Reconciliations
The financial result changed from € -137.8 million in the first half of 2022 to € -317.6 million in the first half of 2023. 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 | H1 2022 | H1 2023 | Change in % | 12M 2022 | ||||
Interest income | 35.8 | 49.9 | 39.4 | 115.5 | ||||
Interest expense | -152.5 | -383.2 | >100 | -367.6 | ||||
Other financial result excluding income from investments | -21.1 | 15.7 | – | -10.9 | ||||
Financial result* | -137.8 | -317.6 | >100 | -263.0 | ||||
Adjustments: | ||||||||
Other financial result excluding income from investments | 21.1 | -15.7 | – | 10.9 | ||||
Effects from the valuation of interest rate and currency derivatives | -94.3 | 21.2 | – | -152.5 | ||||
Prepayment penalties and commitment interest | 7.8 | 4.5 | -42.3 | 12.6 | ||||
Effects from the valuation of non-derivative financial instruments | -32.2 | -4.7 | -85.4 | -77.4 | ||||
Interest accretion to provisions | 5.8 | 9.2 | 58.6 | 6.8 | ||||
Accrued interest/other effects | -61.7 | -57.3 | -7.1 | -40.0 | ||||
Net cash interest | -291.3 | -360.4 | 23.7 | -502.6 | ||||
Adjustment for IFRS 16 Leases | 5.5 | 6.8 | 23.6 | 12.2 | ||||
Adjustment of income from investments in other real estate companies | 5.0 | 5.2 | 4.0 | 7.9 | ||||
Adjustment of interest paid due to taxes | -0.5 | -1.0 | 100.0 | -0.6 | ||||
Adjustment of accrued interest | 44.9 | 51.8 | 15.4 | -10.7 | ||||
Interest expense FFO | -236.4 | -297.6 | 25.9 | -493.8 | ||||
- *Excluding income from other investments.
In the first six months of 2023, the profit for the period came to € -4,130.4 million (H1 2022: € 1,870.4 million). This is chiefly due to the negative result from the valuation of investment properties totaling € -6,382.9 million (H1 2022: € 3,115.9 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 | H1 2022* | H1 2023 | Change in % | 12M 2022 | ||||
Profit for the period | 1,870.4 | -4,130.4 | – | -669.4 | ||||
Financial result** | 137.8 | 317.6 | >100 | 263.0 | ||||
Income taxes | 1,016.8 | -1,738.3 | – | -63.3 | ||||
Depreciation and amortization | 1,104.9 | 371.4 | -66.4 | 1,303.1 | ||||
Net income from investments accounted for using the equity method | 334.6 | 12.3 | -96.3 | 436.6 | ||||
Net income from fair value adjustments of investment properties | -3,115.9 | 6,382.9 | – | 1,269.8 | ||||
Non-recurring items | 7.5 | 119.2 | >100 | 127.5 | ||||
Total period adjustments from assets held for sale | 37.9 | -2.4 | – | 52.3 | ||||
Income from investments in other real estate companies | -5.0 | -5.2 | 4.0 | -7.9 | ||||
Other | -25.7 | 2.1 | – | -37.2 | ||||
Intragroup profits/losses | 13.7 | -5.1 | – | -4.7 | ||||
Gross profit Development to hold | 28.8 | 14.2 | -50.7 | 93.3 | ||||
Adjusted EBITDA Total | 1,405.8 | 1,338.3 | -4.8 | 2,763.1 | ||||
Interest expense FFO*** | -236.4 | -297.6 | 25.9 | -493.8 | ||||
Current income taxes FFO | -60.1 | -66.8 | 11.1 | -145.0 | ||||
Consolidation | -42.7 | -9.1 | -78.7 | -88.7 | ||||
Group FFO**** | 1,066.6 | 964.8 | -9.5 | 2,035.6 | ||||
Group FFO after non-controlling interests | 1,025.6 | 919.6 | -10.3 | 1,944.3 | ||||
Group FFO per share in €**** | 1.34 | 1.18 | -11.9 | 2.56 | ||||
- *Prior-year figures adjusted to new adjusted EBITDA definition (excluding results from at-equity investments), adjustments of Adjusted EBITDA Total/Group FFO: € -3.8 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 for H1 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.