Reconciliations
The financial result changed from € -204.2 million in the first nine months of 2022 to € -397.0 million in the first nine months 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 | 9M 2022 | 9M 2023 | Change | 12M 2022 | ||||
Interest income | 50.6 | 193.1 | >100 | 115.5 | ||||
Interest expense | -234.3 | -589.9 | >100 | -367.6 | ||||
Other financial result excluding income from | -20.5 | -0.2 | -99.0 | -10.9 | ||||
Financial result* | -204.2 | -397.0 | 94.4 | -263.0 | ||||
Adjustments: | ||||||||
Other financial result excluding income from | 20.5 | 0.2 | -99.0 | 10.9 | ||||
Effects from the valuation of interest rate and | -137.7 | 27.1 | – | -152.5 | ||||
Prepayment penalties and commitment interest | 10.2 | 6.3 | -38.2 | 12.6 | ||||
Effects from the valuation of non-derivative | -54.7 | -0.5 | -99.1 | -77.4 | ||||
Interest accretion to provisions | 7.7 | 13.5 | 75.3 | 6.8 | ||||
Accrued interest/other effects | -49.6 | -163.7 | >100 | -40.0 | ||||
Net cash interest | -407.8 | -514.1 | 26.1 | -502.6 | ||||
Adjustment for IFRS 16 Leases | 8.4 | 10.3 | 22.6 | 12.2 | ||||
Adjustment of income from investments in other real estate companies | 6.6 | 5.8 | -12.1 | 7.9 | ||||
Adjustment of interest paid due to taxes | -0.6 | 0.3 | – | -0.6 | ||||
Adjustment of accrued interest | 31.5 | 36.9 | 17.1 | -10.7 | ||||
Interest expense FFO | -361.9 | -460.8 | 27.3 | -493.8 | ||||
- *Excluding income from other investments.
In the first nine months of 2023, profit for the period came to € -3,808.9 million (9M 2022: € 2,211.7 million). This is chiefly due to the negative result from the valuation of investment properties totaling € -6,318.9 million (9M 2022: € 3,137.6 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 | 9M 2022* | 9M 2023 | Change | 12M 2022 | ||||
Profit for the period | 2,211.7 | -3,808.9 | – | -669.4 | ||||
Financial result** | 204.2 | 397.0 | 94.4 | 263.0 | ||||
Income taxes | 1,168.0 | -1,534.7 | – | -63.3 | ||||
Depreciation and amortization (incl. depreciation on financial assets) | 1,140.1 | 444.9 | -61.0 | 1,303.1 | ||||
Net income from investments accounted for using the equity method | 425.0 | 24.1 | -94.3 | 436.6 | ||||
Net income from fair value adjustments of investment properties | -3,137.6 | 6,318.9 | – | 1,269.8 | ||||
Non-recurring items | 26.0 | 157.9 | >100 | 127.5 | ||||
Total period adjustments from assets held for sale | 38.4 | 8.9 | -76.8 | 52.3 | ||||
Income from investments in other real estate companies | -6.6 | -5.8 | -12.1 | -7.9 | ||||
Other | -32.2 | 1.2 | – | -37.2 | ||||
Intragroup profits/losses | 22.6 | -6.6 | – | -4.7 | ||||
Gross profit Development to hold | 50.5 | 13.1 | -74.1 | 93.3 | ||||
Adjusted EBITDA Total | 2,110.1 | 2,010.0 | -4.7 | 2,763.1 | ||||
Interest expense FFO*** | -361.9 | -460.8 | 27.3 | -493.8 | ||||
Current income taxes FFO | -97.3 | -96.7 | -0.6 | -145.0 | ||||
Consolidation | -73.1 | -6.5 | -91.1 | -88.7 | ||||
Group FFO**** | 1,577.8 | 1,446.0 | -8.4 | 2,035.6 | ||||
Group FFO after non-controlling interests | 1,515.8 | 1,376.4 | -9.2 | 1,944.3 | ||||
Group FFO per share in €**** | 1.98 | 1.78 | -10.1 | 2.56 | ||||
- *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 9M 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 elimination of IFRS 16 effect, Group FFO per share based on the shares carrying dividend rights on the reporting date.