Non-financial Performance Indicators
In addition to our key financial figures, we also focus on non-financial operating performance indicators.
Our business activities are aimed at protecting the environment, ensuring trustworthy, transparent and reliable corporate governance and taking social responsibility for our customers and employees.
In line with this focus, we introduced the Sustainability Performance Index as a key non-financial control parameter in the 2021 fiscal year. Indicators used in the new Sustainability Performance Index are the carbon intensity of the housing stock, the energy efficiency of new buildings, the share of accessible (partial) modernization measures in relation to newly let apartments, the increase in customer and employee satisfaction and proportion of female managers in the company’s top management team.
Each component is assigned an individual factor and a defined annual target amount. The weighted targets add up to a target of 100% that we aim to achieve every year. In order to measure target achievement for the 2022 fiscal year, performance is compared excluding Deutsche Wohnen in each case. In the reporting on the levels of the individual indicators within the Non-financial Group Declaration, the business activities of Deutsche Wohnen are included (excluding the Nursing and Assisted Living segment), unless otherwise stated. The targets for 2023 include Deutsche Wohnen in full.
The organic rent increase refers to the increase in the monthly in-place rent for the residential portfolio that was already held by Vonovia twelve months previously and rented as of the reporting date, plus the increase in rent resulting from the construction of new apartments and the addition of stories to existing properties. The monthly in-place rent per m2 gives information on the average rental income from the portfolio as of the relevant reporting date.
The vacancy rate also shows the proportion of units in our own portfolio that are not rented and therefore generate no rental income. It can serve as an early-warning indicator, e.g., to identify non-marketable apartments. The vacancy rate and the average rent are key drivers for the development of our key figures related to the management of rental income. They serve as essential early warning indicators.
The number of units sold from Recurring Sales shows our ongoing efforts in the privatization business. In addition to this, we report the Non Core/Other.
The fair value step-up Recurring Sales represents the difference between the income from the sale of a privatized residential unit and its last recognized fair value. It shows the percentage increase in value for the company on the sale of a residential unit before further costs of sale.