The development of investment properties is shown in the following table.
€ million |
Investment properties (owned) |
Investment property rights of use |
Total |
|---|---|---|---|
Acquisition or production costs |
|
|
|
As of 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 |
Reclassification in accordance with IFRS 5 |
−13 |
0 |
−13 |
Transfers associated with tangible assets |
171 |
124 |
295 |
As of 30/9/2022 |
352 |
868 |
1,220 |
Currency translation/hyperinflation |
1 |
19 |
20 |
Additions |
0 |
6 |
6 |
Disposals |
−28 |
−100 |
−128 |
Reclassification in accordance with IFRS 5 |
−80 |
0 |
−80 |
Transfers associated with tangible assets |
0 |
30 |
30 |
As of 30/9/2023 |
245 |
823 |
1,068 |
Depreciation/amortisation/impairment |
|
|
|
As of 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 |
Reclassification in accordance with IFRS 5 |
−8 |
0 |
−8 |
Reversals of impairment losses |
0 |
0 |
−1 |
Transfers associated with tangible assets |
134 |
124 |
257 |
As of 30/9/2022 |
260 |
788 |
1,048 |
Currency translation/hyperinflation |
0 |
18 |
19 |
Additions, scheduled |
4 |
26 |
31 |
Additions, impairment |
0 |
4 |
4 |
Disposals |
−21 |
−94 |
−115 |
Reclassification in accordance with IFRS 5 |
−55 |
0 |
−55 |
Reversals of impairment losses |
0 |
0 |
0 |
Transfers associated with tangible assets |
0 |
30 |
30 |
As of 30/9/2023 |
190 |
772 |
962 |
Carrying amount as of 1/10/2021 |
61 |
109 |
170 |
Carrying amount as of 30/9/2022 |
92 |
80 |
172 |
Carrying amount as of 30/9/2023 |
55 |
51 |
106 |
The fair values of these investment properties total €252 million (30/9/2022: €440 million) with a carrying amount of €106 million (30/9/2022: €172 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 €114 million, with right-of-use assets accounting for €103 million of this total (2021/22: €94 million, thereof €82 million from rights-of-use assets). The related expenses amount to €85 million, with rights-of-use assets accounting for €74 million (2021/22: €74 million, thereof €68 million from rights-of-use assets).
As in the previous year, there were no restrictions on titles in the form of liens and encumbrances.