52 Additional Financial Instrument Disclosures
Additional Financial Instrument Disclosures – Fiscal year
Amounts recognized in balance sheet in accordance with IFRS 9 | |||||||||||||||||||
Measurement categories and classes: | Carrying amounts Dec. 31, 2022 | Amortized cost | Fair value affecting net income | Fair value recognized in equity with reclassification | Fair value recognized in equity without reclassification | Amounts recognized in balance sheet in acc. with IAS 28/IFRS 16 | Fair value Dec. 31, 2022 | Fair value hierarchy level | |||||||||||
Assets | |||||||||||||||||||
Cash and cash equivalents | |||||||||||||||||||
Cash on hand and deposits at banking institutions | 1,101.8 | 1,101.8 | 1,101.8 | 1 | |||||||||||||||
Money market funds | 200.6 | 200.6 | 200.6 | 2 | |||||||||||||||
Trade receivables | |||||||||||||||||||
Receivables from the sale of properties | 47.2 | 47.2 | 47.2 | 2 | |||||||||||||||
Receivables from property letting | 44.9 | 44.9 | 44.9 | 2 | |||||||||||||||
Other receivables from trading | 41.3 | 41.3 | 41.3 | 2 | |||||||||||||||
Receivables from the sale of real estate inventories | 196.8 | 196.8 | 196.8 | 2 | |||||||||||||||
Financial assets | |||||||||||||||||||
Investments valued at equity | 240.1 | 240.1 | n.a. | ||||||||||||||||
Finance lease receivables | 23.7 | 23.7 | n.a. | ||||||||||||||||
Loans to other investments | 33.1 | 33.1 | 33.2 | 2 | |||||||||||||||
Other non-current loans | 11.5 | 121.2 | 121.2 | 2 | |||||||||||||||
Other non-current loans to associates and joint ventures | 825.9 | 716.2 | 716.2 | 2 | |||||||||||||||
Non-current securities | 5.5 | 5.5 | 5.5 | 1 | |||||||||||||||
Other investments | 398.6 | 398.6 | 398.6 | 2 | |||||||||||||||
Derivative financial assets | |||||||||||||||||||
Cash flow hedges | 115.1 | -10.1 | 125.2 | 115.1 | 2 | ||||||||||||||
Stand-alone interest rate swaps and interest rate caps | 99.8 | 99.8 | 99.8 | 2 | |||||||||||||||
Liabilities | |||||||||||||||||||
Trade payables | 568.5 | 568.5 | 568.5 | 2 | |||||||||||||||
Non-derivative financial liabilities | 45,059.7 | 45,059.7 | 37,783.4 | 2 | |||||||||||||||
Derivatives and put options | |||||||||||||||||||
Purchase price liabilities from put options/rights to reimbursement | 270.9 | 270.9 | 189.6 | 3 | |||||||||||||||
Cash flow hedges | 1.3 | 1.3 | 1.3 | 2 | |||||||||||||||
Lease liabilities | 682.5 | 682.5 | n.a. | ||||||||||||||||
Liabilities from tenant financing | 155.1 | 155.1 | 155.1 | 2 | |||||||||||||||
Liabilities to non-controlling interests | 235.8 | 235.8 | 235.8 | 2 | |||||||||||||||
Additional Financial Instrument Disclosures – Previous year
Amounts recognized in balance sheet in accordance with IFRS 9 | |||||||||||||||||||
Measurement categories and classes: | Carrying amounts Dec. 31, 2021 | Amortized cost | Fair value affecting net income | Fair value recognized in equity with reclassification | Fair value recognized in equity without reclassification | Amounts recognized in balance sheet in acc. with IFRS 16/IAS 28 | Fair value Dec. 31, 2021 | Fair value hierarchy level | |||||||||||
Assets | |||||||||||||||||||
Cash and cash equivalents | |||||||||||||||||||
Cash on hand and deposits at banking institutions | 1,134.0 | 1,134.0 | 1,134.0 | 1 | |||||||||||||||
Money market funds | 298.8 | 298.8 | 298.8 | 2 | |||||||||||||||
Trade receivables | |||||||||||||||||||
Receivables from the sale of properties | 104.6 | 104.6 | 104.6 | 2 | |||||||||||||||
Receivables from property letting | 48.6 | 48.6 | 48.6 | 2 | |||||||||||||||
Other receivables from trading | 32.7 | 32.7 | 32.7 | 2 | |||||||||||||||
Receivables from the sale of real estate inventories | 264.0 | 264.0 | 264.0 | 2 | |||||||||||||||
Financial assets | |||||||||||||||||||
Investments valued at equity | 425.3 | 425.3 | n.a. | ||||||||||||||||
Finance lease receivables | 23.7 | 23.7 | n.a. | ||||||||||||||||
