53 Subsequent Events

Vonovia SE successfully sold its roughly 16.8 million shares in Deutsche Wohnen SE (“Deutsche Wohnen”) to institutional investors with effect as of February 1, 2019, by means of an accelerated bookbuilding procedure; the shares were sold for a price of € 41.50 per share. This corresponds to a customary market discount of 4.8% on the closing price of € 43.59 as of January 31, 2019. This results in total proceeds of € 698.1 million. The acquisition costs at the time amounted to € 405.5 million, resulting in a book gain of € 292.6 million from this disposal in the 2019 annual financial statements of Vonovia SE.

The IFRS consolidated financial statements included the shares in Deutsche Wohnen with a of € 672.8 million as of December 31, 2018. This means that, over the course of time, € 267.3 million in fair value increases had been recognized under other comprehensive income directly in other reserves. This amount will be reclassified to retained earnings, not affecting net income, pursuant to the designation under IFRS 9 when the transaction is completed.

The increase in fair value between December 31, 2018, and the transaction date of January 31, 2019, in the amount of € 25.3 million will also be recognized in other comprehensive income. Transaction costs will be recognized affecting net income.

On February 12, 2019, Vonovia terminated the subordinated bond of € 700 million in due form with effect from April 8 via Vonovia Finance B.V. and announced the corresponding repayment.

With effect from January 29, 2019, and as part of its EMTN program, Vonovia placed a bond with a nominal volume of € 500 million and a coupon of 1.800% maturing on June 29, 2025, via its Dutch subsidiary Vonovia Finance B.V. The first interest payment date is June 29, 2019.

The conversion of BUWOG AG, Vienna/Austria, into BUWOG Group GmbH, Vienna/Austria, was entered in the Vienna/Austria commercial register with effect from January 25, 2019.

Fair Value
Valuation pursuant to IAS 40 in conjunction with IFRS 13. The estimated value of an asset. The fair value is the amount for which an asset could be exchanged between knowledgeable, willing parties in an arm’s length transaction.