∅in-place rent €5.96/sqm vs. market rent of ~€9.00/sqm
• ∅apt. size 53 sqm
• Excellent infrastructure especially for families and senior citizens
• S-Bahn and subway station immediately adjacent on the west-end side of the property
• High recreational value
• Good supply of shopping and daily amenities

Current Situation

Adding 210 New Apartments through Floor Additions

∑ investments ~€100m @ IRR > 10%

Innovation Example: Residential Environment Services

• Innovative approach to a traditional residential business: residential environment services (mowing lawns, trimming trees and bushes, etc.), which form part of the tenants' recoverable expenses.
• Insourcing of capacities for improved quality control and better cost basis.
• Digitization of entire process to achieve higher standardization and process control.

Improvements Across All KPIs

		9 M 2 0 1 7	9 M 2 0 1 6	De l ta
be f r de l s Av i nt ia era g e n um r o es q m	`0 0 0	2 2, 1 3 4	21 6 8 5 ,	+2 .1 %
lac ( ) In t -p e r en eo p	€ /m h /sq t on m	6. 1 9	5. 94	+4 2 %
Or ic h t g t g an ren row	%	3. 9	2. 8	+1 .1p p
( ) Va rat ca nc y e eo p	%	2. 9	2. 8	+0 .1p p
l in Re nta co me	€m	1, 24 9.4	1, 15 6. 1	+8 .1 %
Co nit st p er av era g e u	€	3 8 1	4 0 2	-5 2 %
A d j. EB IT DA Op ion t era s	€m	9 2 2. 1	8 3 2. 3	+1 0. 8 %
l Re nta	€m	8 6 5. 9	7 94 .1	+9 0 %
lue d d ine Va Bu -a s ss	€m	7 6. 0	45 .1	+6 8. 5 %
Ot he ( i.e li da ion ) t r . c on so	€m	9. 8 -1	-6 9	0 0 % >1
FF O 1	€m	6 9 0. 5	5 71 6	+2 0. 8 %
O ha ( O ) FF 1 p N SH er s re eo p	€	1.4 2	1. 2 3	+1 5. 4 %
O ha ( O SH ) FF 1 p N er s re av g.	€	1.4 6	1. 2 3	+1 8. 7 %
AF F O	€m	6 0. 2 4	24 3 5	+2 2. % 1
d les A j. EB IT DA S a	€m	8 1. 3	6 5. 5	+2 4. 1 %
d ( l ) A j. EB IT DA To ta	€m	1, 0 0 3. 4	8 97 8	+1 1. 8 %
O 2 FF	€m	74 8. 0	6 0 4. 0	+2 3. 8 %
		Se 3 0, 2 0 1 7 p.	De 3 1, 2 0 1 6 c.	l De ta
Fa ir v lue f r l e fo lio sta te ort a o ea p	€m	3 0, 94 8. 1	27 11 5. 6 ,	+1 4. 1 %
EP RA N AV	€ /s ha re	3 9.5 7	3 6. 8 5	+8 2 %
d A j. NA V	/s ha € re	3 3. 5 3	3 0. 75	+9 0 %
LT V	%	4 2.4	41 6	+8 0 bp s

Pro-active Portfolio Management Clustering

• As the investment program continues to evolve beyond the two original categories Optimize Apartments and Upgrade Buildings, an unambiguous allocation of properties into these two clusters becomes increasingly meaningless. Going forward, we will therefore distinguish only between Operate and Invest for the Strategic Portfolio.
• Similarly, as the Non-strategic and Non-core portfolios continue to shrink, there is no longer a need to distinguish between the two. Going forward, we will merge and report them as one cluster under Non-core.

