Business Outlook

The first nine months of the 2017 fiscal year were very successful for Vonovia on the whole. We were systematic in the implementation of our corporate strategy: the expansion of our investment program, the further improvements to efficiency when managing our properties and the expansion of the Value-add Business. Bolstered by the acquisition of conwert, we have further expanded our leading market position.

We expect these positive business developments to continue in the coming quarter and that we will achieve our forecast figures. Given the dynamic development of the German residential property market, which was already reflected in an increase in the value of our portfolio in the first half of 2017, we expect to have seen a further increase in value in our investment properties by the end of the year, too, and with this a further boost to NAV.

Our current forecast is based on the 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 detail in the chapter on opportunities and risks in the Group management report of the 2016 Annual Report. 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 update our final forecast of the main performance indicators for the 2017 fiscal year as follows:

 

 

Actual 2016

 

Forecast for 2017*

 

Current forecast for 2017 Interim report H1 2017

 

Current forecast for 2017 Interim statement Q3 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

 

€ 910–920 million (upper end)

FFO 1/share

 

€ 1.63

 

€ 1.78–€ 1.82

 

€ 1.86–€ 1.90

 

€ 1.88–€ 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 approx. 4.0%

Vacancy rate

 

2.4%

 

< 2.5%

 

< 2.5%

 

approx. 2.5%

Maintenance incl. capitalized maintenance

 

€ 320.1 million

 

approx. € 340 million

 

approx. € 340 million

 

approx. € 350 million

Modernization and new constuction

 

€ 472.3 million

 

€ 700–730 million

 

approx. € 730 million

 

approx. € 750 million

Number of units sold Privatize

 

2,701

 

approx. 2,300

 

approx. 2,300

 

approx. 2,600

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

 

up to 10,000

Step-up Non-Core

 

5.4%

 

> 0%

 

> 0%

 

approx. 7%

Bochum, October 27, 2017

Management Board