Other current financial receivables from financial transactions* | 499.6 | 499.6 | 499.6 | 2 | |||||||||||||||
Loans to other investments | 33.2 | 33.2 | 54.8 | 2 | |||||||||||||||
Other non-current loans | 511.8 | 511.8 | 511.8 | 2 | |||||||||||||||
Other non-current loans to associates and joint ventures | 563.1 | 563.1 | 563.1 | 2 | |||||||||||||||
Non-current securities | 5.2 | 5.2 | 5.2 | 1 | |||||||||||||||
Other investments | 377.0 | 377.0 | 377.0 | 2 | |||||||||||||||
Derivatives and put options | |||||||||||||||||||
Cash flow hedges (cross currency swaps) | 35.8 | -14.0 | 49.8 | 35.8 | 2 | ||||||||||||||
Stand-alone interest rate swaps and interest rate caps | 30.6 | 30.6 | 30.6 | 2 | |||||||||||||||
Liabilities | |||||||||||||||||||
Trade payables | 449.8 | 449.8 | 449.8 | 2 | |||||||||||||||
Non-derivative financial liabilities | 47,029.0 | 47,029.0 | 47,596.5 | 2 | |||||||||||||||
Derivative financial liabilities | |||||||||||||||||||
Purchase price liabilities from put options/rights to reimbursement | 264.0 | 264.0 | 264.0 | 3 | |||||||||||||||
Stand-alone interest rate swaps and interest rate caps | 53.9 | 53.9 | 53.9 | 2 | |||||||||||||||
Cash flow hedges | 14.3 | 11.4 | 2.9 | 14.3 | 2 | ||||||||||||||
Lease liabilities | 679.1 | 679.1 | n.a. | ||||||||||||||||
Liabilities from tenant financing | 157.5 | 157.5 | 157.5 | 2 | |||||||||||||||
Liabilities to non-controlling interests | 240.5 | 240.5 | 240.5 | 2 | |||||||||||||||
- *This includes time deposits and short-term investments in highly liquid money market funds with an original maturity of more than three months.
The section below provides information on the financial assets and financial liabilities not covered by IFRS 9:
- Employee benefits in accordance with IAS 19: gross presentation of right to reimbursement arising from transferred pension obligations in the amount of € 2.6 million (December 31, 2021: € 3.5 million).
- Amount by which the fair value of plan assets exceeds the corresponding obligation of € 1.6 million (December 31, 2021: € 1.0 million).
- Provisions for pensions and similar obligations: € 512.5 million (December 31, 2021: € 684.5 million).
The following table shows the assets and liabilities that are recognized in the balance sheet at fair value and their classification according to the fair value hierarchy:
Assets and liabilities
in € million | Dec. 31, 2022 | Level 1 | Level 2 | Level 3 | ||||
Assets | ||||||||
Investment properties | 92,300.1 | 92,300.1 | ||||||
Financial assets | ||||||||
Non-current securities | 5.5 | 5.5 | ||||||
Other investments | 398.6 | 398.6 | ||||||
Assets held for sale | ||||||||
Investment properties (contract closed) | 70.8 | 70.8 | ||||||
Derivative financial assets | ||||||||
Cash flow hedges | 115.1 | 115.1 | ||||||
Stand-alone interest rate swaps and caps | 99.8 | 99.8 | ||||||
Liabilities | ||||||||
Derivative financial liabilities | ||||||||
Cash flow hedges | 1.3 | 1.3 | ||||||
Stand-alone interest rate swaps and caps | – | – | ||||||
in € million | Dec. 31, 2021 | Level 1 | Level 2 | Level 3 | ||||
Assets | ||||||||
Investment properties | 94,100.1 | 94,100.1 | ||||||
Financial assets | ||||||||
Non-current securities | 5.2 | 5.2 | ||||||
Other investments | 377.0 | 377.0 | ||||||
Assets held for sale | ||||||||
Investment properties (contract closed) | 1,661.5 | 1,661.5 | ||||||
Derivative financial assets | ||||||||
Cash flow hedges (cross currency swaps) | 35.8 | 35.8 | ||||||
Stand-alone interest rate swaps and caps | 30.6 | 30.6 | ||||||
Liabilities | ||||||||
Derivative financial liabilities | ||||||||
Cash flow hedges | 14.3 | 14.3 | ||||||
Stand-alone interest rate swaps and caps | 53.9 | 53.9 | ||||||
In general, Vonovia measures its investment properties on the basis of the discounted cash flow (DCF) methodology (Level 3). The material valuation parameters and valuation results can be found in chapter [D28] Investment Properties.
