Reconciliation of Financial Result to Net Cash Interest

The financial result in 2016 came to € -433.0 million, slightly lower than the comparable figure for 2015 of € -414.0 million. This was largely due to the increased financing costs due to our acquisition activities. In 2016 fiscal year, the operating -related interest result came to € -322.7 million, 4.9% lower than the comparable value of € -339.4 million for 2015.

Reconciliation of Financial Result to Net Cash Interest

in € million

 

2016

 

2015

*

Excluding income from other investments

**

Interest on the difference between the taking up and making use of the € 3 billion bonds from December 2015, which were intended to be used for the financing of the Deutsche Wohnen acquisition

 

 

 

 

 

Income from non-current loans

 

1.9

 

2.3

Interest income

 

14.1

 

2.1

Interest expense

 

-449.0

 

-418.4

Financial result*

 

-433.0

 

-414.0

 

 

 

 

 

Adjustments:

 

 

 

 

Transaction costs

 

21.5

 

60.5

Prepayment penalties and commitment interest

 

64.4

 

29.9

Effects from the valuation of non-derivative financial instruments

 

-31.0

 

-53.2

Derivatives

 

12.9

 

21.9

Interest accretion to provisions

 

11.2

 

8.6

Accrued interest

 

-7.9

 

16.0

Other effects

 

0.6

 

6.5

Net cash interest

 

-361.3

 

-323.8

 

 

 

 

 

Accrued interest adjustment

 

7.9

 

-16.0

Adjustments EMTN interest**

 

21.1

 

Adjustments Income from investments in other real estate companies

 

9.6

 

0.4

FFO interest expense

 

-322.7

 

-339.4

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.