Annual Report 2019

Results of Operations

The following key figures provide an overview of how Vonovia’s results of operations and their drivers developed in 2019. For information on the limited comparative value of the prior-year figures, we refer to the statements in the chapter on overall business development within the Group.

Key Figures on Earnings Development

in € million



Change in %





Income from property management




thereof rental income in the Rental segment




Income from disposal of properties




Income from disposal of real estate inventories (Development)




Adjusted EBITDA Total




Adjusted EBITDA Rental




Adjusted EBITDA Value-add




Adjusted EBITDA Recurring Sales




Adjusted EBITDA Development



> 100

Group FFO








Monthly in-place rent (€/m2)




Average area of own apartments in the reporting period (in thou. m2)




Average number of own units (number of units)




Vacancy rate in %



0.2 pp

Maintenance expenses and capitalized maintenance (€/m2)




thereof maintenance expenses (€/m2)




thereof capitalized maintenance (€/m2)




Number of units bought




Number of units sold




thereof Recurring Sales




thereof Non-core Disposals




Number of employees (as of December 31)








Income from property management came to € 2,910.7 million, 7.5% higher than the value of € 2,708.2 million seen in the previous year. This increase was due primarily to the acquisitions of BUWOG and Victoria Park in the previous year, to the acquisition of Hembla in the 2019 fiscal year and to organic growth resulting from new construction and modernization measures. All in all, rental income in the Rental segment rose by 9.5%, from € 1,894.2 million to € 2,074.9 million.

As of the end of 2019, Vonovia managed a portfolio comprising 416,236 of its own residential units (2018: 395,769), 138,176 garages and parking spaces (2018: 117,885) and 6,748 commercial units (2018: 5,144). We sold a total of 4,784 units (Recurring Sales and Non-core disposals) in the course of the 2019 fiscal year (2018: 15,102) and acquired 23,987 units (2018: 63,706).

In 2019, BUWOG’s portfolio contributed € 296.4 million to the income from property management (2018: € 242.1 million). Victoria Park’s portfolio contributed € 137.7 million (2018: € 59.5 million) and Hembla’s portfolio contributed € 30.4 million.

Income from disposal of properties came to € 510.7 million, 53.5% below the value of € 1,097.5 million seen in the previous year. This drop can be traced back primarily to the Non-core disposals. At 2,177, the number of units sold in the 2019 fiscal year was down considerably in a year-over-year comparison (12,284 units).

The Adjusted EBITDA total rose by € 205.3 million from € 1,554.8 million in the 2018 fiscal year to € 1,760.1 million in 2019. All segments contributed to this development. The Adjusted EBITDA Rental increased by 9.3% from € 1,315.1 million in 2018 to € 1,437.4 million in 2019. Adjusted EBITDA Value-add rose by 20.7% from € 121.2 million in the 2018 fiscal year to € 146.3 million in 2019. The Adjusted EBITDA Recurring Sales came in at € 91.9 million, up by around 16.2% on the value of € 79.1 million seen in the previous year. The Adjusted EBITDA Development amounted to € 84.5 million in 2019 (2018: € 39.4 million). The Adjusted EBITDA Total included the earnings contributions made by Hembla in 2019, with a volume of € 9.6 million.

Group FFO rose by 7.7% from € 1,132.0 million in 2018 to € 1,218.6 million in 2019. Hembla is included in Group FFO in 2019 with a volume of € 3.8 million. The FFO interest included in Group FFO came to € 358.6 million in 2019 (2018: € 328.8 million), while current FFO taxes came to € 50.1 million (2018: € 36.5 million). The FFO taxes do not include current income taxes resulting from sales in the Non-core Disposals segment.

At the end of 2019, Vonovia employed a workforce of 10,345 (2018: 9,923).