The investment properties classified as assets held for sale are recognized at the time of their transfer to assets held for sale at their new fair value, the agreed purchase price (Level 2).
No financial instruments were reclassified to different hierarchy levels as against the comparative period.
Securities and shares in listed companies included in other investments are generally measured using the quoted prices in active markets (Level 1).
All investments in equity instruments that do not relate to associates are measured at fair value in other comprehensive income. The Group’s primary aim is to hold its investments in equity instruments in the long term for strategic purposes. Measurement is consistent with Level 2 as the expected cash flows do not involve any considerable estimation uncertainties as the business model can be planned based on the contractual agreements, and discounting can use the same approach as that used for other financial instruments.
For the measurement of financial instruments, cash flows are initially calculated and then discounted. In addition to the tenor-specific EURIBOR/STIBOR rates (3M; 6M), the respective credit risk is taken as a basis for discounting. Depending on the expected cash flows, either Vonovia’s own credit risk or the counterparty risk is taken into account in the calculation.
Due to the current interest rate environment (and the return to more positive market values as a result), counterparty risk premiums were relevant for the interest rate swaps in the consolidated financial statements alongside Vonovia’s own credit risk. As with Vonovia’s own risk, they are derived from rates observable on the capital markets and ranged from 0 to 230 basis points, depending on the residual maturities. Vonovia’s own risk premiums were trading at between 25 and 280 basis points on the same cut-off date, depending on the maturities. Regarding the positive market values of the cross currency swaps, a counterparty risk of -20 basis points was taken into account.
As part of the valuation of the cross currency swaps, the USD cash flows are converted into EUR using the EUR/USD FX forward curve, after which all EUR cash flows are discounted using the 6M EURIBOR curve (Level 2).
The fair values of the cash and cash equivalents, trade receivables and other financial receivables approximate their carrying amounts at the reporting date owing to their mainly short maturities. The amount of the estimated impairment loss on cash and cash equivalents was calculated based on the losses expected over a period of twelve months. It was determined that the cash and cash equivalents have a low risk of default due to the external ratings and short residual maturities and that there is no need for any material impairment of cash and cash equivalents.
The fair value of the purchase price liabilities from put options/rights to reimbursement granted to minority shareholders is generally based on the going concern value of the respective company; if a contractually agreed minimum purchase price is higher than this amount, this purchase price is recognized (Level 3). The unobservable valuation parameters may fluctuate depending on the going concern values of these companies. However, a major change in value is not likely, as the business model is very predictable.
Net results according to measurement category – Fiscal year
From subsequent measurement | |||||||||||||||||||||||
in € million | From interest | Income from other non-current loans | Dividends from other investments | Impairment losses | Expected credit loss for other non-current loans to associates | Derecognized receivables | Derecognized liabilities | Financial result affecting income 2022 | Measurement of cash flow hedges | Measurement of financial instruments categorized as equity instruments | Total financial result 2022 | ||||||||||||
2022 | |||||||||||||||||||||||
Debt instruments carried at (amortized) cost | 110.7 | 50.1 | – | -25.7 | -24.1 | -2.5 | – | 108.5 | – | – | 108.5 | ||||||||||||
Derivatives measured at FV through P&L with reclassification | 141.8 | – | – | – | – | – | – | 141.8 | – | – | 141.8 | ||||||||||||
Debt instruments measured at FVOCI with reclassification | – | – | – | – | – | – | – | – | 72.9 | – | 72.9 | ||||||||||||
Equity instruments measured at FVOCI without reclassification | – | – | 21.2 | – | – | – | – | 21.2 | – | -17.1 | 4.1 | ||||||||||||
Financial liabilities measured at (amortized) cost | -480.1 | – | – | – | – | – | -0.2 | -480.3 | – | – | -480.3 | ||||||||||||
