Vonovia (VNA) Investor Day 2025 Presentation summary

Strategic ambitions and market context

• Aims to create sustainable, affordable living through timber-based, digitally enabled, and efficient construction methods.

• Focuses on addressing Germany's significant housing supply-demand gap, with a pipeline concentrated in high-demand metropolitan areas.

• Serial and modular construction is positioned as a solution to reduce costs, accelerate delivery, and meet urban housing needs.

• Non-rental business segments are targeted as key growth drivers, with a 2028 objective of €3.2–3.5bn adjusted EBITDA, including €0.5–0.7bn from non-rental activities.

• Growth strategy is embedded in a 5- and 10-year business plan, with initiatives approved by the management and supervisory boards.

Operational initiatives and cost optimization

• End-to-end digital value chain includes AI-driven planning, automated manufacturing, and platform-based building operations for efficiency and quality.

• Serial modernization leverages industrial prefabrication, focusing on all-in-one façades to accelerate scaling and reduce costs.

• Design-to-budget concepts, standardized building permits, and serial construction methods are implemented to lower construction costs to around €3,600/sqm, enabling affordable rents.

• Cost savings of up to 50% are targeted through scaling and design-to-cost measures, with a competitive price corridor of €450–550/sqm for façade modernization.

• Modernization-related rent increases are offset by significant reductions in heating costs, keeping effective rent increases low.

Sustainability and innovation

• Current building system reduces embodied carbon by approximately 31% compared to conventional reference buildings.

• Serial modernization and the Heat Pump Cube initiative support the goal of a climate-neutral real estate portfolio by 2045.

• Heat Pump Cube standardizes and industrializes the heating transition, enabling faster, cost-efficient, and scalable decarbonization of heating systems.

• Pilot projects demonstrate technical readiness, with the Donauwörth project showing reduced tenant heating costs and operational reliability after one year.

• 30% of the portfolio is in scope for heat pump cubes by 2045, with pilot rollouts planned for 2026/2027.