Rental Segment

At the end of the 2017 fiscal year, our housing stock in the Rental segment had virtually full occupancy. The apartment came to 2.5% at the end of the year, virtually level with the prior-year value of 2.4%, with around 1 percentage point attributable to construction-related vacancies due to our extensive investment program. rose by 8.4% from € 1,538.1 million in the 2016 fiscal year to € 1,667.9 million in the 2017 fiscal year. This corresponds to an average of € 6.27/m2 at the end of 2017, compared with € 6.02 €/m2 at the end of 2016, and to an overall increase in rent per square meter of 4.2% (2016: 4.7%). The increase in rent due to market-related factors came to 1.6% (2016: 1.5%). In addition, we were able to achieve an increase in rent of 2.5% thanks to property value improvements achieved as part of our modernization program (2016: 1.8%). If we also include the increase in rent due to new construction measures and measures to add extra stories, then we arrive at an organic increase in rent of 4.2% (2016: 3.3%). The corresponding like-for-like increase in rent came to 4.1% in the 2017 fiscal year (2016: 3.3%). The average monthly in-place rent in the conwert portfolio came to € 6.06 m2 at the end of the reporting period.

As planned, we increased our modernization and measures significantly to a volume of € 1,124.8 million in the 2017 fiscal year (2016: € 792.4 million). This was driven primarily by the increase in the modernization volume from € 472.3 million to € 778.6 million. In the 2017 fiscal year, a volume of € 52.5 million was attributable to modernization and maintenance measures in the conwert portfolio.

Maintenance and Modernization

in € million






Change in %


Incl. new construction: 2016: € 13.9 million, 2017: € 65.7 million


Incl. intra-Group profits for 2016: € 45.5 million (thereof € 1.1 million capitalized maintenance and € 8.7 million modernization);
2017: € 72.3 million (thereof € 2.5 million capitalized maintenance and € 25.1 million modernization)








Expenses for maintenance







Capitalized maintenance







Modernization work*







Total cost of modernization and maintenance**







In relation to the average number of apartments managed during the reporting period, this corresponds to spending on modernization and maintenance of € 51.00 per m2 in the 2017 fiscal year (2016: € 36.84 per m2).

A total of € 65.7 million was invested and settled in relation to the construction of new apartments in the 2017 fiscal year (2016: € 13.9 million). A total of 182 apartments were completed during the reporting period. In addition, 443 apartments accounting for an investment volume of around € 80 million were under construction at the end of 2017. In its new construction activities, Vonovia is placing particular emphasis on targeted densification and vertical expansion using prefabricated modules and the following three modular construction concepts: wood hybrid, steel skeleton and precast concrete construction.

In the 2017 fiscal year, operating expenses in the Rental segment were up by 6.3% on the figures for 2016, from € 244.5 million to € 259.9 million, mainly due to acquisitions. All in all, rose by 9.9%, from € 1,046.2 million in 2016 to € 1,150.0 million in 2017.

Vacancy Rate
The vacancy rate is the number of empty units as a percentage of the total units owned by the company. The vacant units are counted at the end of each month.
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.
Monthly In-Place Rent
The monthly in-place rent is measured in euro per square meter and is the current gross rental income per month for rented units as agreed in the corresponding rent agreements at the end of the relevant month before deduction of non-transferable ancillary costs divided by the living area of the rented units. The in-place rent is often referred to as the so-called “Nettokaltmiete” (rent excl. ancilliary costs such as heating etc.). The monthly in-place rent (in €/m2) on a like-for-like basis refers to the monthly in-place rent for the residential portfolio that was already held by Vonovia 12 months previously, i. e., portfolio changes during this period are not included in the calculation of the in-place rent on a like-for-like basis. If we also include the increase in rent due to new construction measures and measures to add extra stories, then we arrive at the organic increase in rent.
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.
Adjusted EBITDA Rental
The adjusted EBITDA Rental is calculated by subtracting the operating expenses of the Rental segment and the expenses for maintenance in the Rental segment from the Group’s rental income.