Net Asset Value

At the end of 2017, the net asset value (NAV), in accordance with standards, amounted to € 21,284.6 million, 24.9% higher than the level at the end of 2016 (€ 17,047.1 million). This is largely due to net income from adjustments of investment properties in the 2017 fiscal year. Net income from fair value adjustments amounted to € 3,434.1 million in 2017 (2016: € 3,236.1 million). By contrast, the goodwill impairment of € 337.3 million reduced the . The need for impairment arose for the East region due to a further increase in property values due to further yield compression, particularly in Berlin, in connection with a rise in the cost of capital (WACC) as a result of an increased base interest rate and a lower level of indebtedness of the peer group. The adjusted NAV rose from € 14,328.2 million to € 18,671.1 million. This represents an increase in the adjusted NAV per share from € 30.75 to € 38.49.

Net Asset Value (NAV) Based on Application of IAS 40

in € million

 

2016

 

2017

 

Change in %

*

Adjusted for effects from cross currency swaps

**

Based on the shares carrying dividend rights on the reporting date Dec. 31, 2016: 466,000,624, Dec. 31, 2017: 485,100,826

 

 

 

 

 

 

 

Equity attributable to Vonovia shareholders

 

12,467.8

 

15,080.8

 

21.0

Deferred taxes on investment properties/asset held for sales

 

4,550.3

 

6,185.7

 

35.9

Fair value of derivative financial instruments*

 

44.4

 

26.9

 

-39.4

Deferred taxes on derivative financial instruments

 

-15.4

 

-8.8

 

-42.9

EPRA NAV

 

17,047.1

 

21,284.6

 

24.9

Goodwill

 

-2,718.9

 

-2,613.5

 

-3.9

Adjusted NAV

 

14,328.2

 

18,671.1

 

30.3

 

 

 

 

 

 

 

EPRA NAV per share in €**

 

36.58

 

43.88

 

19.9

 

 

 

 

 

 

 

Adjusted NAV per share in €**

 

30.75

 

38.49

 

25.2

Over a period of five years, Vonovia has continually created value and increased EPRA NAV and GAV (gross asset value).

in € million

 

EPRA NAV

 

GAV

 

 

 

 

 

2017

 

21,284.6

 

33,424.9

2016

 

17,047.1

 

27,106.4

2015

 

13,988.2

 

24,153.9

2014

 

6,578.0

 

12,757.1

2013

 

5,123.4

 

10,324.5

EPRA (European Public Real Estate Association)
The European Public Real Estate Association (EPRA) is a non-profit organization that has its registered headquarters in Brussels and represents the interests of listed European real estate companies. Its mission is to raise awareness of European listed real estate companies as a potential investment destination that offers an alternative to conventional investments. EPRA is a registered trademark of the European Public Real Estate Association.
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.
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.