Results of Operations
Overview
In analyzing Vonovia’s results of operations, it is important to remember that the figures for the first half of 2022 only allow a comparison with the previous year to a limited extent, as Deutsche Wohnen was not included in Vonovia’s consolidated financial statements until September 30, 2021.
In the first six months of 2022, the first few moderate effects of the war in Ukraine were reflected in the interim financial statements, particularly in energy and construction costs. The ongoing coronavirus pandemic also had a minor impact, especially in the Value-add segment
All in all, Vonovia reported stable business development in the first half of 2022.
As of June 30, 2022, Vonovia employed 15,845 people (June 30, 2021: 10,793).
The following key figures provide an overview of Vonovia’s results of operations and the relevant drivers in the first half of 2022.
Performance indicators
in € million | H1 2021 | H1 2022 | Change in % | 12M 2021 | ||||
Total Segment Revenue | 2,312.3 | 3,111.0 | 34.5 | 5,179.9 | ||||
Revenue in the Rental segment | 1,170.5 | 1,188.7 | 1.6 | 2,361.6 | ||||
Revenue in the Value-add segment | 557.4 | 618.6 | 11.0 | 1,165.8 | ||||
Revenue in the Recurring Sales segment | 327.8 | 268.6 | -18.1 | 477.0 | ||||
Revenue in the Development segment | 256.6 | 456.9 | 78.1 | 867.8 | ||||
Revenue in the Deutsche Wohnen segment | – | 578.2 | – | 307.7 | ||||
Adjusted EBITDA Total | 1,021.8 | 1,402.0 | 37.2 | 2,269.3 | ||||
Adjusted EBITDA Rental | 823.8 | 822.6 | -0.1 | 1,648.0 | ||||
Adjusted EBITDA Value-add | 79.2 | 78.5 | -0.9 | 148.8 | ||||
Adjusted EBITDA Recurring Sales | 83.5 | 74.1 | -11.3 | 114.0 | ||||
Adjusted EBITDA Development | 35.3 | 85.4 | >100 | 187.7 | ||||
Adjusted EBITDA Deutsche Wohnen | – | 341.4 | – | 170.8 | ||||
Group FFO | 779.8 | 1,062.9 | 36.3 | 1,672.0 | ||||
Monthly in-place rent Vonovia in €/m² | 7.29 | 7.44 | 2.1 | 7.33 | ||||
Monthly in-place rent Vonovia without Deutsche Wohnen in €/m² | 7.29 | 7.44 | 2.1 | 7.38 | ||||
Monthly in-place rent Deutsche Wohnen in €/m² | – | 7.42 | – | 7.20 | ||||
Average area of own apartments in the reporting period (in thou. m²) | 26,500 | 34,616 | 30.6 | 28,784 | ||||
Average number of own units (number of units) | 414,798 | 551,390 | 32.9 | 452,868 | ||||
Vacancy rate Vonovia (in %) | 2.7 | 2.2 | -0.5 pp | 2.2 | ||||
Vacancy rate Vonovia without Deutsche Wohnen (in %) | 2.7 | 2.4 | -0.3 pp | 2.4 | ||||
Vacancy rate Deutsche Wohnen (in %) | – | 1.8 | – | 1.7 | ||||
Maintenance expenses and capitalized maintenance Rental segment (€/m²) | 10.99 | 11.36 | 3.4 | 25.18 | ||||
thereof expenses for maintenance (€/m²) | 6.17 | 6.37 | 3.2 | 12.57 | ||||
thereof capitalized maintenance (€/m²) | 4.82 | 4.99 | 3.5 | 12.61 | ||||
Number of units bought | 166 | 893 | >100 | 155,145 | ||||
Number of units sold | 2,184 | 17,551 | >100 | 6,870 | ||||
thereof Recurring Sales | 1,865 | 1,253 | -32.8 | 2,747 | ||||
thereof Non-core Disposals | 319 | 4,540 | >100 | 723 | ||||
thereof Deutsche Wohnen | – | 11,758 | – | 3,400 | ||||
Number of new apartments completed | 841 | 1,088 | 29.4 | 2,200 | ||||
thereof own apartments | 389 | 496 | 27.5 | 1,373 | ||||
thereof apartments for sale | 452 | 592 | 31.0 | 827 | ||||
thereof Deutsche Wohnen | – | – | – | – | ||||
Number of employees (as of June 30/December 31) | 10,793 | 15,845 | 46.8 | 15,871 | ||||
The total segment revenue of the Vonovia Group increased by 34.5% from € 2,312.3 million in the first half of 2021 to € 3,111.0 million in the first half of 2022. Deutsche Wohnen was the main contributor to this increase, with a volume of € 578.2 million in 2022.