3 0, 2 0 Se 17	de l Re i nt ia s	lac In t -p e r en	Va rat ca nc y e	Fa ir v a	lue
p.	its un	( /sq /m h ) € t m on	( ) %	( bn ) €	f t l % ota o
Op te era	1 0 6, 1 2 6	6. 3 2	2.7	9.7	3 2 %
Inv t es	21 3 3 5, 1	6. 2 0	2. 6	8. 1 5	6 0 %
Su bt l S ic C lus ot tra te te a g rs	3 21 3 9 4 ,	6. 24	2. 6	2 8. 2	9 2 %
Pri ize t va	15 71 9 ,	6. 0 4	4. 3	1.5	5 %
No n-c ore	1 0, 8 2 9	4. 8 5	9. 2	0. 4	1 %
To l Ge ta rm an y	3 47 9 8 7 ,	6. 1 9	2. 9	3 0. 2	9 8 %
Au ia str	2, 14 7	6. 3 5	2.4	0. 6	2 %
To l R i de ia l P fo l io ta nt t es or	3 5 0, 1 3 4	6. 1 9	2. 9	3 0. 8	1 0 0 %

Fair value of the developed land excluding €182.4 million for undeveloped land, inheritable building rights granted and other.

All Strategic Markets Show Upward Potential

	Fai r va	lue				pla In- t ce ren
l ke Re ion Ma t g a r	(€m )	(€/ ) sqm	ide l uni Res ntia ts	Liv ing a ('00 are 0 s ) qm	Vac anc y (% )	al (p.a Tot ., € m)	l (p.a ide Res ntia ., € m)	ide l Res ntia (€/ /m ont h) sqm	Org ani nt gro c re wth (% )	le (in- ltip Mu pla t) ce ren	Ave nt gro rag e re wth for st CB eca RE (5 y rs) (% )	Ave nt rag e re wth (% ) fr gro om Opt imi ze Apa rtm ent s
rlin Be	4, 65 7	1, 82 8	38 67 8 ,	2, 45 0	1.7	19 2	18 1	6.2 6	3.3	24 .3	3.3	48 .5
Rh ( nkf ine M ain Ar Fra urt ea , dt, bad ) Da sta W ies rm en	3, 20 6	1, 76 5	27 99 4 ,	1, 78 5	1.7	166	160	7.6 0	3.5	19 .4	3.2	40 .5
Rh lan d ( log ine Co ne , ldo rf, ) Dü Bo sse nn	3, 120	1, 47 2	30 72 0 ,	2, 06 0	3.0	169	16 1	6.7 1	4.6	18 .5	2.8	28 .0
sde Dre n	2, 71 2	1, 159	38 60 3 ,	2, 196	2.7	15 7	14 7	5.7 5	6.1	17 .2	3.6	35 .8
uth hr So Ru Are ern a ( d, chu m) Do rtm Ess Bo un en ,	2, 71 2	97 5	44 48 9 ,	2, 71 9	3.7	18 1	17 5	5.5 7	3.9	14 .9	2.0	28 .9
mb Ha urg	1, 79 6	1, 65 9	16 56 1 ,	1, 04 9	2.1	88	84	6.7 5	4.3	20 .3	3.0	39 .7
h Mu nic	1, 68 7	2, 56 5	9, 72 2	64 0	1.1	62	58	7.6 3	2.8	27 .3	4.5	48 .3
Stu ttg art	1, 59 3	1, 72 2	14 21 2 ,	89 5	1.8	83	79	7.4 6	2.1	19 .3	2.8	39 .1
rth hr a ( isb No Ru Are Du ern urg , Ge lse nk he n) irc	1, 33 9	78 4	27 18 1 ,	1, 68 6	4.2	106	10 3	5.3 1	4.2	12 .6	1.7	23 .0
Ha nov er	1, 20 3	1, 27 3	14 61 0 ,	92 7	3.0	69	66	6.1 2	4.1	17 .5	2.7	36 .5
l Kie	93 6	1, 11 2	13 98 2 ,	81 1	1.7	57	54	5.6 5	3.4	16 .4	2.2	38 .1
Bre me n	85 9	1, 154	11 92 2 ,	72 3	3.3	47	45	5.3 8	2.0	18 .2	2.9	30 .4
Lei ig pz	68 0	1, 09 7	9, 169	58 7	4.1	41	39	5.7 2	1.9	16 .4	2.4	24 .6
ha lia ( We stp Mü nst er, Os brü ck) na	62 2	98 1	9, 66 9	62 7	2.3	41	40	5.5 0	2.8	15 .0	2.5	32 .1
ibu Fre rg	51 2	1, 82 9	4, 05 1	27 7	1.7	23	22	6.8 7	3.0	22 .1	3.7	44 .0
he Ot r S tra teg ic L tio oca ns	1, 97 4	1, 26 8	23 96 8 ,	1, 52 2	2.9	116	11 2	6.2 9	4.9	17 .0	3.1	36 .3
tal ic tio To St rat Lo eg ca ns	29 60 8 ,	1, 37 1	33 5, 53 1	20 95 3 ,	2.7	1, 59 9	1, 52 4	6.2 3	3.9	18 .5	2.9	35 .0

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.

