Solid Overall Development for the Group

In addition to the BUWOG takeover, Vonovia made a successful start to the first three months of 2018, meaning that it continued to pursue its corporate strategy unchanged. In the Rental segment, we continued our modernization activities and our new construction measures. In the Value-add Business segment, we successfully continued with the expansion of our housing-related services. In the Sales segment, we continued to pursue our strategy of selective sales.

As of March 31, 2018, Vonovia had a real estate portfolio comprising 393,639 residential units, 113,448 garages and parking spaces and 4,806 commercial units. We also manage 58,497 residential units for other owners.

The following key figures provide an overview of the development in and other value drivers in the reporting period (excluding BUWOG):

FFO 1

in € million

 

3M 2017

 

3M 2018

 

Change in %

 

12M 2017

 

 

 

 

 

 

 

 

 

Rental income

 

417.2

 

418.3

 

0.3

 

1,667.9

Maintenance expenses

 

-63.1

 

-61.2

 

-3.0

 

-258.0

Operating expenses

 

-68.5

 

-53.9

 

-21.3

 

-259.9

Adjusted EBITDA Rental

 

285.6

 

303.2

 

6.2

 

1,150.0

 

 

 

 

 

 

 

 

 

Income Value-add Business

 

215.8

 

265.9

 

23.2

 

1,170.5

thereof external income

 

51.4

 

52.0

 

1.2

 

161.6

thereof internal income

 

164.4

 

213.9

 

30.1

 

1,008.9

Operating expenses

 

-196.0

 

-248.1

 

26.6

 

-1,068.4

Adjusted EBITDA Value-add Business

 

19.8

 

17.8

 

-10.1

 

102.1

 

 

 

 

 

 

 

 

 

Adjusted EBITDA Other

 

-5.3

 

-5.3

 

 

-27.9

 

 

 

 

 

 

 

 

 

Adjusted EBITDA Operations

 

300.1

 

315.7

 

5.2

 

1,224.2

 

 

 

 

 

 

 

 

 

Interest expense FFO

 

-76.8

 

-67.7

 

-11.8

 

-287.5

Current income taxes FFO 1

 

-5.1

 

-4.4

 

-13.7

 

-15.9

 

 

 

 

 

 

 

 

 

FFO 1

 

218.2

 

243.6

 

11.6

 

920.8

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 € 25.4 million or 11.6% compared with the first three months of 2017, from € 218.2 million to € 243.6 million. This trend was once again fueled primarily by the positive development in adjusted EBITDA Operations, which increased by 5.2% from € 300.1 million to € 315.7 million in the first quarter of 2018.

FFO 1
The profit or loss for the period to reflect the adjusted profit or loss from sales; period adjustments from assets held for sale; specific effects that do not relate to the period, are non-recurring or do not relate to the objective of the company; the net income from fair value adjustments of investment properties; depreciation and amortization; deferred and prior-year current taxes (tax expenses/income); transaction costs; prepayment penalties and commitment interest; valuation effects on financial instruments; the unwinding of discounting for provisions, particularly provisions for pensions, and other prior-year interest expenses and income that are not of a long-term nature.