18 Investment Properties
Investment Properties
in € million | |||
As of Jan. 1, 2024 | 81,120.3 | ||
Additions | 99.8 | ||
Capitalized modernization costs | 319.4 | ||
Grants received | -3.8 | ||
Transfer from property, plant and equipment | 6.4 | ||
Transfer from down payments made | 149.3 | ||
Transfer to real estate inventories | -4.2 | ||
Transfer to assets held for sale | -1,420.1 | ||
Disposals | -84.4 | ||
Net income from fair value adjustments of investment properties | -1,432.0 | ||
Impairment of investment properties measured at cost | -2.9 | ||
Reversal of impairments of investment properties measured at cost | 5.9 | ||
Revaluation of assets held for sale | 27.8 | ||
Revaluation from currency effects | -150.3 | ||
As of Jun. 30, 2024 | 78,631.2 | ||
As of Jan. 1, 2023 | 92,300.1 | ||
Additions | 228.7 | ||
Capitalized modernization costs | 820.5 | ||
Grants received | -66.0 | ||
Transfer to property, plant and equipment | -45.9 | ||
Transfer from property, plant and equipment | 48.5 | ||
Transfer to down payments made | -1.6 | ||
Transfer from down payments made | 161.9 | ||
Transfer from real estate inventories | 649.8 | ||
Transfer to real estate inventories | -384.5 | ||
Transfer from assets held for sale | 0.9 | ||
Transfer to assets held for sale | -740.4 | ||
Transfer to discontinued operations | -619.4 | ||
Other transfers | -14.2 | ||
Disposals | -319.5 | ||
Net income from fair value adjustments of investment properties | -10,844.2 | ||
Impairment of investment properties measured at cost | -68.4 | ||
Revaluation of assets held for sale | 18.4 | ||
Revaluation from currency effects | -4.4 | ||
As of Dec. 31, 2023 | 81,120.3 | ||
The values as of June 30, 2024, include assets of € 354.4 million (December 31, 2023: € 304.1 million) that are measured at cost, as their fair value cannot be reliably calculated on a continuing basis. In the reporting period, a need for impairment in the amount of € 2.9 million was identified on these project developments, and impairment losses of € 5.9 million were reversed. The impairment losses were reported under depreciation and amortization losses, with the reversal of impairment losses being disclosed under Other operating income.
Fair Values
Vonovia determines fair value in accordance with the requirements of IAS 40 in conjunction with IFRS 13. We refer to the detailed information set out in the consolidated financial statements for 2023.
Vonovia measures its portfolio in Germany, Sweden and Austria internally on the basis of the discounted cash flow (DCF) method. Under the DCF methodology, the expected future cash inflows and outflows associated with a property are forecast over a period of ten years and discounted to the date of valuation as the net present value. Furthermore, the terminal value of the property at the end of the ten-year period is determined using the expected stabilized net operating income and again discounted to the date of valuation as the net present value. In addition, the valuation of the portfolio in Austria is based on the assumption of sales strategies for the recurring sales of apartments for a subportfolio. Attainable revenues are calculated based on sales prices for comparable apartments (market approach) and are reported in the appropriate period in the DCF model. In order to take the sales potential into account, the DCF detailed period is extended to 100 years for the Austrian portfolios and no terminal value is used.
In order to reflect changes in value during the year, Vonovia performs a new valuation on the existing residential real estate portfolio at the time of the half-year financial statements.
The value developments and values for the real estate assets in Germany, Sweden and Austria were also subjected to a plausibility check performed by the experts CBRE GmbH and Savills Sweden SE. They confirmed that the portfolio value as of June 30, 2024, is plausible and consistent with the market.
The real estate portfolio of Vonovia is to be found in the items investment properties, property, plant and equipment (owner-occupied properties), real estate inventories, contractual assets and assets held for sale. The fair value of the portfolio comprising residential buildings, commercial properties, garages and parking spaces, project developments and undeveloped land, along with any inheritable building rights granted, was € 82,464.7 million as of June 30, 2024 (Dec. 31, 2023: € 83,927.7 million). This corresponds to a net initial yield for the real estate portfolio of 2.9% (December 31, 2023: 2.8%). For Germany, this results in an in-place rent multiplier of 24.6 for the portfolio (December 31, 2023: 25.1) and a fair value per m² of € 2,269 (December 31, 2023: € 2,297 per m²). The in-place rent multiplier for the Swedish portfolio comes to 17.1 (December 31, 2023: 17.9) and a fair value per m² of € 2,041 (December 31, 2023: € 2,088 per m²), for Austria to 21.5 (December 31, 2023: 22.5) and a fair value per m² of € 1,590 (December 31, 2023: € 1,612 per m²).
The inflation rate applied to the valuation procedure comes to 2.0% (H1 2023: 2.1%). For the Austrian portfolio, a sales strategy with an average selling price of € 2,406 per m² (H1 2023: € 2,406) was assumed for 48.6% (H1 2023: 48.4%) of the portfolio.
Net income from the valuation of investment properties amounted to € -1,432.0 million in the first half of 2024 (H1 2023: € -6,382.9 million).
