Reconciliation of Financial Result/FFO 1 Interest Expense

The financial result in the first half of 2018 came to € -195.7 million, considerably lower than the comparable figure for the previous year of € -148.6 million due to acquisitions. interest expense is derived from the financial result as follows:

Reconciliation of Financial Result/FFO 1 Interest Expense

in € million

 

H1 2017

 

H1 2018

 

Change in %

 

12M 2017

*

Excluding income from other investments.

 

 

 

 

 

 

 

 

 

Income from loans

 

0.9

 

1.3

 

44.4

 

1.6

Interest income

 

23.4

 

3.9

 

-83.3

 

25.1

Interest expense

 

-172.9

 

-200.9

 

16.2

 

-353.0

Financial result*

 

-148.6

 

-195.7

 

31.7

 

-326.3

 

 

 

 

 

 

 

 

 

Adjustments:

 

 

 

 

 

 

 

 

Transaction costs

 

6.2

 

8.4

 

35.5

 

7.9

Prepayment penalties and commitment interest

 

2.9

 

3.6

 

24.1

 

16.4

Effects from the valuation of non-derivative financial instruments

 

-16.7

 

7.7

 

 

-8.8

Derivatives

 

-4.7

 

10.1

 

-314.9

 

-3.9

Interest accretion to provisions

 

4.4

 

3.9

 

-11.4

 

9.0

Accrued interest

 

25.4

 

37.8

 

48.8

 

3.1

Other effects

 

3.8

 

7.3

 

92.1

 

2.6

Net cash interest

 

-127.3

 

-116.9

 

-8.2

 

-300.0

 

 

 

 

 

 

 

 

 

Accrued interest adjustment

 

-25.4

 

-37.8

 

48.8

 

-3.1

Adjustments income from investments in other real estate companies

 

12.9

 

13.9

 

7.8

 

13.0

Interest payment adjustment due to taxes

 

1.8

 

0.7

 

-61.1

 

2.6

Adjustments FFO interest expense FFO 1 BUWOG

 

 

25.8

 

 

 

 

 

 

 

 

 

 

 

FFO 1 interest expense

 

-138.0

 

-114.3

 

-17.2

 

-287.5

Due to refinancing and lower interest rates, FFO 1 interest expense came to € -114.3 million in the first half of 2018, down by 17.2% on the value for the prior-year period of € -138.0 million.

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.