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

Excluding locations for which the disposal is planned or has already been approved by the management board to be executed within 2017. The actual disposal will take place later than 2017 for some of these transactions.

192.2

184.1 4.4%

Capitalized maintenance

Expenses for maintenance

Maintenance

Expenses for maintenance

Reconciliation IFRS Profit to FFO

€m (u nle ind ica ted ot he ise ) ss rw	9M 20 17	9M 20 16	De lta
RS OF FO OD IF PR IT R T HE PE RI	1, 2 0 5. 2	27 8. 3	>1 0 0 %
1 Fin cia l re sul t an	21 8. 2	3 5 4. 1	-3 8. 4 %
Inc e t om axe s	6 6 3. 8	17 7. 1	0 0 % >1
nd De cia tio ort iza tio pre n a am n	2 3. 0	1 6. 4	+4 0. 2 %
Inc e f fa ir v alu dju of inv rtie stm ts est nt om rom e a en me pro pe s	-1 1 6 4.7 ,	-	-
S = E BI TD A I FR	94 5. 5	8 25 9	+1 4. 5 %
No rrin ite n-r ecu g ms	75 9	7 0. 3	+8 0 %
To tal rio d a dju fro he ld f sal stm ts ets pe en m ass or e	0 -5	2 11	0 0 % 1 >-
e f oth l es Inc in stm ts in tat nie om rom ve en er rea e c om pa s	3. 0 -1	-9 6	+3 % 5. 4
= A DJ US TE D E BI TD A	0 0 3. 1, 4	8 97 8	8 % +1 1.
Ad ted A S ale jus EB ITD s	-8 1. 3	-6 5. 5	+2 4. 1 %
= A DJ US TE D E BI TD A O PE RA TI ON S	9 2 2. 1	8 3 2. 3	+1 0. 8 %
2 Int s F FO st ere ex pe nse	-2 6. 1 5	-2 9. 4 1	3. % -1 1
Cu nt inc e t s F FO 1 rre om axe	-1 5. 1	-1 1. 6	+3 0. 2 %
= F FO 1	6 9 0. 5	5 71 6	2 0. 8 % +
Ca lize d m ita ain ten p an ce	-5 0. 3	-4 7. 3	+6 3 %
= A FF O	6 4 0. 2	5 24 3	2 2. 1 % +
Cu inc s F FO 2 nt e t rre om axe	-2 3. 8	-3 3. 1	-2 8. % 1
O2 ( O1 in cl. Ad jus ted Sa les / Cu inc les ) FF FF EB IT DA nt e t rre om ax es sa	74 8. 0	6 0 4. 0	2 3. 8 % +
FFO 1 p sha in € (eo NO SH ) er re	1.4 2	1. 2 3	+1 6. 0 %
p AF FO ha in € (eo NO SH ) pe r s re p	3 2 1.	3 1.1	3 % +1 7.
Nu mb of 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.

