Reconciliation of Financial Result/FFO 1 Interest Expense

The financial result in the first nine months of 2018 came to € -296.5 million, lower than the comparable figure for the previous year of € -218.2 million because of acquisitions. interest expense is derived from the financial result as follows:

Reconciliation of Financial Result/FFO 1 Interest Expense

in € million

 

9M 2017

 

9M 2018

 

Change in %

 

12M 2017

*

Excluding income from other investments.

 

 

 

 

 

 

 

 

 

Income from loans

 

1.6

 

1.7

 

6.2

 

1.6

Interest income

 

25.1

 

3.7

 

-85.3

 

25.1

Interest expense

 

-244.9

 

-301.9

 

23.3

 

-353.0

Financial result*

 

-218.2

 

-296.5

 

35.9

 

-326.3

 

 

 

 

 

 

 

 

 

Adjustments:

 

 

 

 

 

 

 

 

Transaction costs

 

6.1

 

9.7

 

59.0

 

7.9

Prepayment penalties and commitment interest

 

3.8

 

5.8

 

52.6

 

16.4

Effects from the valuation of non-derivative financial instruments

 

-22.2

 

6.6

 

 

-8.8

Derivatives

 

-8.9

 

2.3

 

 

-3.9

Interest accretion to provisions

 

6.5

 

6.4

 

-1.5

 

9.0

Accrued interest

 

36.0

 

58.9

 

63.6

 

3.1

Other effects

 

1.0

 

11.6

 

> 100

 

2.6

Net cash interest

 

-195.9

 

-195.2

 

-0.4

 

-300.0

 

 

 

 

 

 

 

 

 

Deferred interest adjustment

 

-36.0

 

-58.9

 

63.6

 

-3.1

Adjustments income from investments in other real estate companies

 

13.0

 

14.0

 

7.7

 

13.0

Adjustment of interest paid due to taxes

 

2.4

 

2.4

 

 

2.6

Adjustments FFO interest expense BUWOG

 

 

48.5

 

 

 

 

 

 

 

 

 

 

 

FFO 1 interest expense

 

-216.5

 

-189.2

 

-12.6

 

-287.5

Due to refinancing and lower interest rates, FFO 1 interest expense came to € -189.2 million in the first nine months of 2018, up by 12.6% on the value for the prior-year period of € -216.5 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.