24. Investment property
in € thousand |
|
Investment property |
|
Payments on account and plants under construction |
|
Total |
|---|---|---|---|---|---|---|
Carrying amount as of 1 January 2019 |
|
181,059 |
|
3,665 |
|
184,724 |
Acquisition or production cost |
|
|
|
|
|
|
1 January 2019 |
|
341,095 |
|
3,665 |
|
344,760 |
Additions |
|
2,478 |
|
6,743 |
|
9,221 |
Disposals |
|
|
|
- 8 |
|
- 8 |
Reclassifications |
|
|
|
|
|
0 |
31 December 2019 |
|
343,573 |
|
10,400 |
|
353,973 |
Accumulated depreciation, amortisation and impairment |
|
|
|
|
|
|
1 January 2019 |
|
160,036 |
|
0 |
|
160,036 |
Additions |
|
8,788 |
|
|
|
8,788 |
Disposals |
|
|
|
|
|
0 |
Reclassifications |
|
|
|
|
|
0 |
31 December 2019 |
|
168,824 |
|
0 |
|
168,824 |
Carrying amount as of 31 December 2019 |
|
174,749 |
|
10,400 |
|
185,149 |
|
|
|
|
|
|
|
Carrying amount as of 1 January 2020 |
|
174,749 |
|
10,400 |
|
185,149 |
Acquisition or production cost |
|
|
|
|
|
|
1 January 2020 |
|
343,573 |
|
10,400 |
|
353,973 |
Additions |
|
308 |
|
20,532 |
|
20,840 |
Disposals |
|
|
|
- 302 |
|
- 302 |
Reclassifications |
|
365 |
|
- 365 |
|
0 |
31 December 2020 |
|
344,246 |
|
30,265 |
|
374,511 |
Accumulated depreciation, amortisation and impairment |
|
|
|
|
|
|
1 January 2020 |
|
168,824 |
|
0 |
|
168,824 |
Additions |
|
8,549 |
|
|
|
8,549 |
Disposals |
|
|
|
|
|
0 |
Reclassifications |
|
|
|
|
|
0 |
31 December 2020 |
|
177,373 |
|
0 |
|
177,373 |
Carrying amount as of 31 December 2020 |
|
166,873 |
|
30,265 |
|
197,138 |
Investment property mainly relates to warehouses converted to office space and other commercial real estate in Hamburg’s Speicherstadt historical warehouse district, as well as logistics warehouses and surfaced areas.
The additions in the reporting period relate mainly to conversion costs in connection with changes of use.
Rental income from investment property at the end of the financial year was € 51,847 thousand (previous year: € 52,870 thousand). The direct operating expenses for investment property, which are fully attributable to rental income, amounted to € 17,988 thousand in the reporting year (previous year: € 18,919 thousand).
Fair value is calculated and measured annually by HHLA’s Real Estate segment. The associated inputs are classified as level 3 in the fair value hierarchy, see Note 7.
in € thousand |
|
2020 |
|
2019 |
|---|---|---|---|---|
As of 1 January |
|
625,006 |
|
618,616 |
Change in fair value (not realised) |
|
- 20,517 |
|
6,390 |
As of 31 December |
|
604,489 |
|
625,006 |
The valuation method used to measure the fair value of investment property as well as the key unobservable input factors applied
Valuation method
Key unobservable input factors
Relationship between key unobservable input factors and measurement at fair value
The estimated fair value would increase (fall) if
Fair values are measured by applying the discounted cash flow method (DCF method) to the forecast net cash flows from managing the properties. This method is based on detailed forecasts of ten years or up to the end of the useful lives of properties with a remaining useful life of less than ten years. The cash flows are discounted using standard market interest rates. Property-specific fair value is determined on the basis of property-specific measurement criteria.
Contractually agreed rental income
the contractually agreed rental income was higher (lower)
Expected rent increases
the expected rent increases were higher (lower)
Vacancy periods
the vacancy periods were shorter (longer)
Level of occupancy
the level of occupancy was higher (lower)
Rent-free periods
the rent-free periods were shorter (longer)
Possible termination of the tenancy agreement
tenancy agreements were not terminated (were terminated)
Re-leasing
the property was re-leased sooner (later)
Operating, management and maintenance costs
operating, management and maintenance costs were lower (higher)
Rent for the land
the rent was lower (higher)
Discount rate
(4.13 to 7.51 % p.a.)
the risk-adjusted discount rate was lower (higher)
Regarding existing restrictions on the disposal and use of buildings in connection with the renting of the associated properties from the Free and Hanseatic City of Hamburg, see the explanatory remarks on leases in Note 45.
Payments for investments in property, plant and equipment, investment property and intangible assets.