20 Financial Assets Accounted for Using the Equity Method

As of the reporting date, Vonovia held interests in 17 joint ventures and 12 associates (December 31, 2023: 17 joint ventures and eleven associates).

The change as of June 30, 2024 is due to the reclassification of the shares in Gropyus AG to financial assets accounted for using the equity method. This is first of all because the shares have increased from 18.9% to 20.5% and, second, because Daniel Riedl was elected Chairman of the Supervisory Board of Gropyus AG at the Supervisory Board meeting held on April 26, 2024. The shares were remeasured pursuant to IFRS 9 prior to the reclassification. The change in fair value was reported without affecting net income. The investment was then recognized at its carrying amount of of € 82.7 million as a financial asset recognized using the equity method.

As the reclassification date fell so close to the reporting date, the figures that were available on the basis of the German Commercial Code (HGB), as presented in the table below, were taken as a basis. For the same reason, the allocation of the total consideration is provisional as of June 30, 2024.

Vonovia also holds 40% of the non-listed QUARTERBACK Immobilien AG with registered office in Leipzig, which was classed as an associate as of June 30, 2024. 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, 2023: 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 March 31, 2024, that was available on the preparation cut-off date.

The at-equity adjustment of the investments in the QUARTERBACK Group results in a negative result of € -18.4 million as of June 30, 2024 (H1 2023: € -9.8 million).

In addition to these investments, Vonovia also holds interests in 16 (December 31, 2023: 16) other entities that are accounted for using the equity method and are currently of minor importance; quoted market prices are not available.

The interests were adjusted for these entities provided that corresponding financial information was available.

The following table shows, in aggregated form, the carrying amount and the share of profit and other comprehensive income of these companies.

With regard to the other 16 entities, Vonovia has no significant financial obligations or guarantees with respect to joint ventures and associates.