Adjusted EBITDA Development
The Adjusted EBITDA Development includes the gross profit from the development activities of “to sell” projects (income from sold development projects less production costs) and the gross profit from the development activities of “to hold” projects (fair value of the units developed for the company’s own portfolio less incurred production costs) less the operating expenses from the Development segment.
Adjusted EBITDA Recurring Sales
The Adjusted EBITDA Recurring Sales compares the proceeds generated from the privatization business with the fair values of assets sold and also deducts the related costs of sale. In order to disclose profit and revenue in the period in which they are incurred and to report a sales margin, the fair value of properties sold, valued in accordance with IFRS 5, has to be adjusted to reflect realized/unrealized changes in value.
Adjusted EBITDA Rental
The Adjusted EBITDA Rental is calculated by deducting the operating expenses of the Rental segment and the expenses for maintenance in the Rental segment from the Group’s rental income.
Adjusted EBITDA Total (Earnings Before Interest, Taxes, Depreciation and Amortization)
Adjusted EBITDA Total is the result before interest, taxes, depreciation and amortization (including income from other operational investments and intragroup profits) adjusted for effects that do not relate to the period, recur irregularly and that are atypical for business operation, and for net income from fair value adjustments to investment properties. These non-recurring items include the development of new fields of business and business processes, acquisition projects, expenses for refinancing and equity increases (where not treated as capital procurement costs), IPO preparation costs and expenses for pre-retirement part-time work arrangements and severance payments. The Adjusted EBITDA Total is derived from the sum of the Adjusted EBITDA Rental, Adjusted EBITDA Value-add, Adjusted EBITDA Recurring Sales and Adjusted EBITDA Development.
Adjusted EBITDA Value-add
The Adjusted EBITDA Value-add is calculated by deducting operating expenses from the segment’s income.
Group FFO
Group FFO reflects the recurring earnings from the operating business. In addition to the adjusted EBITDA for the Rental, Value-add, Recurring Sales and Development segments, Group FFO allows for recurring current net interest expenses from non-derivative financial instruments as well as current income taxes. This key figure is not determined on the basis of any specific international reporting standard but is to be regarded as a supplement to other performance indicators determined in accordance with IFRS.
Modernization Measures
Modernization measures are long-term and sustainable value-enhancing investments in housing and building stocks. Energy-efficient refurbishments generally involve improvements to the building shell and communal areas as well as the heat and electricity supply systems. Typical examples are the installation of heating systems, the renovation of balconies and the retrofitting of prefabricated balconies as well as the implementation of energy-saving projects, such as the installation of double-glazed windows and heat insulation, e.g., facade insulation, insulation of the top story ceilings and basement ceilings. In addition to modernization of the apartment electrics, the refurbishment work upgrades the apartments, typically through the installation of modern and/or accessible bathrooms, the installation of new doors and the laying of high-quality and non-slip flooring. Where required, the floor plans are altered to meet changed housing needs.
Non-core Disposals
We also report on the Other segment, which is not relevant from a corporate management perspective, in our segment reporting. This includes the sale, only as and when the right opportunities present themselves, of entire buildings or land (Non-core Disposals) that are likely to have below-average development potential in terms of rent growth in the medium term and are located in areas that can be described as peripheral compared with Vonovia’s overall portfolio and in view of future acquisitions.
Recurring Sales
The Recurring Sales segment includes the regular and sustainable disposals of individual condominiums from our portfolio. It does not include the sale of entire buildings or land (Non-core disposals). These properties are only sold as and when the right opportunities present themselves, meaning that the sales do not form part of our operating business within the narrower sense of the term. Therefore, these sales will be reported under “Other” in our segment reporting.
Rental Income
Rental income refers to the current gross income for rented units as agreed in the corresponding lease agreements before the deduction of non-transferable ancillary costs. The rental income from the Austrian property portfolio additionally includes maintenance and improvement contributions (EVB). The rental income from the portfolio in Sweden reflects inclusive rents, meaning that the amounts contain operating and heating costs.