Annual report 2013
Annual report 2013
The total number of rental apartments owned by VVO grew by 248, being 40,194 (39,946) at the end of the financial year. The VVO Non-subsidised segment accounted for 19,526 (19,166) homes and the VVO State-subsidised segment for 20,668 (20,780). VVO owned apartments in 43 (45) cities at the end of the financial year.
The book value of rental apartments owned by VVO and business premises in the rental apartment buildings at 31 December 2013 was EUR 2,038.1 (1,949.5) million and the fair value EUR 3,351.1 (3,120.0) million. The difference between book value and fair value was EUR 1,313.0 (1,170.5) million. This growth in the difference between values was due to the development in apartment rental and purchase prices and the termination of restrictions on State-subsidised housing at individual properties.
The fair value of rental apartments owned by the Group and business premises in rental apartment buildings is determined every six months on the basis of the company's own evaluation. An external expert has issued a statement on the valuations of rental apartments owned by VVO and business premises in the rental apartment buildings. The latest statement is as at 31 December 2013. The criteria for determining fair value are reported in the notes to the financial statements.
Equity ratio calculated at fair value on 31 December 2013 stood at 41.3 (38.8) per cent, and equity per share as calculated with fair values was EUR 209.16 (178.60). On 31 December 2013, the equity ratio for VVO's Non-Subsidised operations was 49.3 (48.3) per cent calculated with fair values and 25.9 (26.8) per cent with book values.
The plot reserve held by the Group was about 100,000 floor sq m at the beginning of the financial period and about 120,000 floor sq m at the end of the period. The plot reserve was increased through plot procurements and own zoning development projects. The balance-sheet value of the plot reserve at the end of the period was EUR 48 million.