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 remaining 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 gain in the 2025 fiscal year of € 1,390.0 million (2024: € -1,559.0 million) (see explanatory information in chapter [D27] Investment Properties). This includes € -0.4 million (2024: € -17.5 million) for the measurement of right-of-use assets (IFRS 16).

Buildings under construction (New construction/Development to hold) were completed in the 2025 fiscal year and 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 € 2.0 million as of December 31, 2025 (2024: € 10.2 million).