HOWOGE Wohnungsbaugesellschaft mbH: positive development in first half-year of 2025

NOT FOR PUBLICATION, DISTRIBUTION OR FORWARDING, EITHER DIRECTLY OR INDIRECTLY, IN OR TO THE UNITED STATES OF AMERICA, CANADA, AUSTRALIA OR JAPAN OR ANY OTHER JURISDICTION IN WHICH SUCH DISTRIBUTION OR PUBLICATION WOULD BE UNLAWFUL.

HOWOGE Wohnungsbaugesellschaft mbH: positive development in first half-year of 2025

Berlin, 28^th August 2025. HOWOGE Wohnungsbaugesellschaft mbH has started the current financial year with a good operating result in the first half-year and remains on course to achieve the targets it set itself for 2025. Business development in the company’s key areas is solid and is underscored by a positive operational performance. Moreover, following a period of consolidation, real estate values are moving in a positive direction again. As managing director of HOWOGE Ulrich Schiller explains, “During the past few years, we also saw growth in acquisitions. But now we are focussing on our own new-build projects and the targeted further development of our existing holdings. In this way, we are creating the basis for the future-proof development of our portfolio and for sustainable stability.”

As of 30^th June 2025, HOWOGE owned a total of around 82,150 apartments. Compared to the start of the year, its holdings have grown due to new builds by 545 residential units.

Business development

The financial performance of HOWOGE in the first half-year was positive. Rental and lease revenue rose by 11 per cent to EUR 224.2 million (H1 2024: EUR 201.1 million) – due to both scheduled rent adjustments and growth in acquisitions and new builds. The adjusted EBIDTA for the residential segment was EUR 158.6 million (H1 2024: EUR 137.0 million) - an increase of approximately 16 per cent.

Taking into account the cash items net interest expenses and taxes on income, the Funds from Operations (FFO) figure of EUR 106.1 million for the residential segment was at the same level as the figure for the corresponding period of the previous financial year.

The valuation of HOWOGE’s holdings showed an increase in the fair value of the portfolio of around EUR 300 million. The total value of the portfolio, including school buildings and undeveloped plots of land, was approximately EUR 14.5 billion (H1 2024: EUR 13.1 billion) as of 30^th June 2025.

The loan-to-value ratio (LTV) for the residential segment was 31.6 per cent as of the reporting date and has risen slightly compared to the end of 2024. The reason for this is the portfolio acquisitions from the year 2024, which were financed predominantly with debt capital.

HOWOGE has a broadly diversified financing strategy with a balanced range of residual terms for its financial liabilities. Its first-class creditworthiness was once again confirmed by the two international rating agencies Fitch (AA-) and Standard & Poor’s (A), with both agencies attesting to a stable outlook for the company. HOWOGE was able to make use of the stable interest levels in the first half-year to increase its existing social bond by EUR 200 million. As a result, the company’s liquidity requirements are essentially covered for the current financial year.

Growth and portfolio development

As of 30^th June 2025, the portfolio consisted of 82,152 apartments. At 1.7 per cent, the vacancy rate, calculated on the basis of overall floor space, continued to be at a low level. As of the reporting date, the average net cold rent of the apartments was EUR 7.02 per square metre, which means it is significantly below comparable market rents. The moderate increase compared with the previous year results both from the addition of new builds and from rent adjustments that were implemented within the terms of the cooperation agreement with the State of Berlin.

In accordance with its growth strategy, HOWOGE is continuously expanding its holdings by building new housing In the first half-year of this year, it succeeded in completing a total of 545 apartments. As of the reporting date, there were approximately 2,100 residential units under construction.

HOWOGE also plays an active role as a partner in Berlin’s school building campaign. Currently, it is planned to build 26 new schools (of which seven will have a modular design in wood) and to refurbish 11 school campuses. In 2024, two schools with approximately 1,600 places were successfully completed and handed over to the borough of Lichtenberg. This year has seen the completion of two further schools with a total of around 1,600 places. Currently, five schools providing around 4,000 places are under construction.

Investments in climate-friendly holdings

With its climate strategy, HOWOGE is pursuing the goal of systematically decarbonising its holdings. In addition to energy optimization of its buildings, the company is prioritising innovative system technology and the use of low-carbon district heating. For example, in new builds the company employs an electricity-only principle. Currently, 800 apartments are being built that do not need fossil fuels and that rely exclusively on electricity from solar cells, heat pumps and certified green electricity.

A pilot project for climate-friendly refurbishment work in Rhinstraße 2-4 in Berlin-Lichtenberg will be completed in the very near future. Here, a 40-year-old prefabricated building with 296 apartments is being developed into a KfW [Federal Development Bank] Efficiency House with the standard 55 (EE).

The lever of innovative system technology also includes the expansion of solar cells. By 2033, the intention is to have installed solar cells with a capacity of 50 megawatts on the roofs of the company’s holdings. The current solar cell capacity is 8 megawatts.

Outlook

After a successful first half-year, HOWOGE is making good progress towards achieving its forecasts for the financial year 2025. For the entire year, the company continues to anticipate an operating result (FFO) in a range of EUR 180 to 200 million.

About HOWOGE

HOWOGE Wohnungsbaugesellschaft mbH is one of the municipal housing companies owned by the State of Berlin. With a housing portfolio of approximately 82,150 apartments (as of 30^th June 2025), the company is one of Germany’s largest landlords. In the medium to long term, HOWOGE intends to grow its housing portfolio to around 100,000 apartments, in particular through new construction. As part of Berlin’s school building campaign, HOWOGE is also building and carrying out major school refurbishments for the State of Berlin.

“Designing a liveable Berlin of tomorrow – more than just a place to live”

Important notice

This publication is neither an offer to sell nor a solicitation to buy securities.

To the extent that this announcement contains forward-looking statements, such statements do not represent facts and are characterised by the words “expect”, “believe”, “estimate”, “intend”, “aim”, “assume” or similar expressions. Such statements express the intentions, opinions or current expectations and assumptions of HOWOGE Wohnungsbaugesellschaft mbH and are based on current plans, estimates and forecasts which HOWOGE Wohnungsbaugesellschaft mbH has made to the best of its knowledge, but which do not claim to be correct in the future. Forward-looking statements are subject to risks and uncertainties that are difficult to predict and usually cannot be influenced by HOWOGE Wohnungsbaugesellschaft mbH. It should be kept in mind that the actual events or developments may differ materially from those contained in or expressed by such forward-looking statements.