-227.6 | 50.1 | 21.2 | -25.7 | -24.1 | -2.5 | -0.2 | -208.8 | 72.9 | -17.1 | -153.0 | |||||||||||||
Net results according to measurement category – Previous year
From subsequent measurement | ||||||||||||||||||||||
in € million | From interest | Income from other non-current loans | Dividends from other investments | Impairment losses | expected credit loss for other non-current loans to associates | Derecognized receivables | Derecognized liabilities | Financial result affecting income 2021 | Measurement of cash flow hedges | Measurement of financial instruments categorized as equity instruments | Total financial result 2021 | |||||||||||
2021 | ||||||||||||||||||||||
Debt instruments carried at (amortized) cost | 21.1 | 13.1 | – | -23.3 | -15.9 | -2.5 | – | -7.5 | – | – | -7.5 | |||||||||||
Derivatives measured at FV through P&L with reclassification | -0.2 | – | – | – | – | – | – | -0.2 | – | – | -0.2 | |||||||||||
Debt instruments measured at FVOCI with reclassification | – | – | – | – | – | – | – | – | 26.1 | – | 26.1 | |||||||||||
Equity instruments measured at FVOCI without reclassification | – | – | 27.7 | – | – | – | – | 27.7 | – | 81.1 | 108.8 | |||||||||||
Financial liabilities measured at (amortized) cost | -385.4 | – | – | – | – | – | 3.5 | -381.9 | – | – | -381.9 | |||||||||||
-364.5 | 13.1 | 27.7 | -23.3 | -15.9 | -2.5 | 3.5 | -361.9 | 26.1 | 81.1 | -254.7 | ||||||||||||
Adjusted EBITDA Development
The Adjusted EBITDA Development includes the gross profit from the development activities of “to sell” projects (income from sold development projects less production costs) and the gross profit from the development activities of “to hold” projects (fair value of the units developed for the company’s own portfolio less incurred production costs) less the operating expenses from the Development segment.
Adjusted EBITDA Care
The Adjusted EBITDA Care is calculated by deducting maintenance expenses and operating costs from the segment revenue.
Adjusted EBITDA Recurring Sales
The Adjusted EBITDA Recurring Sales compares the proceeds generated from the privatization business with the fair values of assets sold and also deducts the related costs of sale. In order to disclose profit and revenue in the period in which they are incurred and to report a sales margin, the fair value of properties sold, valued in accordance with IFRS 5, has to be adjusted to reflect realized/unrealized changes in value.
Adjusted EBITDA Rental
The Adjusted EBITDA Rental is calculated by deducting the operating expenses of the Rental segment and the expenses for maintenance in the Rental segment from the Group’s rental income.
Adjusted EBITDA Total (Earnings Before Interest, Taxes, Depreciation and Amortization)
Adjusted EBITDA Total is the result before interest, taxes, depreciation and amortization (including income from other operational investments and intragroup profits) adjusted for effects that do not relate to the period, recur irregularly and that are atypical for business operation, and for net income from fair value adjustments to investment properties. These non-recurring items include the development of new fields of business and business processes, acquisition projects, expenses for refinancing and equity increases (where not treated as capital procurement costs), IPO preparation costs and expenses for pre-retirement part-time work arrangements and severance payments. The Adjusted EBITDA Total is derived from the sum of the Adjusted EBITDA Rental, Adjusted EBITDA Value-add, Adjusted EBITDA Recurring Sales, Adjusted EBITDA Development and Adjusted EBITDA Care.
Adjusted EBITDA Total (Earnings Before Interest, Taxes, Depreciation and Amortization)
Adjusted EBITDA Total is the result before interest, taxes, depreciation and amortization (including income from other operational investments and intragroup profits) adjusted for effects that do not relate to the period, recur irregularly and that are atypical for business operation, and for net income from fair value adjustments to investment properties. These non-recurring items include the development of new fields of business and business processes, acquisition projects, expenses for refinancing and equity increases (where not treated as capital procurement costs), IPO preparation costs and expenses for pre-retirement part-time work arrangements and severance payments. The Adjusted EBITDA Total is derived from the sum of the Adjusted EBITDA Rental, Adjusted EBITDA Value-add, Adjusted EBITDA Recurring Sales, Adjusted EBITDA Development and Adjusted EBITDA Care.
