Business Outlook

The first three months of the 2018 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 BUWOG, we have further expanded our leading market position.

We expect these positive business developments to continue in the 2018 fiscal year and that we will achieve our forecast figures. Given the dynamic development of the German real estate market, we expect to see a further increase in value in our investment properties and with this a further boost to NAV.

Our current forecast is based on the outlook for the entire Vonovia Group (excluding BUWOG), which includes the original overall plans for the 2018 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 2017 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 forecast of the main performance indicators for the 2018 fiscal year without BUWOG as follows:

 

 

Actual 2017

 

Forecast for 2018*

 

Current Forecast for 2018 Interim Statement Q1 2018

 

 

 

 

 

 

 

*

According to the Group management report 2017, excl. BUWOG

**

Based on the current number of shares of 485,100,826

Adjusted EPRA NAV/share

 

€ 38.49

 

suspended

 

suspended

EPRA NAV/share

 

€ 43.88

 

suspended

 

suspended

FFO 1

 

€ 920.8 million

 

€ 960–980 million

 

€ 1,000–1,020 million

FFO 1/share**

 

€ 1.90

 

€ 1.98–2.02

 

€ 2.06–2.10

CSI

 

Increase of 1.6%

 

Similar CSI as 2017

 

Similar CSI as 2017

Rental income

 

€ 1,667.9 million

 

€ 1,660–1,680 million

 

€ 1,670–1,690 million

Organic rent increase

 

4.2%

 

Increase of 4.6–4.8%

 

Increase of 4.6–4.8%

Vacancy rate

 

2.5%

 

< 2.5%

 

< 2.5%

Maintenance incl.capitalized maintenance

 

€ 346.2 million

 

approx. € 360 million

 

approx. € 360 million

Modernization and new construction

 

€ 778.6 million

 

approx. € 1,000 million

 

approx. € 1,000 million

Number of units sold Privatize

 

2,608

 

approx. 2,300

 

approx. 2,300

Step-up Privatize

 

32.6%

 

approx. 30%

 

approx. 30%

Number of units sold Sell portfolio

 

9,172

 

Continue opportunistic sales

 

Continue opportunistic sales

Step-up Sell portfolio

 

7.9%

 

> 0%

 

approx. 5%

Bochum, Germany, April 24, 2018

Management Board