Vonovia: Attractive Core Business Growth and Positive Valuation

H1 2026 Results

Vonovia: Attractive Core Business Growth and Positive Valuation

• Rental business supported by continued strong demand for affordable housing
• Significant growth in Value-add segment from craftsmen organization and energy business
• 1.1% portfolio valuation gains (excl. investments)
• ~€700 million disposal volume realized
• ~€4.4 billion refinanced year-to-date with 8-year average tenor and ~3.2% Euro coupon
• Vonovia confirms 2026 guidance for all earnings KPIs and 2028 outlook

Bochum, August 5, 2026 – Vonovia delivered a robust overall performance in the first half of 2026. Supported by continued strong demand for affordable housing the Rental and Value-add segments generated attractive Adj. EBITDA growth in the core operating business. In a still challenging market environment for disposal activities, the two sales-related segments progressed more slowly. The portfolio valuation as of H1 2026 confirmed the positive development in property values. Vonovia reaffirms its guidance for the 2026 financial year for all earnings KPIs and its 2028 outlook.

Luka Mucic, CEO: “In the first half of the year, we continued our strong core Rental and Value-add performance. This compensated for the slower progression in our sales-related segments for which the market environment remains challenging for now. While much of our sales activities are more back-end loaded in 2026, our focus remains unchanged: reliable earnings growth from our core business plus increasing growth from our non-rental activities on our path towards a stronger balance sheet.”

Segment Results

Adjusted EBITDA in the Rental segment increased by 3.5% to €1,268.6 million in the first half of 2026 despite a portfolio that was almost 5,000 units smaller compared to the prior-year period. This underlines the resilience of Vonovia’s largest segment. Organic rent growth amounted to 3.6% (2.1% from market rent growth, 1.2% from modernization investments and 0.3% from new construction) primarily due to the timing of the Berlin Mietspiegel implementation. The vacancy rate remained low at 2.3%, and the collection rate remained at a very high level of 99.6%.

In the Value-add segment, Adjusted EBITDA increased by 27.6% to €128.5 million. Key drivers included higher contributions from the craftsmen organization and growth in the energy business. Vonovia increased its investments in modernization and new construction to €553.6 million (+10.7%).

Ongoing uncertainties stemming from a challenging market environment resulted in a more cautious approach to investment decisions among part of the buyer community in the first half year and impacted the results in the sales-related segments. Recurring Sales generated a marginally higher Adjusted EBITDA of €39.3 million (+1.6%) despite lower sales volumes. Compensating for the market backdrop and reduced volumes, the average fair value step-up margin was 43.8%, which was substantially higher than last year. Vonovia expects to deliver moderate year-on-year Adj. EBITDA growth for 2026.

The Adjusted EBITDA of the Development segment amounted to €20.1 million and was likewise affected by the market environment. The comparison with the prior-year figure is skewed, since Q1 2025 included the disposal of a large land plot with a significant EBITDA contribution of €53 million. Adjusted for this effect, Development earnings were higher than last year in H1, and in Q2. For 2026, Vonovia now expects the Adjusted EBITDA contribution to be similar to last year.

Financial Performance

Reported Adjusted EBITDA Total from continuing operations rose by 2.4% to €1,456.5 million in the first half of 2026. Adjusted EBT of €962.3 million was 2.6% below the prior-year level, mainly due to higher financing costs. Adjusted Shareholder Earnings amounted to €771.6 million (-4.9%), or €0.91 per share (-7.7%), as a result of minority stakes that were not part of the H1 2025 results.

Pro forma and adjusted for the Q1 2025 land sale, Adj. EBITDA Total increased by 6.4%, Adj. EBT was basically flat at -0.5% and Adj. Shareholder Earnings were 1.2% lower than last year.

Operating Free Cash Flow came in at €607.5 million (-45.4%) and was primarily affected by temporary working capital effects and dividend-related outflows while operating earnings remained resilient.

H1 Valuation result and EPRA NTA

The comprehensive portfolio valuation as of June 30, 2026, resulted in a gain of 1.1% excluding investments and 1.8% including investments. The fair value of the property portfolio amounted to €81.8 billion, with an initial gross yield of 4.3%. EPRA NTA remained virtually unchanged at €39.2 billion, or €46.22 per share.

