DGAP-News: Vonovia SE / Key word(s): Final Results/Real Estate Vonovia SE: 2016 Fiscal Year Launch of Investment Program Running into the Billion-Euro Range - Successful Operating Business to Form the Basis for Further Dynamic Growth (news with additional features) 07.03.2017 / 07:00 The issuer is solely responsible for the content of this announcement. --------------------------------------------------------------------------- 2016 Fiscal Year Launch of Investment Program Running into the Billion-Euro Range - Successful Operating Business to Form the Basis for Further Dynamic Growth Portfolio Strategy and Services Open Up Additional Growth Prospects - Better-quality customer service; satisfaction levels up for the third year running - Series construction new builds create affordable apartments - Presence expanded in dynamic growth regions - Takeover of conwert Immobilien Invest SE successful Organic Growth Drives the Successful 2016 Fiscal Year - Vacancy rate reduced further to 2.4 % (2015: 2.7 %) - FFO 1 increased to EUR 760.8 million (2015: EUR 608.0 million); FFO 1 per share increased to EUR 1.63 (2015: EUR 1.30) - Dividend proposal reflects solid dividend yield of 3.6 %. - Growth in EPRA NAV per share to EUR 36.58 (2015: EUR 30.02) Positive Forecast for 2017 Confirmed - FFO 1 to rise to around EUR 830 million to EUR 850 million. Around EUR 60 million in FFO 1 contribution expected from acquisition of conwert. - In the years ahead, record investments of EUR 1 billion per year are planned for new properties and portfolio improvements. Bochum, March 7, 2017 - Vonovia SE ("Vonovia") continued to show dynamic growth in the 2016 fiscal year. Based on its exceptionally successful development, the company is planning investments running into the billion- euro range for new construction, neighborhood development and portfolio improvements in 2017. CEO Rolf Buch: "In the last year, we managed to make our property management processes even more efficient. At the same time, our investments in modernization and new construction and our active portfolio management approach are bearing fruit. Today, our properties are located almost exclusively in regions with very positive development prospects." As a result of the successful business development, the Management Board and the Supervisory Board will propose the distribution of a dividend of EUR 1.12 per share (2015: EUR 0.94) to the Annual General Meeting. This corresponds to an attractive dividend yield of 3.6 %, based on the closing share price in 2016. Rolf Buch, whose contract was extended by the Supervisory Board until February 2023 only yesterday, said: "Our dividend policy focuses on the long term, but also reflects our firm belief that we will continue on our successful trajectory." Organic Growth Drives the 2016 Fiscal Year FFO 1 - the operating result - rose in 2016 to EUR 760.8 million (previous year: EUR 608.0 million). This works out at an FFO 1 per share of EUR 1.63. The company increased its EPRA NAV - real estate assets without liabilities - to more than EUR 17 billion, pushing the EPRA NAV per share up to EUR 36.58. At EUR 30.75, the adjusted NAV per share - excluding goodwill from acquisitions - was up by EUR 6.56 on the prior-year value. The increase in EPRA NAV was due primarily to the effect of adjusted property values in the amount of around EUR 3.2 billion (2015: EUR 1.3 billion). The vacancy rate fell by 0.3 percentage points in comparison with the reporting date for the prior period and was at a very low level of 2.4 % on December 31, 2016. Due to market rent performance, there was a moderate increase in rents of 1.5 %. An additional increase of 1.8 % in rental income came from property value improvements. Adjusted EBITDA Rental rose from EUR 924.4 million in the 2015 fiscal year to EUR 1,046.2 million in 2016. Portfolio Strategy and Services Open Up Additional Growth Prospects The takeover of conwert Immobilien Invest SE will see the property portfolio increase by approximately 24,500 apartments, the majority of which are located in prosperous locations such as Berlin, Potsdam, Leipzig and Dresden. The full integration of the company will be a swift process that should be completed by July 2017. At the same time, Vonovia sold around 24,000 apartments in other areas that are expected to show below-average development in the medium and long term in 2016. As a result, adjusted EBITDA Sales rose by 30.1 % to EUR 92.5 million in 2016. Vonovia to Invest in New Construction and Continue with Targeted Neighborhood Development Measures The housing policy environment in Germany is still being defined by the debate on how to resolve the shortage of housing. Vonovia is working intensively on densification and new construction measures and has launched ambitious projects to create new, and most importantly affordable, apartments. The first lot of new buildings and measures to add extra stories to existing buildings using modular construction methods were completed in 2016. In Bochum, the first series-built residential unit with a modular construction has already been rented out. Turnkey apartments with construction costs of around EUR 1,800/sqm were completed in only three months. Vonovia has already invested more than EUR 1 billion in its neighborhoods since it went public. During the reporting period, Vonovia invested a total of EUR 472.3 million (2015: EUR 355.6 million) in modernization measures and new construction. Rolf Buch: "In the Eltingviertel area in Essen, we have demonstrated that we can work together with the city authorities to make entire neighborhoods attractive and livable again. We integrate economic, ecological and social