Vonovia 9M Results: Robust Operating Business in a Challenging Macro Environment

9M 2026 Results

Vonovia 9M Results: Robust Operating Business in a Challenging Macro Environment 

• Adj. EBITDA Rental up 3.5% despite ~5k fewer units
• Strong growth of 31.4% in Value-add segment mainly from craftsmen organization and energy business
• Sales-related segments remain constrained by challenging market conditions
• ~€900m disposal volume realized year to date
• 2026 guidance finalized; initial 2027 guidance and revised 2028 objectives
• CFO Philip Grosse decides not to seek extension of current term

Bochum, November 4, 2026 – Vonovia performed in line with expectations during the first nine months of 2026. Growth in the core operating business continued, supported by sustained strong demand for rental housing and the strong performance of the Value-add segment. The market environment for disposal activities remains challenging, which had a dampening effect on the performance of the Recurring Sales and the Development segment.

Luka Mucic, CEO: “Our nine-month results demonstrate the resilience of our core business. Rental continued to deliver solid earnings growth despite a smaller portfolio, while Value-add maintained its strong momentum. However, the environment has become more challenging for the sales-related parts of our business. Increasing financing costs and the resulting subdued transaction activity are weighing on our sales-related earnings and slowing our progress. Yet the foundations of our business remain strong. Sustained demand for affordable, energy-efficient homes, further AI supported efficiency gains and the growth potential of our capital light service businesses give us confidence in Vonovia’s long-term prospects. We are focused on what we can control and remain determined to translate these strengths into sustainable value for our shareholders, our tenants, and our employees.”

Segment Results

Adj. EBITDA Rental increased by 3.5% to €1,912.2 million during the first nine months of the year, despite the company owning approximately 5,000 fewer residential units than at the prior-year reporting date. Organic rent growth amounted to 3.8% (2.3% from market rent growth, 1.2% from modernization investments and 0.3% from new construction), influenced by slightly softer-than-anticipated increases in local rent indices and a lower number of completed Development-to-Hold units than originally anticipated. Demand for rental housing continued to be strong, with a low vacancy rate of 2.3% reflecting an almost fully occupied portfolio. The collection rate stood at a very high 99.6%.

Adj. EBITDA Value-add increased by 31.4% to €197.2 million. The main growth drivers were the positive performance of the company’s own craftsmen organization and the energy business. Investments in modernization and new construction increased to €951.8 million (+20.3%).

A challenging market environment with higher financing costs constrained potential buyers in the first nine months and impacted the results in the sales-related segments Recurring Sales and Development.

Adj. EBITDA Recurring Sales decreased by 11.8% to €49.9 million. A total of 965 residential units were sold at a strong average fair value step-up of 42.2%, which was substantially higher than last year. The prior-year volume had benefited from a high number of transfers of ownership relating to agreements signed at the end of 2024.

Adj. EBITDA Development amounted to €28.1 million, substantially below the prior-year figure. The comparative period included an earnings contribution of €53.3 million from a land sale. Adjusted for this effect, Development earnings were higher than the prior-year nine month and third quarter periods.

In the first nine months of 2026, Vonovia realized disposals of ~€900 million, including ~€410 million non-core disposals, ~€240 million of minority stakes, ~€220 million of Recurring Sales assets as well as ~€20 million land sales. Financing conditions have worsened substantially since the outbreak of the conflict in the Middle East with further significant rate increases since early September. In this environment, participants in the transaction markets remain cautious and disposal execution takes time.

Financial Performance

Adj. EBITDA Total increased by 3.3% to €2,187.4 million in the first nine months of 2026. Adj. EBT decreased by 3.5% to €1,408.0 million, or by 5.9% to €1.66 per share, mainly because of higher financing expenses. Adj. Shareholder Earnings amounted to €1,121.4 million (-6.6%), or €1.32 per share (-8.9%).

Pro forma and adjusted for the Q1 2025 land sale, Adj. EBITDA Total in-creased by 5.9%, Adj. EBT per share was -2.3% and Adj. Shareholder Earnings per share were 4.8% lower than last year.