Total Segment Revenue
Total Segment Revenue | ||||||||
in € million | H1 2021 | H1 2022 | Change in % | 12M 2021 | ||||
Rental income | 1,171.7 | 1,572.9 | 34.2 | 2,571.9 | ||||
Other income from property management unless included in the operating expenses in the Rental segment | 27.2 | 206.2 | >100 | 141.7 | ||||
Income from disposals Recurring Sales | 327.8 | 278.0 | -15.2 | 477.2 | ||||
Internal revenue Value-add | 529.5 | 576.4 | 8.9 | 1,107.2 | ||||
Income from disposal of properties | 191.7 | 380.5 | 98.5 | 519.6 | ||||
Fair value Development to hold | 64.4 | 97.0 | 50.6 | 362.3 | ||||
Total Segment Revenue | 2,312.3 | 3,111.0 | 34.5 | 5,179.9 | ||||
The overview below shows the other key figures for the company’s results of operations, as well as their reconciliation to the performance indicator Group FFO:
Group FFO
Group FFO | ||||||||
in € million | H1 2021 | H1 2022 | Change in % | 12M 2021 | ||||
Revenue in the Rental segment | 1,170.5 | 1,188.7 | 1.6 | 2,361.6 | ||||
Expenses for maintenance | -163.4 | -166.8 | 2.1 | -332.7 | ||||
Operating expenses in the Rental segment | -183.3 | -199.3 | 8.7 | -380.9 | ||||
Adjusted EBITDA Rental | 823.8 | 822.6 | -0.1 | 1,648.0 | ||||
Revenue in the Value-add segment | 557.4 | 618.6 | 11.0 | 1,165.8 | ||||
thereof external revenue | 27.9 | 42.2 | 51.3 | 58.6 | ||||
thereof internal revenue | 529.5 | 576.4 | 8.9 | 1,107.2 | ||||
Operating expenses in the Value-add segment | -478.2 | -540.1 | 12.9 | -1,017.0 | ||||
Adjusted EBITDA Value-add | 79.2 | 78.5 | -0.9 | 148.8 | ||||
Revenue in the Recurring Sales segment | 327.8 | 268.6 | -18.1 | 477.0 | ||||
Fair value of properties sold adjusted to reflect effects not relating to the period from assets held for sale in the Recurring Sales segment | -236.4 | -186.9 | -20.9 | -343.7 | ||||
Adjusted result Recurring Sales | 91.4 | 81.7 | -10.6 | 133.3 | ||||
Selling costs in the Recurring Sales segment | -7.9 | -7.6 | -3.8 | -19.3 | ||||
Adjusted EBITDA Recurring Sales | 83.5 | 74.1 | -11.3 | 114.0 | ||||
Revenue from disposal of Development to sell properties | 191.7 | 358.4 | 87.0 | 503.7 | ||||
Cost of Development to sell | -160.2 | -287.1 | 79.2 | -367.2 | ||||
Gross profit Development to sell | 31.5 | 71.3 | >100 | 136.5 | ||||
Fair value Development to hold | 64.4 | 97.1 | 50.8 | 362.3 | ||||
Cost of Development to hold* | -45.5 | -68.2 | 49.9 | -277.4 | ||||
Gross profit Development to hold | 18.9 | 28.9 | 52.9 | 84.9 | ||||
Rental revenue Development | 0.5 | 1.4 | >100 | 1.8 | ||||
Operating expenses in the Development segment | -15.6 | -16.2 | 3.8 | -35.5 | ||||
Adjusted EBITDA Development | 35.3 | 85.4 | >100 | 187.7 | ||||
Adjusted EBITDA Deutsche Wohnen | – | 341.4 | – | 170.8 | ||||
Adjusted EBITDA Total | 1,021.8 | 1,402.0 | 37.2 | 2,269.3 | ||||
FFO interest expense | -163.8 | -236.4 | 44.3 | -397.7 | ||||
Current income taxes FFO | -43.3 | -60.1 | 38.8 | -65.2 | ||||
Consolidation** | -34.9 | -42.6 | 22.1 | -97.1 | ||||
Group FFO | 779.8 | 1,062.9 | 36.3 | 1,709.3 | ||||
Group FFO after non-controlling interests | 769.3 | 1,021.9 | 32.8 | 1,669.3 | ||||
- * Excluding capitalized interest on borrowed capital in H1 2022 of € 0.0 million (H1 2021 € 0.0 million), 12M 2021: € 0.9 million.
- ** Based on the new 2022 definition, without elimination of IFRS 16 effect, thereof intragroup profits in H1 2022: € -13.7 million (H1 2021: € -16.0 million), 12M 2021: € -37.8 million, gross profit Development to hold in H1 2022: € -28.9 million (H1 2021: € -18.9 million), 12M 2021: € -84.9 million, 12M 2021: FFO-at-equity effect Deutsche Wohnen: € 25.6 million.
As of June 30, 2022, Vonovia (incl. Deutsche Wohnen) managed a portfolio comprising 549,484 of its own residential units (June 30, 2021: 414,068), 163,558 garages and parking spaces (June 30, 2021: 138,650) and 8,873 commercial units (June 30, 2021: 6,515). The locations span 636 cities, towns and municipalities (June 30, 2021: 625) in Germany, Sweden and Austria. 72,362 residential units (June 30, 2021: 71,671) are also managed for other owners.