22. Investment properties

Investment properties are recognised at depreciated cost. As of 30 September 2016, investment properties totalling €126 million (30/9/2015: €170 million) were recognised. The development of these properties is shown in the following table.

 Download XLS (24KB)

€ million

Investment properties

1

Including reclassifications from assets held for sale to investment properties

Acquisition or production costs

 

As of 1/10/2014

523

Currency translation

0

Additions to consolidation group

0

Additions1

24

Disposals

−6

Reclassifications under IFRS 5

−61

Transfers

4

As of 30/9 / 1/10/2015

484

Currency translation

1

Additions to consolidation group

0

Additions

1

Disposals

−92

Reclassifications under IFRS 5

−27

Transfers

9

As of 30/9/2016

376

Depreciation/amortisation/impairment losses

 

As of 1/10/2014

300

Currency translation

0

Additions, scheduled

12

Additions, non-scheduled

26

Disposals

−5

Reclassifications under IFRS 5

−19

Reversals of impairment losses

0

Transfers

1

As of 30/9 / 1/10/2015

314

Currency translation

0

Additions, scheduled

10

Additions, non-scheduled

1

Disposals

−53

Reclassifications under IFRS 5

−17

Reversals of impairment losses

−10

Transfers

3

As of 30/9/2016

250

Carrying amount at 1/10/2014

223

Carrying amount at 30/9/2015

170

Carrying amount at 30/9/2016

126

The decline of €44 million was mainly the result of the disposal of stores in Turkey and of the reclassification from “investment properties” to “assets held for sale”.

The fair values of these investment properties total €183 million (30/9/2015: €243 million). They cannot be determined on the basis of observable market prices. As a result, the fair values 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 three-level valuation hierarchy of IFRS 13 [measurement at fair value]). This measurement is based on a detailed planning period of ten 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 both 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.

Rental income from these properties amounts to €23 million, with finance leases accounting for €10 million of this total (2014/15: €34 million, thereof €11 million from finance leases). The related expenses amount to €17 million, with finance leases accounting for €8 million (2014/15: €20 million, thereof €7 million from finance leases). Expenses of €0 million (2014/15: €1 million) resulted from properties without rental income and, as in the previous year, did not relate to finance leases.

Restrictions on titles in the form of liens and encumbrances amounted to €5 million (30/9/2015: €19 million). As in the previous year, no contractual commitments for the acquisition of investment properties were made.