12 Net Income from Fair Value Adjustment of Investment Properties

Investment properties are generally measured by the in-house valuation department according to the fair value model. The fair value for the nursing care properties is generally calculated by independent experts using a DCF method and is adjusted, where appropriate, based on findings from market observation and transactions. Any gains or losses from a change in fair value are recognized in the income statement affecting net income.

The measurement of the investment properties led to a valuation loss of € -1,559.0 million in the 2024 fiscal year (2023: € -10,651.2 million) (see [D27] Investment Properties). This includes € -17.5 million (2023: € -14.8 million) for the measurement of right-of-use assets (IFRS 16).

The figure also includes the valuation result from buildings under construction (new construction/development to hold) that were completed during the reporting period and were moved to the Rental portfolio. A fair value measurement is performed for the first time when the properties are completed. This resulted in a valuation effect of € 10.2 million in the 2024 fiscal year (2023: € 14.2 million).