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Portfolio Structure

Portfolio in the Property Management Business

As of December 31, 2021, the Group had a total real estate portfolio comprising 565,334 residential units (2020: 415,688), 168,015 garages and parking spaces (2020: 139,429) and 9,289 commercial units (2020: 6,564). Our locations span 639 cities, towns and municipalities in Germany, Sweden and Austria. 71,173 residential units are also managed for other owners. Most of the properties in the Group’s portfolio are multi-family residences.

In terms of fair value, most of the properties (around 89%) are located in Germany. The Swedish portfolio accounts for around 8% of the fair value, while the share of the Austrian portfolio comes to around 3%. The portfolio is as follows as of December 31, 2021:

Portfolio and Fair Value by Country

Portfolio and Fair Value by Country

Portfolio

Fair value*

Residential units

Living area (in thou. m²)

Vacancy (in %)

(in € million)

(in €/m²)

In-place rent multiplier

Vonovia Germany

353,963

22,103

2.2

54,464.5

2,401

28.0

Vonovia Sweden

38,486

2,749

2.3

7,386.0

2,475

20.6

Vonovia Austria

21,518

1,594

5.3

2,932.5

1,674

26.5

Vonovia without Deutsche Wohnen

413,967

26,445

2.4

64,783.0

2,362

26.9

Deutsche Wohnen

151,367

9,084

1.7

27,628.7

2,894

33.5

  1. * Fair value of the developed land excluding € 5,433.6 million, of which € 636.0 million for undeveloped land and inheritable building rights granted, € 1,194.7 million for assets under construction, € 1,154.4 million for development, € 1,200.1 million for nursing portfolio and € 1,248.4 million for other.

Rent and Rental Growth by Country

Rent and Rental Growth by Country

In-place rent*

Rent increase

Total (p.a. in € million)

Residential (p.a. in € million)

Residential (in €/m²)

Organic (in %)

Market rent forecast valuation (in % p.a.)

Vonovia Germany

1,942

1,863

7.19

3.9

1.6

Vonovia Sweden

358

332

10.31

3.2

2.0

Vonovia Austria

110

89

4.89

2.8

1.7

Vonovia without Deutsche Wohnen

2,411

2,284

7.38

3.8

1.7

Deutsche Wohnen

824

772

7.20

1.2**

1.3

  1. * Shown based on the country-specific definition.
  2. ** Deutsche Wohnen like-for-like definition.

As of December 31, 2021, the Group’s real estate portfolio across Germany comprised 505,330 residential units, 126,200 garages and parking spaces and 6,558 commercial units distributed across 485 cities, towns and municipalities. The total living area amounted to 31,187,503 m², with the average apartment size coming in at around 62 m². With a vacancy rate of 2.1%, an average monthly in-place rent of € 7.19 per m² was generated in Germany. The annualized in-place rent for the residential portfolio as of December 31, 2021, came to € 2,635 million for apartments.

In Sweden, the Group’s real estate portfolio comprised 38,486 residential units spanning a total living area of 2,748,539 m², 24,952 garages and parking spaces and 2,137 commercial units. With a vacancy rate of 2.3%, the residential portfolio generated annualized in-place rent of € 332 million as of December 31, 2021. The apartments, which average 71 m² in size, generate a monthly in-place rent of € 10.31 per m² (inclusive). Most of them are located in the Stockholm, Gothenburg and Malmö regions.

In the Austrian portfolio, which is largely located in Vienna, Vonovia achieved an annualized in-place rent of € 89 million as of December 31, 2021, with a vacancy rate of 5.3% in the residential portfolio, which comprises 21,518 units covering total living space of 1,593,540 m². The monthly in-place rent amounted to € 4.89 per m² with an average apartment size of around 74 m². The portfolio also comprised 16,863 garages and parking spaces and 594 commercial units.

