Non-Financial Performance Indicators

We also focus on non-financial operating performance indicators as drivers for our key financial figures and supporting control parameters.

We focus on our customers and offer them affordable homes that meet their needs together with housing-related services and reliable customer support. Consequently, the third main key figure alongside and adjusted NAV is the Customer Satisfaction Index (). It is determined at regular intervals in systematic customer surveys conducted by an external service provider and shows the effectiveness and sustainability of our services for the customer. Our company’s economic success and, in particular, the success of our value-add strategy are directly linked to the satisfaction level of our customers. We are aware of this fact and implement a wide variety of measures to improve our services in the interest of our tenants.

The vacancy rate shows the proportion of units in our own housing stocks that are not rented and therefore generate no . It can serve as an early-warning indicator, e. g. to identify non-marketable apartments.

The monthly in-place rent per square meter gives information on the average rental income from the rented properties. In particular, over the course of time, the average rent increase achieved in the rented properties can be derived from this figure.

The vacancy rate and the average rent are key drivers for the development of our key figures related to the management of rental income. Together with the CSI they serve as essential early warning indicators.

The total amount spent on maintenance and modernization measures in relation to the total area covered by units we own and manage is a further operational figure for the management of the investments we make in our real estate portfolio. It serves as an indicator of the intensity of and modernization within our housing stocks. The energy-efficient modernization of our buildings forms a key component of our investment program. The associated targets for saving energy/CO2 form another performance indicator for us.

The number of units sold in the portfolio and the indicate the sales performance in the Sales segment.

The fair value step-up represents the difference between the income from the sale of a unit and its . It shows the percentage increase in value for the company on the sale of a unit before further costs of sale.

FFO 1
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.
CSI (Customer Satisfaction Index)
The CSI is determined at regular intervals by means of systematic customer surveys and reflects how our services are perceived and accepted by our customers. The CSI is determined on the basis of points given by the customers for our properties and their neighborhood, customer service and commercial and technical support as well as maintenance and modernization management.
Rental Income
Rental income refers to the current gross income for rented units as agreed in the corresponding rent agreements before the deduction of non-transferable ancillary costs.
Maintenance
Maintenance covers the measures that are necessary to ensure that the property can continue to be used as intended over its useful life and that eliminate structural and other defects caused by wear and tear, age and weathering effects.
Privatize portfolio
In the “Privatize” portfolio, our focus is on generating additional added value by privatizing owner-occupied apartments and single-family houses at a premium compared with their fair value.
Sell portfolio
In the “Sell” portfolio, our focus is on selling properties in locations that offer below-average development potential in the medium to long term to private and institutional investors. Limited potential is defined, in particular, by below-average property condition combined with a location that is of similarly below-average quality. It contains locations and properties that were identified in the latest extensive review of the overall portfolio as not being absolutely essential for further strategic development.
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.