The material valuation parameters for the investment properties (Level 3) in the residential real estate portfolio are as follows as of June 30, 2024, on average, broken down by regional markets:
Material valuation parameters for the investment properties (level 3) as of June 30, 2024
Valuation results* | Valuation parameters investment properties (Level 3) | ||||||||||||||||||||||
Regional market | Fair value | thereof | thereof other | Management costs | Maintenance | Market rent | Market | Stabilized | Discount | Capitalized | |||||||||||||
Jun. 30, 2024 | |||||||||||||||||||||||
Berlin | 23,388.8 | 22,685.6 | 703.3 | 316 | 17.04 | 8.79 | 2.3% | 0.5% | 4.9% | 2.9% | |||||||||||||
Rhine Main Area | 6,475.7 | 6,163.6 | 312.1 | 341 | 16.69 | 10.28 | 2.2% | 1.1% | 5.2% | 3.2% | |||||||||||||
Southern Ruhr Area | 5,076.8 | 5,065.6 | 11.1 | 336 | 14.84 | 7.92 | 1.8% | 2.4% | 4.9% | 3.4% | |||||||||||||
Rhineland | 4,975.5 | 4,963.6 | 12.0 | 338 | 16.30 | 9.25 | 2.0% | 1.6% | 5.2% | 3.4% | |||||||||||||
Dresden | 4,860.4 | 4,789.1 | 71.3 | 303 | 16.26 | 7.25 | 2.0% | 2.1% | 5.1% | 3.4% | |||||||||||||
Hamburg | 3,179.3 | 3,140.1 | 39.2 | 326 | 16.37 | 9.41 | 2.1% | 1.1% | 5.1% | 3.2% | |||||||||||||
Hanover | 2,766.4 | 2,764.0 | 2.4 | 326 | 16.23 | 8.26 | 2.0% | 1.8% | 5.3% | 3.6% | |||||||||||||
Kiel | 2,744.2 | 2,734.7 | 9.5 | 328 | 17.10 | 8.64 | 2.0% | 1.5% | 5.5% | 3.8% | |||||||||||||
Munich | 2,693.3 | 2,654.1 | 39.2 | 327 | 16.86 | 13.32 | 2.3% | 0.5% | 5.2% | 3.2% | |||||||||||||
Stuttgart | 2,226.8 | 2,223.3 | 3.5 | 342 | 17.15 | 10.12 | 2.1% | 1.2% | 5.3% | 3.4% | |||||||||||||
Northern Ruhr Area | 2,018.6 | 2,012.1 | 6.5 | 337 | 15.36 | 7.04 | 1.5% | 3.0% | 5.2% | 4.0% | |||||||||||||
Leipzig | 1,920.8 | 1,914.2 | 6.6 | 321 | 17.13 | 7.31 | 2.0% | 2.2% | 5.0% | 3.3% | |||||||||||||
Bremen | 1,402.8 | 1,398.4 | 4.4 | 333 | 15.32 | 7.79 | 2.0% | 1.8% | 5.1% | 3.4% | |||||||||||||
Westphalia | 1,090.7 | 1,088.8 | 1.9 | 332 | 15.17 | 8.10 | 1.9% | 1.8% | 5.4% | 3.7% | |||||||||||||
Freiburg | 718.0 | 716.9 | 1.2 | 340 | 17.16 | 9.51 | 2.0% | 0.8% | 4.9% | 3.1% | |||||||||||||
Other strategic locations | 3,327.3 | 3,259.1 | 68.2 | 333 | 16.42 | 8.23 | 2.0% | 2.4% | 5.3% | 3.6% | |||||||||||||
Total strategic locations | 68,865.6 | 67,573.2 | 1,292.4 | 326 | 16.43 | 8.66 | 2.1% | 1.5% | 5.1% | 3.2% | |||||||||||||
Non-strategic locations | 376.8 | 299.9 | 76.9 | 358 | 17.47 | 8.54 | 1.9% | 2.2% | 6.1% | 4.2% | |||||||||||||
Vonovia Germany | 69,242.4 | 67,873.1 | 1,369.3 | 326 | 16.43 | 8.66 | 2.1% | 1.5% | 5.1% | 3.2% | |||||||||||||
Vonovia Sweden** | 6,259.4 | 6,259.4 | 0.0 | 378 | 13.06 | 10.42 | 2.1% | 2.0% | 6.2% | 4.1% | |||||||||||||
Vonovia Austria** | 2,710.0 | 2,665.8 | 44.2 | n.a. | 20.83 | 6.33 | 1.7% | 2.5% | 6.2% | n.a. | |||||||||||||
- *Fair value of the developed land excl. € 4,252.9 million for Development and Care portfolio, undeveloped land, inheritable building rights granted and other; € 1,387.0 million of this amount relates to investment properties. The investment properties balance sheet item also includes the present value in connection with payments for right-of-use assets in the amount of € 445.9 million.
- **The valuation methods used for the portfolio in Austria and Sweden use and provide valuation parameters that are only partially comparable.
