Our management system is based on our corporate strategy and our sustainable business activities.
In the 2021 fiscal year, Vonovia conducted its business via the four segments Rental, Value-add, Recurring Sales and Development up until the first-time consolidation of the Deutsche Wohnen Group. In the fourth quarter of 2021, Deutsche Wohnen was added as a fifth segment. This structure will apply until a decision has been made on the future segment structure following the completion of the work to integrate the Deutsche Wohnen business in 2022.
The Rental segment combines all of the business activities that are aimed at the value-enhancing management of our own residential real estate. It includes our property management activities in Germany, Austria and Sweden.
The Value-add segment bundles all of the housing-related services that we have expanded our core rental business to include. These services include both the maintenance and modernization work on our residential properties and services that are closely related to the rental business. We allocate the activities relating to the craftsmen’s and residential environment organization, the condominium administration business, the cable TV business, metering services, energy supplies and our insurance services to the Value-add segment.
The Recurring Sales segment includes the regular and sustainable disposals of individual condominiums and single-family houses 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 the Recurring Sales segment. We report these opportunistic sales in the Other column of the segment report.
The Development segment includes project development to build new homes. This covers the value chain starting with the purchase of land without any development plan / dedicated purpose and ending with the completion of new buildings and new construction measures on our own properties. These properties are either incorporated into our own portfolio or sold to third parties. The Development segment deals with projects in selected attractive locations. The value creation from the valuation of the properties at market prices will be allocated to the Development segment when these residential properties are incorporated into our own portfolio.
The Deutsche Wohnen segment includes all the activities of the Deutsche Wohnen Group (excluding effects from Non-core disposals). In addition to residential property management as its core business, the company’s business activities include nursing and assisted living, disposals/acquisitions and new construction/development as additional business areas. The Deutsche Wohnen Group uses these business areas to offer property-related services, such as energy-efficiency property management, the multimedia business and technical facility management, via subsidiaries or strategic shareholdings.