Investment properties are recognised at depreciated cost. As of 30 September 2022, a total of €172 million (30/9/2021: €170 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 1/10/2020 |
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 / 1/10/2021 |
180 |
771 |
951 |
Currency translation/hyperinflation |
21 |
−20 |
1 |
Additions to consolidation group |
0 |
0 |
0 |
Additions |
0 |
22 |
22 |
Disposals |
−7 |
−30 |
−37 |
Reclassifications in accordance with IFRS 5 |
−13 |
0 |
−13 |
Transfers associated with the tangible assets |
171 |
124 |
295 |
As of 30/9/2022 |
352 |
868 |
1,220 |
Depreciation |
|
|
|
As of 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 / 1/10/2021 |
118 |
663 |
781 |
Currency translation/hyperinflation |
15 |
−19 |
−5 |
Additions, scheduled |
4 |
27 |
30 |
Additions, impairment |
0 |
5 |
5 |
Disposals |
−2 |
−11 |
−13 |
Reclassifications in accordance with IFRS 5 |
−8 |
0 |
−8 |
Reversals of impairment losses |
0 |
0 |
−1 |
Transfers associated with the tangible assets |
134 |
124 |
257 |
As of 30/9/2022 |
260 |
788 |
1,048 |
Carrying amount as of 1/10/2020 |
60 |
127 |
188 |
Carrying amount as of 30/9/2021 |
61 |
109 |
170 |
Carrying amount as of 30/9/2022 |
92 |
80 |
172 |
In addition to the currency translation of the financial statements of foreign operations, the item currency translation/hyperinflation shows the effects of the first-time adoption of IAS 29 as well as the adjustment to the purchasing power ratios of the Turkish lira in the current financial year. The effects from the first-time adoption of IAS 29, which were recognised in the currency translation differences from translating the financial statements of foreign operations at the transition date of 1 October 2021, resulted in assets increasing by €5 million.
The fair values of these investment properties total €440 million (30/9/2021: €311 million) with a carrying amount of €172 million (30/9/2021: €170 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 IFRS 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 €94 million, with rights-of-use assets accounting for €82 million of this total (2020/21: €84 million, thereof €80 million from rights-of-use assets). The related expenses amount to €74 million, with rights-of-use assets accounting for €68 million (2020/21: €68 million, thereof €64 million from rights-of-use assets).
Restrictions on titles in the form of liens and encumbrances amounted to €0 million (30/9/2021: €0 million). As in the previous year, no contractual commitments for the acquisition of investment properties were made.