Consolidated Balance Sheet Structure
The Group’s total assets increased by € 11,871.3 million as against December 31, 2017, rising from € 37,516.3 million to € 49,387.6 million. This increase results primarily from a € 10,308.1 million increase in investment properties from € 33,182.8 million to € 43,490.9 million, of which € 6,537.5 million results from the integration of the BUWOG Group and the Victoria Park Group and € 3,517.9 million results from the real estate valuation. In addition, assets rose as a result of an increase in goodwill of € 228.9 million from € 2,613.5 million to the current total of € 2,842.4 million due to the first-time consolidation of the BUWOG Group and Victoria Park. For the BUWOG Group brand name, a value of € 66.6 million was recognized in connection with its development business as part of the purchase price allocation. Goodwill and trademark rights comprise 5.9% of the total assets. Total current assets increased mainly through an increase in trade receivables and real estate inventories due to the integration of BUWOG’s development business. Furthermore, cash and cash equivalents increased by € 281.5 million.
The € 3,517.9 million increase in the value of the real estate portfolio in the 2018 fiscal year increased the carrying amount of the groups of cash-generating units (regions) affected by the valuation, which in turn led to impairment losses being recognized on the goodwill allocated to the regions in the amount of € 681.2 million.
As of December 31, 2018, the gross asset value (GAV) of Vonovia’s property assets came to € 44,226.9 million, which corresponds to 89.6% of total assets compared with € 33,424.9 million or 89.1% at the end of 2017.
The € 2,972.9 million increase in total equity from € 16,691.2 million to € 19,664.1 million results in particular from the capital increase in the amount of € 1,257.4 million, from the profit for the period for the 2018 fiscal year in the amount of € 2,402.8 million and from the distribution of € 640.3 million. The change in minority interests in the amount of € 173.5 million is due, on the one hand, to the profit share attributable to minority shareholders of € 96.3 million and, on the other, to the integration of Victoria Park.
This brings the equity ratio to 39.8%, compared with 44.5% at the end of 2017.
Liabilities rose by € 8,898.4 million from € 20,825.1 million to € 29,723.5 million. The amount of non-derivative financial liabilities thereby rose by € 6,075.5 million, of which € 2,896.3 million were due to the integration of Victoria Park and BUWOG, and € 3,179.21 million resulted primarily from the net increase in acquisition financing. Moreover, liabilities include financing contributions from tenants – a liabilities position in relation to tenants that is typical for Austria and is based on fixed earlier payments tenants have made toward maintenance and financing.