Value-add Business

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 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 in relation to 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.

Adjusted EBITDA Value-add Business
The adjusted EBITDA Value-add Business (formerly adjusted EBITDA Extension) is calculated by deducting operating expenses from the segment’s income. Note: The name of this segment was changed without any content-related changes to the segment definition.
Adjusted EBITDA Operations
The adjusted EBITDA Operations is calculated by subtracting the adjusted EBITDA Sales from the adjusted EBITDA of the Group.
Rental Income
Rental income refers to the current gross income for rented units as agreed in the corresponding rent agreements before the deduction of non-transferable ancillary costs.