The social charter sets out our company's guidelines and principles, which are intended to ensure compliance with social, ecological and sustainable obligations in the context of the investment and management of residential properties.

Social, ecological and sustainable obligations as part of the investment and management of residential real estate
“ d.i.i. Social Charter”
Social, ecological and sustainable obligations as part of the investment and management of residential real estate of d.i.i. Deutsche Invest Immobilien AG / d.i.i. Investment GmbH (capital management company) hereinafter referred to as “ d.i.i. ” .

1 Preamble
dii Deutsche Invest Immobilien AG is an owner-managed company and is based in Wiesbaden d.i.i. d.i.i. d.i.i. acts along the entire value chain: from property purchase through financing, property development and management to the sale of the properties. The company sees itself as a strong asset manager that treats the interests of tenants, buyers and investors in a balanced manner.

The core business of d.i.i. is the development and management of residential real estate portfolios in Germany for private and institutional investors. The d.i.i. strategically focuses on long-term development and sustainable value optimization of the properties.

With the investment and management of residential properties, d.i.i. is aware of the associated social obligation, particularly towards existing tenants, within the legal framework of tenant protection and beyond.

Therefore, the property-related measures planned for the respective development and value optimization of the residential complexes (commercial and structural) should be applied in such a way that the social concerns of existing tenants are not negatively affected.

The primary goals are to reduce operating costs, sustainably reduce any vacancies and develop the properties to generate stable rental income at market level. Particularly in collaboration with municipalities and cities, it should be possible to create sustainably attractive residential areas for the respective target groups and to manage them in a targeted manner.

In addition, d.i.i. is also aware of the challenges that are becoming visible in the wake of social and demographic changes in Germany. Due to the increasing aging and internationalization of society, as a large provider of living space we need to be sensitive in dealing with all of our tenants. Attention is also paid to ecological and sustainable aspects, which are ensured by our own construction and project department as part of the modernization of existing buildings and new construction activities.

To ensure that this claim becomes binding, this Social Charter shows corresponding guidelines and principles that are intended to ensure compliance with social, ecological and sustainable obligations in the context of the investment and management of residential real estate.

2 Social responsibility
dii is aware of its social responsibility and therefore guarantees its tenants protection that goes well beyond the legal regulations d.i.i.

2.1 Special protection and comfort for older and physically disadvantaged people
We offer our existing tenants who have reached the age of 70 or who can prove a physical disability a lifelong housing guarantee and extended protection against termination.

The d.i.i. defines a lifetime housing guarantee as follows:

– Taking the financial situation into account (in the case of rent increases up to a complete waiver of a rent increase)
– Extended protection against termination (up to arrears of payments amounting to 4 times the net basic rent)
– Conclusion of an installment payment agreement for a period of up to 24 months
– Possibility of moving to a Renovated apartment suitable for the elderly/disabled, if one is available
- If there are rent increases during the tenant's period of residence, cases of hardship will be assessed individually in close dialogue with the affected tenants. In the above-mentioned cases d.i.i. therefore guarantees that it will examine the rent increase and hold negotiations with the affected tenants about an economically viable solution with the aim of making it possible for them to remain in the residential complex.

In order to enable tenants to remain in the residential complex in such cases of hardship, d.i.i. will offer tenants the following options:

– Staggering the rent increase over several years or

– Internal move to a smaller apartment, if desired by the tenant, in order to reduce the total monthly burden (provided that smaller apartments are available and vacant at the time of the justified assertion of hardship) or

– Partial waiver of the rent increase if the other options are not feasible. The prerequisite for this, however, is that if dii offers to move to a smaller apartment, the d.i.i. provides objective and legitimate reasons and, upon request, proves why this would not be reasonable for him. The only criteria for this are the occupancy rate in the apartment or physical impairments.

The d.i.i. is particularly aware of the challenges of demographic change. It therefore aims to enable the aging population to live a self-determined life in their own homes. The d.i.i. therefore strives to continuously increase the proportion of barrier-free and age-appropriate apartments through investments in the renovation of vacant properties. With regard to the barrier-free accessibility of the house entrance area or the outdoor areas, sensible and economically viable investments are made in structural measures after appropriate examination.

As part of modernization measures, barrier-free living space, usually on the ground floor, is created wherever it is technically possible and economically sensible. In buildings that have elevator systems or in which installation is technically possible and economically justifiable, at least one barrier-free access is planned. In new multi-story apartment building projects, the apartments should, where possible, be designed to be barrier-free.

2.2 Special protection for low-income people
The d.i.i. strives to demonstrate a share of 10% in the residential complexes - does not apply to residential complexes with fewer than 50 residential units - of the tenant group SGB II transfer benefit recipients.

It also applies to all low-income people that individual cases of hardship are assessed in close dialogue with the affected tenants. In the above-mentioned cases, d.i.i. therefore guarantees that it will examine the rent increase and hold negotiations with the affected tenants about an economically feasible and affordable solution with the aim of making it possible for them to remain in the residential complex.

In order to enable tenants to remain in the residential complex in such cases of hardship, d.i.i. will offer tenants the following options:

– Staggering the rent increase over several years or

– Internal move to a smaller apartment, if desired by the tenant, in order to reduce the total monthly burden (provided that smaller apartments are available and vacant at the time of the justified assertion of hardship) or

– Partial waiver of the rent increase if the other options are not feasible. The prerequisite for this, however, is that if dii offers to move to a smaller apartment, the d.i.i. provides objective and legitimate reasons and, upon request, proves why this is unreasonable for him. The only criteria for this are the occupancy rate in the apartment or physical impairments.

2.3 Prevention of housing losses/housing emergencies
Through appropriate measures by d.i.i. , in cooperation and close coordination with the responsible property management companies, housing emergencies and housing losses (eviction proceedings as a result of rent arrears) should be avoided or reduced.

