Results of Operations

The following key figures provide an overview of Vonovia’s results of operations and their drivers in the first half of 2018. In the following sections of the chapter “Results of Operations,” all key figures are reported without BUWOG and Victoria Park except those that are explicitly marked otherwise. The earnings contribution of BUWOG to the Group in the first half of 2018 is represented together in one sum as EBITDA IFRS BUWOG. Victoria Park was consolidated for the first time as of June 30, 2018, meaning that no earnings contributions are included yet in the first half of 2018.

in € million

 

H1 2017

 

H1 2018

 

Change in %

 

12M 2017

*

All values without BUWOG and without Victoria Park except key figures marked separately with *.

 

 

 

 

 

 

 

 

 

Income from property management

 

1,192.4

 

1,200.2

 

0.7

 

2,391.6

thereof rental income

 

833.2

 

838.8

 

0.7

 

1,667.9

Adjusted EBITDA Operations

 

607.6

 

632.6

 

4.1

 

1,224.2

Adjusted EBITDA Rental

 

573.5

 

597.0

 

4.1

 

1,150.0

Adjusted EBITDA Value-add Business

 

45.6

 

51.7

 

13.4

 

102.1

Adjusted EBITDA Other

 

-11.5

 

-16.1

 

40.0

 

-27.9

FFO 1

 

457.7

 

510.3

 

11.5

 

920.8

Income from disposal of properties

 

701.9

 

354.2

 

-49.5

 

1,206.4

Adjusted EBITDA Sales

 

44.3

 

48.3

 

9.0

 

110.8

EBITDA IFRS*

 

651.4

 

692.8

 

6.4

 

1,271.8

thereof EBITDA IFRS BUWOG*

 

 

40.7

 

 

Adjusted EBITDA

 

651.9

 

680.9

 

4.4

 

1,335.0

Monthly in-place rent (€/m2)

 

6.12

 

6.41

 

4.7

 

6.27

Average area of own apartments in the reporting period (in thou. m2)

 

22,226

 

21,557

 

-3.0

 

22,056

Average number of own units (number of units)

 

355,570

 

344,685

 

-3.1

 

352,848

Vacancy rate in %

 

2.9

 

2.8

 

-0.1 pp

 

2.5

Maintenance expenses and capitalized maintenance (€/m2)

 

7.14

 

8.45

 

18.3

 

15.70

Number of units bought*

 

23,745

 

63,444

 

167.2

 

24,847

Number of units sold

 

4,484

 

6,115

 

36.4

 

11,780

thereof Privatize

 

1,160

 

1,030

 

-11.2

 

2,608

thereof Sell portfolio

 

3,324

 

5,085

 

53.0

 

9,172

Number of employees (as of June 30/December 31)*

 

8,257

 

9,685

 

17.3

 

8,448

Income from property management amounted to € 1,200.2 million in the first half of 2018, up 0.7% from the prior-year value of € 1,192.4 million in the first half of 2017. The increase was mainly due to the development in rental income in the Rental segment, which rose by 0.7% from € 833.2 million to € 838.8 million.

As of June 30, 2018, Vonovia had a real estate portfolio comprising 344,685 residential units, 120,538 garages and parking spaces and 5,479 commercial units. Of those, 45,761 residential units are attributable to BUWOG and conwert in Germany, 23,215 residential units to Austria and 14,052 apartments to Victoria Park in Sweden. We also manage 82,605 residential units for other owners.

The following key figures provide an overview of the development in FFO 1 (the Group without BUWOG and without Victoria Park) and other value drivers in the reporting period.

FFO 1

in € million

 

H1 2017

 

H1 2018

 

Change in %

 

12M 2017

 

 

 

 

 

 

 

 

 

Rental income

 

833.2

 

838.8

 

0.7

 

1,667.9

Maintenance expenses

 

-127.3

 

-131.6

 

3.4

 

-258.0

Operating expenses

 

-132.4

 

-110.2

 

-16.8

 

-259.9

Adjusted EBITDA Rental

 

573.5

 

597.0

 

4.1

 

1,150.0

 

 

 

 

 

 

 

 

 

Revenue Value-add Business

 

483.8

 

610.4

 

26.2

 

1,170.5

thereof external revenue

 

80.1

 

88.3

 

10.2

 

161.6

thereof internal revenue

 

403.7

 

522.1

 

29.3

 

1,008.9

Operating expenses

 

-438.2

 

-558.7

 

27.5

 

-1,068.4

Adjusted EBITDA Value-add Business

 

45.6

 

51.7

 

13.4

 

102.1

 

 

 

 

 

 

 

 

 

Adjusted EBITDA Other

 

-11.5

 

-16.1

 

40.0

 

-27.9

 

 

 

 

 

 

 

 

 

Adjusted EBITDA Operations

 

607.6

 

632.6

 

4.1

 

1,224.2

 

 

 

 

 

 

 

 

 

FFO 1 interest expense

 

-138.0

 

-114.3

 

-17.2

 

-287.5

Current income taxes FFO 1

 

-11.9

 

-8.0

 

-32.8

 

-15.9

 

 

 

 

 

 

 

 

 

FFO 1

 

457.7

 

510.3

 

11.5

 

920.8

In the reporting period, the primary key figure for the sustained earnings power of the core business, FFO 1, was increased by € 52.6 million or 11.5% compared with the first half of 2017, from € 457.7 million to € 510.3 million. This trend was once again fueled primarily by the positive development in adjusted EBITDA Operations, which increased by 4.1% from € 607.6 million to € 632.6 million in the first half of 2018.