Our management system is based on our corporate strategy and our sustainable business activities.
In the 2022 fiscal year, Vonovia initially continued with the 2021 management system until the end of the fourth quarter of 2022. Details can be found in the chapter Management System of the 2021 Annual Report. Vonovia’s business was managed via the five segments: Rental, Value-add, Recurring Sales, Development and Deutsche Wohnen.
At the end of the fourth quarter of 2022, the Deutsche Wohnen segment was dissolved and transferred to the Rental , Value-add, Recurring Sales, Development and Care segments. Details are set out in the Notes under [A2] Adjustment to Prior-year Figures.
The Rental segment combines all of the business activities that are aimed at the value-enhancing management of our own residential real estate. It includes our property management activities in Germany, Austria and Sweden.
The Value-add segment bundles all of the housing-related services that we have expanded our core rental business to include. These services include both the maintenance and modernization work on our residential properties and services that are closely related to the rental business. We allocate the activities relating to the craftsmen’s and residential environment organization, the condominium administration business, the cable TV business, metering services, energy supplies and our insurance services to the Value-add segment.
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 the Recurring Sales segment. We report these opportunistic sales in the Other column of the segment report.
The Development segment includes project development to build new homes. This covers the value chain starting with the purchase of land without any development plan/dedicated purpose and ending with the completion of new buildings and new construction measures on our own properties. These properties are either incorporated into our own portfolio or sold to third parties. The Development segment deals with projects in selected attractive locations. The value creation from the valuation of the properties at market prices will be allocated to the Development segment when these residential properties are incorporated into our own portfolio.
The Care segment includes all activities relating to the management of the Group’s own nursing care businesses and the leasing of nursing care properties.