IFRS P&L

€m ( les in d ica d o he ise ) te t un s rw	9M 2 0 17	9M 2 0 1 6	l De ta
fro let Inc ert t ing om e m p rop y	1, 75 3. 9	1, 6 4 0. 3	+6 9 %
Ot he r in fro ert t co me m p rop y ma na g em en	3 4. 0	2 9. 1	+1 6. 8 %
fro In ty t co me m p ro p er m an ag em en	8 9 1, 7 7.	6 6 9. 1, 4	+7 .1 %
fro d l o f p Inc isp ert ies om e m os a rop	95 2 1.	9 8 8. 2	-3 % .7
Ca ing f p ies l d nt ert am ou o rop so rry	-9 0 5. 6	-9 5 3. 9	-5 .1 %
f a for Re lua ion he l d le t ts va o sse sa	6 0. 5	3 7. 9	+5 9. 6 %
Pr f it d isp l o f p ies t o on os a ro p er	1 0 6. 1	7 2. 2	+4 7. 0 %
fro fa f Ne inc ir lue d j inv ies t tm ts tm t p t om e m va a us en o es en ro p er	1, 1 6 4. 7	-
Ca ita lize d int l e p er na xp en se s	3 2 6. 8	2 27 .7	+4 3. 5 %
f m ls Co st ate ria o	-8 6 6. 8	9 0. 6 -7	+9 6 %
l e Pe rso nn e xp en se s	-3 0 7. 1	-2 6 7. 1	+1 5. 0 %
De iat ion d a iza ion rt t p rec an mo	-2 3. 0	-1 6. 4	+4 0. 2 %
he Ot t ing in r o p era co me	75 8	7 0. 5	% +7 .5
Ot he ing t r o p era ex p en se s	-1 9 6. 7	-1 6 6. 7	+1 8. 0 %
l in Fin ia an c co me	6. 2 4	2 2.4	>1 0 0 %
l e Fin ia an c xp en se s	-2 44 9	-3 6 6. 0	-3 3. 1 %
ing be fo Ea ta rn s re xe s	8 6 9. 0 1,	45 5. 4	0 0 % >1
Inc e t om ax es	-6 6 3. 8	-1 77 .1	0 0 % >1
Pr f it fo he io d r t o p er	1, 2 0 5. 2	27 8. 3	>1 0 0 %
At i bu b le tr ta to :
via 's ha ho l de Vo no s re rs	1, 11 7. 6	1 8 2.7	>1 0 0 %
's hy br d c l in Vo via i ita sto no ap ve rs	2 2.4	2 2.4
l lin int No tro sts n-c on g ere	6 5. 2	7 3. 2	-1 0. 9 %
Ea ing ha ( ba ic d d i lut d ) in € rn s p er s re s an e	2. 3 6	0. 3 9	>1 0 0 %

IFRS Balance Sheet (1/2 – Total Assets)

€m ( les in d ica d o he ise ) te t un s rw	Se 3 0, 2 0 17 p.	De 3 1, 2 0 1 6 c.	De lta
As ts se
b le Int i ts an g as se	2, 95 6. 5	2, 74 3. 1	8 % +7
lan d e Pro ert t a ip nt p y, p n q u me	14 3 5.	11 5. 7	+2 5. 6 %
Inv ies tm t p ert es en rop	3 0, 7 6 0. 2	2 6, 9 8 0. 3	+1 4. 0 %
l a Fin ia ts an c sse	6 6 5. 3	5 8 5. 9	+1 3. 6 %
Ot he ts r a sse	21 9	2 15	+4 4. 1 %
fer d t De ts re ax as se	24 9	1 9. 6	+2 0 % 7.
To l n ta nt et on -c ur re a ss s	3 4, 5 74 .1	3 0, 45 9. 8	+1 3. 5 %
rie Inv to en s	6. 0	0 5.	+2 0. 0 %
de b les Tr iva a re ce	2 21 0	1 6 4.4	+3 4.4 %
Fin ia l a ts an c sse	0. 0	3. 2 15	-1 0 0. 0 %
Ot he ts sse r a	14 8. 8	1 0 2.7	9 % +4 4.
b les Inc e t iva om ax re ce	3 0. 9	3 4. 6	-1 0. 7 %
Ca h a d c h e iva len ts s n as q u	3 3 9. 8	1, 5 4 0. 8	-7 7. 9 %
he l d for le As ts se sa	95 8	6 1. 6	% +5 5. 5
To ta l c nt et ur re a ss s	8 2. 3 4	2, 0 6 2. 3	-5 9. 2 %
To l a ta et ss s	3 5, 41 6. 4	3 2, 5 2 2. 1	+8 9 %

