Results of Operations
Overview
Overall, Vonovia’s business development was consistent with expectations in the first half of 2024.
Core business in the Rental segment was characterized by high demand for rental apartments and positive rental price development. The Value-add segment posted a moderate increase in earnings. The general conditions for the other segments continued to improve in the second quarter due to higher transaction volumes and signs that property values were bottoming out.
Any analysis of the figures reported has to consider the fact that the prior-year figures are reported based on the current segmentation to facilitate a comparison.
The sale of the Care business activities was initiated by the Management Board of Deutsche Wohnen and this segment is still expected to be sold before December 2024. Accordingly, the majority of the Care segment is presented as a discontinued operation. A small part of the original Care segment (25 properties operated by third parties) was transferred to the Rental segment and generated € 11.5 million in segment revenue in the first half of 2024 (first half of 2023: € 12.2 million).
The following key figures provide an overview of Vonovia’s results of operations and other value drivers in the reporting period.
Key Figures on Results of Operations
in € million | H1 2023* | H1 2024 | Change in % | 12M 2023 | ||||
Adjusted EBITDA Total (continuing operations)* | 1,299.8 | 1,266.5 | -2.6 | 2,583.8 | ||||
Adjusted EBITDA Rental | 1,209.0 | 1,191.6 | -1.4 | 2,401.7 | ||||
Adjusted EBITDA Value-add | 44.1 | 56.8 | 28.8 | 105.5 | ||||
Adjusted EBITDA Recurring Sales | 37.0 | 22.2 | -40.0 | 63.4 | ||||
Adjusted EBITDA Development* | 9.7 | -4.1 | – | 13.2 | ||||
Adjusted EBITDA from discontinued operations | 24.2 | 25.1 | 3.7 | 53.9 | ||||
Adjusted EBT (continuing operations) | 945.8 | 887.2 | -6.2 | 1,866.2 | ||||
Operating Free Cash-Flow | 764.5 | 800.3 | 4.7 | 1,414.8 | ||||
Monthly in-place rent in €/m² | 7.58 | 7.86 | 3.7 | 7.74 | ||||
Average area of own apartments in the reporting period | 34,379 | 34,118 | -0.8 | 34,349 | ||||
Average number of own units (number of units) | 548,332 | 544,266 | -0.7 | 547,905 | ||||
Vacancy rate (in %) | 2.2 | 2.2 | – | 2.0 | ||||
Maintenance expenses and capitalized maintenance | 9.12 | 9.74 | 6.8 | 21.03 | ||||
thereof expenses for maintenance (€/m²) | 6.02 | 6.60 | 9.6 | 12.41 | ||||
thereof capitalized maintenance (€/m²)* | 3.10 | 3.14 | 1.3 | 8.62 | ||||
Number of units bought | 63 | – | -100.0 | 63 | ||||
Number of units sold | 1,282 | 3,869 | >100 | 3,838 | ||||
thereof Recurring Sales | 628 | 921 | 46.7 | 1,590 | ||||
thereof Non Core/other | 654 | 2,948 | >100 | 2,248 | ||||
Number of new apartments completed | 1,193 | 1,655 | 38.7 | 2,425 | ||||
thereof own apartments | 962 | 637 | -33.8 | 1,309 | ||||
thereof apartments for sale | 231 | 1,018 | >100 | 1,116 | ||||
Carbon intensity achieved in Germany (in kg CO₂e/m²) | 32.6 | 31.5 | -3.4 | 31.7 | ||||
Number of employees (as of June 30/Dec. 31)* | 11,891 | 12,087 | 1.6 | 11,977 | ||||
- *Previous year’s values (2023) adjusted to current key figure and segment definition.
