22. Investment properties

Investment properties are recognised at depreciated cost. As of 30 September 2021, a total of €170 million (30/9/2020: €188 million) was recognised in the balance sheet. The development of these real estates is shown in the following table.

€ million

Investment properties (owned)

Investment property rights of use

Total

Acquisition or production costs

 

 

 

As of 1/10/2019

248

500

748

Currency translation

−40

−16

−56

Additions to consolidation group

0

0

0

Additions

1

7

8

Disposals

0

−4

−4

Transfers associated with the tangible assets

−8

282

274

As of 30/9/2020 and 1/10/2020

200

768

969

Currency translation

−10

−7

−17

Additions to consolidation group

0

0

0

Additions

0

10

10

Disposals

−1

−1

−2

Transfers associated with the tangible assets

−10

0

−10

As of 30/9/2021

180

771

951

Depreciation

 

 

 

As of 1/10/2019

168

453

621

Currency translation

−26

−15

−41

Additions, scheduled

3

14

18

Additions, impairment

3

4

7

Disposals

0

−2

−2

Reversals of impairment losses

0

0

0

Transfers associated with the tangible assets

−8

187

178

As of 30/9/2020 and 1/10/2020

140

641

781

Currency translation

−6

−7

−13

Additions, scheduled

3

27

30

Additions, impairment

0

1

2

Disposals

0

0

0

Reversals of impairment losses

0

0

0

Transfers associated with the tangible assets

−19

0

−19

As of 30/9/2021

118

663

781

Carrying amount as of 1/10/2019

80

47

127

Carrying amount as of 30/9/2020

60

127

188

Carrying amount as of 30/9/2021

61

109

170

The of these investment properties total €311 million (30/9/2020: €362 million) with a carrying amount of €170 million (30/9/2020: €188 million). They are determined on the basis of internationally recognised measurement methods, particularly the comparable valuation method and the discounted cash flow method (level 3 of the 3-level valuation hierarchy of 13 (Fair Value Measurement)). This measurement is based on a detailed planning period of 10 years. Aside from market rents, market-based discount rates were used as key valuation parameters. The discount rates are determined on the basis of analyses of relevant real estate markets as well as evaluations of comparable transactions and market publications issued by international consulting firms. The resulting discount rates reflect the respective country and location risk as well as the property-specific real estate risk. In addition, project developments are considered to determine the best use.

The fair value is usually assessed by METRO PROPERTIES employees. Where deemed appropriate and necessary, external expert appraisals are also gathered.

Rental income from continuing operations amounts to €84 million, with usufructuary rights accounting for €80 million of this total (2019/20: €87 million, thereof €70 million from usufructuary rights). The related expenses amount to €68 million, with usufructuary rights accounting for €64 million (2019/20: €60 million, thereof €51 million from usufructuary rights).

Restrictions on titles in the form of liens and encumbrances amounted to €0 million (30/9/2020: €0 million). As in the , no contractual commitments for the acquisition of investment properties were made.

Fair value
Recognised fair value that would be received in return for the disposal of an asset or paid for the assignment of a debt in an ordinary transaction conducted between market participants on the assessment date.
Glossary
IFRS (International Financial Reporting Standards)
Internationally applicable rules for financial reporting developed by the IASB. Contrary to the accounting rules under the German Commercial Code, the IFRS emphasise the informational function.
Glossary
Previous year
Period of 12 months that is usually cited as a reference for statements in the annual report and refers to the financial year preceding the reporting year.
Glossary