considerations into our business decisions. Similar neighborhood development projects have been initiated in other regions, for example Hamburg, Dortmund, Bielefeld, Berlin, Dresden, Munich and Frankfurt." Vonovia Increases Quality of Customer Service Customer satisfaction levels, which Vonovia assesses on a regular basis, improved considerably in 2016. The relevant parameter, the CSI, climbed by 8 %. This is largely the result of good on-site support and the expansion of the central customer service team and service hours. In 2016, the number of employees working for Vonovia overall increased by around 17 % to total 7,437 employees. Around 1,000 employees working for the customer service team in Duisburg and Dresden now resolve around 85 % of all incoming telephone inquiries directly. Vonovia is expanding its core business to include housing-related services. At the end of 2016, around 75 % of Vonovia's own properties were already being supplied with cable TV signals. Vonovia was also recording and billing heating costs for around 30,000 apartments with the help of state- of-the-art technologies. With earnings of EUR 57.0 million, these and many other services are making a contribution to Vonovia's overall success. Stable Financing Strategy and Positive Share Price Performance Thanks to its BBB+ rating, Vonovia is able to cover even more considerable liquidity needs at any time. With a debt-equity ratio of only 41.6 %, an average maturity of around seven years and average financing costs that currently come to 2.1 % (2015: 2.6 %), Vonovia's financing situation is solid in the long term. The capital market was characterized by low interest rates in 2016. The company's shares fared well in a political and economic environment that was marred by turbulence across the globe. Over the course of the year, the share price rose by 8.2 %, outperforming the DAX by 1.3 percentage points. This confirms that, with its stable business model, Vonovia is seen as a reliable player by stock market investors. Positive Forecast for 2017 Confirmed Rolf Buch: "Our excellent operating business will form the basis for further dynamic growth and the expansion of our services. We will also be increasing the amount we reinvest in the sustainable management of our portfolio and the development of our neighborhoods even further." At the beginning of the year, the company launched its investment program in the billion-euro range. Vonovia will be spending a record amount of around EUR 730 million in 2017. The focus will remain on energy-efficient modernizations, the refurbishment of apartments to improve the standard of comfort, and on senior-friendly conversions. The company will also be making increasing investments in the construction of new apartments, the addition of stories to existing properties and in programs such as modernization in response to tenant requests and the development of residential districts. In the following years as well, Vonovia is planning record investments of EUR 1 billion per year for new properties and portfolio improvements. FFO 1 is expected to increase to EUR 830 million to EUR 850 million. Around EUR 60 million additional FFO 1 contribution are expected from the acquisition of conwert. 2016 Annual Report: reports.vonovia.de/2016/geschaeftsbericht/index.html Media center: https://www.vonovia.de/mediathek Live-Stream: www.vonovia.de/bilanz < /b>

in EUR million
Key Financial                      2016               2015           Change
Figures                                                                in %
0
Rental Income from              1,538.1            1,414.6              8.7
Property Management
Adjusted EBITDA                 1,046.2              924.4             13.2
Rental*
Adjusted EBITDA                    57.0               37.6             51.6
Extension
Adjusted EBITDA                    92.5               71.1             30.1
Sales
Adjusted EBITDA*                1,186.5            1,028.7             15.3
FFO 1                             760.8              608.0             25.1
FFO 2                             823.8              662.1             24.4
FFO 1 per share in                 1.63               1.30             25.1
EUR**
Profit for the                  2,512.9              994.7            152.6
period
Spending on                       792.4              686.3             15.5
maintenance and
modernization
thereof maintenance               320.1              330.7             -3.2
expenses and
capitalized
maintenance
thereof                           472.3              355.6             32.8
modernization

in EUR million
Key Balance Sheet         Dec. 31, 2016      Dec. 31, 2015           Change
Figures                                                                in %
Fair value of the              27,115.6           24,157.7             12.2
real estate
portfolio
Adjusted NAV                   14,328.2           11,273.5             27.1
Adjusted NAV per                  30.75              24.19             27.1
share in EUR**
EPRA NAV                       17,047.1           13,988.2             21.9
EPRA NAV per share                36.58              30.02             21.9
in EUR**
LTV in %***                        41.6               46.9          -5.3 pp


Key Non-Financial                  2016               2015           Change
Figures                                                                in %
Number of units                 392,350            397,799             -1.4
managed
thereof own                     333,381            357,117             -6.6
apartments
thereof apartments               58,969             40,682             45.0
owned by others
