8 Net Income from Fair Value Adjustments of Investment Properties

Investment properties are measured according to the model. Any gains or losses from a change in fair value are recognized in the income statement. The measurement of the investment properties led to a net valuation gain during the 2016 fiscal year of € 3,236.1 million (2015: € 1,323.5 million). The high valuation result for 2016 is mainly due, in addition to the strong development of Vonovia’s operating business, to the dynamic market conditions for residential properties in Germany at the moment. These are reflected both in rental price developments and, in particular, also in an increase in real estate purchase prices triggered, among other things, by yield compression on the demand side.

Fair Value
Valuation pursuant to IAS 40 in conjunction with IFRS 13. The estimated value of an asset. The fair value is the amount for which an asset could be exchanged between knowledgeable, willing parties in an arm’s length transaction.