Vonovia SE: S&P Raises Vonovia Rating Outlook to 'Positive'

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S&P Raises Vonovia Rating Outlook to "Positive"

- "BBB+" Rating Confirmed, Outlook Raised from "Stable" to "Positive"

- Improved Assessment Reflects Extremely Stable Capital Allocation and Further Reduction of Risk Through Takeover of Deutsche Wohnen

- Future Upgrades and Portfolio Adjustments Could Lead to Further Rating Improvements

Bochum, Germany, December 21, 2021 - S&P Global Ratings (S&P) has confirmed its "BBB+" rating of Vonovia and raised the outlook from "stable" to "positive." As a result of its successfully placed capital increase in the amount of € 8 billion, Vonovia succeeded in significantly reducing its debt towards the target corridor of 40 to 45 percent just a few weeks after completion of the Deutsche Wohnen takeover. The rating report states that additional reductions in the level of debt are expected as a result of further increases in sales or the value of the property portfolio. This opens up potential for a further improvement in the rating.

"We are delighted with S&P's decision," says CFO Helene von Roeder. "It shows once again that we are pursuing the right financing strategy and implementing it consistently."

Preparations for the integration of Deutsche Wohnen have begun. Beginning in early 2022, Deutsche Wohnen's procedures and organization will be gradually converted to the Vonovia platform, with due regard to the interests of all stakeholders. This process is expected to be finished by early 2023.

About Vonovia

Vonovia SE is Europe's leading private residential real estate company. Vonovia currently owns around 568,000 residential units (Deutsche Wohnen included) in all attractive cities and regions in Germany, Sweden and Austria. It also manages around 71,500 apartments. Its portfolio is worth approximately € 95.4 billion. As a modern service provider, Vonovia focuses on customer orientation and tenant satisfaction. Offering tenants affordable, attractive and livable homes is a prerequisite for the company's successful development. Therefore, 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. Since September 2015 Vonovia has been a constituent in the DAX 30 (today DAX 40) and since September 2020 in the EURO STOXX 50. Vonovia SE is also a constituent of additional national and international indices, including DAX 50 ESG, Dow Jones Sustainability Index Europe, STOXX Global ESG Leaders, EURO STOXX ESG Leaders 50, STOXX Europe ESG Leaders 50, FTSE EPRA/NAREIT Developed Europe, and GPR 250 World. Vonovia has a workforce of more than 16,000 employees (Deutsche Wohnen included).

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: Universitaetsstrasse 133, 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.