Financial KPIs

Vonovia continued its pro-active financing approach in the first half of 2026. In June, the company successfully placed a convertible bond with a total volume of €850 million, a maturity of 5 years and a zero coupon. In total, Vonovia has now refinanced ~€4.4 billion year-to-date with an average duration of ~8 years and an average Euro coupon of ~3.2%. The recent €1.5 billion liability management addressed a significant portion of the 2027 and 2028 bond maturities.

The key leverage metrics as of June 30, 2026, were LTV of 46.0%, Net Debt/EBITDA of 14.0x and ICR of 3.6x. The increase in LTV and Net Debt/EBITDA compared to year-end 2025 is the result of the dividend payment in Q2. Compared to H1 2025, LTV is down 130bps, Net debt/EBITDA is down 0.3x and ICR is up 0.1x.

In the first half of 2026, disposals of ~€700 million were realized (including an agreement on the preferred redemption of the company’s ~€200 million minority stake in Vesteda), of which ~€400 million have already been closed. Disposal execution continues to be broadly in line with the 2028 deleveraging plan.

Philip Grosse, CFO: “Our capital structure remains solid, and the higher financing costs are within our planning assumptions. Considering ongoing market uncertainties, we frontloaded our financing activities and found comparatively attractive windows for our convertible bond, corporate bonds across different currencies - all fully hedged- and liability management to take some risk off the table.”

2026 earnings guidance confirmed and 2028 outlook

Vonovia confirms its guidance for 2026 on all earnings KPIs. Adjusted EBITDA Total is still expected in a range of €2.95 billion to €3.05 billion, Adjusted EBT is expected between €1.9 billion and €2.0 billion, and Adjusted Shareholder Earnings are expected between €1.4 billion and €1.5 billion. Organic rent growth expectation has been lowered by 20bps predominantly due to a balanced approach on the implementation of the Berlin Mietspiegel. The medium-term objectives for 2028 also remain unchanged.

The Broader Picture

Luka Mucic: “At Vonovia, we put people first. One indication that we’re on the right track is the increase in customer satisfaction to 77.3% in Q2 - a new record level of which we are very proud. At the same time, we’re investing in the skilled workers of tomorrow with approximately 1,000 apprentices currently starting their careers with us. We’re also looking towards the future by consistently driving forward the decarbonization of our existing portfolio. We have already installed photovoltaic systems with a peak capacity of approximately 200 MWp and are working to expand this capacity to 700 MWp in the long term. At the same time, we are relying on innovative heat pump cubes: With 1,000 systems that we are gradually connecting until 2029, we will provide climate-friendly heating to approximately 20,000 additional apartments. These initiatives support both decarbonization and long-term affordability of housing.”

Earnings H1 2026 H1 2025 Delta (%) €m (unless indicated otherwise) Adj. EBITDA Rental 1,268.6 1,225.6 +3.5 Adj. EBITDA Value-add 128.5 100.7 +27.6 Adj. EBITDA Recurring Sales 39.3 38.7 +1.6 Adj. EBITDA Development¹ 20.1 57.4 -65.0 Adj. EBITDA Total 1,456.5 1,422.4 2.4 Adj. Net Financial Result -406.3 -363.3 11.8 Straight-line depreciation -63.4 -56.0 13.2 Intragroup profit (-)/loss (+) -24.5 -15.4 59.1 Adj. Earnings before Taxes (EBT) 962.3 987.7 -2.6 Adj. Earnings before Taxes (EBT) p.s.² 1.13 1.20 -5.4 Tax expenses³ -89.5 -100.3 -10.8 Minorities 101.2 75.9 33.3 Adj. Shareholder Earnings 771.6 811.5 -4.9 Adj. Shareholder Earnings p.s.² 0.91 0.99 -7.7

¹ Including restatements for impairment losses/reversals of impairment losses from development-to-sell projects (previous year adjustment: +€3.4 million).
² Based on the weighted average number of shares carrying dividend rights.
³ Relating to the four EBITDA segments.

