DGAP-News: Vonovia SE / Key word(s): Interim Report Vonovia SE: Results as of March 31, 2018 Vonovia Makes a Strong Start to the Year and Lifts 2018 Forecast (news with additional features) 03.05.2018 / 07:12 The issuer is solely responsible for the content of this announcement. --------------------------------------------------------------------------- Results as of March 31, 2018 Vonovia Makes a Strong Start to the Year and Lifts 2018 Forecast - Operating business grows by 11.6 % in the first quarter of 2018 compared with the same quarter of 2017 - New guidance for 2018 as a whole: Due to successful business development and the integration of BUWOG, FFO 1 will increase to around EUR 1,030 million to EUR 1,050 million - up by around 13 % compared to 2017 - Q1 2018: Construction of a total of 550 new apartments initiated - Recommended public takeover offer announced for Swedish residential property company Bochum, May 3, 2018 - Vonovia SE ("Vonovia") got off to a very good start this year and is lifting its forecast for 2018 as a whole. FFO 1 - the key figure indicating the company's development - grew by 11.6 % to EUR 243.6 million in the first three months (Q1 2017: EUR 218.2 million). FFO 1 per share increased to EUR 0.50 (Q1 2017: EUR 0.47). "Vonovia performed very well in the first quarter. We have made good progress with our investments in our properties and our new construction activities. In addition, our growth is supported by a continued increase in efficiency and favorable refinancing," explained CEO Rolf Buch. Due to the successful business development and the integration of BUWOG, Vonovia is lifting its forecast for 2018 as a whole. FFO 1 will increase by around 13 % as against 2017 to around EUR 1,030 million to EUR 1,050 million. The original forecast came to approximately EUR 960 million to EUR 980 million. In March 2018, Vonovia took over a majority stake in the Austrian company, including 49,000 apartments. Following the investments in Austria, Vonovia now intends to acquire a company in Sweden for the first time: Vonovia has announced a recommended public offer for the Swedish residential property company Victoria Park AB. Victoria Park's Independent Bid Committee has unanimously recommended the Vonovia offer to all shareholders of Victoria Park and the company's management has supported Vonovia's proposal. The business models of both Victoria Park and Vonovia complement each other and provide a solid basis for Vonovia to make a first step into the attractive Swedish market. Victoria Park owns about 14.000 homes in Stockholm, Gothenborg and Malmo. As a result of the acquisition of BUWOG, the portfolio includes around 394,000 units as of March 31, 2018. The portfolio in Austria, comprising 24,000 apartments, is located primarily in Vienna, as well as in the regional centers of Graz, Klagenfurt, Salzburg and Villach. The integration of the company's operational business in Germany is expected to be completed by the end of the year. At the same time, Vonovia sold a total of 1,740 apartments between January and March 2018. The vacancy rate in Vonovia's overall portfolio amounted to 2.8 % as a result of apartment renovations (Q1 2017: 2.7 %). Rents increased by 1.6 % compared to the same quarter last year as a result of the general market development, and by 2.6 % due to property value improvements and new construction. The monthly rent per square meter, taking BUWOG into account, came to EUR 6.18 as of March 31, 2018. Rental income came to EUR 418.3 million (Q1 2017: EUR 417.2 million). The loan-to-value ratio came to 45.5 % in the first quarter of 2018 (Q1 2017: 44.4 %). Profit for the period came to EUR 129.2 million (Q1 2017: EUR 130.7 million). Investment Remains at a High Level - More Employees Recruited Again In the first quarter of 2018, Vonovia continued to invest a considerable amount in properties. The amount spent on new construction, improvements in property value, greater energy efficiency and neighborhood development rose to EUR 137.7 million (Q1 2017: EUR 114.2 million). In addition, EUR 83.4 million (Q1 2017: EUR 77.2 million) was spent on maintenance. "Our new construction program allows us to help improve the housing situation in the cities," says Rolf Buch. Vonovia by far exceeds the current nationwide renovation rate of under one percent. Around 5 % of its existing buildings are renovated every year. These energy-efficient modernization measures allow