Material valuation parameters for the investment properties (level 3) as of December 31, 2023
Valuation results* | Valuation parameters investment properties (Level 3) | ||||||||||||||||||||||
Regional market | Fair value | thereof | thereof other | Management costs | Maintenance | Market rent | Market | Stabilized | Discount | Capitalized | |||||||||||||
Dec. 31, 2023 | |||||||||||||||||||||||
Berlin | 23,881.0 | 23,782.6 | 98.4 | 307 | 16.67 | 8.62 | 2.3% | 0.9% | 4.9% | 2.8% | |||||||||||||
Rhine Main Area | 6,610.7 | 6,587.0 | 23.7 | 331 | 16.30 | 10.17 | 2.2% | 1.2% | 5.1% | 3.2% | |||||||||||||
Southern Ruhr Area | 5,168.6 | 5,157.5 | 11.1 | 326 | 14.39 | 7.79 | 1.8% | 2.6% | 4.8% | 3.3% | |||||||||||||
Rhineland | 5,045.8 | 5,022.0 | 23.9 | 328 | 15.86 | 9.16 | 2.1% | 1.7% | 5.2% | 3.4% | |||||||||||||
Dresden | 5,031.5 | 4,902.7 | 128.9 | 295 | 15.97 | 7.20 | 2.1% | 2.2% | 5.1% | 3.3% | |||||||||||||
Hamburg | 3,229.2 | 3,221.0 | 8.2 | 317 | 15.97 | 9.24 | 2.1% | 1.2% | 5.0% | 3.2% | |||||||||||||
Hanover | 2,886.6 | 2,868.0 | 18.6 | 316 | 15.85 | 8.11 | 2.0% | 2.0% | 5.2% | 3.5% | |||||||||||||
Kiel | 2,774.6 | 2,759.5 | 15.1 | 319 | 16.65 | 8.47 | 2.0% | 1.6% | 5.4% | 3.7% | |||||||||||||
Munich | 2,743.7 | 2,736.8 | 6.9 | 318 | 16.44 | 13.07 | 2.3% | 0.6% | 5.2% | 3.1% | |||||||||||||
Stuttgart | 2,249.5 | 2,243.1 | 6.5 | 333 | 16.86 | 9.98 | 2.2% | 1.3% | 5.3% | 3.4% | |||||||||||||
Northern Ruhr Area | 2,044.6 | 2,038.7 | 6.0 | 328 | 14.95 | 6.93 | 1.6% | 3.2% | 5.1% | 3.9% | |||||||||||||
Leipzig | 1,890.6 | 1,863.4 | 27.2 | 312 | 16.87 | 7.29 | 2.0% | 2.7% | 4.9% | 3.2% | |||||||||||||
Bremen | 1,439.3 | 1,435.6 | 3.6 | 325 | 14.99 | 7.61 | 2.0% | 2.0% | 4.9% | 3.2% | |||||||||||||
Westphalia | 1,091.3 | 1,086.3 | 4.9 | 324 | 14.81 | 7.99 | 2.0% | 2.0% | 5.4% | 3.7% | |||||||||||||
Freiburg | 727.1 | 717.2 | 9.9 | 331 | 16.73 | 9.42 | 2.0% | 0.9% | 4.9% | 3.1% | |||||||||||||
Other strategic locations | 3,394.9 | 3,387.1 | 7.8 | 324 | 16.02 | 8.16 | 2.0% | 2.5% | 5.3% | 3.6% | |||||||||||||
Total strategic locations | 70,209.1 | 69,808.4 | 400.6 | 316 | 16.05 | 8.53 | 2.1% | 1.7% | 5.0% | 3.2% | |||||||||||||
Non-strategic locations | 409.0 | 390.8 | 18.2 | 341 | 16.96 | 7.99 | 1.9% | 2.2% | 6.0% | 4.2% | |||||||||||||
Vonovia Germany | 70,618.1 | 70,199.3 | 418.9 | 317 | 16.06 | 8.53 | 2.1% | 1.7% | 5.1% | 3.2% | |||||||||||||
Vonovia Sweden** | 6,402.5 | 6,402.5 | 0.0 | 373 | 14.03 | 10.23 | 2.2% | 1.6% | 6.1% | 4.0% | |||||||||||||
Vonovia Austria** | 2,771.6 | 2,724.3 | 47.2 | n.a. | 21.04 | 6.32 | 1.7% | 2.5% | 6.1% | n.a. | |||||||||||||
- *Fair value of the developed land excl. € 4,135.4 million for development, undeveloped land, inheritable building rights granted and other; € 1,343.1 million of this amount relates to investment properties. The investment properties balance sheet item also includes the present value in connection with payments for right-of-use assets in the amount of € 451.1 million.
- **The valuation methods used for the portfolio in Austria and Sweden use and provide valuation parameters that are only partially comparable.
Sensitivity Analyses
The sensitivity analyses performed on Vonovia’s real estate portfolio show the impact of value drivers dependent upon market developments. Those influenced in particular are the market rents and their development, the amount of recognized administrative and maintenance expenses, cost increases, the vacancy rate and interest rates. The effect of possible fluctuations in these parameters is shown separately for each parameter according to regional market in the following.
