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 once again significantly contributed to this trend and allowed us to 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 107,000 units, of which 83,628 are apartments managed for third parties.

External revenue from our Value-add Business activities with our end customers rose by 8.6% from € 115.1 million in the first nine months of 2017 to € 125.0 million in the first nine months of 2018. Group revenue rose by 28.9%, from € 680.3 million to € 877.0 million in the same period. Overall, this results in a 26.0% increase in the revenue from the Value-add Business from € 795.4 million in the 2017 reporting period to € 1,002.0 million in 2018. The was up 19.3% year-over-year to € 90.7 million in the first nine months 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 reporting period. It rose from 73.6% in the same period of 2017 to 75.7% in the first nine months of 2018.

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.