Reconciliations
The financial result changed from € -435.5 million in 2020 to € -554.9 million in 2021. This was driven primarily by transaction costs in the amount of € -119.2 million, mainly in connection with the takeover of Deutsche Wohnen in 2021.
FFO interest expense is derived from the financial result as follows:
Reconciliation of Financial Result – FFO Interest Expense
Reconciliation of Financial Result/FFO Interest Expense | ||||||
in € million | 2020 | 2021 | Change in % | |||
Interest income | 21.9 | 21.5 | -1.8 | |||
Interest expense | -411.4 | -411.6 | 0.0 | |||
Other financial result excluding income from investments | -46.0 | -164.8 | >100 | |||
Financial result* | -435.5 | -554.9 | 27.4 | |||
Adjustments: | ||||||
Other financial result excluding income from investments | 46.0 | 164.8 | >100 | |||
Effects from the valuation of interest rate and currency derivatives | 42.4 | -20.4 | – | |||
Prepayment penalties and commitment interest | 6.2 | 22.7 | >100 | |||
Effects from the valuation of non-derivative financial instruments | -48.6 | -43.3 | -10.9 | |||
Interest accretion to provisions | 6.2 | 9.8 | 58.1 | |||
Interest income from bond issue | -11.9 | – | -100.0 | |||
Accrued interest/other effects | -6.0 | 30.9 | – | |||
Net cash interest | -401.2 | -390.4 | -2.7 | |||
Adjustment for IFRS 16 Leases | 10.5 | 10.3 | -1.9 | |||
Adjustment of income from investments in other real estate companies | 2.4 | 15.7 | >100 | |||
Adjustment of interest paid due to taxes | 23.7 | -1.8 | – | |||
Adjustment of accrued interest | -15.5 | -31.5 | >100 | |||
Interest expense FFO | -380.1 | -397.7 | 4.6 | |||
- * Excluding income from other investments.
The profit for the period in 2021 came to € 2,830.9 million compared with € 3,340.0 million in 2020. Goodwill impairments in the amount of € 3,384.1 million in 2021 were the main factor behind this. This was counteracted by the net income from fair value adjustments of investment properties of € 7,393.8 million in the 2021 fiscal year (2020: € 3,719.8 million).
Reconciliation of Profit for the Period – Group FFO
Reconciliation of Profit for the Period/Group FFO | ||||||
in € million | 2020 | 2021 | Change in % | |||
Profit for the period | 3,340.0 | 2,830.9 | -15.2 | |||
Financial result* | 435.5 | 554.9 | 27.4 | |||
Income taxes | 1,674.4 | 2,651.5 | 58.4 | |||
Depreciation and amortization (incl. depreciation on financial assets) | 92.3 | 3,498.2 | >100 | |||
Net income from fair value adjustments of investment properties | -3,719.8 | -7,393.8 | 98.8 | |||
Non-recurring items | 61.5 | 37.1 | -39.7 | |||
Total period adjustments from assets held for sale | -15.3 | -6.0 | -60.8 | |||
Financial income from investments in other real estate companies | -2.4 | -15.7 | >100 | |||
Other (mainly Non-core Disposals) | -52.7 | -10.5 | -80.1 | |||
Intragroup profits | 33.5 | 37.8 | 12.8 | |||
Gross profit Development to hold | 62.8 | 84.9 | 35.2 | |||
Adjusted EBITDA Total | 1,909.8 | 2,269.3 | 18.8 | |||
Interest expense FFO** | -380.1 | -397.7 | 4.6 | |||
Current income taxes FFO | -52.4 | -65.2 | 24.4 | |||
Consolidation | -129.1 | -134.4 | 4.1 | |||
Group FFO | 1,348.2 | 1,672.0 | 24.0 | |||
Group FFO per share in €*** | 2.23 | 2.15 | -3.6 | |||
- * Excluding income from other investments.
- ** Including financial income from investments in other real estate companies.
- *** Based on the shares carrying dividend rights on the reporting date December 31, 2020: 565,887,299, December 31, 2021: 776,597,389, prior-year value TERP-adjusted (1.067), 2021 including Q4 result Deutsche Wohnen.