Group’s Business Development

Vonovia showed solid overall development in the first nine months of the 2017 fiscal year. This confirms that our corporate strategy, which we have continued to apply unchanged, is the right approach. In the Rental segment, we have implemented our modernization activities and our new construction measures as planned. With effect from July 1, 2017, we acquired a real estate portfolio including 1,032 apartments and 24 commercial units located mainly in Hanover. In the Value-add Business segment (previously known as “Extension”), we have continued to forge ahead with the expansion of our housing-related services. In the Sales segment, we continued to pursue our strategy of selective sales.

As of September 30, 2017, Vonovia had a real estate portfolio comprising 350,134 residential units, 92,235 garages and parking spaces and 4,556 commercial units. We also manage 63,569 residential units for other owners.

The following key figures provide an overview of the development in FFO 1 and other value drivers in the reporting period:

FFO 1

in € million

 

9M 2017

 

9M 2016

 

Change in %

 

12M 2016

 

 

 

 

 

 

 

 

 

Rental income

 

1,249.4

 

1,156.1

 

8.1

 

1,538.1

Maintenance expenses

 

-192.2

 

-184.1

 

4.4

 

-247.4

Operating expenses

 

-191.3

 

-177.9

 

7.5

 

-244.5

Adjusted EBITDA Rental

 

865.9

 

794.1

 

9.0

 

1,046.2

 

 

 

 

 

 

 

 

 

Value-add Business income

 

795.4

 

574.4

 

38.5

 

851.2

thereof external income

 

115.1

 

91.6

 

25.7

 

108.1

thereof internal income

 

680.3

 

482.8

 

40.9

 

743.1

Operating expenses

 

-719.4

 

-529.3

 

35.9

 

-794.2

Adjusted EBITDA Value-add Business

 

76.0

 

45.1

 

68.5

 

57.0

 

 

 

 

 

 

 

 

 

Adjusted EBITDA Other

 

-19.8

 

-6.9

 

187.0

 

-9.2

 

 

 

 

 

 

 

 

 

Adjusted EBITDA Operations

 

922.1

 

832.3

 

10.8

 

1,094.0

FFO interest expense

 

-216.5

 

-249.1

 

-13.1

 

-322.7

FFO 1 current income taxes

 

-15.1

 

-11.6

 

30.2

 

-10.5

FFO 1

 

690.5

 

571.6

 

20.8

 

760.8

In the reporting period, we were able to increase our primary key figure for the sustained earnings power of our core business, FFO 1, by € 118.9 million or 20.8% compared with the first nine months of 2016 from € 571.6 million to € 690.5 million. This trend was fueled primarily by the positive development in adjusted EBITDA Operations, which rose by 10.8% from € 832.3 million to € 922.1 million. Positive growth was witnessed in both the Rental and Value-add Business segments.