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

€m (u nle ind ted he ) ica ot ise ss rw	Se 30 20 17 p. ,	31 20 16 De c. ,	lta De
Eq uit nd lia bil itie y a s
Su bsc rib ed ita l cap	4 8 5. 1	4 6 6. 0	% +4 .1
l re Ca ita p ser ve s	5, 9 6 5. 1	5, 3 3 4. 9	+1 1. 8 %
Re tai ned rni ea ng s	7, 21 2. 8	6, 6 6 5. 4	+8 2 %
Ot he r re ser ve s	1 21 0	1.5	>1 0 0 %
To tal uit ibu tab le Vo via 's sh ho lde ttr to eq y a no are rs	3, 8 0 1 7 4.	2, 6 8 1 4 7.	0. 6 % +1
ibu tab le t o h bri d c l in Eq uit ttr ita sto y a y ap ve rs	1, 0 3 1.5	1, 0 0 1. 6	+3 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	14 8 15 .5 ,	1 3, 4 6 9. 4	+1 0. 0 %
No tro llin int sts n-c on g ere	6 6 0. 6	9. 0 41	+5 7.7 %
To tal uit eq y	6. 15 47 1 ,	1 3, 8 8 8. 4	% +1 1.4
vis ion Pro s	6 0 9. 9	6 0 7. 9	+0 3 %
Tra de ab les pay	0. 6	1. 3	-5 3. 8 %
No n d eri ive fin cia l lia bili tie vat an s	11 7 6 9.5 ,	11 6 4 3. 4 ,	+1 .1 %
De riv ati ve s	14 .1	9. 1 1	-2 6. 2 %
bili s f fin lea Lia tie rom an ce ses	94 .4	94 .7	-0 3 %
bili olli Lia tie s t ntr int sts o n on -co ng ere	2 6. 6	9. 9	>1 0 0 %
Ot he r li ab iliti es	7 0. 7	8 3. 3	-1 5. 1 %
De fer red x l iab iliti ta es	2 4, 5 5 7.	3, 7 6 9.5	+2 0. 9 %
tal t l iab ilit ies To no n-c ur ren	3. 0 17 14 ,	1 6, 2 2 9. 1	+5 6 %
Pro vis ion s	3 4 3. 0	3 7 0. 8	-7 .5 %
Tra de ab les pay	1 3 0. 9	1 3 8. 8	-5 .7 %
No n d eri ive fin cia l lia bili tie vat an s	2, 6 15 1.	27 6 1, 7	+2 4. 5 %
De riv ati ve s	8. 2	5 7.5	-8 % 5. 7
bili s f fin lea Lia tie rom an ce ses	4. 9	4. 5	+8 9 %
Lia bili tie s t ntr olli int sts o n on -co ng ere	4. 5	2.7	+6 6. 7 %
Ot he r li ab iliti es	15 4. 2	1 0 2.7	+5 0. 1 %
To tal lia bil itie nt cu rre s	2, 97 3 7	2, 4 0 4. 6	6. 3 % +1
tal lia bil itie To s	1 9, 94 0. 3	1 8, 6 3 3. 7	+7 0 %
tal uit nd lia bil itie To eq y a s	3 5, 41 6. 4	3 2, 5 2 2. 1	+8 9 %

€ m	9 2 0 M 1 7	9 2 0 6 M 1	l D t e a
h f lo fr C t in t iv i t ie a s w o m o p er a g a c s	7 1 9. 0	6 3 6. 7	1 2. 9 %
h f lo fr C in in iv i ie t t t a s w o m ve s g a c s	6 2 -1 1 5. ,	3 2 6. 5	0 0 % 1 >-
C h f lo fr f in in t iv i t ie o m nc g a s w a a c s	-7 5 4. 8	-2 9 5 3. 0 ,	-7 4. 4 %
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 0 1. 0 ,	-1 9 8 9. 8 ,	-3 9. 6 %
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 u a n s a e g n g o p er	0. 8 1, 5 4	3, 0 9 1 7.	0. % -5 4
C h d h iv l h d f h i d t t t t a s a n c a s e q a e n s a e e n o e p e o u r	3 3 9. 8	1, 1 1 8. 1	-6 9. 6 %

