Value-add Business

As planned, we continued to develop our business in the Value-add Business segment. The increase in the output of our craftsmen’s organization significantly contributed to this trend and allowed us to once again 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 106,000 units, 82,605 of which are apartments managed by third parties.

External revenue from our Value-add Business activities with our end customers in the first half of 2018 rose by 10.2% as against the same period of 2017, from € 80.1 million to € 88.3 million. Intragroup revenue rose by 29.3%, from € 403.7 million to € 522.1 million in the same period. Overall, this results in a 26.2% increase in the revenue from the Value-add Business from € 483.8 million in the 2017 reporting period to € 610.4 million in the first half of 2018. The was up 13.4% year-on-year to € 51.7 million in the first half of 2018.

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. For Vonovia, it increased to 75.3% in the first half of 2018 from 72.7% in the same period of 2017.

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.