Non-Recurring Items

To show the development of operating performance and to ensure comparability with previous periods, we calculate for our Rental, Extension and Sales segments, as mentioned above. The total of these key figures, taking consolidation effects into account (adjusted EBITDA Other), produces the adjusted EBITDA for the Group as a whole. The adjustments made include items that are not related to the period, items that recur irregularly or items that are atypical for business operation. The non-recurring items include the development of new fields of business and business processes, acquisition projects including integration costs, expenses for refinancing and equity increases (where not treated as capital procurement costs), as well as expenses for pre-retirement part-time work arrangements and severance payments. Due to the new ESMA Guidelines on Alternative Performance Measures, the definition of non-recurring items was tightened up/improved.

At € 94.5 million, non-recurring items in the 2016 fiscal year were considerably lower than the prior-year value of € 209.4 million, due to acquisition costs. Details on the non-recurring items can be found in the Notes to the consolidated financial statements in the chapter on segment reporting.

Non-Recurring Items

in € million

 

2016

 

2015

*

Including takeover costs and one-time expenses in connection with acquisitions, such as HR measures relating to the integration process

 

 

 

 

 

Business model optimization/development of new fields of business

 

21.0

 

11.3

Acquisition costs incl. integration costs*

 

46.8

 

179.8

Refinancing and equity measures

 

3.2

 

0.7

Severance payments/pre-retirement part-time work arrangements

 

23.5

 

17.6

Total non-recurring items

 

94.5

 

209.4

All in all, rose to € 1,186.5 million in 2016, up by 15.3% on the prior-year figure of € 1,028.7 million. In the 2016 reporting period, we are reporting financial income from investments in other real estate companies outside of adjusted EBITDA for the first time. For 2015, financial income from investments in other real estate companies amounting to € 0.4 million was taken out of and interest was reclassified. In the 2016 reporting period, there was financial income from investments in other real estate companies of € 9.6 million as a result of the acquisition of the shares in Deutsche Wohnen.

Excluding the adjustments for financial income from investments in other real estate companies and the adjustments for non-recurring items and effects not relating to the period in the Sales segment, EBITDA IFRS came in at € 1,083.7 million in the 2016 fiscal year, which was 29.3% above the prior-year figure of € 838.4 million.

Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization)
Adjusted EBITDA is the result before interest, taxes, depreciation and amortization (including income from other operational investments) adjusted for effects that do not relate to the period, recur irregularly or that are atypical for business operation, and for net income from fair value adjustments to investment properties. These non-recurring items include the development of new fields of business and business processes, acquisition projects, expenses for refinancing and equity increases (where not treated as capital procurement costs), IPO preparation costs and expenses for pre-retirement part-time work arrangements and severance payments.
Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization)
Adjusted EBITDA is the result before interest, taxes, depreciation and amortization (including income from other operational investments) adjusted for effects that do not relate to the period, recur irregularly or that are atypical for business operation, and for net income from fair value adjustments to investment properties. These non-recurring items include the development of new fields of business and business processes, acquisition projects, expenses for refinancing and equity increases (where not treated as capital procurement costs), IPO preparation costs and expenses for pre-retirement part-time work arrangements and severance payments.
Adjusted EBITDA Rental
The adjusted EBITDA Rental is calculated by subtracting the operating expenses of the Rental segment and the expenses for maintenance in the Rental segment from the Group’s rental income.
FFO (Funds From Operations)
FFO reflects the recurring earnings from the operating business. In addition to adjusted EBITDA, FFO allow for recurring cash-effective net interest expenses from non-derivative financial instruments as well as income taxes. This key figure is not determined on the basis of any specific international reporting standard but is to be regarded as a supplement to other performance indicators determined in accordance with IFRS.