Vonovia to save approximately 55,000 metric tons of CO2 a year. This is equivalent to the annual heating energy consumption of 15,000 households. Vonovia is increasingly creating living space based on modular construction, which means with a high degree of prefabrication in the factory and short construction times on site. In the first three months of this year, Vonovia submitted building applications for around 400 apartments and extra stories to existing buildings, and started with the construction of 150 apartments in Landsberg, Bremen, Wiesbaden, Frankfurt, Dortmund and Munich. The number of employees (including BUWOG) came to 9,544 as of March 31, 2018 (December 31, 2017: 8,448). 800 caretakers are available every day to act as a point of contact for customers on site, with 600 gardening and landscaping employees responsible for managing the outdoor areas. Annual General Meeting on May 9, 2018 The Management Board and the Supervisory Board will be proposing a dividend of EUR 1.32 per share to the Annual General Meeting on May 9, 2018. The scheduled election of the Supervisory Board will also be held. Jürgen Fitschen, who is to assume the role of Chairman, and Vitus Eckert will be standing for election as new members of the Supervisory Board. In addition, Daniel Riedl will be assuming responsibility for the Austrian business and development as a new member of Vonovia's Management Board after the Annual General Meeting. Interim Statement for the First Quarter of 2018: German: http://reports.vonovia.de/2018/q1/de English: http://reports.vonovia.de/2018/q1/en Media center: https://www.vonovia.de/ueber-vonovia/presse/mediathek Further information can be found in the press section. 2018 Financial Calendar: May 9, 2018: Annual General Meeting August 31, 2018: Interim Financial Report for 2018 December 6, 2018: Interim Statement for the Third Quarter of 2018 Financial Key Figures in EUR million 3M 2017 3M 2018 Rental income 417.2 418.3 Adjusted EBITDA Operations 300.1 315.7 Adjusted EBITDA Rental income 285.6 303.2 Adjusted EBITDA Value-add Business 19.8 17.8 Adjusted EBITDA Other -5.3 -5.3 Adjusted EBITDA Sales 19.1 15.7 Adjusted EBITDA 319.2 331.4 EBITDA IFRS 303.8 299.4 FFO 1 218.2 243.6 Profit for the period 130.7 129.2 Maintenance and modernization 191.4 221.1 thereof for maintenance expenses and 77.2 83.4 capitalized maintenance thereof for modernization (incl. new 114.2 137.7 construction) Key Balance Sheet Figures in EUR million Mar. 31, Mar. 31, 2017 2018 Fair value of the real estate portfolio 29,607.6 38,485.6 Adjusted NAV 14,616.8 18,467.5 Adjusted NAV per share in EUR* 31.18 38.07 LTV in % 44.4 45.5 Non-financial Key Figures 3M 2017 3M 2018 Number of own apartments 355,525 393,639 Number of apartments owned by third-parties 65,674 58,497 Vacancy rate in % 2.7 2.8 Monthly in-place rent in EUR/m² 6.06 6.18 Number of employees (as of Mar. 31/Dec. 31) 8,114 9,544 EPRA Key Figures in EUR million Mar. 31, Mar. 31, 2017 2018 EPRA NAV 17,548.6 21,916.2 EPRA NAV per share in EUR* 37.43 45.18 ** Based on the shares carrying dividend rights on the reporting date: Mar. 31, 2018: 485,100,826, Mar. 31, 2017: 468,796,936 About Vonovia Vonovia SE is Germany's leading nationwide residential real estate company. Vonovia currently owns around 394,000 residential units in all of Germany's attractive cities and regions. Its portfolio is worth approximately EUR 38.5 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 is also creating more and more new apartments by realizing infill developments and adding 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, GPR 250 and EPRA/NAREIT Europe Vonovia has a workforce of approximately 9,500 employees. Additional Information: Approval: Regulated Market/Prime Standard, Frankfurt Stock Exchange ISIN: DE000A1ML7J1 WKN: A1ML7J Common code 094567408 Registered headquarters of Vonovia SE: Bochum, Germany, Bochum Local Court, HRB 16879 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, e.g., 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 exact 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=BGJFLRPPKY Document title: Results as of March 31, 2018 Vonovia Makes a Strong Start to the Year and Lifts 2018 Forecast --------------------------------------------------------------------------- 03.05.2018 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 --------------------------------------------------------------------------- 681893 03.05.2018