Sales

We successfully continued our selective sales strategy in the Sales segment. The segment covers all business activities relating to the sale of single residential units (Privatize) and the sale of entire buildings or land and commercial units (Non-Core/Non-Strategic).

In the first half of 2017, income from the disposal of properties came to € 701.9 million, down by 17.5 % on the value for the first half of 2016 (€ 850.5 million). The growth was driven by the sales from the conwert portfolio, which accounted for a volume of € 406.4 million, whereas sales in the previous year were characterized primarily by a block sale of 13,570 units to LEG. We sold a total of 4,484 apartments in the first half of 2017 (H1 2016: 19,135). 1,160 of these apartments were attributable to the Privatize portfolio (H1 2016: 1,441) and 3,324 to Non-Core/Non-Strategic (H1 2016: 17,694). We sold 343 apartments and 763 commercial units from the conwert portfolio in the first half of 2017.

In the reporting period, adjusted EBITDA Sales came to € 44.3 million, down by 4.7 % on the comparative value of € 46.5 million. At 31.3 %, the fair value step-up in the Privatize portfolio was lower than for the previous year (34.5 %). This was due to the higher property values at the end of 2016. In addition, 100 privatizations were achieved as part of block sales. If these sales are left out of the equation, then the fair value step-up in the Privatize portfolio comes to 32.5 %.

The fair value step-up in the Non-Core/Non-Strategic portfolio, on the other hand, came in at 4.3 %, up slightly on the comparative value of 3.5 %.

Adjusted EBITDA Sales

in € million

 

H1 2017

 

H1 2016

 

Change in %

 

12M 2016

 

 

 

 

 

 

 

 

 

Income from disposal of properties

 

701.9

 

850.5

 

-17.5

 

1,227.9

Fair value of properties sold adjusted to reflect effects not relating to the period from assets held for sale

 

-644.8

 

-792.2

 

-18.6

 

-1,107.7

Adjusted profit from disposal of properties

 

57.1

 

58.3

 

-2.1

 

120.2

thereof Privatize

 

34.0

 

34.2

 

-0.6

 

71.1

thereof Non-Core/Non-Strategic

 

23.1

 

24.1

 

-4.1

 

49.1

Selling costs

 

-12.8

 

-11.8

 

8.5

 

-27.7

Adjusted EBITDA Sales

 

44.3

 

46.5

 

-4.7

 

92.5