Rental

As of the end of June 2018, our apartments were virtually fully occupied. The apartment of 2.8% was down slightly on the value of 2.9% seen at the end of the first half of 2017. in the Rental segment rose by 0.7% from € 833.2 million in the first half of 2017 to € 838.8 million in the same period of 2018, meaning that rent increases more than compensated for the disposals due to portfolio adjustments. Overall, the increase in rent due to market-related factors came to 1.5%. We were also able to achieve an increase in rent of 2.5% thanks to property value improvements achieved as part of our modernization program. If we also include the increase in rent due to new construction measures and measures to add extra stories, then we arrive at an organic increase in rent of 4.1% in total. The corresponding like-for-like increase in rent came to 4.0% in the first half of 2018. The average in Vonovia’s portfolio without BUWOG and Victoria Park came to € 6.41/m2 at the end of June 2018 compared to € 6.12/m2 at the end of June 2017.

In the 2018 reporting period, we continued to successfully implement our modernization and strategy and expanded the volume from € 456.4 million in the first half of 2017 to € 542.4 million in the first half of 2018. This was driven by an increase in the modernization volume including new construction, bringing it up from € 297.6 million in the first half of 2017 to € 360.3 million in the first half of 2018 (an increase of € 62.7 million).

Maintenance and Modernization

in € million

 

H1 2017

 

H1 2018

 

Change in %

 

12M 2017

*

Incl. intra-Group profits for H1 2017: € 28.8 million (thereof € 1.0 million capitalized maintenance and € 10.2 million modernization); H1 2018: € 31.5 million (thereof € 1.4 million capitalized maintenance and € 14.6 million modernization).

 

 

 

 

 

 

 

 

 

Maintenance expenses

 

127.3

 

131.6

 

3.4

 

258.0

Capitalized maintenance

 

31.5

 

50.5

 

60.3

 

88.2

Modernization measures (including new construction)

 

297.6

 

360.3

 

21.1

 

778.6

Total cost of modernization and maintenance*

 

456.4

 

542.4

 

18.8

 

1,124.8

Operating expenses in the Rental segment in the 2018 reporting period were down by 16.8% on the figures for 2017, from € 132.4 million to € 110.2 million. This development is primarily due to the realization of synergies from the takeover of conwert. All in all, increased by 4.1% from € 573.5 million in the 2017 reporting period to € 597.0 million in the first half of 2018.

Vacancy Rate
The vacancy rate is the number of empty units as a percentage of the total units owned by the company. The vacant units are counted at the end of each month.
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.
Monthly In-Place Rent
The monthly in-place rent is measured in euro per square meter and is the current gross rental income per month for rented units as agreed in the corresponding rent agreements at the end of the relevant month before deduction of non-transferable ancillary costs divided by the living area of the rented units. The in-place rent is often referred to as the so-called “Nettokaltmiete” (rent excl. ancilliary costs such as heating etc.). The monthly in-place rent (in €/m2) on a like-for-like basis refers to the monthly in-place rent for the residential portfolio that was already held by Vonovia 12 months previously, i. e., portfolio changes during this period are not included in the calculation of the in-place rent on a like-for-like basis. If we also include the increase in rent due to new construction measures and measures to add extra stories, then we arrive at the organic increase in rent.
Maintenance
Maintenance covers the measures that are necessary to ensure that the property can continue to be used as intended over its useful life and that eliminate structural and other defects caused by wear and tear, age and weathering effects.
Adjusted EBITDA Rental
The adjusted EBITDA Rental is calculated by subtracting the operating expenses of the Rental segment and the expenses for maintenance in the Rental segment from the Group’s rental income.