Reconciliation of Financial Result/FFO Interest Expense

The financial result made a marked improvement in a year-on-year comparison, rising by € 127.5 million to € -148.6 million. This is due primarily to the repayment of financing in the course of 2016. In addition, the prior-year figures were hit by transaction costs and prepayment penalties in connection with the repayment of portfolio loans. FFO 1 interest expense is derived from the financial result as follows:

Reconciliation of Financial Result to FFO Interest Expense

in € million

 

H1 2017

 

H1 2016

 

Change in %

 

12M 2016

 

 

 

 

 

 

 

 

 

*

Excluding income from other investments

**

Interest on the difference between the taking up and making use of the € 3 billion bonds from December 2015, which were intended to be used for the financing of the Deutsche Wohnen acquisition

Income from non-current loans

 

0.9

 

1.0

 

-10.0

 

1.9

Interest income

 

23.4

 

10.4

 

125.0

 

14.1

Interest expense

 

-172.9

 

-287.5

 

-39.9

 

-449.0

Financial result*

 

-148.6

 

-276.1

 

-46.2

 

-433.0

 

 

 

 

 

 

 

 

 

Adjustments:

 

 

 

 

 

 

 

 

Transaction costs

 

6.2

 

20.0

 

-69.0

 

21.5

Prepayment penalties and commitment interest

 

2.9

 

68.8

 

-95.8

 

64.4

Effects from the valuation of non-derivative financial instruments

 

-16.7

 

-13.0

 

28.5

 

-31.0

Derivatives

 

-4.7

 

-0.5

 

840.0

 

12.9

Interest accretion to provisions

 

4.4

 

5.9

 

-25.4

 

11.2

Accrued interest

 

25.4

 

32.2

 

-21.1

 

-7.9

Other effects

 

3.8

 

5.1

 

-25.5

 

0.6

Net cash interest

 

-127.3

 

-157.6

 

-19.2

 

-361.3

 

 

 

 

 

 

 

 

 

Accrued interest adjustment

 

-25.4

 

-32.2

 

-21.1

 

7.9

Adjustments EMTN interest**

 

 

17.5

 

-100.0

 

21.1

Adjustments income from investments in other real estate companies

 

12.9

 

9.5

 

35.8

 

9.6

Interest payment adjustment due to taxes

 

1.8

 

 

100.0

 

 

 

 

 

 

 

 

 

 

FFO interest expense

 

-138.0

 

-162.8

 

-15.2

 

-322.7

Due to refinancing and lower interest rates, FFO interest expense came to € -138.0 million in the first half of 2017, down by 15.2 % on the value for the prior year of € -162.8 million.