Cash Flow H1 2026 H1 2025 Delta (%) €m (unless indicated otherwise) Adj. Earnings before Taxes (EBT)¹ 962.3 987.7 -2.6 Straight-line depreciation 63.4 56.0 13.2 Change in net working capital Development to Sell / Manage to Green -61.1 283.0 - Carrying amount of sold investment properties (core business) 110.0 171.1 -35.7 Capitalized maintenance -141.3 -118.8 18.9 Dividends and payouts to non-controlling shareholders (minorities) -256.0 -175.1 46.2 Income tax payments as per CF statement² -94.3 -106.2 -11.2 Intragroup profits/losses 24.5 15.4 59.1 Operating Free Cash Flow (OFCF)¹ 607.5 1,113.1 -45.4

¹ In accordance with current KPI definition including restatements for impairment losses/reversals of impairment losses from development-to-sell projects (previous year adjustment H1 2025: +€3.4 million).
² Relating to the four EBITDA segments.

Other KPIs	H1 2026	H1 2025	Delta (%)
Number of units	528,370	533,064	-0.9
In-place rent (€/sqm)	8.51	8.22	3.5
Organic rent growth	3.6%	4.4%	-0.8pp
Vacancy rate	2.3%	2.1%	0.2pp
EBITDA Operations Margin1	82.0%	80.8%	1.2pp
Number of employees	13,120	12,393	5.9
Net value growth (excl. investments), l-f-l	1.1%	0.7%	0.4pp
Total value growth (incl. investments), l-f-l	1.8%	1.3%	0.5pp
	30-Jun-2026	31-Dec-2025	Delta (%)
Fair Value (Real Estate Portfolio, €bn)	85.7	84.4	1.5
Fair Value (€/sqm)	2,366	2,324	1.8
EPRA NTA (€/per share)	46.22	46.28	-0.1
LTV2	46.0%	45.4%	0.5pp
ND/EBITDA2	14.0x	13.8x	0.2x
ICR2	3.6x	3.8x	-0.2x

¹ German portfolio (Adj. EBITDA Rental + Adj. EBITDA Value-add – intragroup profits) / Rental revenue.
² H1 2025 comparisons: LTV 47.3%, ND/EBITDA: 14.3x, ICR: 3.5x.

All H1 2026 documents can be found on our IR website. 

CEO and CFO will host an earnings call for analysts and investors later today at 14:00 CET.

Please use this link to listen to the Earnings Call: Earnings Call H1 2026 - Listen-Only, a webcast is also available.

Financial Calendar

Nov 4  Interim Results 9M 2026

About Vonovia

Vonovia SE is Europe’s leading residential real estate company. With more than 528,000 residential units in Germany, Sweden and Austria, the focus is on letting and developing modern and energy-efficient housing. At an average in-place rent of €8.51/sqm/month (€8.32 in Germany), the company operates in the affordable housing segment. In 2025 Vonovia invested around €1.2bn in its housing portfolio and the construction of new apartments.

Vonovia aims to offer attractive risk-adjusted returns to shareholders, a home with a high quality of living and excellent service to its tenants, and a modern, challenging, and rewarding work environment to its employees.

The Bochum-based company has been listed on the stock exchange since 2013. Since September 2015 Vonovia has been a constituent in the DAX40. Vonovia SE is also a constituent of additional national and international indices, including DAX 50 ESG, Dow Jones Best-in-Class Europe Index, STOXX Global ESG Leaders, EURO STOXX ESG Leaders 50, FTSE EPRA/NAREIT Developed Europe, and GPR 250 World. Vonovia has a workforce of approximately 13,100 employees.

Disclaimer

This press release has been prepared by Vonovia SE and/or its affiliates (together, “Vonovia”) for information purposes only.

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

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

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

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

This publication may include supplementary financial measures that are not clearly defined in applicable financial reporting frameworks and that may be considered alternative performance measures (non-GAAP measures). These supplemental financial measures should not be viewed in isolation or as alternatives to measures of Vonovia’s net assets and financial positions or results of operations as presented in accordance with the applicable financial reporting framework in its consolidated financial statements. Despite the use of the same or similar terminology, the calculation by other companies that report or describe similarly titled alternative performance measures may vary.