Business Outlook

The first half of 2017 was very successful for Vonovia on the whole. With the expansion of our investment program, the further improvements to efficiency when managing our properties and the expansion of the Value-add Business activities, we have consistently implemented our corporate strategy. Bolstered by the acquisition of conwert, we were able to further expand our leading market position.

We expect the positive business developments to continue over the coming quarters and that we will achieve the forecast figures as published in our 2016 Annual Report. Given the dynamic development of the German real estate market, which has already been reflected in an increase in the value of our portfolio in the first half of 2017, we expect to see a further increase in value in our investment properties in the second half of 2017, too, and with this a further boost to NAV.

Our forecast is based on the current outlook for the Vonovia Group as a whole, which includes the original overall plans for the 2017 fiscal year, as well as current business developments and possible opportunities and risks. Beyond this, the Group’s further development remains exposed to general opportunities and risks. These have been described in the chapter on opportunities and risks. The forecast was based on the accounting principles used in the annual financial statements, with the adjustments described elsewhere in the management report being made.

We confirm our previous forecast for the main performance indicators for the 2017 fiscal year:

 

 

Actual 2016

 

Forecast for 2017*

 

Current forecast for 2017
Interim statement Q1 2017

 

Current forecast for 2017
Interim report H1 2017

 

 

 

 

 

 

 

 

 

*

According to the Group management report 2016 excl. conwert

Adjusted EPRA NAV/share

 

30.75 €

 

31–32 €

 

suspended

 

suspended

EPRA NAV/share

 

36.58 €

 

37–38 €

 

suspended

 

suspended

FFO 1

 

€ 760.8 million

 

€ 830–850 million

 

€ 900–920 million

 

€ 900–920 million

FFO 1/share

 

1.63 €

 

1.78–1.82 €

 

approx. 1.88 €

 

1.86–1.90 €

CSI

 

Increase of 8 %

 

Similar CSI as 2016

 

Similar CSI as 2016

 

Similar CSI as 2016

 

 

 

 

 

 

 

 

 

Rental income

 

€ 1,538 million

 

€ 1,530–1,550 million

 

€ 1,660–1,680 million

 

€ 1,660–1,680 million

Organic rent increase

 

3.3 %

 

Increase of 3.5–3.7 %

 

Increase of 3.8–4.0 %

 

Increase of 3.8–4.0 %

Vacancy rate

 

2.4 %

 

< 2.5 %

 

< 2.5 %

 

< 2.5 %

Maintenance incl. capitalized maintenance

 

€ 320.1 million

 

approx. € 340 million

 

approx. € 340 million

 

approx. € 340 million

Modernization

 

€ 472.3 million

 

€ 700–730 million

 

approx. € 730 million

 

approx. € 730 million

Number of units sold Privatize

 

2,701

 

approx. 2,300

 

approx. 2,300

 

approx. 2,300

Step-up Privatize

 

36.2 %

 

approx. 35 %

 

approx. 30 %

 

approx. 30 %

Number of units sold Non-Core

 

23,930

 

Continue opportunistic sales

 

Continue opportunistic sales

 

Continue opportunistic sales

Step-up Non-Core

 

5.4 %

 

> 0 %

 

> 0 %

 

> 0 %

Düsseldorf, July 25, 2017

Management Board