Interactions between the parameters are possible but cannot be quantified owing to the complexity of the interrelationships. The vacancy and market rent parameters, for example, can influence each other. If rising demand for housing is not met by adequate supply developments, then this can result in lower vacancy rates and, at the same time, rising market rents. If, however, the rising demand is compensated for by a high vacancy reserve in the location in question, then the market rent level does not necessarily change.
Changes in the demand for housing can also impact the risk associated with the expected payment flows, which is then reflected in adjusted amounts recognized for discounting and capitalized interest rates. The effects do not, however, necessarily have to have a favorable impact on each other, for example, if the changes in the demand for residential real estate are overshadowed by macroeconomic developments.
In addition, factors other than demand can have an impact on these parameters. Examples include changes in the portfolio, in seller and buyer behavior, political decisions and developments on the capital market.
Due to the special situation in Sweden, where changes in inflation will have a considerable impact on future rent increases, it has been assumed that at least one-third of any change in inflation will spill over into rental growth.
The table below shows the percentage impact on values in the event of a change in the valuation parameters. The absolute impact on values is calculated by multiplying the percentage impact by the fair value of the investment properties.
Change in parameters for the investment properties as of June 30, 2024
Change in value as a % under varying parameters | Change in value as a % under varying parameters | ||||||||||||||||
Management costs residential | Maintenance costs residential | Cost increase/inflation | Market rent residential | Market rent increase residential | Stabilized vacancy rate residential | Discounting and capitalized interest rates total | |||||||||||
Regional market | -10%/10% | -10%/10% | -0.5%/+0.5% points | -2%/+2% | -0.2%/+0.2% points | -1%/+1% points | -0.25%/+0.25% points | ||||||||||
Jun. 30, 2024 | |||||||||||||||||
Berlin | 0.6/-0.6 | 1.9/-1.9 | 5.1/-5.2 | -2.4/2.4 | -8.5/10.1 | 0.8/-1.8 | 10.0/-8.4 | ||||||||||
Rhine Main Area | 0.5/-0.5 | 1.6/-1.6 | 3.6/-3.7 | -2.4/2.4 | -7.0/8.2 | 1.1/-1.6 | 8.5/-7.2 | ||||||||||
Southern Ruhr Area | 0.9/-0.9 | 2.4/-2.4 | 5.4/-5.5 | -2.6/2.6 | -7.7/8.9 | 2.0/-2.0 | 8.3/-7.1 | ||||||||||
Rhineland | 0.6/-0.6 | 1.9/-1.9 | 4.1/-4.2 | -2.4/2.4 | -7.1/8.2 | 1.6/-1.7 | 8.3/-7.1 | ||||||||||
Dresden | 0.8/-0.8 | 2.5/-2.5 | 5.4/-5.5 | -2.6/2.6 | -7.5/8.7 | 1.9/-1.9 | 8.4/-7.2 | ||||||||||
Hamburg | 0.6/-0.6 | 1.9/-1.9 | 4.2/-4.3 | -2.4/2.3 | -7.5/8.7 | 1.3/-1.7 | 8.8/-7.5 | ||||||||||
Hanover | 0.8/-0.8 | 2.2/-2.2 | 4.6/-4.7 | -2.5/2.5 | -7.1/8.1 | 1.9/-1.9 | 7.9/-6.8 | ||||||||||
Kiel | 0.8/-0.8 | 2.2/-2.3 | 4.4/-4.5 | -2.5/2.5 | -6.7/7.7 | 1.9/-1.9 | 7.3/-6.4 | ||||||||||
Munich | 0.4/-0.4 | 1.2/-1.2 | 3.2/-3.3 | -2.1/2.1 | -7.3/8.4 | 0.7/-1.5 | 9.3/-7.9 | ||||||||||
Stuttgart | 0.6/-0.6 | 1.7/-1.7 | 3.6/-3.7 | -2.4/2.4 | -6.8/7.8 | 1.5/-1.6 | 8.1/-6.9 | ||||||||||
Northern Ruhr Area | 1.2/-1.2 | 3.1/-3.1 | 5.8/-5.8 | -2.8/2.7 | -6.9/7.8 | 2.3/-2.3 | 6.8/-6.0 | ||||||||||
Leipzig | 0.8/-0.8 | 2.7/-2.7 | 5.9/-6.0 | -2.6/2.5 | -7.9/9.2 | 1.9/-2.0 | 8.7/-7.5 | ||||||||||
Bremen | 0.8/-0.8 | 2.3/-2.3 | 5.4/-5.4 | -2.4/2.4 | -7.5/8.9 | 1.9/-1.9 | 8.4/-7.2 | ||||||||||
Westphalia | 0.8/-0.8 | 2.3/-2.3 | 4.7/-4.8 | -2.5/2.5 | -6.8/7.8 | 1.8/-1.9 | 7.4/-6.4 | ||||||||||
Freiburg | 0.6/-0.6 | 2.0/-2.0 | 4.3/-4.4 | -2.5/2.5 | -7.6/9.0 | 1.1/-1.7 | 8.9/-7.5 | ||||||||||
Other strategic locations | 0.8/-0.8 | 2.3/-2.3 | 4.6/-4.7 | -2.6/2.5 | -7.0/7.9 | 1.8/-1.9 | 7.6/-6.6 | ||||||||||
Total strategic locations | 0.7/-0.7 | 2.0/-2.0 | 4.7/-4.8 | -2.5/2.4 | -7.7/8.9 | 1.3/-1.8 | 8.8/-7.5 | ||||||||||
Non-strategic locations | 0.7/-0.7 | 2.0/-2.0 | 3.8/-3.9 | -2.2/2.3 | -5.9/6.9 | 1.4/-1.6 | 7.1/-6.2 | ||||||||||
Vonovia Germany | 0.7/-0.7 | 2.0/-2.0 | 4.7/-4.8 | -2.5/2.4 | -7.6/8.9 | 1.3/-1.8 | 8.8/-7.5 | ||||||||||
Vonovia Sweden* | 0.6/-0.6 | 1.6/-1.6 | 4.3/-4.6 | -2.7/2.7 | -7.4/8.5 | 0.6/-1.1 | 7.0/-6.2 | ||||||||||
Vonovia Austria* | n.a./n.a. | 0.4/-0.4 | 0.3/-0.4 | -0.4/0.4 | -0.9/1.0 | 0.9/-0.9 | 3.9/-3.6 | ||||||||||
- *The valuation methods used for the portfolio in Austria and Sweden use and provide valuation parameters that are only partially comparable.