€ m ( les in d ica te d o t he ise ) un s rw	9 M 2 0 1 7	9 M 2 0 1 6	l D t e a
fo Ex in t p e ns e s r m a e na nc e	1 9 2. 2	1 8 4. 1	4. 4 %
C i l ize d in t t a p a m a e na nc e	5 2. 0	4 8. 0	8. 3 %
d k Mo iza t io er n n w or	5 0 8. 6	2 8 4. 6	7 8. 7 %
1 in d d iz i l M t t t t a e n a nc e a n m o e rn a o n o a	7 5 2. 8	5 1 6. 7	4 5. 7 %

Incl. intra-Group profits for 9M 2017: €53.3m (thereof €1.7m capitalized maintenance and €16.8m modernization); 9M 2016: €36.1m (thereof €0.7m capitalized maintenance and €5.8m modernization); new construction in 9M 2017 €22.8m, new construction in 9M 2016: €11.8m (included in modernization measures).

Income fromProperty Management

€ m ( les in d ica d o he ise ) te t un s rw	9 2 0 M 1 7	9 2 0 6 M 1	l D t e a
l Re in t n a c o m e	1, 2 2. 5 5	1, 1 5 9. 3	8. 0 %
l la An i t c ry c o s	0 5 1. 4	8 0 4 1.	2 % 4.
In fr Pr L in ty t t c o m e o m o p e r e g	1, 7 5 3. 9	6 0. 3 1, 4	6. 9 %
O he in fr t ty t c o m e o m p ro p er m a na g e m e n r	3 4. 0	2 9. 1	1 6. 8 %
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	1, 7 8 7. 9	1, 6 6 9. 4	7. 1 %

Rental income under IFRS definition. Includes €3.1m of rental income attributable to Value-add Business.

Cost of Materials

€ m ( les in d ica d o he ise ) te t un s rw	9 2 0 M 1 7	9 2 0 6 M 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	4 7 2. 0	4 6 1. 8	2. 2 % +
Ex fo in t p e ns e s r m a e na nc e	3 2 2. 0	2 6 6. 4	2 0. 9 % +
he f p ha d d d O t t ic r c o s o ur c s e g o o s a n s er v e s	7 2. 8	6 2. 4	1 6. 7 % +
l c f i ls T t t t o a o s o m a e r a	8 6 6. 8	7 9 0. 6	9. 6 % +

Conservative Valuation

In-place values are still less than 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; construction costs excluding land.

Acquisitions – Opportunistic but Disciplined

Historical Key Figures (1/2)

