23 Assets and Liabilities Held for Sale and Assets and Liabilities of Discontinued Operations
Assets and Liabilities Held for Sale
The portfolio in Berlin comprising around 4,500 residential units, which was sold in the previous year, was transferred, in economic terms, effective January 1, 2025. This reduced assets held for sale by around € 700 million and also reduced debt (largely deferred tax liabilities) by € 203.1 million. Within the assets sold, cash and cash equivalents of € 8.2 million were sold as part of the disposal group. The transaction includes both existing buildings and land for development, reported under real estate inventories in the balance sheet. As the sale of the existing buildings and the land for development were agreed as a single transaction, they are treated as a linked transaction. The fair value measurement of the corresponding portfolio therefore means that the sale in the first half of 2025 does not result in any proceeds overall. As the purchase price was split between the two affected property-holding companies, however, a positive effect is generated by the sale of real estate inventories in the amount of around € 53.3 million (see [B8] Profit on Disposal of Real Estate Inventories) and, with the opposite effect, the effect from the disposal of properties (€ -53.3 million) (see [B7] Profit on the Disposal of Properties).
The further drop in assets held for sale in the first half of 2025 resulted, in particular, from disposals of real estate portfolios in the Rental segment. The purchase price estimates/offers for the properties that were reclassified as of June 30, 2025, are slightly higher than the carrying amounts recognized.
Impairment Losses on the Disposal Group
The management currently expects the purchase price to match the balance of IFRS 5 assets and liabilities less costs to sell.
Assets and Liabilities Held for Sale of the Discontinued Operation
As part of the strategic review, the management decided to sell the Care segment. In the course of 2024 and at the beginning of 2025, the properties and nursing care businesses were successfully sold as planned. Ownership of 19 nursing care properties and the “Katharinenhof” nursing care businesses was transferred in the first quarter of 2025. Ownership of a further two nursing care properties was transferred in the second quarter of 2025. The remaining portion of the properties and businesses sold in the former Care segment will be presented as discontinued operations until the transfer of title. The related assets and liabilities of the discontinued Care operation are shown accordingly in the balance sheet as a separate disposal group of a discontinued operation.
As of June 30, 2025, the assets and liabilities of the discontinued Care segment were as follows:
Assets from the discontinued operations
in € million | Dec. 31, 2024 | Jun. 30, 2025 | |||
Intangible assets | 9.3 | 8.6 | |||
Property, plant and equipment | 34.3 | 22.7 | |||
Investment properties | 606.0 | 346.8 | |||
Trade receivables | – | 84.4 | |||
Other assets | 4.0 | 6.2 | |||
Total non-current assets of discontinued operations | 653.6 | 468.7 | |||
Inventories | 0.5 | 0.1 | |||
Trade receivables | 25.9 | 22.7 | |||
Other assets | 5.9 | 1.4 | |||
Income tax receivables | 0.5 | 0.1 | |||
Cash and cash equivalents | 43.5 | 29.6 | |||
Total current assets of discontinued operations | 76.3 | 53.9 | |||
Total assets of discontinued operations | 729.9 | 522.6 | |||
On October 2, 2024, the sale of 27 nursing care properties and the nursing care businesses was concluded by way of a purchase agreement. Ownership of 19 nursing care properties and the “Katharinenhof” nursing care businesses was transferred in the first quarter of 2025. Ownership of a further two nursing care properties was transferred in the second quarter of 2025. The drop in non-current assets and liabilities of the discontinued operation is due to the sale of Care properties generating proceeds on disposal of € 264.7 million (H1 2024: € - million) with a carrying amount of € 264.9 million (H1 2024: € - million). This was offset primarily by capitalizable maintenance and modernization expenses within investment properties.
Liabilities from the discontinued operations
in € million | Dec. 31, 2024 | Jun. 30, 2025 | |||
Provisions | 32.4 | 30.5 | |||
Lease liabilities | 1.7 | 1.2 | |||
Deferred tax liabilities | 5.0 | 1.5 | |||
Total non-current liabilities of discontinued operations | 39.1 | 33.2 | |||
Provisions | 13.3 | 16.9 | |||
Trade payables | 6.4 | 1.9 | |||
Lease liabilities | 1.8 | 0.3 | |||
Current income taxes | 0.3 | 0.0 | |||
Other liabilities | 16.5 | 10.1 | |||
Total current liabilities of discontinued operations | 38.3 | 29.2 | |||
Total liabilities of discontinued operations | 77.4 | 62.4 | |||
The earnings contribution from discontinued operations is comprised as follows.