Adjusted EBITDA Total (Earnings Before Interest, Taxes, Depreciation and Amortization)
Adjusted EBITDA Total is the result before interest, taxes, depreciation and amortization (including income from other operational investments and intragroup profits) adjusted for effects that do not relate to the period, recur irregularly and that are atypical for business operation, and for net income from fair value adjustments to investment properties. These non-recurring items include the development of new fields of business and business processes, acquisition projects, expenses for refinancing and equity increases (where not treated as capital procurement costs), IPO preparation costs and expenses for pre-retirement part-time work arrangements and severance payments. The Adjusted EBITDA Total is derived from the sum of the Adjusted EBITDA Rental, Adjusted EBITDA Value-add, Adjusted EBITDA Recurring Sales, Adjusted EBITDA Development and Adjusted EBITDA Care.
Adjusted EBITDA Value-add
The Adjusted EBITDA Value-add is calculated by deducting operating expenses from the segment’s income.
COSO
The Committee of Sponsoring Organizations of the Treadway Commission (COSO) is a private-sector U.S. organization. It was founded in 1985. In 1992, COSO published the COSO model, an SEC-recognized standard for internal controls. This provided a basis for the documentation, analysis and design of internal control systems. In 2004, the model was further developed and the COSO Enterprise Risk Management Framework was published. Since then, it has been used to structure and develop risk management systems.
Covenants
Requirements specified in loan agreements or bond conditions containing future obligations of the borrower or the bond obligor to meet specific requirements or to refrain from undertaking certain activities.
EPRA Key Figures
For information on the EPRA key figures, we refer to the chapter on segment reporting according to EPRA.
EPRA NTA
The presentation of the NAV based on the EPRA definition aims to show the net asset value in a long-term business model. NTA stands for Net Tangible Assets. The equity attributable to Vonovia’s shareholders is adjusted by deferred taxes in relation to the existing portfolio and the fair value of derivative financial instruments after taking deferred taxes into account. Stated goodwill and other intangible assets are also deducted.
European Public Real Estate Association (EPRA)
The European Public Real Estate Association (EPRA) is a non-profit organization that has its registered headquarters in Brussels and represents the interests of listed European real estate companies. Its mission is to raise awareness of European listed real estate companies as a potential investment destination that offers an alternative to conventional investments. EPRA is a registered trademark of the European Public Real Estate Association.
European Public Real Estate Association (EPRA)
The European Public Real Estate Association (EPRA) is a non-profit organization that has its registered headquarters in Brussels and represents the interests of listed European real estate companies. Its mission is to raise awareness of European listed real estate companies as a potential investment destination that offers an alternative to conventional investments. EPRA is a registered trademark of the European Public Real Estate Association.
Fair Value
Fair value is particularly relevant with regard to valuation in accordance with IAS 40 in conjunction with IFRS 13. The fair value is the amount for which an asset could be exchanged between knowledgeable, willing parties in an arm’s length transaction.
Fair Value
Fair value is particularly relevant with regard to valuation in accordance with IAS 40 in conjunction with IFRS 13. The fair value is the amount for which an asset could be exchanged between knowledgeable, willing parties in an arm’s length transaction.
Fair Value
Fair value is particularly relevant with regard to valuation in accordance with IAS 40 in conjunction with IFRS 13. The fair value is the amount for which an asset could be exchanged between knowledgeable, willing parties in an arm’s length transaction.
Fair Value
Fair value is particularly relevant with regard to valuation in accordance with IAS 40 in conjunction with IFRS 13. The fair value is the amount for which an asset could be exchanged between knowledgeable, willing parties in an arm’s length transaction.
GAV
The Gross Asset Value (GAV) of the recognized real estate investments. This consists of the owner-occupied properties, the investment properties including development to hold, the assets held for sale and the development to sell area. In the latter, both residential properties for which a purchase contract has been signed and those with the intention to sell – i.e., a purchase contract has not yet been signed – are included.
GAV
The Gross Asset Value (GAV) of the recognized real estate investments. This consists of the owner-occupied properties, the investment properties including development to hold, the assets held for sale and the development to sell area. In the latter, both residential properties for which a purchase contract has been signed and those with the intention to sell – i.e., a purchase contract has not yet been signed – are included.
Group FFO
Group FFO reflects the recurring earnings from the operating business. In addition to the adjusted EBITDA for the Rental, Value-add, Recurring Sales, Development and Care segments, Group FFO allows for recurring current net interest expenses from non-derivative financial instruments as well as current income taxes. This key figure is not determined on the basis of any specific international reporting standard but is to be regarded as a supplement to other performance indicators determined in accordance with IFRS.
