Reconciliations
The financial result changed from € -410.9 million in the first nine months of 2021 to
€ -204.2 million in the first nine months of 2022. FFO interest expense is derived from the financial result as follows:
Reconciliation of Financial Result – FFO Interest Expense
Reconciliation of Financial Result/FFO Interest Expense | ||||||||
in € million | 9M 2021 | 9M 2022 | Change in % | 12M 2021 | ||||
Interest income | 4.9 | 50.6 | >100 | 21.5 | ||||
Interest expense | -280.5 | -234.3 | -16.5 | -411.6 | ||||
Other financial result excluding income from investments | -135.3 | -20.5 | -84.8 | -164.8 | ||||
Financial result* | -410.9 | -204.2 | -50.3 | -554.9 | ||||
Adjustments: | ||||||||
Other financial result excluding income from investments | 135.3 | 20.5 | -84.8 | 164.8 | ||||
Effects from the valuation of interest rate and currency derivatives | -8.9 | -137.7 | >100 | -20.4 | ||||
Prepayment penalties and commitment interest | 2.8 | 10.2 | >100 | 22.7 | ||||
Effects from the valuation of non-derivative financial instruments | -16.3 | -54.7 | >100 | -43.3 | ||||
Interest accretion to provisions | 3.0 | 7.7 | >100 | 9.8 | ||||
Accrued interest/other effects | 33.4 | -49.6 | – | 30.9 | ||||
Net cash interest | -261.6 | -407.8 | 55.9 | -390.4 | ||||
Adjustment for IFRS 16 Leases | 7.3 | 8.4 | 15.1 | 10.3 | ||||
Adjustment of income from investments in other real estate companies | 15.1 | 6.6 | -56.3 | 15.7 | ||||
Adjustment of interest paid due to taxes | -1.2 | -0.6 | -50.0 | -1.8 | ||||
Adjustment of accrued interest | -27.1 | 31.5 | – | -31.5 | ||||
Interest expense FFO | -267.5 | -361.9 | 35.3 | -397.7 | ||||
- *Excluding income from other investments.
In the first nine months of 2022, profit for the period came to € 2,211.7 million (9M 2021: € 3,869.1 million). In the first nine months of 2022, the Deutsche Wohnen Group is included in profit for the period in full. Profit for the period is, however, also influenced to a considerable degree by valuation effects, also due to rising interest rates and inflation, as well as the sideways movement in the value of investment properties in the third quarter of 2022. In the first nine months of 2022, impairment losses due to the increased cost of capital were attributable to goodwill and trademark rights in the nursing and assisted living sector, as well as to investments accounted for using the equity method.
The reconciliation of profit for the period to Group FFO is shown below:
Reconciliation of Profit for the Period – Group FFO
Reconciliation of Profit for the Period/Group FFO | ||||||||
in € million | 9M 2021* | 9M 2022 | Change in % | 12M 2021* | ||||
Profit for the period | 3,869.1 | 2,211.7 | -42.8 | 2,440.5 | ||||
Financial result** | 410.9 | 204.2 | -50.3 | 554.9 | ||||
Income taxes | 1,964.1 | 1,168.0 | -40.5 | 2,651.5 | ||||
Depreciation and amortization (incl. depreciation on financial assets) | 255.8 | 1,140.1 | >100 | 3,888.6 | ||||
Impairments and result of assets accounted for using the equity method | -1.2 | 425.0 | – | -14.9 | ||||
Net income from fair value adjustments of investment properties | -5,073.0 | -3,137.6 | -38.2 | -7,393.8 | ||||
Non-recurring items | 26.0 | 26.0 | – | 37.1 | ||||
Total period adjustments from assets held for sale | 46.1 | 38.4 | -16.7 | -6.0 | ||||
Income from investments in other real estate companies | -15.0 | -6.6 | -56.0 | -15.7 | ||||
Other | -13.8 | -32.0 | >100 | -10.5 | ||||
Intragroup profits | 27.2 | 22.4 | -17.6 | 37.8 | ||||
Gross profit Development to hold (incl. DW) | 44.3 | 50.5 | 14.0 | 84.9 | ||||
Adjusted EBITDA Total | 1,540.5 | 2,110.1 | 37.0 | 2,254.4 | ||||
Interest expense FFO*** | -267.5 | -361.9 | 35.3 | -397.7 | ||||
Current income taxes FFO | -58.2 | -97.3 | 67.2 | -65.2 | ||||
Consolidation | -45.9 | -73.1 | 59.3 | -97.1 | ||||
Group FFO**** | 1,168.9 | 1,577.8 | 35.0 | 1,694.4 | ||||
Group FFO after non-controlling interests | 1,153.1 | 1,515.8 | 31.5 | 1,654.4 | ||||
Group FFO per share in €**** | 1.90 | 1.98 | 4.2 | 2.18 | ||||
- *Prior-year figures adjusted to new adjusted EBITDA definition (excluding results from at-equity investments), adjustments Adjusted EBITDA Total/Group FFO 9M 2021: € 0.4 million, 12M 2021: € 14.9 million.
- **Excluding income from other investments.
- ***Incl. financial income from investments in other real estate companies.
- ****Based on the new 2022 definition without elimitation of IFRS 16 effect, Group FFO per share based on the shares carrying dividend rights on the reporting date, prior-year values TERP-adjusted (1,067).