37 Total Equity
Accounting Policies
Other comprehensive income includes changes in total comprehensive income not affecting net income except that resulting from capital transactions with equity holders (e.g., capital increases or dividend distributions). Vonovia includes under this item unrealized gains and losses from the fair value measurement of equity instruments and derivative financial instruments that are designated as cash flow hedges. The item also includes actuarial gains and losses from defined benefit pension commitments as well as certain currency translation differences.
The other reserves contain cumulative changes in equity not affecting income. At Vonovia, the effective portion of the net change in the fair value of cash flow hedging instruments, the equity instruments at fair value as well as currency translation differences are recognized in other comprehensive income.
The other reserves from cash flow hedges and from currency translation differences can be reclassified. When the underlying hedged item of the cash flow hedge affects net income, the reserves attributable thereto are reclassified to profit or loss. If a foreign business is disposed of, the reserves attributable thereto are reclassified.
Development of the Subscribed Capital
Development of the Subscribed Capital | |||
in € | |||
As of Jan. 1, 2024 | 814,644,998.00 | ||
Capital increase against non-cash contributions on Jun. 5, 2024 (scrip dividend) | 8,207,927.00 | ||
As of Dec. 31, 2024 | 822,852,925.00 | ||
Development of the Capital Reserves
Development of the Capital Reserves | |||
in € | |||
As of Jan. 1, 2024 | 2,681,238,631.83 | ||
Premium from capital increase for scrip dividend on Jun. 5, 2024 | 218,577,096.01 | ||
Transaction costs on the issue of new shares (after allowing for deferred taxes) | -392,495.74 | ||
Withdrawal from capital reserve | -448,604,706.73 | ||
Other changes not affecting net income | 264,939.77 | ||
As of Dec. 31, 2024 | 2,451,083,465.14 | ||
Dividend
The Annual General Meeting held on May 8, 2024, resolved to pay a dividend for the 2023 fiscal year in the amount of € 0.90 per share, € 733,180,498.20 million in total.
As in previous years, shareholders were offered the option of choosing between being paid the dividend in cash or being granted new shares. During the subscription period, shareholders holding a total of 30.93% of the shares carrying dividend rights opted for the scrip dividend instead of the cash dividend. As a result, 8,207,927 new shares were issued using the company’s authorized capital pursuant to Section 5.1 of the Articles of Association (“2022 authorized capital”) at a subscription price of € 27.63, i.e., a total amount of € 226,785,023.01. The total amount of the dividend distributed in cash therefore came to € 506,395,475.19.
Authorized Capital
After being used in connection with the capital increase in the amount of € 8,207,927.00, the 2022 authorized capital fell from € 214,204,999.00 to € 205,997,072.00 as of December 31, 2024. Shareholder subscription rights for the 2022 authorized capital can be excluded.
Retained Earnings and Non-controlling Interests
As of December 31, 2024, retained earnings of € 21,149.1 million (December 31, 2023: € 22,505.1 million) were reported. This figure includes actuarial gains and losses of € 10.3 million (December 31, 2023: € -3.4 million), which cannot be reclassified and therefore may no longer be recognized in profit or loss in subsequent reporting periods.
Shares of third parties in Group companies are recognized under non-controlling interests.
The neutral effects in retained earnings and non-controlling interests are largely due to transactions with the co-investor Apollo Capital Management L.P. An amount of € 108.1 million was distributed to the non-controlling interests in the first six months of the year. As a result, the ratio of equity to retained earnings and non-controlling interests was adjusted by € 63.4 million.
In the third quarter of 2024, transaction costs of € 30.3 million were recognized in retained earnings in connection with further planned structuring measures with the co-investor Apollo Capital Management L.P.
Due to ongoing structuring measures, retained earnings were reduced (without affecting net income) by € 70.4 million in 2024 in order to reflect current assessments regarding potential future payment obligations.
The allocation of guaranteed dividends reduced retained earnings, without affecting net income, by € 30.2 million (December 31, 2023: € 22.0 million) and non-controlling interests by € 8.9 million (December 31, 2023: € 4.3 million).
The combined subgroup financial information, prepared in accordance with Vonovia’s accounting policies, for the Deutsche Wohnen Group as a major subsidiary with non-controlling interests and its registered headquarters in Berlin is as follows:
The combined financial information for the Deutsche Wohnen Group
in € million | Dec. 31, 2023 Deutsche Wohnen Group | Dec. 31, 2024 Deutsche Wohnen Group | |||
Revenue | 1,410.0 | 1,574.6 | |||
Profit for the period | -2,526.8 | 550.3 | |||
attributable to non-controlling interests | -361.7 | 66.3 | |||
Other comprehensive income | -5.8 | 2.1 | |||
attributable to non-controlling interests | -0.8 | -0.3 | |||
Total non-current assets | 23,749.7 | 23,161.2 | |||
Total current assets | 3,082.5 | 3,184.3 | |||
thereof cash and cash equivalents | 157.1 | 388.6 | |||
Total non-current liabilities | 12,987.6 | 11,438.0 | |||
Total current liabilities | 419.2 | 2,042.1 | |||
Total equity | 13,425.4 | 12,865.4 | |||
Cash flow from operating activities | 384.8 | 725.5 | |||
Cash flow from investing activities | 291.3 | -77.8 | |||
Cash flow from financing activities | 658.9 | -417.1 | |||
Net changes in cash and cash equivalents of | 44.4 | -0.9 | |||
Net changes in cash and cash equivalents | 17.2 | 230.6 | |||
Dividend per share in € | 0.04 | 0.04 | |||
Other Reserves
Changes in other comprehensive income during the period in the amount of € -93.9 million (2023: € -120.3 million) are mainly the result of currency translation differences due to changes in the exchange rate for the Swedish krona against the euro, as well as the development of equity instruments at fair value in other comprehensive income and the cash flow hedges, with an offsetting effect.