Our Group pursues a 4+1-pillar strategy that aims to boost customer satisfaction and enhance Vonovia’s reputation. From a financial perspective, we aim to further boost growth in FFO 1 per share and EPRA NAV per share.
In line with the order in which they are shown, the first four pillars represent elements that are increasingly innovative for the market as a whole. The fifth pillar, our acquisition strategy, is designed to strengthen the impact of the first four strategic approaches.
In detail, our 4+1 strategies can be described as follows:
The profit or loss for the period to reflect the adjusted profit or loss from sales; period adjustments from assets held for sale; specific effects that do not relate to the period, are non-recurring or do not relate to the objective of the company; the net income from fair value adjustments of investment properties; depreciation and amortization; deferred and prior-year current taxes (tax expenses/income); transaction costs; prepayment penalties and commitment interest; valuation effects on financial instruments; the unwinding of discounting for provisions, particularly provisions for pensions, and other prior-year interest expenses and income that are not of a long-term nature.
EPRA NAV/Adjusted NAV
The presentation of the NAV based on the EPRA definition aims to show the net asset value in a long-term business model. The equity attributable to Vonovia’s shareholders is adjusted to reflect deferred taxes on investment properties/assets held for sale, the fair value of derivative financial instruments and the deferred taxes on derivative financial instruments. In order to boost transparency, an adjusted NAV, which involves eliminating goodwill in full, is also reported.
The “Strategic” subportfolio contains locations that offer development potential that is above average and for which we are pursuing a value-enhancing property management strategy.