Rental

In the Rental segment, our apartments still had virtually full occupancy at the end of the first half of 2017. The apartment vacancy rate of 2.9 % was up slightly on the value of 2.8 % seen at the end of the first half of 2016 due to our extensive investment program. Rental income rose by 7.6 %, from € 774.7 million to € 833.2 million, in a half-yearly comparison. This corresponds to an average monthly in-place rent of € 6.12/m2 at the end of the first half of 2017, compared with € 5.89/m2 at the end of the first half of 2016, and to an overall increase in rent per square meter of 3.9 %. The increase in rent due to market-related factors came to 1.7 %. In addition, we were able to achieve an increase in rent of 1.9 % thanks to property value improvements achieved as part of our modernization program. If we also include the increase in rent due to new construction measures and measures to add extra stories, then we reach an organic increase in rent of 3.7 %. The corresponding like-for-like increase in rent came to 3.6 % in the first half of 2017. The average monthly in-place rent in the conwert portfolio came to € 5.93/m2 at the end of the reporting period.

As planned, we increased our modernization and maintenance measures to a volume of € 456.4 million in the first half of 2017 (H1 2016: € 295.3 million). This was driven by a € 150.6 million increase in the modernization volume to € 297.6 million. In the first half of 2017, a volume of € 20.1 million was attributable to modernization and maintenance measures in the conwert portfolio.

Maintenance and Modernization

in € million

 

H1 2017

 

H1 2016

 

Change in %

 

12M 2016

 

 

 

 

 

 

 

 

 

*

Incl. intra-Group profits for H1 2017: € 28.8 million (thereof € 1.0 million capitalized maintenance and € 10.2 million modernization); H1 2016: € 20.1 million (thereof € 0.3 million capitalized maintenance and € 3.2 million modernization); new construction in H1 2017 € 13.7 million (included in modernization measures)

Expenses for maintenance

 

127.3

 

119.0

 

7.0

 

247.4

Capitalized maintenance

 

31.5

 

29.3

 

7.5

 

72.7

Modernization work

 

297.6

 

147.0

 

102.4

 

472.3

Total cost of modernization and maintenance*

 

456.4

 

295.3

 

54.6

 

792.4

In relation to the average number of apartments managed during the reporting period, this corresponds to a spending of € 20.53 per m2 on modernization and maintenance in the first half of 2017 (H1 2016: € 13.46 per m2).

Operating expenses in the Rental segment were up by 10.2 % on the figures for the first half of 2016, from € 120.1 million to € 132.4 million, mainly due to acquisitions. All in all, adjusted EBITDA Rental increased by 7.1 % from € 535.6 million to € 573.5 million.