Value-add Business

We boosted our earnings power further in the Value-add Business segment. In particular, we significantly improved the output of our craftsmen’s organization, allowing us to make our investments in improving our portfolio as planned. In addition, we continued to expand our business activities in the areas of condominium administration, provision of cable television to our tenants, metering services and insurance and residential environment services in the first half of 2017. Vonovia Immobilien Treuhand now provides services as a leading real estate service provider to a total of more than 100,000 units across Germany, around 11,400 of which are located in Berlin.

Total income from our Value-add Business activities rose by 45.0 % from € 333.6 million to € 483.8 million. The adjusted EBITDA Value-add Business improved considerably, rising from € 26.0 million to € 45.6 million.

The EBITDA margin of the core business, calculated based on the adjusted EBITDA Operations in relation to rental income within the Group, once again showed positive development in the reporting period. It rose from 71.9 % in 2016 to 72.7 %.