Financial Position

Cash Flow

The following table shows the Group cash flow:

Key Data from the Statement of Cash Flows

in € million

 

9M 2017

 

9M 2016

 

 

 

 

 

Cash flow from operating activities

 

719.0

 

636.7

Cash flow from investing activities

 

-1,165.2

 

326.5

Cash flow from financing activities

 

-754.8

 

-2,953.0

Net changes in cash and cash equivalents

 

-1,201.0

 

-1,989.8

Cash and cash equivalents at the beginning of the period

 

1,540.8

 

3,107.9

Cash and cash equivalents at the end of the period

 

339.8

 

1,118.1

The cash flow from operating activities comes to € 719.0 million for the previous nine months, compared with € 636.7 million for the same period in 2016. The increase is mainly due to the improvement in the EBITDA IFRS operating result, in particular due to the integration of the acquired conwert portfolio.

The cash flow from investing activities shows a payout balance of € 1,165.2 million for the first three quarters of 2017, mainly due to the payment of the cash component for the conwert takeover. The payouts for the modernization of the real estate portfolio came to € 650.5 million, whereas on the other hand, income from portfolio sales in the amount of € 935.1 million was collected.

The cash flow from financing activities is characterized by the refinancing measures taken in the first nine months of 2017. The proceeds arising from the EMTN drawdown and the new mortgages taken out (funds relating to the German government-owned development bank, KfW) total € 1,680.0 million. On the other hand, payouts were made in connection with regular repayments, including the scheduled repayment of a USD bond amounting to € 554.9 million, unscheduled repayments, mainly the CMBS Taurus financing in the amount of € 2,175.0 million in total, as well as transaction and financing costs. Total dividend payments of € 272.1 million and interest payments of € 199.2 million were made.

The net drop in cash and cash equivalents in the first three quarters of 2017 comes to € 1,201.0 million.

Financing

Vonovia’s credit rating as awarded by Standard & Poor’s is unchanged at BBB+ with a stable outlook for the long-term corporate credit rating and A-2 for the short-term corporate credit rating. At the same time, the credit rating for the issued unsecured bonds is BBB+.

The debt maturity profile of Vonovia’s financing was as follows as of September 30, 2017:

Maturity profile

Maturity profile (Bar chart)

The LTV (loan to value) is as follows as of the end of the quarter:

in € million

 

Sep. 30, 2017

 

Sep. 30, 2016

 

Change in %

 

Dec. 31, 2016

 

 

 

 

 

 

 

 

 

Non derivative financial liabilities

 

13,921.1

 

13,000.0

 

7.1

 

13,371.0

Foreign exchange rate effects

 

-26.5

 

-155.5

 

-83.0

 

-209.9

Cash and cash equivalents

 

-339.8

 

-1,118.1

 

-69.9

 

-1,540.8

Net debt

 

13,554.8

 

11,726.4

 

15.6

 

11,620.3

Sales receivables

 

-177.6

 

-233.1

 

-23.8

 

-135.4

Adjusted net debt

 

13,377.2

 

11,493.3

 

16.4

 

11,484.9

 

 

 

 

 

 

 

 

 

Fair value of the real estate portfolio

 

30,948.1

 

23,851.1

 

29.8

 

27,115.6

Shares in other real estate companies

 

605.4

 

545.4

 

11.0

 

503.1

Adjusted fair value of the real estate portfolio

 

31,553.5

 

24,396.5

 

29.3

 

27,618.7

 

 

 

 

 

 

 

 

 

LTV

 

42.4%

 

47.1%

 

-1.4 pp

 

41.6%

The financial covenants were fulfilled on the reporting date.

in € million

 

Sep. 30, 2017

 

Sep. 30, 2016

 

Change in %

 

Dec. 31, 2016

 

 

 

 

 

 

 

 

 

Non-derivative financial liabilities

 

13,921.1

 

13,000.0

 

7.1

 

13,371.0

Total assets

 

35,416.4

 

28,962.0

 

22.3

 

32,522.1

 

 

 

 

 

 

 

 

 

LTV bond covenants

 

39.3%

 

44.9%

 

-6.1 pp

 

41.1%