Sales

We 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 nine months of 2017, income from the disposal of properties came to € 951.2 million, down by 3.7% on the value for the first nine months of 2016 (€ 988.2 million). This was driven by the sales from the conwert portfolio, which accounted for a volume of € 528.2 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 8,304 apartments in the first nine months of 2017 (9M 2016: 21,922). 1,704 of these apartments were attributable to the Privatize portfolio (9M 2016: 2,150) and 6,600 to Non-Core/Non-Strategic (9M 2016: 19,772). We sold 2,364 apartments and 828 commercial units from the conwert portfolio in the first nine months of 2017.

Adjusted EBITDA Sales came in at € 81.3 million in the first nine months of 2017, up by 24.1% on the value of € 65.5 million seen in the same period of 2016. In the first nine months of 2017, the fair value step-up in the Privatize portfolio came to 32.7%, down on the value of 35.4% seen in the first nine months of 2016. This was due to the higher property values at the end of 2016 and at the end of the first half of 2017. In addition, 113 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 33.6%.

At 7.0%, the fair value step-up in the Non-Core/Non-Strategic portfolio was higher than for the same period in the previous year (3.9%).

Adjusted EBITDA Sales

in € million

 

9M 2017

 

9M 2016

 

Change in %

 

12M 2016

 

 

 

 

 

 

 

 

 

Income from disposal of properties

 

951.2

 

988.2

 

-3.7

 

1.227.9

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

 

-850.1

 

-904.8

 

-6.0

 

-1.107.7

Adjusted profit from disposal of properties

 

101.1

 

83.4

 

21.2

 

120.2

thereof Privatize

 

52.8

 

53.7

 

-1.7

 

71.1

thereof Non-Core/Non-Strategic

 

48.3

 

29.7

 

62.6

 

49.1

Selling costs

 

-19.8

 

-17.9

 

10.6

 

-27.7

Adjusted EBITDA Sales

 

81.3

 

65.5

 

24.1

 

92.5