Interim Statement Q3 2020

Business Outlook

Vonovia can report positive business development in the first nine months of the 2020 fiscal year despite the coronavirus pandemic. The operating segments Rental, Development and Recurring Sales are showing positive development. A small decline in the Value-add segment is mostly due to effects of the coronavirus.

The forecast for the 2020 fiscal year was based on the accounting principles used in the consolidated financial statements and the adjustments described elsewhere in the Group management report. The forecast does not take account of any larger acquisitions of real estate portfolios.

Our forecast for the 2020 fiscal year is based on determined and updated corporate planning for the Vonovia Group as a whole, and considers current business developments, the acquisitions of Hembla and Bien-Ries, possible opportunities and risks, and the expected impacts of the coronavirus pandemic. It also includes the key overall macroeconomic developments and the economic factors that are relevant to the real estate industry and our corporate strategy. These are described in the chapter “Environmental Developments” of the interim financial report for the first half of 2020. Beyond this, the Group’s further development remains exposed to general opportunities and risks.

We expect that the coronavirus pandemic will not have any significant impact on the key operational and financial figures of any of the operating segments, and therefore will have no impact on future business development. We are currently observing stable demand for rental apartments and no negative impact on market values as a result of the coronavirus pandemic. We therefore assume that adjusted EBITDA total will be within the range of our most recently published guidance.

At the end of January 2020, the Berlin House of Representatives passed the Act on Rent Controls in the Housing Sector in Berlin (referred to in short as “rent freeze”). This came into force in February 2020. It remains disputed whether the law is constitutional. Assuming that the rent freeze is found to be constitutional, future rental income or rental development will have to be reduced for the period leading up to, and including, 2025. This could have a negative impact on fair values. Likewise, it cannot be ruled out that declining vacancy rates and fluctuation as well as lower return requirements of investors (yield compression) will subsequently have a compensatory effect on fair values. There is no evidence of any impact on fair values at present.

We also expect that the most recently published Group FFO target within the range will be reached toward the upper end of the projected range.. In addition, we expect the value of our company to increase further in 2020 and predict a moderate increase in Adjusted NAV per share before taking into account further market-related changes in value. Based on the first preliminary indicators, we expect to see an effect from the valuation of investment properties and capitalized modernization costs in the form of an increase in value of between € 2.3 billion and € 2.9 billion in total compared with June 30, 2020.

The following table, which presents material and selected key figures, provides an overview of our forecast and an outlook for 2021. This outlook assumes that a carbon tax may be allocable in accordance with the Ordinance on Operating Costs (BetrKV).


Actual 2019

Forecast for 2020

Forecast for 2020 in the 2020 H1 Report

Forecast for 2020 in the 2020 Q3 Report

Outlook 2021







Total segment income

€ 4.1 billion

€ 4.4 billion

€ 4.9-5.1 billion

Adjusted NAV per share

€ 51.93





Adjusted EBITDA Total

€ 1,760.1 million

€ 1,875-1,925 million

€ 1,875-1,925 million

€ 1,875-1,925 million

€ 1,975-2,025 million







Group FFO

€ 1,218.6 million

€ 1,275-1,325 million

€ 1,275-1,325 million

At the upper end of
€ 1,275-1,325 million

€ 1,415-1,465 million

Group FFO per share*

€ 2.25





Customer Satisfaction Index (CSI)

Decrease of 8.0%

Scale slightly above previous year

Scale slightly above previous year

Scale significantly above previous year


Rental income

€ 2,074.9 million

€ ~2,300 million

€ ~2,300 million

€ ~2.3 billion

€ 2.3-2.4 billion







Organic rent growth (eop)


Increase of ~4.0%**

Increase of ~3.3-3.8%***

Increase of ~3.1%****

Increase of ~3.0-3.8 %*****

Modernization and new constuction

€ 1,489.5 million

€ 1.3-1.6 billion

€ 1.3-1.6 billion

~€ 1.5 billion

€ 1.3-1.6 billion

Number of units sold Recurring Sales






Step-up Recurring Sales







Based on the shares carrying dividend rights on the reporting date.


Without one-time decrease pursuant to the Act on Rent Controls in the Housing Sector in Berlin (MietenWoG Bln).


The lower end of the forecast contains a one-time decrease pursuant to the Act on Rent Controls in the Housing Sector in Berlin (MietenWoG Bln).


The forecast contains a one-time decrease pursuant to the Act on Rent Controls in the Housing Sector In Berlin (MietenWoG Bln).


Depending on whether or not the Act on Rent Controls in the Housing Sector in Berlin (MietenWoG Bln) is found to be constitutional at the end of 2021, we expect rent increases at the upper/lower end of the forecast.


Introduction of a new non-financial performance indicator in the 2021 financial year that will include the previous CSI. Therefore no guidance.

Bochum, October 27, 2020

The Management Board

Adjusted EBITDA Total (Earnings Before Interest, Taxes, Depreciation and Amortization)
Adjusted EBITDA Total is the result before interest, taxes, depreciation and amortization (including income from other operational investments and intragroup profits) adjusted for effects that do not relate to the period, recur irregularly and that are atypical for business operation, and for net income from fair value adjustments to investment properties. These non-recurring items include the development of new fields of business and business processes, acquisition projects, expenses for refinancing and equity increases (where not treated as capital procurement costs), IPO preparation costs and expenses for pre-retirement part-time work arrangements and severance payments. The Adjusted EBITDA Total is derived from the sum of the Adjusted EBITDA Rental, Adjusted EBITDA Value-add, Adjusted EBITDA Recurring Sales and Adjusted EBITDA Development.
The presentation of the NAV based on the EPRA definition aims to show the net asset value in a long-term business model. The equity attributable to Vonovia’s shareholders is adjusted to reflect deferred taxes on investment properties, the fair value of derivative financial instruments and the deferred taxes on derivative financial instruments. In order to boost transparency, an adjusted NAV, which involves eliminating goodwill in full, is also reported.
Group FFO
Group FFO reflects the recurring earnings from the operating business. In addition to the adjusted EBITDA for the Rental, Value-add, Recurring Sales and Development segments, Group FFO allows for recurring current net interest expenses from non-derivative financial instruments as well as current income taxes. This key figure is not determined on the basis of any specific international reporting standard but is to be regarded as a supplement to other performance indicators determined in accordance with IFRS.
Recurring Sales
The Recurring Sales segment includes the regular and sustainable disposals of individual condominiums from our portfolio. It does not include the sale of entire buildings or land (Non-core disposals). These properties are only sold as and when the right opportunities present themselves, meaning that the sales do not form part of our operating business within the narrower sense of the term. Therefore, these sales will be reported under “Other” in our segment reporting.
Rental Income
Rental income refers to the current gross income for rented units as agreed in the corresponding lease agreements before the deduction of non-transferable ancillary costs. The rental income from the Austrian property portfolio additionally includes maintenance and improvement contributions (EVB). The rental income from the portfolio in Sweden reflects inclusive rents, meaning that the amounts contain operating and heating costs.
Vacancy Rate
The vacancy rate is the number of empty units as a percentage of the total units owned by the company. The vacant units are counted at the end of each month.