Changes in the Portfolio

In the second half of the year, the takeover of Deutsche Wohnen saw Vonovia acquire a portfolio of 154,717 apartments, mainly in the greater Berlin region and in the Dresden, Leipzig and Frankfurt am Main areas. The portfolio was as follows at the time of the takeover:

Portfolio Deutsche Wohnen at the time of the takeover

In-place rent

Residential units

Living area (in thou. m²)

Vacancy (in %)

Residential (p.a. in € million)

Residential (in €/m²)

Deutsche Wohnen*

154,717

9,303

1.6

782

7.17

  1. * Shown based on the Deutsche Wohnen definition.

In the course of 2021, properties from the portfolio earmarked for sale were also disposed of in several transactions as part of the implementation of the portfolio management strategy. At the time of each transfer of possession, benefits and encumbrances, the statistics for the portfolios sold were as follows:

Disposal portfolios

In-place rent*

Residential units

Living area (in thou. m²)

Vacancy (in %)

Residential (p.a. in € million)

Residential (in €/m²)

Disposal portfolios 2021

696

40.9

11.9

2.3

5.46

  1. * Shown based on the country-specific definition.

After the reporting date, the benefits and encumbrances relating to the majority of the 14,750 apartments from the “Future and Social Pact for Housing” were transferred to municipal housing companies berlinovo, degewo and HOWOGE in early January 2022. In addition to the acquisition and sale of larger housing stocks, Vonovia’s portfolio changed in 2021 as a result of additions arising from tactical acquisitions, the construction of new apartments and attic extensions on the one hand, and disposals of condominiums and multi-family residences from the portfolio earmarked for sale on the other.

Vonovia invests in its strategic holdings in particular in line with its climate path to promote sustainability and in line with its innovation strategy. We act on behalf of neighborhoods with the (new) development of our urban portfolios. Against this backdrop, we split our strategic portfolios into neighborhoods (urban quarters) and solitary properties (urban clusters) to which the options for action available as part of the strategy and business model are applied in an adaptive manner.

Following the implementation of the annual structured reassessment of all potential, as of December 31, 2021, Vonovia’s portfolio is as follows:

Portfolio and Fair Value by Portfolio Cluster

Portfolio and Fair Value by Strategy*

Portfolio

Fair value**

Residential units

Living area (in thou. m²)

Vacancy (in %)

(in € million)

(in €/m²)

Strategic

328,811

20,406

2.1

50,015.8

2,391

Urban Quarters

239,617

14,740

2.2

35,776.6

2,378

Urban Clusters

89,194

5,666

2.0

14,239.3

2,425

Recurring Sales

24,085

1,609

2.9

4,242.0

2,578

Non-core Disposals

1,067

88

12.3

206.6

1,682

Vonovia Germany

353,963

22,103

2.2

54,464.5

2,401

  1. * Excl. assets of Deutsche Wohnen.
  2. ** Fair value of the developed land excluding undeveloped land and inheritable building rights granted, assets under construction, development and other.

Rent and Rental Growth by Portfolio Cluster

Rent and Rental Growth by Strategy*

In-place rent**

Rent increase

Total (p.a. in € million)

Residential (p.a. in € million)

Residential (in €/m²)

Organic (in %)

Strategic

1,791

1,719

7.18

4.0

Urban Quarters

1,267

1,223

7.07

4.0

Urban Clusters

523

496

7.45

4.2

Recurring Sales

142

137

7.29

2.8

Non-core Disposals

9

7

8.12

3.5

Vonovia Germany

1,942

1,863

7.19

3.9

  1. * Excl. assets of Deutsche Wohnen.
  2. ** Shown based on the country-specific definition.

In order to boost transparency in portfolio presentation, we also break our portfolio in Germany down into 15 regional markets. The regional market classification is orientated toward the residential real estate market regions in Germany. These markets are core towns/cities and their surroundings, mainly urban areas. Our decision to focus on the regional markets that are particularly relevant to Vonovia is our way of looking ahead to the future and provides an overview of our strategic core portfolio in Germany.

