Reconciliation of Financial Result/FFO Interest Expense

The financial result amounted to € -83.0 million in the first three months of 2018, on par with the level seen in the first three months of 2017. FFO interest expense is derived from the financial result as follows:

Reconciliation of Financial Result/FFO Interest Expense

in € million

 

3M 2017

 

3M 2018

 

Change in %

 

12M 2017

 

 

 

 

 

 

 

 

 

*

Excluding income from other investments

Income from loans

 

0.5

 

0.8

 

60.0

 

1.6

Interest income

 

0.5

 

1.2

 

140.0

 

25.1

Interest expense

 

-84.0

 

-85.0

 

1.2

 

-353.0

Financial result*

 

-83.0

 

-83.0

 

 

-326.3

 

 

 

 

 

 

 

 

 

Adjustments:

 

 

 

 

 

 

 

 

Transaction costs

 

1.9

 

2.3

 

21.1

 

7.9

Prepayment penalties and commitment interest

 

1.9

 

1.7

 

-10.5

 

16.4

Effects from the valuation of non-derivative financial instruments

 

-7.8

 

2.3

 

 

-8.8

Derivatives

 

5.1

 

4.1

 

-19.6

 

-3.9

Interest accretion to provisions

 

2.4

 

2.1

 

-12.5

 

9.0

Accrued interest

 

7.3

 

29.2

 

300.0

 

3.1

Other effects

 

2.2

 

2.5

 

13.6

 

2.6

Net cash interest

 

-70.0

 

-38.8

 

-44.6

 

-300.0

 

 

 

 

 

 

 

 

 

Accrued interest adjustment

 

-7.3

 

-29.2

 

300.0

 

-3.1

Adjustments Income from investments in other real estate companies

 

 

 

 

13.0

Interest payment adjustment due to taxes

 

0.5

 

0.3

 

-40.0

 

2.6

 

 

 

 

 

 

 

 

 

Interest expense FFO

 

-76.8

 

-67.7

 

-11.8

 

-287.5

Due to refinancing and lower interest rates, interest expense came to € -67.7 million in the first three months of 2018, down by 11.8% on the value for the prior-year period of € -76.8 million.

FFO (Funds From Operations)
FFO reflects the recurring earnings from the operating business. In addition to adjusted EBITDA, FFO allow for recurring cash-effective net interest expenses from non-derivative financial instruments as well as income taxes. This key figure is not determined on the basis of any specific international reporting standard but is to be regarded as a supplement to other performance indicators determined in accordance with IFRS.