Business Development in 2017 – An Overview

In the 2017 fiscal year, we were able to further expand our leading market position and successfully continue with our business strategy, as is evident from our key performance indicators.

The figures for 2017 include conwert with its business figures for the period from January to December for the first time. In detail, our performance indicators at Group level (most meaningful performance indicators within the meaning of DRS 20) are as follows:



Actual 2016


Last forecast in the Interim Financial Report for Q3 2017


Actual 2017








Adjusted NAV/share


€ 30.75




€ 38.49

EPRA NAV/share


€ 36.58




€ 43.88



€ 760.8 million


€ 910–920 million (upper end)


€ 920.8 million

FFO 1/share


€ 1.63


€ 1.88–1.90


€ 1.90



Increase of 8.0%


Similar CSI as 2016


Increase of 1.6%

The adjusted NAV per share came in at € 38.49 in 2017, up by 25.2% on the prior-year value of € 30.75. This corresponds to an NAV per share of € 43.88 (2016: € 36.58). This increase was due primarily to the net income from adjustments of investment properties of € 3,434.1 million (2016: € 3,236.1 million).

FFO 1 rose by € 160.0 million to € 920.8 million in 2017 (2016: € 760.8 million), putting it slightly ahead of the most recent forecast for the upper forecast range value of between € 910 million and € 920 million. This corresponds to FFO1 per share of € 1.90 (2016: € 1.63, most recent forecast € 1.88–1.90). The improvement in was the main factor behind the increase in . It rose by € 130.2 million, from € 1,094.0 million in 2016 to € 1,224.2 million in 2017. The interest expense excluding non-recurring items (FFO interest expense) came to € -287.5 million in 2017, down by 10.9% on the prior-year value of € -322.7 million.

We were also able to further improve our customer satisfaction. The CSI, which we had expected to be on a par with the 2016 fiscal year in 2017, was exceeded by 1.6%.

Statement of the Management Board on the Economic Situation

The net assets, financial position and results of operations of the Group are extremely positive, particularly given the solid financing, the resulting balanced maturity profile and the financing flexibility gained through the -backed bond financings with a view to both organic and external growth. Steady improvements to the property management processes promote ongoing improvements in profitability.

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.
Adjusted EBITDA Operations
The adjusted EBITDA Operations is calculated by subtracting the adjusted EBITDA Sales from the adjusted EBITDA of the Group.
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.
Classification of debtors or securities with regard to their creditworthiness or credit quality according to credit ratings. The classification is generally performed by rating agencies.