EPRA NAV Key Figures
The EPRA NAV key figures make adjustments based on the IFRS equity to provide stakeholders with information that is as clear as possible on the fair value of a real estate company’s assets and liabilities in various scenarios.
The EPRA Net Reinstatement Value (NRV) is calculated based on the assumption that residential properties are never sold. It represents the asset value that would be required to rebuild the company from scratch. The equity attributable to Vonovia’s shareholders is adjusted by the deferred taxes in relation to fair value gains of investment properties and the fair value of derivatifve financial instruments after taking deferred taxes into account. The fair value of intangible assets is also added. At Vonovia, this refers to the additional value of the Value-add and Development segments, which is calculated in an appraisal that is updated every year. In addition, the real estate transfer tax and other purchasers’ costs, deducted as part of the property valuation process, are added back.
The EPRA NTA (Net Tangible Assets) is calculated based on the assumption that properties are purchased and sold. This means that part of the deferred taxes on the real estate assets is inevitably realized as a result of the sale process. At Vonovia, the Recurring Sales and Non-core Disposals portfolio clusters, as well as the portfolio in Austria, are not to be allocated to the real estate portfolio that is held in the long term. The deferred taxes on these portfolios are calculated in proportion to the fair values and reduce the total deferred taxes recognized. Similarly, the real estate transfer tax and other purchasers’ costs for these portfolios are calculated and taken into account without any value-enhancing effect. As the Deutsche Wohnen properties still have to be allocated to the portfolio clusters, 50% of the deferred taxes are recognized, with real estate transfer tax and other purchasers’ costs being recognized in full. The fair value of derivative financial instruments, after taking deferred taxes into account, is adjusted and the intangible assets (goodwill and other intangible assets) are eliminated in full.
The EPRA Net Disposal Value (NDV) determines the value of the equity in a sale scenario. The fair values of the deferred taxes and financing instruments are realized as in IFRS equity. Goodwill is eliminated and the fixed-interest financial liabilities are stated at fair value, taking the resulting tax effects into account.
The tables below show the NAV key figures as of December 31, 2021 and the corresponding prior year.
EPRA NAV – Fiscal year
Dec. 31, 2021 (in € million) | EPRA NRV | EPRA NTA | EPRA NDV | ||||
IFRS equity attributable to Vonovia shareholders | 33,287.1 | 33,287.1 | 33,287.1 | ||||
Deferred tax in relation to fair value gains of IP | 20,053.3 | 15,498.3 | – | ||||
Fair value of financial instruments* | 28.6 | 28.6 | – | ||||
Goodwill as per the IFRS balance sheet | – | -2,766.5 | -2,766.5 | ||||
Intangibles as per the IFRS balance sheet | – | -238.8 | – | ||||
Fair value of fixed interest rate debt | – | – | -365.2 | ||||
Revaluation of intangibles to fair value | 4,336.0 | – | – | ||||
Real estate transfer tax | 6,511.1 | 6,017.4 | – | ||||
NAV | 64,216.1 | 51,826.1 | 30,155.4 | ||||
Fully diluted number of shares (millions) | 776.6 | 776.6 | 776.6 | ||||
NAV per share (in €) | 82.69 | 66.73 | 38.83 | ||||
- * Adjusted for effects from cross currency swaps.
EPRA NAV – Previous year
Dec. 31, 2020 (in € million) | EPRA NRV | EPRA NTA | EPRA NDV | |||
IFRS equity attributable to Vonovia shareholders | 23,143.9 | 23,143.9 | 23,143.9 | |||
Deferred tax in relation to fair value gains of IP | 11,947.7 | 10,466.7 | – | |||
Fair value of financial instruments* | 54.9 | 54.9 | – | |||
Goodwill as per the IFRS balance sheet | – | -1,494.7 | -1,494.7 | |||
Intangibles as per the IFRS balance sheet | – | -117.0 | – | |||
Fair value of fixed interest rate debt | – | – | -1,105.8 | |||
Revaluation of intangibles to fair value | 4,610.0 | – | – | |||
Real estate transfer tax | 3,920.8 | 3,434.8 | – | |||
NAV | 43,677.3 | 35,488.6 | 20,543.4 | |||
Fully diluted number of shares (millions) | 603.8 | 603.8 | 603.8 | |||
NAV per share (in €)** | 72.34 | 58.78 | 34.02 | |||
- * Adjusted for effects from cross currency swaps.
- ** TERP-adjusted (TERP factor 1.067).