HOWOGE Wohnungsbaugesellschaft mbH publishes its IFRS consolidated annual report for 2025: strong operating result and continued growth

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HOWOGE Wohnungsbaugesellschaft mbH publishes its IFRS consolidated annual report for 2025: strong operating result and continued growth

Berlin, 28^th April 2026. Today, HOWOGE Wohnungsbaugesellschaft mbH published its IFRS consolidated annual report for the financial year 2025. In a market environment that continues to be challenging, the state-owned company was able to achieve a positive group result and to continue its growth trajectory.

As a result of acquisitions and new builds, the company’s holdings grew last year by around 5,700 apartments and, as of 31^st December 2025, had reached approximately 83,000 residential units.

As HOWOGE’s managing director Jörg Kotzenbauer explains, “With around 1,200 new apartments completed in 2025, HOWOGE is one of the most active housing companies in Germany. We intend to continue this growth trajectory in the future as well. Growth requires secure financing more than anything else. And even with our social business model, we have to be able to operate economically and to have flexible access to a variety of financing sources. For this reason, we attach importance not only to classic bank loans and corporate bonds, but also, in a targeted way, to tools like long-term credit facility agreements with multilateral development banks in order to provide reliable safeguards to our investments in affordable housing.”

In the housing segment, taking into account the cash items net interest expenses and income taxes, an FFO (Funds from Operations) of EUR 203.7 million was achieved. The loan-to-value ratio (LTV) for the housing segment was approximately 32 per cent as of 31^st December 2025.

As in the previous year, a comprehensive sustainability chapter is part of the annual report in the group management report. In this chapter, HOWOGE reports on climate change, the circular economy, employees, tenants, its housing estates and governance.

Commercial development in the financial year 2025

The financial year just concluded was commercially successful. Due to the growth in our holdings through acquisitions and new builds, rental and lease revenue rose by 8.6 per cent to EUR 438.7 million. On this basis, it was also possible to increase the adjusted EBITDA (housing) by 11.6 per cent to EUR 306.4 million (2024: EUR 274.6 million).

Taking into account the cash items net interest expenses and income taxes, the FFO for the housing segment was EUR 203.7 million – two per cent below the figure for the previous year. The reason for this fall was an increase in interest expenses.

The consolidated annual result for 2025 was EUR 877.5 million after an annual surplus of EUR 140 million was achieved in 2024. A significant driver here was the market-induced increase arising from the valuation of our holdings.

The LTV for the housing segment was 31.8 per cent as of 31^st December 2025 (2024: 28.7 per cent) and so was significantly below the upper limit of 50 per cent that we have set for ourselves.

“In 2025, HOWOGE’s issuer rating was once again confirmed by the two international rating agencies Standard & Poor’s (A) and Fitch (AA-) – in each case with a stable outlook,” explains Jörg Kotzenbauer. “These ratings show that, in comparison with its peer group, HOWOGE is in excellent financial shape.”

HOWOGE continues to have a long-term-oriented and diversified financing structure to ensure its financial independence and its defensive risk profile. At around 1.9 per cent as of 31^st December 2025, the weighted average interest rate for all of its financial liabilities – without the school building segment – was significantly below current market interest rates. The average residual term for all financial liabilities was around eight years as of the reporting date.

Portfolio development

As of 31^st December 2025, HOWOGE’s holdings consisted of 82,791 residential units. The growth in its holdings resulted mainly from the integration of around 4,500 apartments following the acquisition of PRIMA Wohnbauten Privatisierungs-Management GmbH. In addition, HOWOGE completed eight new-build projects with around 1,200 apartments, which were also integrated into its portfolio. All of this means that the company is currently the largest state-owned housing company in Berlin.

The average net cold rent across all of HOWOGE’s holdings was EUR 7.02 per square metre and, as such, was significantly below the level of market rents in Berlin. In accordance with the cooperation agreement between the state-owned housing companies and the State of Berlin, there were moderate rent increases in HOWOGE’s residential holdings in 2025. With regard to relets, 64.3 per cent of apartments went to households with a certificate of eligibility for social housing. At 2.2 per cent as of 31^st December 2025, the vacancy rate – calculated on the basis of floor space – continued to be at a low level.

Overall, HOWOGE invested around EUR 530 million in maintenance, modernisation and new builds in the financial year 2025. Of this sum, around EUR 107 million went on the repair and refurbishment of the existing portfolio.

In addition, HOWOGE continues to play an active role in Berlin’s school building campaign. Currently, it is planned to build 26 new schools and to refurbish eleven school campuses. In 2025, two schools were completed. For 2026, the completion and handover of five new schools is planned.

Sustainability reporting

For the second successive year, HOWOGE has reported voluntarily in accordance with European Sustainability Reporting Standards (ESRS).

The climate strategy, which was developed in 2023, is a key part of HOWOGE’s sustainability management. The aim is to achieve climate-neutral holdings by 2045. This means that the company’s holdings will emit less than 3 kg of CO₂/sqmper year. In order to achieve this goal, the three levers of energy-efficient refurbishment, innovative systems technology and an increase in green energy in the overall energy mix were identified. The CO₂ emissions in HOWOGE’s holdings are currently 15.08 kg CO₂eq/sqmper year (2024: 15.49 kg CO₂/sqm).

Since as early as the 1990s, HOWOGE has been investing in the energy-efficient refurbishment of its holdings. The proportion of apartments that have been partly or fully modernised since 1990 was 89.1 per cent in the reporting period. The average energy efficiency rating of the portfolio is C, whilst the number of units with energy efficiency ratings of G and H is extremely low.

Since 2021, HOWOGE has also reported in accordance with the EU Taxonomy Regulation and, for the fourth successive year, demonstrates compliance with this regulation in respect of certain economic activities. The key figures have developed positively in comparison to the previous year.

As a state-owned residential property company, HOWOGE focuses not only on climate protection but also on social commitment in its estates. In total, 162 initiatives (2024: 141) and institutions received financial support in 2025.

Outlook

Despite continuing uncertainties in the macroeconomic environment, HOWOGE is assuming that its operating results will develop positively in the financial year 2026. The company’s focus will be on managing and refurbishing its current holdings and on the construction of new apartments. Thanks to its robust capital structure, HOWOGE is in good overall shape. The company anticipates an FFO in the range of EUR 180 to 200 million for the financial year 2026.

About HOWOGE

HOWOGE Wohnungsbaugesellschaft mbH is one of the publicly owned housing companies belonging to the State of Berlin. With a housing portfolio of approximately 83,000 apartments (as of 31^st December 2025), the company is one of the largest landlords in Germany. In the medium to long term, HOWOGE intends to expand its housing portfolio, particularly through new builds, to around 100,000 residential units. As part of the Berlin school building campaign, HOWOGE is also taking on the refurbishment of existing schools and the building of new ones.

“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.