Business Outlook

Vonovia achieved a positive business development in the first three months of the 2021 fiscal year despite the ongoing coronavirus pandemic. The Rental, Recurring Sales and Value-add segments showed positive development. The Development segment reported a slight downward trend. Unlike in the previous year, this segment contains Bien Ries, which was acquired at the beginning of April 2020, in the first three months of 2021.

The forecast for the 2021 fiscal year is based on the accounting principles used in the consolidated financial statements. The current forecast does not take into consideration any larger acquisitions of real estate portfolios.

Our forecast for the 2021 fiscal year is based on determined and updated corporate planning for the Vonovia Group as a whole, and considers current business developments, possible opportunities and risks, and the potential impact of the coronavirus pandemic. It also considers the key overall macroeconomic developments and the economic factors that are relevant to the real estate industry and our corporate strategy. Further information is provided in the sections of the 2020 Group management report entitled “Fundamental Information About the Group” and “Development of the Economy and the Industry.” Beyond this, the Group’s further development remains exposed to general opportunities and risks. These have also been described in the chapter on opportunities and risks in the 2020 Group management report.

We expect that the coronavirus pandemic will not have a significant impact on the key operational and financial figures and therefore will have no impact on future business development.

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”), which took effect in February, 2020. In April 2021, the act was found to be unconstitutional. Vonovia has opted not to claim back payments for lost rent in a deliberate move to take pressure off its tenants during these times dominated by the coronavirus pandemic, which have been difficult for everyone.

We therefore expect Total Segment Revenue to increase further in 2021. We are also currently observing stable demand for rental apartments and no negative impact on market values as a result of the coronavirus pandemic. In addition, we expect the value of our company to increase in 2021 and predict a moderate increase in EPRA NTA per share, excluding any further market-related changes.

Vonovia predicts that all operating segments will contribute to the increase in Adjusted EBITDA Total and Group FFO. The largest absolute increases are expected to be seen in the Rental and Development segments. This is based, among other things, on the assumption that CO₂ tax can be apportioned to tenants under the German Ancillary Costs Ordinance (Betriebskostenverordnung).

The following table provides an overview of our forecast and presents material and selected key figures.

Bochum, April 26, 2021

The Management Board