28 Financial Assets
Financial Assets
Dec. 31, 2023 | Dec. 31, 2024 | ||||||||
in € million | non-current | current | non-current | current | |||||
Derivatives | 906.2 | 4.5 | 781.6 | 6.5 | |||||
Loans to associates and joint ventures | 149.5 | 664.8 | – | 522.0 | |||||
Other investments | 317.3 | – | 267.2 | – | |||||
Other non-current loans | 21.6 | 18.1 | 5.8 | – | |||||
Loans to other investments | 38.0 | – | 49.7 | – | |||||
Receivables from finance leases | 13.4 | 2.3 | 66.0 | 11.1 | |||||
Non-consolidated subsidiaries | 4.4 | – | 4.4 | – | |||||
Securities | 5.9 | 318.1 | 6.4 | 327.2 | |||||
1,456.3 | 1,007.8 | 1,181.1 | 866.8 | ||||||
Accounting Policies
Financial assets are recognized in the balance sheet when Vonovia becomes a contracting party of the financial instrument. A financial asset is derecognized when the contractual rights to the cash flows from a financial asset expire, or the financial asset is transferred and Vonovia neither retains control nor retains material risks and rewards associated with ownership of the financial asset.
In accordance with IFRS 9, the classification of financial assets takes into account both the business model in which financial assets are held and the characteristics of the cash flows of the assets in question. These criteria determine whether the assets are measured at amortized cost using the effective interest method or at fair value.
With regard to the business model criterion, all financial investments at Vonovia are to be assigned to the “hold to collect” model pursuant to IFRS 9.4.1.2(a). Whenever financial investments are categorized as equity instruments, Vonovia has exercised the irrevocable option to state future changes to the fair value in other comprehensive income in equity. Gains and losses recognized in other comprehensive income are never reclassified from total equity to the income statement on their disposal.
The carrying amount of financial assets corresponds to maximum risk of loss as of the reporting date.
Due to the subsequent measurement of the call options that Vonovia received as part of the sale of two minority stakes in the Südewo portfolio in Baden-Württemberg and in the northern Germany portfolio, the balance sheet value fell by € 107.0 million to € 731.0 million as of December 31, 2024 (December 31, 2023: € 838.0 million). The adjustment as of December 31, 2024 reflects inputs and assumptions with regard to the business plans of the underlying portfolios, dividends already paid, a change in the WACC, the planned exercise date, and the weighting of the probabilities of various scenarios. In particular, updated assumptions regarding the probabilities of various scenarios, i.e., whether or not and when disproportionately high profit distribution will end, led to a reduction in the balance sheet value as of December 31, 2024. In a sensitivity analysis, the WACC was changed by +0.5%/-0.5% for the call options, which would result in a change in equity affecting net income of € -89.0 million/€ +108.0 million (December 31, 2023: € -97.0 million/€ +114.0 million).
In addition, positive market values from interest rate derivatives in the amount of € 50.6 million (December 31, 2023: € 68.2 million) were reported under non-current derivatives.
The loans to associates and joint ventures relate exclusively to loan receivables from the QUARTERBACK Immobilien-Group with a nominal value of € 836.1 million at the end of the year (December 31, 2023: € 834.4 million) that are recognized in the amount of € 476.8 million (December 31, 2023: € 814.3 million) after taking account of the expected credit loss. € 476.8 million (December 31, 2023: € 664.8 million) of these loans are classified as current and none (December 31, 2023: € 149.5 million) as non-current. The loans were granted in line with standard market conditions.
In the current fiscal year, new loans of € 55.0 million (previous year: € 534.3 million) were granted. By contrast, loans of € 90.1 million (previous year: € 534.3 million) were repaid.
In the reporting year, Vonovia concluded purchase agreements with QUARTERBACK Immobilien AG both for the acquisition of land to build on and for the selective acquisition of property management units. Loan receivables will be offset as a component of the purchase price in the context of these transactions when they are closed in the 2025 fiscal year. The receivables outstanding after the transactions were closed had to be reassessed, increasing the expected credit loss by € 276.7 million (2023: € - million). All in all, the impairment loss taking into account the expected credit loss from previous years comes to € 296.8 million.
Vonovia also assumes that the receivables of the QUARTERBACK property companies will not be recoverable in full. As a result, it recognized a corresponding impairment loss of € 43.2 million on these receivables (2023: € - million) in the 2024 fiscal year. The nominal amounts of the loans were also increased by € 15.8 million (December 31, 2023: € 21.4 million) at the end of the year due to the capitalization of interest claims.
As part of a review of the recoverability of the loan to QUARTERBACK New Energy Holding GmbH with a nominal value of € 90.0 million at the end of the year (December 31, 2023: € - million), an expected credit loss of € 45.0 million was recognized (2023: € - million).
Impairment losses were also recognized on loans to other investments in the amount of € 10.3 million (2023: € 12.0 million).
The other investments include shares in Vesteda in the amount of € 190.2 million (December 31, 2023: € 165.9 million). The increase is due to a change in the fair value of the shares that was reported without affecting net income in accordance with IFRS 9.
The loans to other investments not yet due largely relate to a loan to the property fund DB Immobilienfonds 11 Spree-Schlange von Quistorp KG.
Receivables from finance leases amounted to € 77.1 million as of the balance sheet date (December 31, 2023: € 15.7 million) and result from the leasing of broadband cable networks (coax networks).
With effect from July 1, 2024, Vonovia has leased additional coax networks in the long term. The resulting proceeds amounted to € 58.0 million in the reporting year. The interest cost of the receivables from leases resulted in interest income of € 1.2 million being realized (2023: € 0.7 million). € 5.9 million (2023: € 1.4 million) was also collected as part of a variable revenue-sharing arrangement.
The debt maturity profile of the receivables is as follows:
Debt maturity profile of receivables from finanace leases
in € million | Dec. 31, 2023 | Dec. 31, 2024 | |||
Nominal value of outstanding lease payments | 17.2 | 89.1 | |||
thereof due within one year | 2.6 | 13.4 | |||
thereof due between 1 and 2 years | 2.2 | 9.9 | |||
thereof due between 2 and 3 years | 2.2 | 9.2 | |||
thereof due between 3 and 4 years | 2.1 | 8.9 | |||
thereof due between 4 and 5 years | 2.1 | 8.8 | |||
thereof due after more than 5 years | 6.0 | 38.9 | |||
plus unguaranteed residual values | 0.2 | – | |||
less unrealized financial income | -1.7 | -12.0 | |||
Present value of outstanding lease payments | 15.7 | 77.1 | |||
€ 334.0 million (December 31, 2023: € 323.9 million) of the securities are restricted with regard to their use.