The residential portfolio that Vonovia manages accounts for approximately 83% of the Group’s assets in terms of fair value.
As of December 31, 2016, the Group had a real estate portfolio across Germany comprising 333,381 residential units, 85,421 garages and parking spaces and 3,405 commercial units. Our locations span around 660 cities, towns and municipalities. 58,969 units are also managed for other owners. Most of the properties in the Group’s portfolio constitute multifamily residences.
The Group’s real estate portfolio covered 20,781,489 m2 of living area in total as of December 31, 2016, with the average apartment size coming in at approximately 62 m2. The average unit consists of two or three rooms, a kitchen and a bathroom.
The vacancy rate came to 2.4 % on December 31, 2016, and Vonovia generated average monthly in-place rent of € 6.02 per m2. The annualized in-place rent came to € 1,464.9 million for apartments, € 43.5 million for commercial units and € 26.5 million for garages and parking spaces.
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.
The vacancy rate is the number of empty units as a percentage of the total units owned by the company. The vacant units are counted at the end of each month.
Monthly In-Place Rent
The monthly in-place rent is measured in € per square meter and is the current gross rental income per month for rented units as agreed in the corresponding rent agreements at the end of the relevant month before deduction of non-transferable ancillary costs divided by the living area of the rented units. The in-place rent is often referred to as the net cold rent. The monthly in-place rent (in €/m2) on a like-for-like basis refers to the monthly in-place rent for the residential portfolio that was already held by Vonovia 12 months previously, i.e., portfolio changes during this period are not included in the calculation of the in-place rent on a like-for-like basis.