As part of its social responsibility, d.i.i. uses its own efforts to ensure that eviction proceedings are avoided as far as possible. In the event of rent arrears, the d.i.i. contacts affected tenants at an early stage and offers advice and support with the aim of preventing an increase in rent arrears and achieving repayment. It is prepared to make installment payment agreements within the scope of economic possibilities. The d.i.i. is prepared to forego eviction of the apartment in coordination with the respective city administration, even if the eviction title is available, as long as the arrears are settled.

2.4 Moderate handling of modernization-related rent increases
The d.i.i. always strives to compensate for corresponding rent increases in the net basic rent in a value-neutral manner for the tenants through active additional cost management and thus reduction of additional cost advance payments. Since this is not always possible in some cases and due to the drastic increase in energy, supply and disposal costs, dii makes the d.i.i. regulations beyond the legal framework:

The tenant's apportionable share of a modernization-related rent increase (according to BGB §559 ff) is limited to a maximum increase in the net rent to €1.80/m² for a period of 3 years.

2.5 Active additional cost management
Through our close cooperation with the responsible property managers of our residential complexes and current and comprehensive analyzes of the energy market, we continuously achieve cost savings, which primarily benefits our tenants.

Among other things, through these measures:

– We regularly carry out energy optimization and, for example, renew heating systems, windows, facades and ceiling and basement insulation

– The contracts with supply/disposal/energy service providers are reviewed at regular intervals and renegotiated if necessary. This primarily includes framework agreements for gas, oil, district heating and electricity. But the caretaker, maintenance and cleaning contracts are also continually analyzed, compared and – if necessary – re-ordered.

– Another effective tool for reducing operating costs is our benchmarking: With the help of a comparative analysis with other residential complexes and by comparing them with the operating cost figures of the respective state and federal government, we make cost drivers visible and quickly replace them with cheaper providers.

– Regular communication with our property managers is an important element of our quality management and ensures that our measures are enforced on site.

2.6 Commitment to transparent communication
The d.i.i. undertakes to inform the respective municipality or city in a timely manner about the purchase of apartments and the underlying strategy and to be available to meet the administration's requests for discussions, should this be possible as part of the investment.

After the transfer of benefits and burdens, d.i.i. informs the existing tenants in writing of the change of ownership with a tenant welcome letter within 5 working days.

If there is a need or the situation requires it, the d.i.i. or the appointed local property management company will invite the existing tenants of the respective residential complex to an information event within a reasonable period of time after the transfer of benefits and burdens in order to introduce themselves and to answer any questions the tenants may have to stand.

2.7 Sustainable neighborhood development
Good living is not just limited to your own four walls. The respective living environment in the community and in the neighborhood also has a decisive influence on the quality of living, safety and quality of life of the residents. The aim of social urban development is therefore not only to create sufficient housing stock that is suitable for different living situations, but also to strengthen neighborhoods, promote coexistence between different population groups and prevent socio-spatial segregation. The key to this is the establishment and consolidation of neighborhood work, which d.i.i. would like to expand in the future.

In particular, when new rentals are made, attention is paid to a healthy mix of tenants in the residential complexes. For d.i.i. , a healthy tenant mix means creating socially balanced rental and resident structures.

3 Ecological and sustainable responsibility
3.1 Exclusion of luxury modernizations
When residential complexes are extensively modernized, drastic rent increases are often feared. d.i.i. so-called luxury renovations in its residential complexes. d.i.i. creates a more comfortable and attractive home.

The standard of renovation or modernization should be based on the conditions in the surrounding area. Apartments are primarily renovated after a tenant moves out.

When planning measures, care must be taken to ensure that the rent corresponds at most to a market level, ie the rent level of apartments in the surrounding area that have a similar standard of equipment.

3.2 Carrying out energy-related modernizations in accordance with ENEV
The aim of d.i.i. is to improve the quality of living for tenants and to significantly reduce tenants' additional costs through modernization and renovation measures. In the optimal case, this increases the quality of life while the rent without heating remains the same, as the increase in rent without heating is compensated for by the reduction in additional costs.

Professional energy modernization in our residential complexes is always carried out in accordance with the legally applicable provisions of the ENEV – Energy Saving Ordinance.

3.3 Avoidance of vacancies and reduction of vacancy times
Many apartments that are empty over a longer period of time have knock-on effects. On the one hand, vacancies are a cost factor because no rental income is generated, but there are still management costs. On the other hand, if there is a high vacancy rate, there is a risk of the image deteriorating and the attractiveness of the respective residential complex being reduced.

The aim is therefore to avoid or reduce vacancies and shorten vacant periods. d.i.i. therefore always strives primarily to keep its tenants in the apartments for the long term. However, if there is a termination and a vacancy occurs, apartments will be re-let as soon as possible or repaired by the internal construction department with the shortest possible renovation times (usually 6 weeks). In this way, d.i.i. ensures that renovated living space is brought back onto the market as quickly as possible.

3.4 Creation of new living space through densification
Against the background of the shortage of apartments, especially in central locations, dii is examining d.i.i. possibility of creating additional living space in its residential complexes by adding floors to existing buildings or densifying the neighborhoods. This is done in close coordination with the municipal planning offices and with the greatest possible consideration of the interests of the existing tenants. In this way, additional living space with a high urban planning and architectural quality can be created in tense locations and the growing urban sprawl in the landscape can be kept within limits.

4 Scope of the social charter
The d.i.i. applies to all residential complexes acquired and under management.

With the sale of a property, d.i.i. 's obligation to comply with the regulations for the specific residential complex ends.

The buyer is strongly recommended to continue to apply the regulations of this social charter in the future.