Change in parameters for the investment properties as of December 31, 2023
Change in value as a % under varying parameters | Change in value as a % under varying parameters | ||||||||||||||||
Management costs residential | Maintenance costs residential | Cost increase/inflation | Market rent residential | Market rent increase residential | Stabilized vacancy rate residential | Discounting and capitalized interest rates total | |||||||||||
Regional market | -10%/10% | -10%/10% | -0.5%/+0.5% points | -2%/+2% | -0.2%/+0.2% points | -1%/+1% points | -0.25%/+0.25% points | ||||||||||
Dec. 31, 2023 | |||||||||||||||||
Berlin | 0.6/-0.6 | 1.9/-1.9 | 5.2/-5.3 | -2.4/2.4 | -8.7/10.4 | 1.5/-1.8 | 10.3/-8.6 | ||||||||||
Rhine Main Area | 0.5/-0.5 | 1.6/-1.6 | 3.6/-3.7 | -2.4/2.3 | -7.1/8.2 | 1.2/-1.6 | 8.6/-7.3 | ||||||||||
Southern Ruhr Area | 0.9/-0.9 | 2.4/-2.4 | 5.5/-5.5 | -2.6/2.6 | -7.8/9.1 | 2.0/-2.0 | 8.5/-7.3 | ||||||||||
Rhineland | 0.6/-0.6 | 1.9/-1.9 | 4.1/-4.2 | -2.4/2.4 | -7.2/8.3 | 1.7/-1.7 | 8.4/-7.2 | ||||||||||
Dresden | 0.8/-0.8 | 2.4/-2.4 | 5.4/-5.4 | -2.6/2.5 | -7.5/8.7 | 1.9/-1.9 | 8.5/-7.3 | ||||||||||
Hamburg | 0.6/-0.6 | 1.8/-1.8 | 4.2/-4.3 | -2.4/2.3 | -7.5/8.8 | 1.3/-1.7 | 9.0/-7.6 | ||||||||||
Hanover | 0.7/-0.7 | 2.2/-2.2 | 4.7/-4.8 | -2.5/2.5 | -7.2/8.4 | 1.9/-1.9 | 8.1/-7.0 | ||||||||||
Kiel | 0.8/-0.8 | 2.2/-2.3 | 4.5/-4.6 | -2.5/2.5 | -6.9/7.8 | 1.9/-1.9 | 7.5/-6.5 | ||||||||||
Munich | 0.4/-0.4 | 1.2/-1.2 | 3.2/-3.4 | -2.1/2.1 | -7.3/8.5 | 0.8/-1.5 | 9.5/-8.0 | ||||||||||
Stuttgart | 0.6/-0.5 | 1.7/-1.7 | 3.5/-3.7 | -2.4/2.4 | -6.8/7.9 | 1.5/-1.6 | 8.1/-7.0 | ||||||||||
Northern Ruhr Area | 1.2/-1.1 | 3.1/-3.1 | 5.9/-5.9 | -2.8/2.8 | -7.0/8.0 | 2.3/-2.3 | 7.0/-6.1 | ||||||||||
Leipzig | 0.8/-0.8 | 2.7/-2.7 | 6.0/-6.0 | -2.5/2.5 | -7.9/9.2 | 2.0/-2.0 | 8.8/-7.5 | ||||||||||
Bremen | 0.9/-0.9 | 2.4/-2.4 | 5.8/-5.8 | -2.5/2.5 | -8.0/9.4 | 1.9/-2.0 | 8.8/-7.6 | ||||||||||
Westphalia | 0.8/-0.8 | 2.3/-2.3 | 4.8/-4.8 | -2.4/2.4 | -6.9/7.9 | 1.8/-1.9 | 7.4/-6.5 | ||||||||||
Freiburg | 0.6/-0.6 | 1.9/-1.9 | 4.2/-4.3 | -2.5/2.4 | -7.6/8.9 | 1.2/-1.7 | 8.9/-7.5 | ||||||||||
Other strategic locations | 0.8/-0.8 | 2.3/-2.3 | 4.6/-4.7 | -2.6/2.5 | -7.0/8.0 | 1.8/-1.9 | 7.7/-6.7 | ||||||||||
Total strategic locations | 0.7/-0.7 | 2.0/-2.0 | 4.8/-4.9 | -2.4/2.4 | -7.8/9.1 | 1.6/-1.8 | 9.0/-7.6 | ||||||||||
Non-strategic locations | 0.7/-0.7 | 2.2/-2.2 | 3.9/-4.0 | -2.3/2.3 | -6.0/6.8 | 1.7/-1.7 | 6.9/-6.1 | ||||||||||
Vonovia Germany | 0.7/-0.7 | 2.0/-2.0 | 4.8/-4.9 | -2.4/2.4 | -7.8/9.1 | 1.6/-1.8 | 9.0/-7.6 | ||||||||||
Vonovia Sweden* | 0.6/-0.6 | 1.7/-1.7 | 4.5/-4.8 | -2.8/2.8 | -7.8/8.9 | 0.6/-1.1 | 7.1/-6.2 | ||||||||||
Vonovia Austria* | n.a./n.a. | 0.4/-0.4 | 0.3/-0.4 | -0.5/0.4 | -0.9/1.0 | 0.9/-1.0 | 4.0/-3.7 | ||||||||||
- *The valuation methods used for the portfolio in Austria and Sweden use and provide valuation parameters that are only partially comparable.
Adjusted EBITDA Development
The Adjusted EBITDA Development includes the gross profit from the development activities of “to sell” projects (income from sold development projects less production costs) and the gross profit from the development activities of “to hold” projects (fair value of the units developed for the company’s own portfolio less incurred production costs) less the operating expenses from the Development segment.
Adjusted EBITDA Deutsche Wohnen
The Adjusted EBITDA Deutsche Wohnen is calculated by deducting the operating expenses of the Deutsche Wohnen segment and the carrying amount of properties sold from the segment revenue of the Deutsche Wohnen Group.