Earnings contribution from the discontinued operations
in € million | Jan. 1–Jun. 30, 2024 | Jan. 1–Jun. 30, 2025 | Apr. 1– Jun. 30, 2024 | Apr. 1– Jun. 30, 2025 | |||||
Revenue from property letting | – | – | – | – | |||||
Other revenue from property management | 145.6 | 106.5 | 73.8 | 40.7 | |||||
Revenue from property management | 145.6 | 106.5 | 73.8 | 40.7 | |||||
Income from disposal of properties | 87.7 | 264.7 | 87.7 | 19.0 | |||||
Carrying amount of properties sold | -90.8 | -264.9 | -90.8 | -19.2 | |||||
Profit from the disposal of properties | -3.1 | -0.2 | -3.1 | -0.2 | |||||
Net income from fair value adjustments of investment properties | -22.2 | – | -22.2 | – | |||||
Cost of materials | -26.4 | -21.4 | -11.9 | -9.6 | |||||
Personnel expenses | -90.5 | -67.2 | -47.0 | -25.2 | |||||
Depreciation and amortization | -9.6 | – | -9.6 | – | |||||
Other operating income | 8.9 | 6.0 | 3.7 | 2.8 | |||||
Net income from the derecognition of financial assets measured at amortized cost | 0.1 | 0.1 | – | 0.0 | |||||
Other operating expenses | -9.4 | -10.3 | -4.9 | -2.2 | |||||
Interest income | – | 1.1 | – | 0.1 | |||||
Interest expenses | -0.7 | -0.5 | 0.1 | -0.3 | |||||
Earnings before tax | -7.3 | 14.1 | -21.1 | 6.2 | |||||
Income taxes | -0.4 | -2.6 | 1.3 | -1.2 | |||||
Profit for the period from discontinued operations (before valuation of discontinued operations) | -7.7 | 11.4 | -19.8 | 5.0 | |||||
Gain or loss recognized on the measurement and on the disposal of the discontinued operations | -13.4 | 4.6 | -13.4 | – | |||||
Profit for the period from discontinued operations | -21.1 | 16.0 | -33.2 | 5.0 | |||||
Net Income from the Measurement of the Discontinued Operations
The valuation of the disposal group at the lower of carrying amount and fair value less costs to sell has not produced any impairment losses (H1 2024: € 13.4 million).
Net Income from the Disposal of the Discontinued Operations
The disposal of the “Katharinenhof” nursing care businesses in the first quarter of 2025 resulted in a profit of € 4.6 million (H1 2024: € - million). The profit from the disposal of the discontinued operations includes a gain from the derecognition of deferred taxes in the amount of € 1.3 million (H1 2024: € - million).
Cumulative Income or Expenses Included in Other Comprehensive Income
A cumulative result from the measurement of actuarial gains and losses in connection with the discontinued operations in the amount of € -11.3 million taking into account deferred tax effects (December 31, 2024: € -10.0 million), and € -13.6 million excluding tax effects (December 31, 2024: € -11.9 million), is included in other comprehensive income.
€ -1.1 million (H1 2024: € 2.4 million) of the gains and losses recognized in other comprehensive income during the period, or € -1.5 million (H1 2024: € 2.7 million) excluding tax effects, are attributable to Vonovia’s shareholders and € -0.2 million (H1 2024: € 0.3 million), or € -0.2 million (H1 2024: € 0.4 million) excluding tax effects, is attributable to non-controlling shareholders.
Earnings per Share
Earnings per share attributable to the profit for the period for the discontinued operations amount to € 0.01 as of June 30, 2025 (H1 2024: € -0.02).
Cash Flows from the Discontinued Operation
Cash Flows from the discontinued operations
Key Data from the Statement of Cash Flows | |||||
in € million | Jan. 1–Jun. 30, 2024 | Jan. 1–Jun. 30, 2025 | |||
Cash flow from operating activities | 27.5 | 21.7 | |||
Cash flow from investing activities | 48.2 | -16.0 | |||
Cash flow from financing activities | -70.6 | -19.6 | |||
Net changes in cash and cash equivalents of discontinued operations | 5.1 | -13.9 | |||
Cash and cash equivalents at the beginning of the period | 44.4 | 43.5 | |||
Cash and cash equivalents at the end of the period of discontinued operations | 49.5 | 29.6 | |||