Reconciliations
The financial result changed from € –39.8 million in the first three months of 2022 to
€ –152.0 million in the first three months of 2023, mainly due to higher interest expenses. FFO interest expense is derived from the financial result as follows:
Reconciliation of Financial Result – FFO Interest Expense
Reconciliation of Financial Result/FFO Interest Expense | ||||||||
in € million | 3M 2022 | 3M 2023 | Change in % | 12M 2022 | ||||
Interest income | 21.5 | 33.3 | 54.9 | 115.5 | ||||
Interest expense | -59.9 | -195.9 | >100 | -367.6 | ||||
Other financial result excluding income from investments | -1.4 | 10.6 | – | -10.9 | ||||
Financial result* | -39.8 | -152.0 | >100 | -263.0 | ||||
Adjustments: | ||||||||
Other financial result excluding income from investments | 1.4 | -10.6 | – | 10.9 | ||||
Effects from the valuation of interest rate and currency derivatives | -52.7 | 20.3 | – | -152.5 | ||||
Prepayment penalties and commitment interest | 4.6 | 2.3 | -50.0 | 12.6 | ||||
Effects from the valuation of non-derivative financial instruments | -14.9 | -3.8 | -74.5 | -77.4 | ||||
Interest accretion to provisions | 0.8 | 4.5 | >100 | 6.8 | ||||
Accrued interest/other effects | -34.5 | -38.1 | 10.4 | -40.0 | ||||
Net cash interest | -135.1 | -177.4 | 31.3 | -502.6 | ||||
Adjustment for IFRS 16 Leases | 2.5 | 2.9 | 16.0 | 12.2 | ||||
Adjustment of income from investments in other real estate companies | – | – | – | 7.9 | ||||
Adjustment of interest paid due to taxes | -0.4 | -1.0 | >100 | -0.6 | ||||
Adjustment of accrued interest | 18.8 | 28.8 | 53.2 | -10.7 | ||||
Interest expense FFO | -114.2 | -146.7 | 28.5 | -493.8 | ||||
- *Excluding income from other investments.
Profit for the period in the first three months of 2023 came to € –2,088.1 million (3M 2022: € 58.3 million). This is chiefly due to the negative result from the valuation of investment properties totaling € –3,612.2 million (3M 2022: € 404.8 million).
The reconciliation of profit for the period to Group FFO is shown below:
Reconciliation of Profit for the Period – Group FFO
Reconciliation of Profit for the Period/Group FFO | ||||||||
in € million | 3M 2022* | 3M 2023 | Change in % | 12M 2022 | ||||
Profit for the period | 58.3 | -2,088.1 | – | -669.4 | ||||
Financial result** | 39.8 | 152.0 | >100 | 263.0 | ||||
Income taxes | 51.3 | -1,095.9 | – | -63.3 | ||||
Depreciation and amortization (incl. depreciation on financial assets) | 949.7 | 29.9 | -96.9 | 1,303.1 | ||||
Net income from investments accounted for using the equity method | -1.0 | 0.1 | – | 436.6 | ||||
Net income from fair value adjustments of investment properties | -404.8 | 3,612.2 | – | 1,269.8 | ||||
Non-recurring items | -2.3 | 29.7 | – | 127.5 | ||||
Total period adjustments from assets held for sale | 38.5 | 4.4 | -88.6 | 52.3 | ||||
Income from investments in other real estate companies | – | – | – | -7.9 | ||||
Other | -27.6 | -4.9 | -82.2 | -37.2 | ||||
Intragroup profits/losses | 8.1 | 1.5 | -81.5 | -4.7 | ||||
Gross profit Development to hold | 18.7 | 16.2 | -13.4 | 93.3 | ||||
Adjusted EBITDA Total | 728.7 | 657.1 | -9.8 | 2,763.1 | ||||
Interest expense FFO*** | -114.2 | -146.7 | 28.5 | -493.8 | ||||
Current income taxes FFO | -24.6 | -30.1 | 22.4 | -145.0 | ||||
Consolidation | -26.8 | -17.7 | -34.0 | -88.7 | ||||
Group FFO**** | 563.1 | 462.6 | -17.8 | 2,035.6 | ||||
Group FFO after non-controlling interests | 544.5 | 443.8 | -18.5 | 1,944.3 | ||||
Group FFO per share in €**** | 0.73 | 0.58 | -20.5 | 2.56 | ||||
- *Prior-year figures adjusted to new adjusted EBITDA definition (excluding results from at-equity investments), adjustments Adjusted EBITDA Total/Group FFO: € 1.0 million. In the course 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. Previous year’s values 3M 2022 updated accordingly.
- **Excluding income from other investments.
- ***Incl. financial income from investments in other real estate companies.
- ****Based on the new 2022 definition without elimitation of IFRS 16 effect, Group FFO per share based on the shares carrying dividend rights on the reporting date.