Results of Operations

The following key figures provide an overview of how Vonovia’s results of operations and their drivers developed in the first half of 2017.

Key Figures on Earnings Development

in € million

 

H1 2017

 

H1 2016

 

Change in %

 

12M 2016

 

 

 

 

 

 

 

 

 

Income from property management

 

1,192.4

 

1,119.4

 

6.5

 

2,209.3

thereof rental income

 

833.2

 

774.7

 

7.6

 

1,538.1

Adjusted EBITDA Operations

 

607.6

 

558.1

 

8.9

 

1,094.0

Adjusted EBITDA Rental

 

573.5

 

535.6

 

7.1

 

1,046.2

Adjusted EBITDA Value-add Business

 

45.6

 

26.0

 

75.4

 

57.0

Adjusted EBITDA Other

 

-11.5

 

-3.5

 

228.6

 

-9.2

FFO 1

 

457.7

 

387.8

 

18.0

 

760.8

Income from disposal of properties

 

701.9

 

850.5

 

-17.5

 

1,227.9

Adjusted EBITDA Sales

 

44.3

 

46.5

 

-4.7

 

92.5

EBITDA IFRS

 

651.4

 

543.9

 

19.8

 

1,083.7

Adjusted EBITDA

 

651.9

 

604.6

 

7.8

 

1,186.5

Monthly in-place rent (€/m2)

 

6.12

 

5.89

 

3.9

 

6.02

Average space of own housing in the reporting period (in a thousand m2)

 

22,226

 

21,938

 

1.3

 

21,509

Number of residential units in portfolio

 

355,570

 

351,720

 

1.1

 

344,884

Vacancy rate (in %)

 

2.9

 

2.8

 

0.1 pp

 

2.4

Maintenance and modernization including new construction (€/m2)

 

20.53

 

13.46

 

52.5

 

36.84

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

 

7.14

 

6.76

 

5.6

 

14.88

thereof for modernization including new construction (€/m2)

 

13.39

 

6.70

 

99.8

 

21.96

Number of units bought

 

23,745

 

2,440

 

873.2

 

2,815

Number of units sold

 

4,484

 

19,135

 

-76.6

 

26,631

thereof Privatize

 

1,160

 

1,441

 

-19.5

 

2,701

thereof Non-Core

 

3,324

 

17,694

 

-81.2

 

23,930

Number of employees (as at Jun. 30, 2017/Dec. 31, 2016)

 

8,257

 

6,909

 

19.5

 

7,437

When comparing the key figures shown, it is important to remember that the first half of 2017 includes the conwert acquisition, with its earnings contribution for the months from January to June, for the very first time.

Income from property management rose by 6.5 %, from € 1,119.4 million to € 1,192.4 million, in a half-yearly comparison. The increase was mainly due to the development in rental income in the Rental segment, which rose by 7.6 % from € 774.7 million to € 833.2 million. The conwert portfolio contributed € 67.1 million to this increase in rental income.

In the reporting period, we were able to increase our primary key figure for the sustained earnings power of our core business, FFO 1, by € 69.9 million or 18.0 % compared with the first half of 2016 from € 387.8 million to € 457.7 million. This trend was fueled primarily by the positive development in adjusted EBITDA Operations, which rose by 8.9 % from € 558.1 million to € 607.6 million. Positive growth was witnessed in both the Rental and Value-add Business segments.

FFO 1

in € million

 

H1 2017

 

H1 2016

 

Change in %

 

12M 2016

 

 

 

 

 

 

 

 

 

Rental income

 

833.2

 

774.7

 

7.6

 

1,538.1

Maintenance expenses

 

-127.3

 

-119.0

 

7.0

 

-247.4

Operating expenses

 

-132.4

 

-120.1

 

10.2

 

-244.5

Adjusted EBITDA Rental

 

573.5

 

535.6

 

7.1

 

1,046.2

 

 

 

 

 

 

 

 

 

Value-add Business

 

483.8

 

333.6

 

45.0

 

851.2

thereof external income

 

80.1

 

56.7

 

41.3

 

108.1

thereof internal income

 

403.7

 

276.9

 

45.8

 

743.1

Operating expenses

 

-438.2

 

-307.6

 

42.5

 

-794.2

Adjusted EBITDA Value-add Business

 

45.6

 

26.0

 

75.4

 

57.0

 

 

 

 

 

 

 

 

 

Adjusted EBITDA Other

 

-11.5

 

-3.5

 

228.6

 

-9.2

 

 

 

 

 

 

 

 

 

Adjusted EBITDA Operations

 

607.6

 

558.1

 

8.9

 

1,094.0

 

 

 

 

 

 

 

 

 

FFO interest expense

 

-138.0

 

-162.8

 

-15.2

 

-322.7

FFO 1 current income taxes

 

-11.9

 

-7.5

 

58.7

 

-10.5

 

 

 

 

 

 

 

 

 

FFO 1

 

457.7

 

387.8

 

18.0

 

760.8