Adjusted EBITDA Recurring Sales
The Adjusted EBITDA Recurring Sales compares the proceeds generated from the privatization business with the fair values of assets sold and also deducts the related costs of sale. In order to disclose profit and revenue in the period in which they are incurred and to report a sales margin, the fair value of properties sold, valued in accordance with IFRS 5, has to be adjusted to reflect realized/unrealized changes in value.
Adjusted EBITDA Rental
The Adjusted EBITDA Rental is calculated by deducting the operating expenses of the Rental segment and the expenses for maintenance in the Rental segment from the Group’s rental income.
Adjusted EBITDA Total
Adjusted EBITDA Total is the result before interest, taxes, depreciation and amortization (including income from other operational investments and intragroup profits) adjusted for effects that do not relate to the period, recur irregularly and that are atypical for business operation, and for net income from fair value adjustments to investment properties. These non-recurring items include the development of new fields of business and business processes, acquisition projects, expenses for refinancing and equity increases (where not treated as capital procurement costs), IPO preparation costs and expenses for pre-retirement part-time work arrangements and severance payments. The Adjusted EBITDA Total is derived from the sum of the Adjusted EBITDA Rental, Adjusted EBITDA Value-add, Adjusted EBITDA Recurring Sales, Adjusted EBITDA Development and Adjusted EBITDA Deutsche Wohnen.
Adjusted EBITDA Value-add
The Adjusted EBITDA Value-add is calculated by deducting operating expenses from the segment’s income.
COSO
The Committee of Sponsoring Organizations of the Treadway Commission (COSO) is a private-sector U.S. organization. It was founded in 1985. In 1992, COSO published the COSO model, an SEC-recognized standard for internal controls. This provided a basis for the documentation, analysis and design of internal control systems. In 2004, the model was further developed and the COSO Enterprise Risk Management (ERM) Framework was published. Since then, it has been used to structure and develop risk management systems.
Covenants
Requirements specified in loan agreements or bond conditions containing future obligations of the borrower or the bond obligor to meet specific requirements or to refrain from undertaking certain activities.
EPRA Key Figures
For information on the EPRA key figures, we refer to the chapter on segment reporting according to EPRA.
EPRA NTA
The presentation of the NTA based on the EPRA definition aims to show the net asset value in a long-term business model. NTA stands for Net Tangible Assets. The equity attributable to Vonovia’s shareholders is adjusted by deferred taxes, real estate transfer tax and other purchasers’ costs in relation to the existing portfolio and the fair value of derivative financial instruments after taking deferred taxes into account. Stated goodwill and other intangible assets are also deducted.
European Public Real Estate Association (EPRA)
The European Public Real Estate Association (EPRA) is a non-profit organization that has its registered headquarters in Brussels and represents the interests of listed European real estate companies. Its mission is to raise awareness of European listed real estate companies as a potential investment destination that offers an alternative to conventional investments. EPRA is a registered trademark of the European Public Real Estate Association.