In relation to the fair value of Vonovia, 93% of our German portfolio excluding Deutsche Wohnen is located in 15 regional markets. Only a small part of our strategic stock is located outside of these 15 markets. We have referred to this group as “Other Strategic Locations” (around 7% of the total fair value). Our stocks earmarked for sale from the “Non-core Disposals” and “Recurring Sales” subportfolios in locations that do not include any strategic stocks are shown as “Non-strategic Locations.” The fact that our portfolio is spread nationwide makes us more independent of the circumstances prevailing on individual regional markets.

As of December 31, 2021, the German portfolio is as follows, broken down into regional markets:

Portfolio and Fair Value by Regional Market

Portfolio and Fair Value by Regional Market*

Portfolio

Fair value**

Residential units

Living area (in thou. m²)

Vacancy (in %)

(in € million)

(in €/m²)

In-place rent multiplier

Berlin

45,838

2,927

1.2

8,964.6

2,962

34.7

Rhine Main Area

27,103

1,731

1.6

5,605.9

3,182

30.1

Southern Ruhr Area

43,012

2,649

2.9

5,267.0

1,958

24.9

Rhineland

28,846

1,933

2.3

4,963.1

2,502

27.2

Dresden

38,461

2,194

3.3

4,656.1

2,032

26.7

Hamburg

19,647

1,241

1.4

3,611.8

2,833

30.9

Kiel

24,404

1,399

2.1

3,005.5

2,076

25.4

Munich

9,681

636

0.9

2,742.7

4,195

39.1

Stuttgart

13,603

854

1.5

2,551.9

2,934

29.2

Hanover

16,137

1,021

2.1

2,392.3

2,299

27.1

Northern Ruhr Area

24,969

1,540

2.8

2,179.9

1,402

19.2

Bremen

11,830

717

2.9

1,484.2

2,018

27.2

Leipzig

8,915

576

2.3

1,229.6

2,025

26.9

Westphalia

9,451

617

2.3

1,173.3

1,879

23.5

Freiburg

4,036

276

1.0

788.7

2,829

29.3

Other Strategic Locations

26,569

1,689

2.7

3,611.2

2,103

24.4

Total Strategic Locations

352,502

21,998

2.2

54,227.9

2,404

28.1

Non-Strategic Locations

1,461

105

5.4

236.6

1,848

24.9

Vonovia Germany

353,963

22,103

2.2

54,464.5

2,401

28.0

  1. * Excl. assets of Deutsche Wohnen.
  2. ** Fair value of the developed land excluding undeveloped land and inheritable building rights granted, assets under construction, development and other.

Rent and Rental Growth by Regional Market

Rent and Rental Growth by Regional Market*

In-place rent**

Rent increase

Total (p.a. in € million)

Residential (p.a. in € million)

Residential (in €/m²)

Organic (in %)

Market rent forecast valuation (in % p.a.)

Berlin

258

245

7.10

8.4

1.8

Rhine Main Area

186

180

8.81

3.1

1.8

Southern Ruhr Area

212

206

6.67

4.1

1.5

Rhineland

183

174

7.70

3.3

1.6

Dresden

175

165

6.46

2.3

1.6

Hamburg

117

112

7.64

2.8

1.6

Kiel

118

113

6.87

4.2

1.6

Munich

70

66

8.76

4.0

1.9

Stuttgart

87

84

8.42

3.4

1.8

Hanover

88

85

7.10

2.5

1.6

Northern Ruhr Area

114

110

6.14

2.4

1.1

Bremen

55

52

6.28

3.1

1.6

Leipzig

46

43

6.38

3.6

1.6

Westphalia

50

49

6.75

3.8

1.5

Freiburg

27

26

7.99

4.1

1.6

Other Strategic Locations

148

143

7.27

3.6

1.5

Total Strategic Locations

1,933

1,855

7.19

3.9

1.6

Non-Strategic Locations

9

8

6.80

2.3

1.5

Vonovia Germany

1,942

1,863

7.19

3.9

1.6

  1. * Excl. assets of Deutsche Wohnen.
  2. ** Shown based on the country-specific definition.