ICR (Interest Coverage Ratio)
The interest coverage ratio is the ratio of Adjusted EBITDA Total to net cash interest.
Maintenance
Maintenance covers the measures that are necessary to ensure that the property can continue to be used as intended over its useful life and that eliminate structural and other defects caused by wear and tear, age and weathering effects.
Maintenance
Maintenance covers the measures that are necessary to ensure that the property can continue to be used as intended over its useful life and that eliminate structural and other defects caused by wear and tear, age and weathering effects.
Maintenance
Maintenance covers the measures that are necessary to ensure that the property can continue to be used as intended over its useful life and that eliminate structural and other defects caused by wear and tear, age and weathering effects.
Maintenance
Maintenance covers the measures that are necessary to ensure that the property can continue to be used as intended over its useful life and that eliminate structural and other defects caused by wear and tear, age and weathering effects.
Vacancy Rate
The vacancy rate is the number of empty units as a percentage of the total units owned by the company. The vacant units are counted at the end of each month.
Vacancy Rate
The vacancy rate is the number of empty units as a percentage of the total units owned by the company. The vacant units are counted at the end of each month.
Vacancy Rate
The vacancy rate is the number of empty units as a percentage of the total units owned by the company. The vacant units are counted at the end of each month.
Vacancy Rate
The vacancy rate is the number of empty units as a percentage of the total units owned by the company. The vacant units are counted at the end of each month.
LTV Ratio (Loan-to-Value Ratio)
The LTV ratio shows the extent to which financial liabilities are covered. It shows the ratio of non-derivative financial liabilities pursuant to IFRS, less foreign exchange rate effects, cash and cash equivalents less advance payments received by Development (period-related), receivables from disposals, plus purchase prices for outstanding acquisitions to the total fair values of the real estate portfolio, fair values of the projects/land currently under construction as well as receivables from the sale of real estate inventories (period-related) plus the fair values of outstanding acquisitions and investments in other real estate companies, as well as loans to companies with holdings of real estate and land.
Rental Income
Rental income refers to the current gross income for rented units as agreed in the corresponding lease agreements before the deduction of non-transferable ancillary costs. The rental income from the Austrian property portfolio additionally includes maintenance and improvement contributions (EVB). The rental income from the portfolio in Sweden reflects inclusive rents, meaning that the amounts contain operating and heating costs.
Rental Income
Rental income refers to the current gross income for rented units as agreed in the corresponding lease agreements before the deduction of non-transferable ancillary costs. The rental income from the Austrian property portfolio additionally includes maintenance and improvement contributions (EVB). The rental income from the portfolio in Sweden reflects inclusive rents, meaning that the amounts contain operating and heating costs.
MFH Sales
We also report on the Other segment, which is not relevant from a corporate management perspective, in our segment reporting. This portfolio involves the sale of multifamily homes largely located outside of our urban quarters.
Rental Income
Rental income refers to the current gross income for rented units as agreed in the corresponding lease agreements before the deduction of non-transferable ancillary costs. The rental income from the Austrian property portfolio additionally includes maintenance and improvement contributions (EVB). The rental income from the portfolio in Sweden reflects inclusive rents, meaning that the amounts contain operating and heating costs.
Modernization Measures
Modernization measures are long-term and sustainable value-enhancing investments in housing and building stocks. Energy-efficient refurbishments generally involve improvements to the building shell and communal areas as well as the heat and electricity supply systems. Typical examples are the installation of heating systems, the renovation of balconies and the retrofitting of prefabricated balconies as well as the implementation of energy-saving projects, such as the installation of double-glazed windows and heat insulation, e.g. , facade insulation, insulation of the top story ceilings and basement ceilings. In addition to modernization of the apartment electrics, the refurbishment work upgrades the apartments, typically through the installation of modern and/or accessible bathrooms, the installation of new doors and the laying of high-quality and non-slip flooring. Where required, the floor plans are altered to meet changed housing needs.
Modernization Measures
Modernization measures are long-term and sustainable value-enhancing investments in housing and building stocks. Energy-efficient refurbishments generally involve improvements to the building shell and communal areas as well as the heat and electricity supply systems. Typical examples are the installation of heating systems, the renovation of balconies and the retrofitting of prefabricated balconies as well as the implementation of energy-saving projects, such as the installation of double-glazed windows and heat insulation, e.g. , facade insulation, insulation of the top story ceilings and basement ceilings. In addition to modernization of the apartment electrics, the refurbishment work upgrades the apartments, typically through the installation of modern and/or accessible bathrooms, the installation of new doors and the laying of high-quality and non-slip flooring. Where required, the floor plans are altered to meet changed housing needs.
