36 Assets and Liabilities Held for Sale and Assets and Liabilities of Discontinued Operations
Accounting Policies
Assets held for sale include those non-current assets that can, and are extremely likely to be, sold at standard conditions in their current state. A sale is deemed to be highly probable if there is a commitment to a plan to sell the asset, an active program to locate a buyer and complete the plan has been initiated, the asset is being actively marketed for sale at a reasonable price, and a sale is expected to be completed within one year of the date on which the asset is classified as held for sale. Investment properties held for sale are recognized at the contractually agreed sales price or, if this is not available, at the estimated sales price. If there is a disposal group, it is recognized at fair value less costs to sell, if the latter is lower than the net carrying amount of the disposal group.
This item not only includes individual non-current assets that are to be sold, but also groups of assets (disposal groups). Discontinued operations are reported separately as an item in their own right. In cases involving disposal groups and discontinued operations, all liabilities to be sold together with the corresponding assets as part of one and the same transaction are also reclassified to the items “Liabilities in connection with assets held for sale” or “Liabilities of discontinued operations.”
Vonovia accounts for investment properties as assets held for sale when notarized purchase contracts have been signed or a declaration of intent to purchase, or at least an exclusivity agreement, has been signed by both parties as of the reporting date but transfer of title will, under the contract, not take place until the subsequent reporting period. Investment properties held for sale are recognized at the contractually agreed sales price. If there is a disposal group, it is recognized at fair value less costs to sell, if the latter is lower than the net carrying amount of the disposal group.
A discontinued operation refers to a scenario in which a separate major line of business or a geographical area of operations is classed as held for sale, or if a business activity is part of a single coordinated plan for such a sale. A line of business has to be distinct from the other activities for accounting purposes before it can be classified as a discontinued operation. The result is presented separately from the continuing operations in the consolidated income statement. The comparative year is restated as if the discontinued operation had been classified as such from the start of that year.
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 outgoing assets, cash and cash equivalents of € 8.2 million were disposed of as part of the disposal group. In addition to existing buildings, the transaction also includes a development site, which was 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 meant that the sale in 2025 did 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 [B11] Profit from Disposal of Real Estate Inventories) and, with the opposite effect, the effect from the disposal of properties (€ -53.3 million) (see [B10] Profit from the Disposal of Properties).
In addition, the transfer of further possession, benefits and encumbrances associated with properties earmarked for sale that had been reported in the balance sheet as assets held for sale as of December 31, 2024, as well as the transfer of properties back to investment properties due to the reassessment of how likely these properties are to be sold, resulted in a marked drop in assets held for sale.
Sales of real estate portfolios which, as of December 31, 2025, had been classified as assets held for sale and economic ownership of which is likely to be transferred in 2026 had a slight offsetting effect.
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 a strategic review, the management decided in 2023 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. Ownership of a further 14 nursing care properties and the PFLEGEN & WOHNEN HAMBURG GmbH (P&W) nursing care businesses was transferred in the third quarter of 2025. Ownership of the remaining four nursing care properties was transferred in the fourth quarter of 2025. These transactions completed the sale of the discontinued nursing care business.
This means that, as of December 31, 2025, no assets or liabilities were allocated to the discontinued nursing care business:
Assets from the Discontinued Operations
in € million | Dec. 31, 2024 | Dec. 31, 2025 | |||
Intangible assets | 9.3 | – | |||
Property, plant and equipment | 34.3 | – | |||
Investment properties | 606.0 | – | |||
Other assets | 4.0 | – | |||
Total non-current assets of discontinued operations | 653.6 | – | |||
Inventories | 0.5 | – | |||
Trade receivables | 25.9 | – | |||
Other assets | 5.9 | – | |||
Income tax receivables | 0.5 | – | |||
Cash and cash equivalents | 43.5 | – | |||
Total current assets of discontinued operations | 76.3 | – | |||
Total assets of discontinued operations | 729.9 | – | |||
Liabilities from the Discontinued Operations
in € million | Dec. 31, 2024 | Dec. 31, 2025 | |||
Provisions | 32.4 | – | |||
Lease liabilities | 1.7 | – | |||
Deferred tax liabilities | 5.0 | – | |||
Total non-current liabilities of discontinued operations | 39.1 | – | |||
Provisions | 13.3 | – | |||
Trade payables | 6.4 | – | |||
Lease liabilities | 1.8 | – | |||
Current income taxes | 0.3 | – | |||
Other liabilities | 16.5 | – | |||
Total current liabilities of discontinued operations | 38.3 | – | |||
Total liabilities of discontinued operations | 77.4 | – | |||
The earnings contribution from discontinued operations is comprised as follows.
