30 Financial Assets Accounted for Using the Equity Method
As of the reporting date, Vonovia held interests in 17 joint ventures and eleven associates (December 31, 2022: 26 joint ventures and eight associates).
The capital increase implemented at the Adler Group on April 29, 2023, means that Vonovia’s stake in the Adler Group has fallen to 15.88%. As a result, Vonovia no longer has a significant influence and the interest was classified as an “other non-current equity investment.”
Vonovia also holds 40% of the non-listed QUARTERBACK Immobilien AG with registered office in Leipzig, which was classed as an associate as of December 31, 2023. QUARTERBACK Immobilien AG is a project developer with operations throughout Germany focusing on the central German region. The investment strengthens Vonovia’s development business.
Vonovia also holds interests in eleven (December 31, 2022: eleven) non-listed financial investments of QUARTERBACK Immobilien AG, with equity interests of between 44% and 50% (QUARTERBACK property companies), that were classified as joint ventures.
The 40% interest in the non-listed QUARTERBACK Immobilien AG and QUARTERBACK Immobilien AG’s eleven non-listed financial investments was adjusted on the basis of the financial information as of December 31, 2023, that was available on the preparation cut-off date.
Financial information of QBI and the QUARTERBACK property companies
in € million | Dec. 31, 2022 QUARTERBACK Immobilien AG | Dec. 31, 2023 QUARTERBACK Immobilien AG | Dec. 31, 2022 QUARTERBACK- Objektgesellschaften | Dec. 31, 2023 QUARTERBACK- Objektgesellschaften | |||||
Non-current assets | 764.0 | 752.3 | 229.5 | 235.0 | |||||
Current assets | |||||||||
Cash and cash equivalents | 104.9 | 90.1 | 21.1 | 16.1 | |||||
Other current assets | 1,510.3 | 1,494.5 | 589.3 | 480.3 | |||||
Total non-current assets | 1,615.2 | 1,584.6 | 610.4 | 496.4 | |||||
Total non-current liabilities | 841.6 | 595.7 | 86.6 | 139.1 | |||||
Total current liabilities | 1,186.2 | 1,537.1 | 510.3 | 409.0 | |||||
Non-controlling interests | 42.5 | 39.5 | 12.0 | 10.9 | |||||
Equity (100%) | 308.9 | 164.6 | 231.0 | 172.3 | |||||
Group share in % | 40% | 40% | 44% to 50% | 44% to 50% | |||||
Group share of net assets | 123.6 | 65.8 | 106.6 | 79.9 | |||||
Group adjustments | -49.5 | -51.3 | -5.4 | 7.7 | |||||
Carrying amount of share in joint venture | 74.1 | 14.5 | 101.2 | 87.6 | |||||
Revenues | 311.1 | 427.5 | 59.0 | 101.6 | |||||
Change in inventories | 302.2 | 94.5 | 17.7 | 6.9 | |||||
Interest income | 20.6 | 6.0 | 8.4 | 7.8 | |||||
Depreciation and amortization | -4.3 | -6.1 | -0.2 | -0.2 | |||||
Interest expenses | -78.2 | -101.6 | -23.2 | -28.6 | |||||
Income taxes | -18.1 | 37.9 | -0.6 | 6.6 | |||||
Total gain and comprehensive income for the fiscal year (100%) | 7.8 | -147.4 | -3.1 | -58.6 | |||||
The at-equity adjustment of the investments in the QUARTERBACK Group results in a negative result of € 73.2 million as of December 31, 2023 (2022: € 8.5 million).
A regular impairment test was performed on the interest in QUARTERBACK Immobilien AG as of December 31, 2023. No further need for impairment arose.
In addition to these investments, Vonovia also holds interests in 16 (December 31, 2022: 21) other entities that are accounted for using the equity method and are currently of minor importance; quoted market prices are not available.
The further drop in the number of entities that are accounted for using the equity method is due, on the one hand, to the sale of the shares in B & O Service Berlin GmbH as of June 30, 2023, the sale of the shares in DWA Beteiligungsgesellschaft mbH and KIWI.KI GmbH as of November 9, 2023, and the sale of the shares in Funk Schadensmanagement GmbH as of December 6, 2023. On the other hand, Vonovia purchased the remaining shares in Deutsche KIWI.KI GmbH. Following the increase in the stake in Deutsche KIWI.KI GmbH to 100% in the first half of 2023, the company was merged with Deutsche Wohnen Technology GmbH.
The following table shows, in aggregated form, the carrying amount and the share of profit and other comprehensive income of these companies:
Aggregated information to other entities
in € million | Dec. 31, 2022 | Dec. 31, 2023 | |||
Carrying amount of shares in companies accounted for using the equity method | 64.8 | 55.8 | |||
Group share of net income from companies not accounted for using the equity method | 10% to 50% | 10% to 50% | |||
Pro rata total comprehensive income | -6.6 | -2.5 | |||
The interests were adjusted for these entities provided that corresponding financial information was available.
With regard to the other 17 entities, Vonovia has no significant financial obligations or guarantees with respect to joint ventures and associates.