Modernization Measures
Modernization measures are long-term and sustainable value-enhancing investments in housing and building stocks. Energy-efficient refurbishments generally involve improvements to the building shell and communal areas as well as the heat and electricity supply systems. Typical examples are the installation of heating systems, the renovation of balconies and the retrofitting of prefabricated balconies as well as the implementation of energy-saving projects, such as the installation of double-glazed windows and heat insulation, e.g. , facade insulation, insulation of the top story ceilings and basement ceilings. In addition to modernization of the apartment electrics, the refurbishment work upgrades the apartments, typically through the installation of modern and/or accessible bathrooms, the installation of new doors and the laying of high-quality and non-slip flooring. Where required, the floor plans are altered to meet changed housing needs.
Modernization Measures
Modernization measures are long-term and sustainable value-enhancing investments in housing and building stocks. Energy-efficient refurbishments generally involve improvements to the building shell and communal areas as well as the heat and electricity supply systems. Typical examples are the installation of heating systems, the renovation of balconies and the retrofitting of prefabricated balconies as well as the implementation of energy-saving projects, such as the installation of double-glazed windows and heat insulation, e.g. , facade insulation, insulation of the top story ceilings and basement ceilings. In addition to modernization of the apartment electrics, the refurbishment work upgrades the apartments, typically through the installation of modern and/or accessible bathrooms, the installation of new doors and the laying of high-quality and non-slip flooring. Where required, the floor plans are altered to meet changed housing needs.
Sustainability Performance Index (SPI)
Index to measure non-financial performance. Vonovia’s sustainable activities are geared towards the top sustainability topics that we have identified, which are bundled in the Sustainability Performance Index. The Customer Satisfaction Index (CSI) is included in the calculation of the Sustainability Performance Index. The CSI is determined at regular intervals in systematic customer surveys conducted by an external service provider and shows the effectiveness and sustainability of our services for the customer. Other indicators used in the Sustainability Performance Index are the carbon savings achieved annually in housing stock, the energy efficiency of new buildings, the share of accessible (partial) modernization measures in relation to newly let apartments, the increase in employee satisfaction and diversity in the company’s top management team.
Sustainability Performance Index (SPI)
Index to measure non-financial performance. Vonovia’s sustainable activities are geared towards the top sustainability topics that we have identified, which are bundled in the Sustainability Performance Index. The Customer Satisfaction Index (CSI) is included in the calculation of the Sustainability Performance Index. The CSI is determined at regular intervals in systematic customer surveys conducted by an external service provider and shows the effectiveness and sustainability of our services for the customer. Other indicators used in the Sustainability Performance Index are the carbon savings achieved annually in housing stock, the energy efficiency of new buildings, the share of accessible (partial) modernization measures in relation to newly let apartments, the increase in employee satisfaction and diversity in the company’s top management team.
Non-core
We also report on the Other segment, which is not relevant from a corporate management perspective, in our segment reporting. This includes the sale, only as and when the right opportunities present themselves, of entire buildings or land (Non Core) that are likely to have below-average development potential in terms of rent growth in the medium term and are located in areas that can be described as peripheral compared with Vonovia’s overall portfolio and in view of future acquisitions.
Recurring Sales
The Recurring Sales segment includes the regular and sustainable disposals of individual condominiums and single-family houses from our portfolio. It does not include the sale of entire buildings or land (MFH Sales/Non Core). These properties are only sold as and when the right opportunities present themselves, meaning that the sales do not form part of our operating business within the narrower sense of the term. Therefore, these sales will be reported under “Other” in our segment reporting.
Fair Value Step-up
Fair value step-up is the difference between the income from selling a unit and its current fair value in relation to its fair value. It shows the percentage increase in value for the company on the sale of a unit before further costs of sale.
Fair Value Step-up
Fair value step-up is the difference between the income from selling a unit and its current fair value in relation to its fair value. It shows the percentage increase in value for the company on the sale of a unit before further costs of sale.
Cash-generating Unit (CGU)
Fair value step-up is the difference between the income from selling a unit and its current fair value in relation to its fair value. It shows the percentage increase in value for the company on the sale of a unit before further costs of sale.