Earnings Contribution from the Discontinued Operations
in € million | 2024 | 2025 | |||
Revenue from property letting | – | – | |||
Other revenue from property management | 296.2 | 148.2 | |||
Revenue from property management | 296.2 | 148.2 | |||
Income from disposal of properties | 87.7 | 284.6 | |||
Carrying amount of properties sold | -90.8 | -284.4 | |||
Profit from the disposal of properties | -3.1 | 0.2 | |||
Net income from fair value adjustments of investment properties | -8.2 | – | |||
Cost of materials | -54.5 | -29.0 | |||
Personnel expenses | -184.0 | -93.0 | |||
Depreciation and amortization | – | – | |||
Other operating income | 17.6 | 7.7 | |||
Net income from the derecognition of financial assets measured at amortized cost | 0.3 | 0.1 | |||
Other operating expenses | -22.1 | -14.2 | |||
Interest income | 0.2 | 0.9 | |||
Interest expenses | -1.7 | -0.6 | |||
Earnings before tax | 40.7 | 20.3 | |||
Income taxes | -0.6 | -1.6 | |||
Profit for the period from discontinued operations (before valuation of discontinued operations) | 40.1 | 18.7 | |||
Gain or loss recognized on the measurement and on the disposal of the discontinued operations | -13.4 | 52.6 | |||
Profit for the period from discontinued operations | 26.7 | 71.3 | |||
Intra-Group transactions were eliminated from the consolidated financial results in full. The eliminations were allocated to continuing operations and discontinued operations so as to take account of the decision not to continue these transactions after the disposal, as the Management Board considers this type of presentation to be useful.
For this purpose, the Management Board has eliminated the revenue generated from transactions with continuing operations in the result from continuing operations, as no services will be exchanged between the continuing operations and the discontinued operations after the sale.
Disclosures on Employees
As of December 31, 2025, Vonovia had no employees (December 31, 2024: 3,912, 2,977 of whom were women and 935 of whom were men) working in the business area belonging to the discontinued operations. The average figure for the year was 1,829 employees (2024: 3,881). Furthermore, as of December 31, 2025, Vonovia had no apprentices (December 31, 2024: 417) working in the business area belonging to the discontinued operations.
Net Income from the Measurement of the Discontinued Operations
The valuation of the discontinued operations at the lower of carrying amount and fair value less costs to sell has not resulted in any impairment losses (2024: € -13.4 million).
Net Income from the Disposal of the Discontinued Operations
The total sale price for the shares in the nursing care businesses belonging to the discontinued operations came to € 379.7 million (including the assumption of debt) and, with the exception of a remaining purchase price receivables of € 10.9 million, was paid in the form of cash and cash equivalents. At the time of the sale, the discontinued operations had total cash and cash equivalents of € 40.8 million. The sale also involved transferring intangible assets in the amount of € 8.4 million, property, plant and equipment of € 43.0 million, investment properties of € 318.4 million, other receivables and assets of € 14.2 million and liabilities of € 97.7 million.
The disposal of the “Katharinenhof” nursing care businesses in the first quarter of 2025 produced proceeds of € 5.1 million (2024: € - million).
The profit from the disposal of the discontinued operations includes profit from the disposal of deferred taxes in the amount of € 1.3 million (2024: € - million).
The disposal of the PFLEGEN & WOHNEN HAMBURG GmbH (P&W) nursing care businesses in the third quarter of 2025 produced proceeds of € 47.5 million (2024: € - million). The profit from the disposal of the discontinued operations includes profit from the disposal of deferred taxes in the amount of € 17.4 million (2024: € - million).
Cumulative Income or Expenses Included in Other Comprehensive Income
Due to the sale of the nursing care business, no cumulative income or expenses not affecting net income resulting from the measurement of actuarial gains and losses in connection with the discontinued operations (December 31, 2024: € -10.0 million taking into account deferred tax effects, or € -11.9 million excluding tax effects) are included in Other comprehensive income as of December 31, 2025.
€ 8.8 million (2024: € -2.4 million) of the gains and losses recognized in other comprehensive income during the period, or € 10.5 million (2024: € -2.8 million) excluding tax effects, are attributable to Vonovia’s shareholders and € 1.2 million (2024: € -0.3 million), or € 1.5 million (2024: € -0.4 million) excluding tax effects, is attributable to non-controlling shareholders.
Earnings per Share
The earnings per share attributable to the profit for the period of the discontinued operations came to € 0.02 (2024: € 0.03) for the 2025 fiscal year.
Cash Flows From the Discontinued Operation
Cash Flows from the Discontinued Operations
Key Data from the Statement of Cash Flows | |||||
in € million | 2024 | 2025 | |||
Cash flow from operating activities | 47.1 | 33.3 | |||
Cash flow from investing activities | -46.4 | -57.1 | |||
Cash flow from financing activities | -1.6 | -19.7 | |||
Net changes in cash and cash equivalents of discontinued operations | -0.9 | -43.5 | |||
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 | 43.5 | – | |||