Results of Operations

The following key figures provide an overview of Vonovia’s results of operations and their drivers in the 2017 fiscal year. When comparing the key figures shown with the prior year, it is important to remember that the conwert acquisition is included for the first time in 2017, namely with its earnings contribution for the year as a whole.

Key Figures on Earnings Development

in € million

 

2016

 

2017

 

Change in %

 

 

 

 

 

 

 

Income from property management

 

2,209.3

 

2,391.6

 

8.3

thereof rental income

 

1,538.1

 

1,667.9

 

8.4

Adjusted EBITDA Operations

 

1,094.0

 

1,224.2

 

11.9

Adjusted EBITDA Rental

 

1,046.2

 

1,150.0

 

9.9

Adjusted EBITDA Value-add Business

 

57.0

 

102.1

 

79.1

Adjusted EBITDA Other

 

-9.2

 

-27.9

 

203.3

FFO 1

 

760.8

 

920.8

 

21.0

Income from disposal of properties

 

1,227.9

 

1,206.4

 

-1.8

Adjusted EBITDA Sales

 

92.5

 

110.8

 

19.8

EBITDA IFRS

 

1,083.7

 

1,271.8

 

17.4

Adjusted EBITDA

 

1,186.5

 

1,335.0

 

12.5

Monthly in-place rent (€/m2)

 

6.02

 

6.27

 

4.2

Average area of own apartments in the reporting period (in thou. m2)

 

21,509

 

22,056

 

2.5

Number of residential units in portfolio

 

344,884

 

352,848

 

2.3

Vacancy rate (in %)

 

2.4

 

2.5

 

0.1 pp

Maintenance and modernization incl. new construction (€/m2)

 

36.84

 

51.00

 

38.4

thereof expenses for maintenance and capitalized maintenance (€/m2)

 

14.88

 

15.70

 

5.5

thereof for modernization incl. new construction (€/m2)

 

21.96

 

35.30

 

60.8

Number of units bought

 

2,815

 

24,847

 

782.7

Number of units sold

 

26,631

 

11,780

 

-55.8

thereof Privatize

 

2,701

 

2,608

 

-3.4

thereof Sell portfolio

 

23,930

 

9,172

 

-61.7

Number of employees (as of December 31)

 

7,437

 

8,448

 

13.6

Income from property management rose by 8.3%, from € 2,209.3 million in 2016 to € 2,391.6 million in 2017. The increase was mainly due to the development in rental income in the Rental segment, which rose by 8.4% from € 1,538.1 million to € 1,667.9 million in 2017. The conwert portfolio contributed € 126.4 million to this increase in rental income.

In the 2017 fiscal year, we were able to increase our primary key figure for the sustained earnings power of our core business, FFO 1, by € 160.0 million or 21.0% from € 760.8 million to € 920.8 million compared with 2016. This trend was fueled primarily by the positive development in adjusted EBITDA Operations, which rose by 11.9% from € 1,094.0 million in 2016 to € 1,224.2 million in 2017. This positive development was driven by the Rental and Value-add Business segments.

FFO 1

in € million

 

2016

 

2017

 

Change in %

 

 

 

 

 

 

 

Rental income

 

1,538.1

 

1,667.9

 

8.4

Maintenance expenses

 

-247.4

 

-258.0

 

4.3

Operating expenses

 

-244.5

 

-259.9

 

6.3

Adjusted EBITDA Rental

 

1,046.2

 

1,150.0

 

9.9

 

 

 

 

 

 

 

Income Value-add Business

 

851.2

 

1,170.5

 

37.5

thereof external income

 

108.1

 

161.6

 

49.5

thereof internal income

 

743.1

 

1,008.9

 

35.8

Operating expenses

 

-794.2

 

-1,068.4

 

34.5

Adjusted EBITDA Value-add Business

 

57.0

 

102.1

 

79.1

 

 

 

 

 

 

 

Adjusted EBITDA Others

 

-9.2

 

-27.9

 

203.3

 

 

 

 

 

 

 

Adjusted EBITDA Operations

 

1,094.0

 

1,224.2

 

11.9

 

 

 

 

 

 

 

Interest expense FFO

 

-322.7

 

-287.5

 

-10.9

Current income taxes FFO 1

 

-10.5

 

-15.9

 

51.4

 

 

 

 

 

 

 

FFO 1

 

760.8

 

920.8

 

21.0