29 Financial Assets
Financial Assets
Dec. 31, 2021 | Dec. 31, 2022 | ||||||||
in € million | non-current | current | non-current | current | |||||
Non-consolidated subsidiaries | 2.4 | – | 2.5 | – | |||||
Other investments | 374.6 | – | 396.1 | – | |||||
Loans to other investments | 33.2 | – | 33.1 | – | |||||
Securities | 5.2 | – | 5.5 | – | |||||
Other non-current loans | 511.8 | 563.1 | 121.2 | 716.2 | |||||
Receivables from finance leases | 23.7 | – | 21.1 | 2.6 | |||||
Other current financial receivables from financial transactions | – | 499.6 | – | – | |||||
Derivatives | 65.8 | 0.6 | 165.5 | 49.4 | |||||
1,016.7 | 1,063.3 | 745.0 | 768.2 | ||||||
Accounting Policies
Financial assets are recognized in the balance sheet when Vonovia becomes a contracting party of the financial instrument. A financial asset is derecognized when the contractual rights to the cash flows from a financial asset expire, or the financial asset is transferred and Vonovia neither retains control nor retains material risks and rewards associated with ownership of the financial asset.
In accordance with IFRS 9, the classification of financial assets takes into account both the business model in which financial assets are held and the characteristics of the cash flows of the assets in question. These criteria determine whether the assets are measured at amortized cost using the effective interest method or at fair value.
With regard to the business model criterion, all financial investments at Vonovia are to be assigned to the “hold to collect” model pursuant to IFRS 9.4.1.2(a). Whenever financial investments are categorized as equity instruments, Vonovia has exercised the irrevocable option to state future changes to the fair value in other comprehensive income in equity. Gains and losses recognized in other comprehensive income are never reclassified from total equity to the income statement on their disposal.
The carrying amount of financial assets corresponds to maximum risk of loss as of the reporting date.
Other investments comprise the Vesteda Residential Fund FGR, Amsterdam, in the amount of € 188.2 million (December 31, 2021: € 193.5 million) and OPPCI JUNO, Paris, in the amount of € 95.7 million (December 31, 2021: € 109.7 million).
In connection with the cooperation with Gropyus AG, Vienna, a non-current equity investment in the amount of € 32.1 million was added in the reporting year.
The loans to other investments not yet due relate to a loan to the property fund DB Immobilienfonds 11 Spree-Schlange von Quistorp KG.
The drop in other non-current loans is due primarily to the debt recovery action relating to a Lombard loan in the amount of around € 250.0 million (see [D30] Long-term Financial Assets Accounted for Using the Equity Method).
The other non-current loans also largely include loan receivables with a nominal value of € 801.9 million (December 31, 2021: € 806.5 million) from the QUARTERBACK Immobilien Group granted in line with standard market conditions.
The expected credit losses for the loans granted to the QUARTERBACK Immobilien Group were calculated in accordance with the IFRS 9 general approach. The loans generally feature a risk concentration. As the credit risk had increased considerably as of the reporting date as against the prior period, the calculations were performed based on the lifetime expected probability of default pursuant to IFRS 7.35M, resulting in expected credit losses of € 20.1 million. The new loans taken out as of the reporting date are excluded from a significant increase in credit risk and are still calculated on the basis of a twelve-month probability of default.
The receivables from finance leases are mainly due to the rental of certain broadband cable networks. There were receivables of € 23.7 million (December 31, 2021: € 23.7 million) and interest income of € 1.1 million on the reporting date (December 31, 2021: € 1.3 million). The debt maturity profile of the receivables is as follows:
Debt maturity profile of receivables from finanace leases
in € million | Dec. 31, 2021 | Dec. 31, 2022 | |||
Nominal value of outstanding lease payments | 28.2 | 28.2 | |||
thereof due within one year | – | 3.5 | |||
thereof due between one and two years | 3.5 | 3.6 | |||
thereof due between two and three years | 3.6 | 3.0 | |||
thereof due between three and four years | 3.0 | 3.0 | |||
thereof due between four and five years | 3.0 | 3.0 | |||
thereof due after more than five years | 15.1 | 12.1 | |||
plus unguaranteed residual values | 0.2 | 0.2 | |||
less unrealized financial income | -4.7 | -4.7 | |||
Present value of outstanding lease payments | 23.7 | 23.7 | |||
Other current financial receivables from financial transactions include time deposits and short-term financial investments in highly liquid money market funds that have an original term of more than three months.
Non-current derivatives include positive market values from cross currency swaps in the amount of € 47.0 million (December 31, 2021: € 35.2 million) and positive market values of € 165.5 million (December 31, 2021: € 4.3 million) from other interest rate derivatives. The call option reported here in the previous year with a positive fair value of € 26.3 million is no longer recognized in connection with the debt recovery action relating to the shares in Adler Group S.A. (see [D30] Non-current Financial Assets Accounted for Using the Equity Method).