Operating Free Cash Flow came to €932.5 million (-34.1%) and was affected, among other factors, by changes in net working capital, a lower recurring sales volume and higher distributions to minority shareholders. The latter has increased in 9M 2026, since the domination and profit and loss transfer agreement between Deutsche Wohnen and Vonovia took effect in August 2025.

EPRA NTA

EPRA NTA increased by 0.1% to €39.3 billion, or €46.31 per share. There was no portfolio valuation in the third quarter. The next comprehensive revaluation of the portfolio will be carried out as of year-end 2026. Given the interest rate rise in recent months, Vonovia has become more cautious about the near-term trajectory of asset values. After four consecutive half-year periods of valuation gains, the company expects a broadly flat portfolio valuation for the full-year 2026 versus year-end 2025.

Financial KPIs

As of September 30, 2026, LTV was 46.1%, compared with 45.4% at year-end 2025. Net Debt/Adj. EBITDA was 13.9x and ICR stood at 3.5x.

Year to date and including the convertible bond, Vonovia has refinanced €4.7bn with an average tenor of 7.5 years and an average coupon of 3.3%. €1.5bn of corporate bonds with 2027 and 2028 maturities were partially or fully redeemed.

Philip Grosse, CFO: “We have continued to manage our financing proactively and used favourable market windows to address our funding requirements across different instruments, maturities and currencies. There is no further material funding need for the remainder of 2026. In the current interest-rate environment, our priorities are clear: protect cash flow, maintain strict capital discipline and continue to strengthen our balance sheet.”

2026 guidance specified, initial 2027 guidance and 2028 objectives revised

On October 28, Vonovia communicated an update on 2026 guidance, an initial 2027 guidance and revised 2028 objectives.

For 2026, Adj. EBITDA Total is expected in the bottom half of the €2.95 billion to €3.05 billion guidance range. Adj. EBT is expected around the low end of the €1.9 billion to €2.0 billion range. Adj. Shareholder Earnings are expected in the upper half of the €1.4 billion to €1.5 billion guidance range.

Organic rent growth for 2026 is now expected at approximately 3.8%, compared to approximately 4% previously, reflecting slightly softer-than-anticipated increases in local rent indices and lower Development-to-Hold volumes. Expected investment volume is adjusted from approximately €1.4 billion to approximately €1.3 billion.

For 2027, Vonovia expects its resilient core operations to support slight growth in Adj. EBITDA Total, with upside potential subject to the timing of disposals. Adj. EBT is expected to be broadly in line with 2026, as continued operating growth is offset primarily by higher financing expenses and lower contributions from Development. Adj. Shareholder Earnings are expected to be broadly in line with 2026. Organic rent growth is expected to be around 4%.

For 2028, Vonovia expects Adj. EBITDA Total at the lower end of the range of €3.2 billion to €3.5 billion, with upside potential subject to the timing of disposals. Organic rent growth is expected to accelerate to around 4.5%.

The more measured outlook reflects a slower ramp-up of the investment program, especially because of lower Development-to-Hold volumes, higher financing costs and more cautious assumptions for the sales-related businesses.

Focused action plan for cash flow and capital allocation

Vonovia will apply stricter return requirements to investment decisions and direct capital toward the most attractive risk-Adj. opportunities in the existing portfolio. New Manage-to-Green investments are being suspended and Development-to-Hold projects scaled back. Development will undergo a strategic review, and Vonovia expects to provide an update with the full-year results.

The year-end 2028 deleveraging targets of Net Debt/Adj. EBITDA below 12x and ICR comfortably above 3x remain unchanged. The LTV target at approximately 40% also remains, but reaching this level already by 2028 will be more demanding given the more cautious near-term outlook for portfolio values.

CFO Philip Grosse decides not to seek extension of current term

Philip Grosse has informed the Supervisory Board of his decision not to seek an extension of his current term as CFO beyond 2027. His early decision provides ample time for Vonovia to arrange the succession and ensure continuity. Vonovia is optimistic to be able to announce the successor shortly. Philip Grosse will continue to serve as CFO with his unchanged responsibilities and full commitment and ensure a seamless transition for his successor.