In details, Adjusted EBT developed as follows in the reporting period:
Adjusted EBT
Adjusted EBT | ||||||||
in € million | H1 2023* | H1 2024 | Change in % | 12M 2023 | ||||
Revenue in the Rental segment | 1,618.6 | 1,650.4 | 2.0 | 3,253.4 | ||||
Expenses for maintenance | -206.9 | -225.3 | 8.9 | -426.2 | ||||
Operating expenses in the Rental segment | -202.7 | -233.5 | 15.2 | -425.5 | ||||
Adjusted EBITDA Rental | 1,209.0 | 1,191.6 | -1.4 | 2,401.7 | ||||
Revenue in the Value-add segment | 619.8 | 635.3 | 2.5 | 1,224.7 | ||||
thereof external revenue | 66.4 | 59.9 | -9.8 | 130.9 | ||||
thereof internal revenue | 553.4 | 575.4 | 4.0 | 1,093.8 | ||||
Operating expenses in the Value-add segment | -575.7 | -578.5 | 0.5 | -1,119.2 | ||||
Adjusted EBITDA Value-add | 44.1 | 56.8 | 28.8 | 105.5 | ||||
Revenue in the Recurring Sales segment | 141.4 | 163.9 | 15.9 | 319.3 | ||||
Fair value of properties sold adjusted to reflect effects | -97.1 | -132.0 | 35.9 | -239.4 | ||||
Adjusted result Recurring Sales | 44.3 | 31.9 | -28.0 | 79.9 | ||||
Selling costs in the Recurring Sales segment | -7.3 | -9.7 | 32.9 | -16.5 | ||||
Adjusted EBITDA Recurring Sales | 37.0 | 22.2 | -40.0 | 63.4 | ||||
Revenue from disposal of Development | 218.3 | 70.1 | -67.9 | 348.6 | ||||
Cost of Development to sell | -195.7 | -59.6 | -69.5 | -300.9 | ||||
Gross profit Development to sell | 22.6 | 10.5 | -53.5 | 47.7 | ||||
Rental revenue Development | 2.3 | 3.1 | 34.8 | 5.1 | ||||
Operating expenses in the Development segment | -15.2 | -17.7 | 16.4 | -39.6 | ||||
Adjusted EBITDA Development* | 9.7 | -4.1 | – | 13.2 | ||||
Adjusted EBITDA Total (continuing operations)* | 1,299.8 | 1,266.5 | -2.6 | 2,583.8 | ||||
Adjusted net financial result | -304.2 | -320.5 | 5.4 | -625.1 | ||||
Intragroup profit/losses | 5.1 | -2.9 | – | 17.7 | ||||
Straight-line depreciation** | -54.9 | -55.9 | 1.8 | -110.2 | ||||
Adjusted EBT (continuing operations) | 945.8 | 887.2 | -6.2 | 1,866.2 | ||||
Adjusted EBT (continuing operations) per share in €*** | 1.19 | 1.09 | -8.3 | 2.31 | ||||
Minorities | 63.3 | 82.9 | 31.0 | 136.0 | ||||
Adjusted EBT (continuing operations) after minorities | 882.5 | 804.3 | -8.9 | 1,730.2 | ||||
Adjusted EBT (continuing operations) after minorities per share in €*** | 1.11 | 0.99 | -10.9 | 2.12 | ||||
- *Previous year’s values (2023) adjusted to current key figure and segment definition.
- **Depreciation on concessions/property rights/licenses, self-developed software, self-used real estate, technical equipment and machinery, as well as other equipment/operating and business equipment.
- ***Based on the weighted average number of shares carrying dividend rights.
As of June 30, 2024, Vonovia had a workforce of 12,087 employees (June 30, 2023: 11,891) in its continuing operations.
As of the end of the first half of 2024, Vonovia managed a portfolio comprising 542,881 of its own residential units (end of the first half of 2023: 548,080), 163,552 garages and parking spaces (end of the first half of 2023: 165,085) and 8,507 commercial units (end of the first half of 2023: 8,779). Vonovia also managed 71,697 residential units (end of the first half of 2023: 70,436) on behalf of third parties.