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HOWOGE Wohnungsbaugesellschaft mbH confirms its forecast for 2026 following a strong performance in the first half of this year

Berlin, 27^th August 2026. HOWOGE Wohnungsbaugesellschaft mbH has made a successful start to the financial year 2026 and, after the first six months, can confirm its FFO forecast for the whole year. Whereas HOWOGE has achieved growth over the past few years particularly through acquisitions, the state-owned housing company is now focussing on building its own apartments, investing in its existing portfolio and on continuing to develop and optimise its processes. HOWOGE’s positive performance in the first half-year of 2026 demonstrates the benefits of this strategy.

HOWOGE’s managing director Jörg Kotzenbauer: “The first half-year shows that, even in a challenging economic environment, HOWOGE stands on a solid foundation. We are pursuing our strategy at an appropriate tempo and are investing in areas where we can make a long-term contribution for Berlin: in our existing holdings, in new apartments and in efficient structures. Our half-year result is proof of this stability and makes it possible for us to ensure affordable housing in Berlin over the long term.”

Growth and portfolio development

As of 30^th June 2026, HOWOGE owned around 83,300 residential units, approximately 1,170 commercial units and about 19,400 other units.

The number of employees was 1,479. The vacancy rate (calculated on the basis of floor space) was 2.6 per cent. The reason for this higher figure was primarily vacancies caused by construction work as a result of renovation measures and completed new builds. Adjusted to take account of these effects, the vacancy rate as of the reporting date was merely 1.2 per cent. At EUR 7.18 per square metre, the average in-place rent continued to be significantly below market rents in the Berlin housing market.

In the first half-year of 2026, HOWOGE completed 536 new apartments and, in doing so, made an important contribution to the provision of affordable housing in Berlin. As part of Berlin’s school building campaign, the company continued its building work according to plan. Currently, six schools are under construction. In the first half-year, three new-build schools with a total of 1,864 places were completed and handed over to their respective boroughs. By the end of this year, HOWOGE will have completed a further two schools, bringing the total for the year to five. In July, the community comprehensive school in Adlershof, the largest school to date in Berlin’s school building campaign, was completed. And in September, the Heinrich-Hertz grammar school will be handed over to the borough of Friedrichshain-Kreuzberg.

Business development

HOWOGE’s financial performance in the first half-year of 2026 was positive. Rental and lease revenue rose by 2.6 per cent to EUR 230.1 million (H1 2025: EUR 224.2 million) as a result of rent adjustments and the completion of new builds. The adjusted EBITDA rose to EUR 160.8 million (H1 2025: EUR 157.8 million) and was 1.9 per cent above the figure for the previous year.

The FFO (Funds from Operations) figure in the housing segment, taking into consideration cash-effective net interest expenses and taxes on earnings, was EUR 106.3 million and was at the same level as the FFO figure for the corresponding period of the previous year. Following a valuation of the company’s holdings, the Fair Value of HOWOGE’s property portfolio rose by approximately EUR 48 million.

As of 30^th June 2026, the overall value of the portfolio, including undeveloped building plots and school building projects, was EUR 15.2 billion (FY 2025: EUR 14.9 billion). As of the reporting date, the loan-to-value ratio in the housing segment was approximately 31.3 per cent and therefore slightly below the figure as of the end of 2025.

Sound financing and confirmed creditworthiness

HOWOGE continues to have a sound capital structure with a balanced range of loan expiry dates. In 2025, the ratings of the two international rating agencies Standard & Poor’s and Fitch were A and AA- respectively – in each case with a stable outlook. In the first half-year of 2026, Fitch increased its rating to AA+ with a stable outlook. S&P confirmed the A rating recently and raised the outlook to positive. With these rating upgrades, both agencies give particular recognition to the close connection between HOWOGE and the State of Berlin and provide confirmation of the strong creditworthiness of the company.

In the first half-year, HOWOGE signed an unsecured credit facility in the amount of EUR 500 million with the European Investment Bank (EIB). This financing enables HOWOGE to build approximately 3,200 new residential units by 2029 in several Berlin boroughs. At least half of these apartments will be state-subsidised. This financing agreement is the largest by the EIB for housing investment in Germany in the past ten years.

Outlook

Following this successful first half-year, HOWOGE can confirm its forecast for the financial year 2026. Accordingly, an FFO of between EUR 180 and 200 million is anticipated.

About HOWOGE

HOWOGE Wohnungsbaugesellschaft mbH is one of the municipal housing companies belonging to the State of Berlin. With a housing portfolio of approximately 83,300 apartments (as of 30^th June 2026), 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 particularly 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.

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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.