Clara Streit, Chair of the Supervisory Board of Vonovia SE, said: “We respect Philip’s decision and are very grateful for his great contribution to Vonovia. He has shaped the company’s financial strategy over many years and played a key role in putting the company on a sound financial footing, particularly during a period of profound change in the real estate and capital markets. On behalf of the Supervisory Board, I thank him for his exceptional commitment to the company. Together, we will ensure that the transition is carefully prepared.”

Luka Mucic, CEO of Vonovia: “Philip and I have worked very closely together, and I truly regret his decision. But I respect his wish to open a new professional chapter after many years as CFO. We will continue to tightly collaborate to ensure a smooth transition to his successor in the coming year. But Philip will certainly be missed – not only by me personally but by the Vonovia organization as a whole.”

“After more than ten years as CFO of listed real estate companies, I felt that the end of my current term was the right point in time for me to make a change and start a new professional chapter. It was important for me to communicate this decision early to allow sufficient time for a well-prepared and smooth transition. Until then, my focus and commitment to Vonovia remain unchanged”, said Philip Grosse.

Earnings 9M 2026 9M 2025 Delta (%) €m (unless indicated otherwise) Adj. EBITDA Rental 1,912.2 1,847 3.5 Adj. EBITDA Value-add 197.2 150.1 31.4 Adj. EBITDA Recurring Sales 49.9 56.6 -11.8 Adj. EBITDA Development¹ 28.1 64.4 -56.4 Adj. EBITDA Total 2,187.4 2,118.1 3.3 Adj. Net Financial Result -636.6 -546.4 16.5 Straight-line depreciation -95.7 -85.7 11.7 Intragroup profit (-)/loss (+) -47.1 -26.4 78.4 Adj. Earnings before Taxes (EBT) 1,408.0 1,459.6 -3.5 Adj. Earnings before Taxes (EBT) €/share² 1.66 1.76 -5.9 Tax expenses³ -143.7 -142.3 1.0 Minorities 142.9 116.5 22.7 Adj. Shareholder Earnings 1,121.4 1,200.8 -6.6 Adj. Shareholder Earnings €/share² 1.32 1.45 -8.9

¹ In accordance with current KPI definition including restatements for impairment losses/reversals of impairment losses from development-to-sell projects 9M 2026: -€4.2 million (previous year adjustment 9M 2025: +€3.4 million).
² Based on the weighted average number of shares carrying dividend rights.
³ Relating to the four EBITDA segments.

Cash Flow		9M 2026		9M 2025		Delta (%)
€m (unless indicated otherwise)
Adj. Earnings before Taxes (EBT)1		1,408.0		1,459.6		-3.5
Straight-line depreciation		95.7		85.7		11.7
Change in net working capital Development to Sell / Manage to Green2		-98.1		184.3		-
Carrying amount of sold investment properties (core business)		153.5		233.4		-34.2
Capitalized maintenance		-244.3		-199.0		22.8
Dividends and payouts to non-controlling shareholders (minorities)		-257.1		-175.8		46.2
Income tax payments as per CF statement3		-172.3		-200.0		-13.9
Intragroup profits/losses		47.1		26.4		78.4
Operating Free Cash Flow (OFCF)1		932.5		1,414.6		-34.1
1 In accordance with current KPI definition including restatements for impairment losses/reversals of impairment losses from development-to-sell projects 9M 2026: -€4.2 million (previous year adjustment 9M 2025: +€3.4 million). 2 Adjustment to prior-year figure: the “Change in capital commitment Development to sell” item for 9M 2025 (€ 248.3 million) has been replaced by the “Change in net working capital Development to sell/Manage to Green” item (€ 184.3 million). 3 Relating to the four EBITDA segments.
Other KPIs	9M 2026		9M 2025		Delta
Number of units	527,488		532,558		-1.0%
In-place rent (€/sqm) Vonovia Germany	8.41		8.32		1.1%
In-place rent (€/sqm) Vonovia total	8.57		8.28		3.5%
Organic rent growth	3.8%		4.2%		-0.4pp
Vacancy rate	2.3%		2.2%		0.1pp
EBITDA Operations Margin1	81.4%		80.1%		1.3pp
Number of employees	13,162		12,521		5.1%
	30-Sep-2026		31-Dec-2025		Delta
Fair Value (Real Estate Portfolio, €bn)	85.8		84.4		1.5%
Fair Value (€/sqm)	2,372		2,324		2.1%
EPRA NTA (€/per share)	46.31		46.28		0.1%
LTV2	46.1%		45.4%		0.7pp
ND/EBITDA2	13.9x		13.8x		0.1x
ICR2	3.5x		3.8x		-0.3x
1 German portfolio (Adj. EBITDA Rental + Adj. EBITDA Value-add – intragroup profits) / Rental revenue. 2 9M 2025 comparisons: LTV 45.9%, ND/EBITDA: 14.0x, ICR: 3.8x.

