Results of Operations
Overview
All in all, Vonovia’s performance was in line with expectations in the first nine months 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 marked increase in earnings, which was mainly due to an positive effect resulting from the leasing of our coax network, which will not be reflected to the same extent next year. The general conditions for the other segments continued to improve in the second and third quarters 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.
As part of a strategic review of the Care segment at the end of the 2023 fiscal year, the management decided to discontinue these business activities and sell off this segment. Accordingly, the majority of the Care segment is presented as a discontinued operation. After a contract regarding six properties was concluded in mid-April of the fiscal year, the sale of a further tranche comprising 27 care homes was agreed in early October 2024. The transaction is expected to be closed at the start of 2025. A small part of the original Care segment (25 properties operated by third parties) was transferred to the Rental segment and generated € 17.3 million in segment revenue in the first nine months of 2024 (9M 2023: € 17.7 million). In detail, Adjusted EBT developed as follows in the reporting period:
Adjusted EBT
Adjusted EBT | ||||||||
in € million | 9M 2023* | 9M 2024 | Change in % | 12M 2023 | ||||
Revenue in the Rental segment | 2,429.3 | 2,481.8 | 2.2 | 3,253.4 | ||||
Expenses for maintenance | -311.1 | -344.8 | 10.8 | -426.2 | ||||
Operating expenses in the Rental segment | -299.6 | -335.1 | 11.8 | -425.5 | ||||
Adjusted EBITDA Rental | 1,818.6 | 1,801.9 | -0.9 | 2,401.7 | ||||
Revenue in the Value-add segment | 904.7 | 1,009.7 | 11.6 | 1,224.7 | ||||
thereof external revenue | 94.9 | 149.1 | 57.1 | 130.9 | ||||
thereof internal revenue | 809.8 | 860.6 | 6.3 | 1,093.8 | ||||
Operating expenses in the Value-add segment | -831.4 | -863.8 | 3.9 | -1,119.2 | ||||
Adjusted EBITDA Value-add | 73.3 | 145.9 | 99.0 | 105.5 | ||||
Revenue in the Recurring Sales segment | 209.1 | 268.3 | 28.3 | 319.3 | ||||
Fair value of properties sold adjusted to reflect effects | -146.3 | -214.2 | 46.4 | -239.4 | ||||
Adjusted result Recurring Sales | 62.8 | 54.1 | -13.9 | 79.9 | ||||
Selling costs in the Recurring Sales segment | -11.2 | -15.2 | 35.7 | -16.5 | ||||
Adjusted EBITDA Recurring Sales | 51.6 | 38.9 | -24.6 | 63.4 | ||||
Revenue from disposal of Development to sell properties | 267.9 | 190.6 | -28.9 | 348.6 | ||||
Cost of Development to sell | -233.4 | -136.6 | -41.5 | -300.9 | ||||
Carrying amount of assets sold of Development to sell | – | -27.8 | – | – | ||||
Gross profit Development to sell | 34.5 | 26.2 | -24.1 | 47.7 | ||||
Rental revenue Development | 3.5 | 4.8 | 37.1 | 5.1 | ||||
Operating expenses in the Development segment | -23.1 | -31.0 | 34.2 | -39.6 | ||||
Adjusted EBITDA Development* | 14.9 | 0.0 | -100.0 | 13.2 | ||||
Adjusted EBITDA Total (continuing operations)* | 1,958.4 | 1,986.7 | 1.4 | 2,583.8 | ||||
Adjusted net financial result | -461.8 | -528.7 | 14.5 | -625.1 | ||||
Intragroup profit/losses | 6.6 | -10.0 | – | 17.7 | ||||
Straight-line depreciation** | -83.0 | -84.1 | 1.3 | -110.2 | ||||
Adjusted EBT (continuing operations) | 1,420.2 | 1,363.9 | -4.0 | 1,866.2 | ||||
Adjusted EBT (continuing operations) per share in €*** | 1.77 | 1.67 | -5.7 | 2.31 | ||||
Minorities | 94.8 | 121.4 | 28.1 | 136.0 | ||||
Adjusted EBT (continuing operations) after minorities | 1,325.4 | 1,242.5 | -6.3 | 1,730.2 | ||||
Adjusted EBT (continuing operations) after minorities | 1.65 | 1.52 | -7.9 | 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 September 30, 2024, Vonovia employed 12,010 people (September 30, 2023: 11,937).
As of the end of the third quarter of 2024, Vonovia managed a portfolio comprising 541,619 of its own residential units (end of the third quarter of 2023: 547,998), 163,045 garages and parking spaces (end of the third quarter of 2023: 165,123) and 8,431 commercial units (end of the third quarter of 2023: 8,737). Vonovia also managed 73,358 residential units (end of the third quarter of 2023: 70,681) on behalf of third parties as of the end of the third quarter of 2024.