Fin cia l K Fig s ( €m les ed oth ise ) tat an ey ure un s s erw ,	9M 2 0 17	2 0 1 6	2 0 15	2 0 14	2 0 1 3
l in Re nta co me	1, 24 9.4	1, 5 3 8. 1	1, 41 4. 6	7 8 9. 3	7 2 8. 0
A d j d EB IT DA Op ion te t us era s	9 2 2. 1	0 94 0 1,	95 6 7.	0 3. 5 4	2.4 44
d d l A j te EB IT DA R ta us en	8 6 5. 9	1, 0 4 6. 2	9 24 .4	4 8 2. 6	4 3 3. 0
d d lue d d A j te EB IT DA V Bu ine us a -a s ss	7 6. 0	5 7. 0	3 7. 6	2 3. 6	1 0. 5
d j d Ot he A te EB IT DA us r	8 -1 9.	-9 2	-4 .4	8 -2	-1 .1
fro d l o f p Inc isp ert ies om e m os a rop	95 1. 3	1, 2 27 9	7 2 6. 0	2 8 7. 3	3 5 3. 5
d j d S les A te EB IT DA us a	8 1. 3	9 2, 5	71 .1	5 0. 1	27 .7
d d A j te EB IT DA us	1, 0 0 3. 4	1, 1 8 6. 5	1, 0 2 8. 7	5 5 3. 5	47 0. 1
EB IT DA IF RS	94 5. 5	0 8 3. 1, 7	8 3 8. 4	0 0. 3 5	3 0 4 1.
FF O 1	6 9 0. 5	7 6 0. 8	6 0 8. 0	2 8 6. 6	2 2 3. 5
he f a i bu b le Vo via ha ho l de t ttr ta to reo no s re rs	6 0. 6 5	3. 71 4	5 5 5. 5	27 5. 1	21 8. 4
he f a bu b le hy br d c l in t ttr i ta to Vo via i ita sto reo no ap ve rs	3 0. 0	4 0. 0	3 3. 0	-	-
he f a i bu b le No l lin int t ttr ta to tro sts reo n-c on g ere	9. 9	7.4	9.5 1	11 .5	5. 1
FF O 2	74 8. 0	8 2 3. 8	6 6 2. 1	3 3 6. 7	25 1. 2
AF F O	6 0. 2 4	6 8 9. 2	2 0. 5 5	25 8. 3	2 0 3. 5
ha FF O 1 p in € er s re	1.4 2	1. 6 3	1. 3 0	1. 0 0	0. 95
Inc fro fa ir v lue d j f in ies tm ts stm t p ert om e m a a us en o ve en rop	6 1, 1 4.7	3, 2 3 6. 1	3 2 3. 1, 5	3 71 .1	3. 5 5 7
EB T	1, 8 6 9. 0	3, 8 5 9. 8	1, 7 3 4. 5	5 8 9. 1	6 8 9. 6
fit for Pro t he io d p er	1, 2 0 5. 2	2, 5 1 2. 9	9 94 .7	4 0 9.7	4 8 4. 2
Ca h f low fro ing ivi ies t t t s m op era ac	71 9. 0	8 2 8. 9	6 8 9. 8	45 3. 2	25 9. 6
h f low fro Ca inv t ing t ivi t ies s m es ac	-1 1 6 5. 2 ,	41 6. 4	-3 2 3 9. 8 ,	-1 17 7. 9 ,	17 1. 3
Ca h f low fro fin ing ivi ies t t s m an c ac	-7 5 4. 8	-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	75 2. 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	24 2 4.	3 2 0. 1	3 3 0. 7	3. 8 17	6 15 7.
he f for de t iza t ion reo m o rn	5 0 8. 6	47 2. 3	3 5 5. 6	17 1.7	7 0. 8

The key figures of prior years have been adjusted to match the definitions of the 2016 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.

Historical Key Figures (2/2)

Ke Ba lan Sh Fig s ( €m les ed oth ise ) eet tat y ce ure un s s erw ,	Se 3 0, 2 0 17 p.	De 3 1, 2 0 1 6 c.	De 3 1, 2 0 15 c.	De 3 1, c 2 0 14	De 3 1, c 2 0 1 3
f r fo Fa ir v lue l e sta te ort lio a o ea p	3 0, 94 8. 1	27 11 5. 6 ,	24 15 7.7 ,	1 2, 75 9. 1	1 0, 3 2 6. 7
A d j d NA V te us	1 6, 2 6 3. 5	14 3 2 8. 2 ,	11 27 3. 5 ,	6, 47 2. 0	5, 1 2 3. 4
A d j d NA V ha in € te us p er s re	3 3. 3 5	3 0. 75	24 9 .1	2 2. 6 7	21 .74
( % ) LT V	4 2.4	41 6	4 6. 9	4 9. 3	4 8. 1
al No n-F ina nci Ke Fig ure s y	9M 2 0 17	2 0 1 6	2 0 15	2 0 14	2 0 1 3
be f u d Nu nit m r o s m an ag e	41 3, 7 0 3	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 5 0, 1 3 4	3 3 3, 3 8 1	3 5 7, 11 7	2 0 3, 0 2 8	17 5, 25 8
he f a d by he t art nts ot reo p me ow ne rs	6 3, 6 9 5	8, 9 6 9 5	0, 6 8 2 4	2 9, 21 8	2 6, 9 47
be f u bo ht Nu nit m r o s ug	24 8 47 ,	2, 8 15	1 6 8, 6 3 2	3 1, 8 5 8	0
be f u l d Nu nit m r o s s o	8, 3 0 4	2 6, 6 3 1	15 17 4 ,	4, 0 8 1	6, 7 2 0
he f P riv ize t at reo	0 1, 7 4	2, 0 7 1	2, 97 9	2, 2 3 8	2, 6 5 7
he f N -C t reo on ore	6, 6 0 0	2 3, 9 3 0	2, 95 1 1	8 3 1, 4	4, 14 4
( in % ) Va rat ca nc e y	2. 9	2.4	2.7	3. 4	3. 5
h ly lac /sq Mo nt in- t in € p e r en m	6. 1 9	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	3. 9	3. 3	-	-	-
f e Nu be loy m r o mp ee s	8, 3 7 8	7, 4 3 7	6, 3 6 8	3, 8 5 0	2, 9 3 5
EP RA Ke Fig y ure s	9M 2 0 17	2 0 1 6	2 0 15	2 0 14	2 0 1 3
EP RA N AV	1 9, 1 9 3. 3	17 0 47 .1 ,	1 3, 9 8 8. 2	6, 5 7 8. 0	5, 1 2 3. 4
ha ** EP RA N AV in € p er s re	3 9, 5 7	3 6. 5 8	3 0. 0 2	2 3. 0 4	21 .74
EP RA N NN AV	---	1 2, 0 3 4.4	9, 7 3 9. 8	-	-
EP RA Ea ing rn s	---	8. 44 5	3 2 9. 2	-	-
EP RA N In it ia l Y ie l d in % et	---	4. 1	4. 5	-	-
"to d- " N l Y l d EP RA et In it ia ie in % p p e up	---	4. 1	4. 5	-	-
EP RA V te in % ac an cy ra	---	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 co y	---	2 8. 4	3 9 1.	-	-
C io ( l. d ire ) in % EP RA t R at ct sts os ex c va ca nc co y	---	27 0	3 0. 2	-	-