All 9M 2026 documents can be found on our IR website. 

CEO and CFO will host an earnings call for analysts and investors later today at 14:00 CET.

Please use this link to listen to the Earnings Call: Earnings Call 9M 2026 - Listen-Only, a webcast is also available.

Financial Calendar

Feb 18, 2027   Preliminary FY Results 2026
Mar 05, 2027   FY Results 2026
Apr 30, 2027   3M Results 2027
Jun 02, 2027   AGM (Bochum)
Jul 30, 2027   H1 Results 2027
Nov 04, 2027   9M Results 2027

About Vonovia

Vonovia SE is Europe’s leading residential real estate company. With more than 527,000 residential units in Germany, Sweden and Austria, the focus is on letting and developing modern and energy-efficient housing. At an average in-place rent of €8.57/sqm/month (€8.41 in Germany), the company operates in the affordable housing segment. In the first nine months of 2026, Vonovia invested around €950 million in the modernization of its housing portfolio and the construction of new apartments.

Vonovia aims to offer attractive risk-adjusted returns to shareholders, a home with a high quality of living and excellent service to its tenants, and a modern, challenging, and rewarding work environment to its employees.

The Bochum-based company has been listed on the stock exchange since 2013. Since September 2015 Vonovia has been a constituent in the DAX40. Vonovia SE is also a constituent of additional national and international indices, including DAX 50 ESG, DivDax Dow Jones Best-in-Class Europe Index, STOXX Global ESG Leaders, EURO STOXX ESG Leaders 50, FTSE EPRA/NAREIT Developed Europe, and GPR 250 World. Vonovia has a workforce of approximately 13,100 employees.

Disclaimer

This press release has been prepared by Vonovia SE and/or its affiliates (together, “Vonovia”) for information purposes only.

This press release includes statements, estimates, opinions and projections with respect to anticipated future performance of Vonovia ("forward-looking statements") which reflect various assumptions concerning anticipated results taken from Vonovia’s current business plan or from public sources which have not been independently verified or assessed by Vonovia and which may or may not prove to be correct. Any forward-looking statements reflect current expectations based on the current business plan and various other assumptions and involve significant risks and uncertainties. They should not be read as guarantees of future performance or results and will not necessarily be accurate indications of whether or not such results will be achieved. Any forward-looking statements only speak as at the date the press release is provided to the recipient. It is up to the recipient of this press release to make its own assessment of the validity of any forward-looking statements and assumptions and no liability is accepted by Vonovia in respect of the achievement of such forward-looking statements and assumptions.

Vonovia accepts no liability whatsoever to the extent permitted by applicable law for any direct, indirect or consequential loss or penalty arising from any use of this press release, its contents or preparation or otherwise in connection with it.

No representation or warranty (whether express or implied) is given in respect of any information in this press release or that this press release is suitable for the recipient’s purposes. The publication of this press release does not imply that the information herein is correct as at any time subsequent to the date hereof.

Vonovia has no obligation whatsoever to update or revise any of the information, forward-looking statements or the conclusions contained herein or to reflect new events or circumstances or to correct any inaccuracies which may become apparent after the publication of this press release.

This publication may include supplementary financial measures that are not clearly defined in applicable financial reporting frameworks and that may be considered alternative performance measures (non-GAAP measures). These supplemental financial measures should not be viewed in isolation or as alternatives to measures of Vonovia’s net assets and financial positions or results of operations as presented in accordance with the applicable financial reporting framework in its consolidated financial statements. Despite the use of the same or similar terminology, the calculation by other companies that report or describe similarly titled alternative performance measures may vary.