European Public Real Estate Association (EPRA)
The European Public Real Estate Association (EPRA) is a non-profit organization that has its registered headquarters in Brussels and represents the interests of listed European real estate companies. Its mission is to raise awareness of European listed real estate companies as a potential investment destination that offers an alternative to conventional investments. EPRA is a registered trademark of the European Public Real Estate Association.
Fair Value
Fair value is particularly relevant with regard to valuation in accordance with IAS 40 in conjunction with IFRS 13. The fair value is the amount for which an asset could be exchanged between knowledgeable, willing parties in an arm’s length transaction.
Fair Value
Fair value is particularly relevant with regard to valuation in accordance with IAS 40 in conjunction with IFRS 13. The fair value is the amount for which an asset could be exchanged between knowledgeable, willing parties in an arm’s length transaction.
Fair Value
Fair value is particularly relevant with regard to valuation in accordance with IAS 40 in conjunction with IFRS 13. The fair value is the amount for which an asset could be exchanged between knowledgeable, willing parties in an arm’s length transaction.
Fair Value
Fair value is particularly relevant with regard to valuation in accordance with IAS 40 in conjunction with IFRS 13. The fair value is the amount for which an asset could be exchanged between knowledgeable, willing parties in an arm’s length transaction.
GAV
The Gross Asset Value (GAV) of the recognized real estate investments. This consists of the owner-occupied properties, the investment properties including development to hold, the assets held for sale and the development to sell area. In the latter, both residential properties for which a purchase contract has been signed and those with the intention to sell – i.e., a purchase contract has not yet been signed – are included.
GAV
The Gross Asset Value (GAV) of the recognized real estate investments. This consists of the owner-occupied properties, the investment properties including development to hold, the assets held for sale and the development to sell area. In the latter, both residential properties for which a purchase contract has been signed and those with the intention to sell – i.e., a purchase contract has not yet been signed – are included.
Group FFO
Group FFO reflects the recurring earnings from the operating business. In addition to the adjusted EBITDA for the Rental, Value-add, Recurring Sales and Development segments, Group FFO allows for recurring current net interest expenses from non-derivative financial instruments as well as current income taxes. This key figure is not determined on the basis of any specific international reporting standard but is to be regarded as a supplement to other performance indicators determined in accordance with IFRS.
Maintenance
Maintenance covers the measures that are necessary to ensure that the property can continue to be used as intended over its useful life and that eliminate structural and other defects caused by wear and tear, age and weathering effects.
Maintenance
Maintenance covers the measures that are necessary to ensure that the property can continue to be used as intended over its useful life and that eliminate structural and other defects caused by wear and tear, age and weathering effects.
Maintenance
Maintenance covers the measures that are necessary to ensure that the property can continue to be used as intended over its useful life and that eliminate structural and other defects caused by wear and tear, age and weathering effects.
Maintenance
Maintenance covers the measures that are necessary to ensure that the property can continue to be used as intended over its useful life and that eliminate structural and other defects caused by wear and tear, age and weathering effects.
Vacancy Rate
The vacancy rate is the number of empty units as a percentage of the total units owned by the company. The vacant units are counted at the end of each month.
Vacancy Rate
The vacancy rate is the number of empty units as a percentage of the total units owned by the company. The vacant units are counted at the end of each month.
Vacancy Rate
The vacancy rate is the number of empty units as a percentage of the total units owned by the company. The vacant units are counted at the end of each month.
Vacancy Rate
The vacancy rate is the number of empty units as a percentage of the total units owned by the company. The vacant units are counted at the end of each month.
LTV Ratio (Loan-to-Value Ratio)
The LTV ratio shows the extent to which financial liabilities are covered. It shows the ratio of non-derivative financial liabilities pursuant to IFRS, less foreign exchange rate effects, cash and cash equivalents less advance payments received by Development (period-related), receivables from disposals, plus purchase prices for outstanding acquisitions to the total fair values of the real estate portfolio, fair values of the projects/land currently under construction as well as receivables from the sale of real estate inventories (period-related) plus the fair values of outstanding acquisitions and investments in other real estate companies.
Rental Income
Rental income refers to the current gross income for rented units as agreed in the corresponding lease agreements before the deduction of non-transferable ancillary costs. The rental income from the Austrian property portfolio additionally includes maintenance and improvement contributions (EVB). The rental income from the portfolio in Sweden reflects inclusive rents, meaning that the amounts contain operating and heating costs.
Rental Income
Rental income refers to the current gross income for rented units as agreed in the corresponding lease agreements before the deduction of non-transferable ancillary costs. The rental income from the Austrian property portfolio additionally includes maintenance and improvement contributions (EVB). The rental income from the portfolio in Sweden reflects inclusive rents, meaning that the amounts contain operating and heating costs.
Modernization Measures
Modernization measures are long-term and sustainable value-enhancing investments in housing and building stocks. Energy-efficient refurbishments generally involve improvements to the building shell and communal areas as well as the heat and electricity supply systems. Typical examples are the installation of heating systems, the renovation of balconies and the retrofitting of prefabricated balconies as well as the implementation of energy-saving projects, such as the installation of double-glazed windows and heat insulation, e.g., facade insulation, insulation of the top story ceilings and basement ceilings. In addition to modernization of the apartment electrics, the refurbishment work upgrades the apartments, typically through the installation of modern and/or accessible bathrooms, the installation of new doors and the laying of high-quality and non-slip flooring. Where required, the floor plans are altered to meet changed housing needs.
