Topic filter

Select tags to filter the report content

22. Investment properties

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.

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.
Glossary
PY
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

Share this page: