We once again boosted our business further in the Value-add Business segment. The increase in the output of our craftsmen’s organization, in particular, contributed to this trend and allowed us to continue our investments in improving our portfolio. In addition, we also continued to expand our business activities in the areas of condominium administration, the provision of cable television to our tenants, metering services, and insurance and residential environment services in the 2018 reporting period. As a leading real estate service provider, Vonovia Immobilien Treuhand now provides services to a total of around 100,000 units across Germany, 58,497 of which are apartments owned by third parties.
External income from our Value-add Business activities with our end customers in the first three months of 2018 rose by 1.2% as against the same period of 2017, from € 51.4 million to € 52.0 million. Group income rose by 30.1%, from € 164.4 million to € 213.9 million in the same period. Overall, this results in a 23.2% increase in the income from the Value-add Business from € 215.8 million in the 2017 reporting period to € 265.9 million in 2018. The adjusted EBITDA Value-add Business was down by 10.1% year on year to € 17.8 million in the first three months of 2018. This development is mainly due to a one-off effect, which also results in limited comparability with the previous year’s figures.
The EBITDA margin of the core business, calculated based on the adjusted EBITDA Operations in relation to rental income within the Group, once again showed positive development in the current reporting period. It increased from 71.8% in the first three months of 2017 to 75.3% in the first three months of 2018.