Modernization Measures
Modernization measures are long-term and sustainable value-enhancing investments in housing and building stocks. Energy-efficient refurbishments generally involve improvements to the building shell and communal areas as well as the heat and electricity supply systems. Typical examples are the installation of heating systems, the renovation of balconies and the retrofitting of prefabricated balconies as well as the implementation of energy-saving projects, such as the installation of double-glazed windows and heat insulation, e.g., facade insulation, insulation of the top story ceilings and basement ceilings. In addition to modernization of the apartment electrics, the refurbishment work upgrades the apartments, typically through the installation of modern and/or accessible bathrooms, the installation of new doors and the laying of high-quality and non-slip flooring. Where required, the floor plans are altered to meet changed housing needs.
Modernization Measures
Modernization measures are long-term and sustainable value-enhancing investments in housing and building stocks. Energy-efficient refurbishments generally involve improvements to the building shell and communal areas as well as the heat and electricity supply systems. Typical examples are the installation of heating systems, the renovation of balconies and the retrofitting of prefabricated balconies as well as the implementation of energy-saving projects, such as the installation of double-glazed windows and heat insulation, e.g., facade insulation, insulation of the top story ceilings and basement ceilings. In addition to modernization of the apartment electrics, the refurbishment work upgrades the apartments, typically through the installation of modern and/or accessible bathrooms, the installation of new doors and the laying of high-quality and non-slip flooring. Where required, the floor plans are altered to meet changed housing needs.
Modernization Measures
Modernization measures are long-term and sustainable value-enhancing investments in housing and building stocks. Energy-efficient refurbishments generally involve improvements to the building shell and communal areas as well as the heat and electricity supply systems. Typical examples are the installation of heating systems, the renovation of balconies and the retrofitting of prefabricated balconies as well as the implementation of energy-saving projects, such as the installation of double-glazed windows and heat insulation, e.g., facade insulation, insulation of the top story ceilings and basement ceilings. In addition to modernization of the apartment electrics, the refurbishment work upgrades the apartments, typically through the installation of modern and/or accessible bathrooms, the installation of new doors and the laying of high-quality and non-slip flooring. Where required, the floor plans are altered to meet changed housing needs.
Sustainability Performance Index (SPI)
Index to measure non-financial performance. Vonovia’s sustainable activities are geared towards the top sustainability topics that we have identified, which are bundled in the Sustainability Performance Index. The Customer Satisfaction Index (CSI) is included in the calculation of the Sustainability Performance Index. The CSI is determined at regular intervals in systematic customer surveys conducted by an external service provider and shows the effectiveness and sustainability of our services for the customer. Other indicators used in the Sustainability Performance Index are the carbon savings achieved annually in housing stock, the energy efficiency of new buildings, the share of accessible (partial) modernization measures in relation to newly let apartments, the increase in employee satisfaction and diversity in the company’s top management team.
Sustainability Performance Index (SPI)
Index to measure non-financial performance. Vonovia’s sustainable activities are geared towards the top sustainability topics that we have identified, which are bundled in the Sustainability Performance Index. The Customer Satisfaction Index (CSI) is included in the calculation of the Sustainability Performance Index. The CSI is determined at regular intervals in systematic customer surveys conducted by an external service provider and shows the effectiveness and sustainability of our services for the customer. Other indicators used in the Sustainability Performance Index are the carbon savings achieved annually in housing stock, the energy efficiency of new buildings, the share of accessible (partial) modernization measures in relation to newly let apartments, the increase in employee satisfaction and diversity in the company’s top management team.
Non-core Disposals
We also report on the Other segment, which is not relevant from a corporate management perspective, in our segment reporting. This includes the sale, only as and when the right opportunities present themselves, of entire buildings or land (Non-core Disposals) that are likely to have below-average development potential in terms of rent growth in the medium term and are located in areas that can be described as peripheral compared with Vonovia’s overall portfolio and in view of future acquisitions.
Recurring Sales
The Recurring Sales segment includes the regular and sustainable disposals of individual condominiums from our portfolio. It does not include the sale of entire buildings or land (Non-core Disposals). These properties are only sold as and when the right opportunities present themselves, meaning that the sales do not form part of our operating business within the narrower sense of the term. Therefore, these sales will be reported under “Other” in our segment reporting.
Fair Value Step-up
Fair value step-up is the difference between the income from selling a unit and its current fair value in relation to its fair value. It shows the percentage increase in value for the company on the sale of a unit before further costs of sale.
Fair Value Step-up
Fair value step-up is the difference between the income from selling a unit and its current fair value in relation to its fair value. It shows the percentage increase in value for the company on the sale of a unit before further costs of sale.
Cash-generating Unit (CGU)
The cash-generating unit refers, in connection with the impairment testing of goodwill, to the smallest group of assets that generates cash inflows and outflows independently of the use of other assets or other cash-generating units (CGUs).