The key figures of prior years have been adjusted to match the definitions of the 2016 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.

Vacancy Rates – Quarterly Comparison

Q1 to Q4 development 2012 – ²⁰¹⁷ 4.4%4.5%4.4%3.9%4.0%3.9% 3.9%3.5%3.7% 3.8% 3.6%3.4%3.4%3.5%3.4%2.7%2.8% 2.8% 2.8%2.4%2.7%2.9% 2.9%2%3%4%5%Q1 Q2 Q3 Q4201220132014201520162017

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

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

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.

Liquid Large-cap Stock

S ha In fo io t re rm a n
day of din Fir st tra g	Jul 11 20 13 y ,
mb of sha din Nu tst er res ou an g	illio 48 5.1 m n
Fre flo bas ed De che Bö at uts e on rse def init ion	92 .7%
ISI N	DE 00 0A 1M L7J 1
ker mb ol Tic sy	VN A
Sh cla are ss	Re iste red sh ith alu g are no pa e s w r v
Lis tin g	Fra nkf St ock Ex cha urt ng e
rke Ma t s nt eg me	lat ed rke Re Ma t, gu Pri St da rd me an
dic d w ht Ma jor in eig es an (as of be ) Se tem 30 20 17 p r ,	DA X 1, 6% Sto Eu e 6 00 0, 2% xx rop MS CI Ge 4% 1, rm an y GP R 2 50 rld 4% Wo 1, FTS / 8, 3% E E PRA NA RE IT Eu rop e

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 M 3 1, 2 0 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

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

German Residential – Safe Harbor and Low Risk

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

New supply falls short of demand

• Consensus estimates see 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 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

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

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 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.

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

• While market prices are affected by the general interest 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 7.4% since 1992) is not mirrored by asset yields (down by 1.1% since 1992).
• Asset yields outperformed interest rates by 2.2% on average since 1992 and 5.4% in June 2015.

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

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.

Midpoint guidance.

Impressions

Dresden

Berlin

Leverkusen

Nuremberg

Impressions

Dortmund

Frankfurt

Bremen

Essen

9M 2017 Earnings Call

Impressions

Berlin

Berlin

Optimize Apartment

Optimize Apartment

Upgrade Building

Dortmund

Upgrade Building

Hamburg

Upgrade Building

9M 2017 Earnings Call

Floor Addition

Modular Construction

Modular Construction

Dortmund

Modular Construction

Dortmund

Neighborhood Development

VTS

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Tables and diagrams may include rounding effects.