Performance Indicators at Group Level
The IFRS profit for the period is reconciled to earnings before taxes (EBT), as taxes do not form part of operating value added.
This EBT will be adjusted to reflect special effects based on the definition that has applied to date (effects that do not relate to the period, recur irregularly or are atypical for business operation). The net financial result is also adjusted to reflect non-cash and actuarial valuation effects that recur irregularly. The further adjustments to reflect the effects of IAS 40 measurement, write-downs, other (Non Core/Other result), net income from non-current financial assets accounted for using the equity method and effects from residential properties held for sale produce the Group’s adjusted EBT (continuing operations) and, taking into account minority interests, adjusted EBT (continuing operations) after minority interests.
Adjusted EBT (continuing operations) is the leading indicator of profitability.
In operational terms, Adjusted EBT (continuing operations) is calculated as follows:
Operational calculation of Adjusted EBT (continuing operations)
Operational Calculation of Adjusted EBT (continuing operations) | ||
Revenue in the Rental segment | ||
(-) | Expenses for maintenance | |
(-) | Operating expenses in the Rental segment | |
= | Adjusted EBITDA Rental | |
Revenue in the Value-add segment | ||
thereof external revenue | ||
thereof internal revenue | ||
(-) | Operating expenses in the Value-add segment | |
= | Adjusted EBITDA Value-add | |
Revenue in the Recurring Sales segment | ||
(-) | Fair value of properties sold adjusted to reflect effects not relating to the period from assets held for sale in the Recurring Sales segment | |
= | Adjusted result Recurring Sales | |
(-) | Selling costs in the Recurring Sales segment | |
= | Adjusted EBITDA Recurring Sales | |
Revenue from disposal of Development to sell properties | ||
(-) | Cost of Development to sell | |
(-) | Carrying amount of assets sold of Development to sell | |
= | Gross profit Development to sell | |
(+) | Rental revenue Development | |
(-) | Operating expenses in the Development segment | |
= | Adjusted EBITDA Development | |
Σ | Adjusted EBITDA Total (continuing operations) | |
(-) | Adjusted net financial result | |
(-) | Straight-line depreciation | |
(-/+) | Intragroup profit/losses | |
= | Adjusted EBT (continuing operations) | |
Adjusted EBT (continuing operations) per share in € | ||
(-) | Minorities | |
= | Adjusted EBT (continuing operations) after minorities | |
Adjusted EBT (continuing operations) after minorities per share in € | ||
Adjusted EBT (continuing operations) and Adjusted EBITDA (continuing operations) can be calculated based on the profit for the period as follows:
Calculation of Adjusted EBT(continuing operations) – Adjusted EBITDA Total (continuing operations) from the profit for the period
Calculation of Adjusted EBT (continuing operations)/Adjusted EBITDA Total (continuing operations) from the Profit for the Period | ||
Profit for the period according to IFRS consolidated financial statements | ||
(+) | Income taxes according to consolidated income statement | |
= | Earnings before tax (EBT) according to consolidated income statement | |
(+/-) | Non-recurring items | |
(+/-) | Net income from fair value adjustments of investment properties | |
(+) | Impairment/value adjustments | |
(+/-) | Valuation effects and special effects in the financial result | |
(+/-) | Net income from investments accounted for using the equity method | |
(+/-) | Earnings contribution from Non Core/Other sales | |
(+/-) | Period adjustments from assets held for sale | |
= | Adjusted earnings before taxes of the Group (Adjusted EBT) | |
/ | Number of the weighted average shares carrying dividend rights | |
= | Adjusted EBT per share | |
Adjusted EBT (continuing operations) | ||
(+) | Adjusted net financial result | |
(+) | Straight-line depreciation | |
(+/-) | Intragroup profit/losses | |
= | Adjusted EBITDA Total (continuing operations) | |
The Adjusted EBT (continuing operations) is used as a basis for a reconciliation to the Operating Free Cash-Flow (OFCF) as the leading indicator of internal financing. Depreciation and amortization will be added to Adjusted EBT (continuing operations), and the liquidity contribution made by the Recurring Sales segment, as well as the change in working capital, will be taken into account. Capitalized maintenance and dividend payments made to parties outside of the Group, as well as income tax paid, are subtracted from this figure. This operating free cash flow is a measure of the Group’s operational capacity to generate cash surpluses and, as a result, of its internal financing power. As of 2025, it is also the most important performance indicator within the meaning of DRS 20.
Calculation of Operating Free Cash-Flow
Calculation of Operating Free Cash-Flow | ||
Adjusted earnings before taxes of the Group (Adjusted EBT) | ||
(+) | Straight-line depreciation | |
(+/-) | Change in net current assets (working capital) according to the cash flow statement | |
(+) | Carrying amount of investment properties (core business) | |
(-) | Capitalized maintenance | |
(-) | Dividends and payouts to non-controlling shareholders (minorities) | |
(-) | Income tax payments according to cash flow statement (w/o taxes on Non Core sales) | |
= | Operating Free Cash-Flow | |
The contribution made by discontinued operations is presented separately.
At the level of the Group as a whole, the EPRA Net Tangible Assets (EPRA NTA) per share and the Sustainability Performance Index (SPI) are our most meaningful performance indicators.
The EPRA Net Tangible Assets (EPRA NTA) is used to review how the company’s value is developing. Our calculations are based on the best practice recommendations of the EPRA (European Public Real Estate Association).
Calculation of EPRA NTA
Calculation of EPRA NTA | ||
Total equity attributable to Vonovia’s shareholders | ||
(+) | Deferred tax on investment properties* | |
(+) | Fair value of derivative financial instruments** | |
(-) | Goodwill | |
(-) | Intangible assets | |
= | EPRA NTA | |
/ | Number of shares carrying dividend rights on the reporting date | |
= | EPRA NTA per share | |
- *Share for hold portfolio.
- **Adjusted for effects from cross currency swaps.
In addition to our key financial figures, we also focus on non-financial operating performance indicators.
Our business activities are aimed at protecting the environment, ensuring trustworthy, transparent and reliable corporate governance and taking social responsibility for our customers and employees.
Sustainability Performance Index (SPI)
In line with this focus, the Sustainability Performance Index is used as a key non-financial control parameter. Indicators used in the new Sustainability Performance Index are the carbon intensity of the housing stock, the average primary energy consumption of new buildings, the share of accessible (partial) modernization measures in relation to newly let apartments, customer and employee satisfaction, and the proportion of female managers in the company’s top management team. Each component is assigned an individual factor and a defined annual target amount. The weighted targets add up to a target of 100% that we aim to achieve every year. In the reporting on the levels of the individual indicators within the Non-financial Group Declaration, the business activities of Deutsche Wohnen are included (excluding the Care segment), unless otherwise stated.
Other non-operating financial key figures include the loan-to-value (LTV) ratio, which is used for monitoring the degree to which debt is covered by the value of the properties, the net-debt/EBITDA ratio, which is used for monitoring the degree to which debt is covered by our sustained operating result and the Interest Coverage Ratio (ICR) , which expresses the extent to which interest is covered by our sustained operating result.