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38 Total Equity

Accounting Policies

Other comprehensive income includes changes in total comprehensive income not affecting net income except that resulting from capital transactions with equity holders (e.g., capital increases or dividend distributions). Vonovia includes under this item unrealized gains and losses from the fair value measurement of equity instruments and derivative financial instruments that are designated as cash flow hedges. The item also includes actuarial gains and losses from defined benefit pension commitments as well as certain currency translation differences.

The other reserves contain cumulative changes in equity not affecting income. At Vonovia, the effective portion of the net change in the fair value of cash flow hedging instruments, the equity instruments at fair value as well as currency translation differences are recognized in other comprehensive income.

The other reserves from cash flow hedges and from currency translation differences can be reclassified. When the underlying hedged item of the cash flow hedge affects net income, the reserves attributable thereto are reclassified to profit or loss. If a foreign business is disposed of, the reserves attributable thereto are reclassified.

Development of the Subscribed Capital

Development of the Subscribed Capital

in €

As of Jan. 1, 2021


Capital increase against non-cash contributions on May 17, 2021 (scrip dividend)


Capital increase against cash contributions on December 2, 2021


As of Dec. 31, 2021


Development of the Capital Reserves

Development of the Capital Reserves

in €

As of Jan. 1, 2021


Premium from capital increase for scrip dividend on May 17, 2021


Premium from capital increase on December 2, 2021


Transaction costs on the issue of new shares (after allowing for deferred taxes)


Withdrawal from capital reserve


Other changes not affecting net income


As of Dec. 31, 2021


Cash Capital Increase

On November 21, 2021 the Management Board of Vonovia SE, with the consent of the Supervisory Board, decided to carry out a fully subscribed capital increase with subscription rights for the existing shareholders of Vonovia. The shares were issued in exchange for cash contributions. To this end, the share capital of Vonovia was increased by € 201,340,062.00 from € 575,257,327.00 to € 776,597,389.00, partially using the 2021 authorized capital. This was achieved by issuing 201,340,062 new no-par-value registered shares, each accounting for € 1.00 of the share capital and carrying dividend rights as of January 1, 2021.

During the subscription period, the existing shareholders of Vonovia were offered a total of 201,340,062 new no-par-value registered shares at a subscription price of € 40.00 per new share. By the end of the subscription period on December 7, 2021 subscription rights had been exercised for 198,508,119 new shares, corresponding to a subscription rate of 98.59% of the new shares. The remaining 2,831,943 new shares were issued to institutional investors at € 49.50 per share through a private placement. The increase was entered in the commercial register on December 2, 2021.


The Annual General Meeting held on April 16, 2021 resolved to pay a dividend for the 2020 fiscal year in the amount of € 1.69 per share, € 956.3 million in total.

As in previous years, shareholders were offered the option of choosing between being paid the dividend in cash or being granted new shares. During the subscription period, shareholders holding a total of 49.18% of the shares carrying dividend rights opted for the scrip dividend instead of the cash dividend. As a result, 9,370,028 new shares were issued using the company’s authorized capital pursuant to Section 5b of the Articles of Association (“2018 authorized capital”) at a subscription price of € 50.193, i.e., a total amount of € 470,309,815.40. The total amount of the dividend distributed in cash therefore came to € 486,039,719.91.

Authorized Capital

By way of a resolution of the Annual General Meeting on April 16, 2021 the 2018 authorized capital was canceled. A further resolution at this same Annual General Meeting created new authorized capital in the amount of € 282,943,649.00. On the basis of this resolution, the Management Board is authorized, with the consent of the Supervisory Board, to increase the company’s share capital by up to € 282,943,649.00 once or several times on or before April 15, 2026 by issuing up to 282,943,649 new registered no-par-value shares in return for cash contributions and/or contributions in kind (2021 authorized capital). Shareholders shall be granted a subscription right. Shareholder subscription rights can be excluded. As part of the capital increase with subscription rights on December 2, 2021 the authorized capital was utilized in the amount of 201,340,062 shares, meaning that 2021 authorized capital stands at € 81,603,587.00 as of December 31, 2021.

Conditional Capital

By way of a resolution of the Annual General Meeting on April 16, 2021 the 2018 conditional capital was canceled. In order to serve the authorization, passed by the Annual General Meeting of April 16, 2021 to issue convertible bonds, bonds carrying option rights, participating rights, and participating bonds, 2021 conditional capital was created. On the basis of the resolution of this Annual General Meeting, the share capital is conditionally increased by up to € 282,943,649.00 through the issuing of 282,943,649 new no-par-value registered shares carrying dividend rights.

Retained Earnings

As of December 31, 2021 retained earnings amounted to € 16,925.9 million (Dec. 31, 2020: € 13,368.2 million). This figure includes actuarial gains and losses of € -93.4 million (Dec. 31, 2020: € -117.2 million), which cannot be reclassified and therefore may no longer be recognized in profit or loss in subsequent reporting periods.

Other Reserves

Changes in other comprehensive income during the period in the amount of € 0.7 million (2020: € 153.9 million) are mainly the result of currency translation differences due to changes in the exchange rate for the Swedish krona against the euro, as well as the offsetting development of equity instruments at fair value in other comprehensive income and the cash flow hedges.

Equity Attributable to Hybrid Capital Investors

In December 2014, Vonovia issued a hybrid bond with a nominal volume of € 1.0 billion via a subsidiary, Vonovia Finance B.V., Amsterdam/Netherlands (issuer). This subordinated hybrid bond was of unlimited duration and could only be terminated by Vonovia on certain contractually fixed dates or occasions.

The hybrid bond was terminated and repaid as of December 2021.

Pursuant to IAS 32, the hybrid bond was classified as equity in full. The interest payments to be made to the bondholders were recognized directly in equity.

Non-Controlling Interests

Shares of third parties in Group companies are recognized under non-controlling interests.

Non-controlling interests increased by € 2,571.7 million in the 2021 fiscal year, from € 686.3 million as of January 1, 2021 to € 3,258.0 million as of December 31, 2021. This increase is chiefly due to the acquisition of the Deutsche Wohnen Group, with the addition of non-controlling interests in the amount of € 2,436.6 million, which, in turn, are primarily due to the 12.64% of Deutsche Wohnen SE shares not tendered to Vonovia SE.