Number of units                   2,815            168,632            -98.3
bought
Number of units sold             26,631             15,174             75.5
thereof Privatize                 2,701              2,979             -9.3
thereof Non-Core                 23,930             12,195             96.2
Vacancy rate in %                   2.4                2.7          -0.3 pp
Number of employees               7,437              6,368             16.8
(as of December 31)

* Exclusion of financial income from investments in other real estate companies from adjusted EBIDTA, correction of EUR 0.4 million to the value for 2015. New allocation relating to FFO interest. ** Based on the shares carrying dividend rights on the reporting date Dec. 31, 2016: 466,000,624; Dec. 31, 2015: 466,000,624 *** Value as of Dec. 31, 2015, adjusted: full disclosure of outstanding purchase price payments from sales and separate disclosure of investments in the adjusted fair value ****Incl. GAGFAH, Franconia, SÜDEWO 2017 Financial Calendar May 16, 2017: Annual General Meeting May 24, 2017: Interim Report for the first three months of 2017 August 2, 2017: Interim Report for the first six months of 2017 November 8, 2017: Interim Report for the first nine months of 2017 About Vonovia Vonovia SE is Germany's leading nationwide residential real estate company. Vonovia currently owns and manages around 392,000 residential units in all of Germany's attractive cities and regions. Its portfolio is worth more than EUR 27 billion. As a modern service company, Vonovia focuses on customer orientation and tenant satisfaction. Offering tenants affordable, attractive and livable homes is a prerequisite for the company's successful development. Accordingly, Vonovia makes long-term investments in the maintenance, modernization and senior-friendly conversion of its properties. The company will also be creating more and more new apartments by realizing infill developments and adding on to existing buildings. The company, which is based in Bochum, has been listed on the stock exchange since 2013 and on the DAX 30 since September 2015. Vonovia SE is also listed on the international indices STOXX Europe 600, MSCI Germany, MSCI Germany, GPR 250 and EPRA/NAREIT Europe. Vonovia has a workforce of approximately 7,400 employees. Additional Information: Approval: Regulated Market/Prime Standard, Frankfurt Stock Exchange ISIN: DE000A1ML7J1 WKN: A1ML7J Common code: 094567408 Registered headquarters of Vonovia SE: Düsseldorf, Germany; Düsseldorf Local Court, HRB 68115 Business address of Vonovia SE: Philippstrasse 3, 44803 Bochum, Germany This press release has been issued by Vonovia SE and/or its subsidiaries solely for information purposes. This press release may contain statements, assumptions, opinions and predictions about the anticipated future development of Vonovia ("forward-looking statements") that reproduce various assumptions regarding results derived from Vonovia's current business or from publicly available sources that have not been subject to an independent audit or in-depth evaluation by Vonovia and that may turn out to be incorrect at a later stage. All forward-looking statements express current expectations based on the current business plan and various other assumptions and therefore come with risks and uncertainties that are not insignificant. All forward-looking statements should not therefore be taken as a guarantee for future performance or results and, furthermore, do not necessarily constitute appropriate indicators that the forecast results will be achieved. All forward-looking statements relate solely to the day on which this press release was issued to its recipients. It is the responsibility of the recipients of this press release to conduct a more detailed analysis of the validity of forward-looking statements and the underlying assumptions. Vonovia accepts no responsibility for any direct or indirect damages or losses or subsequent damages or losses, as well as penalties that the recipients may incur by using the press release, its contents and, in particular, all forward-looking statements or in any other way, as far as this is legally permissible. Vonovia does not provide any guarantees or assurances (either explicitly or implicitly) in respect of the information contained in this press release. Vonovia is not obliged to update or correct the information, forward-looking statements or conclusions drawn in this press release or to include subsequent events or circumstances or to report inaccuracies that become known after the date of this press release. --------------------------------------------------------------------------- Additional features: Document: http://n.eqs.com/c/fncls.ssp?u=PTVQEMCUJK Document title: Successful Operating Business in 2016 to Form the Basis for Further Dynamic Growth_PI Vonovia 170307 --------------------------------------------------------------------------- 07.03.2017 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG. The issuer is solely responsible for the content of this announcement. The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Archive at www.dgap.de --------------------------------------------------------------------------- Language: English Company: Vonovia SE Universitätsstraße 133 44803 Bochum Germany Phone: +49 234 314 1609 Fax: +49 234 314 2995 E-mail: [email protected] Internet: www.vonovia.de ISIN: DE000A1ML7J1 WKN: A1ML7J Indices: DAX Listed: Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover, Munich, Stuttgart, Tradegate Exchange End of News DGAP News Service --------------------------------------------------------------------------- 550917 07.03.2017