Real estate property and fair value

The total number of rental apartments owned by VVO Group increased by 360 (599) and was 41,153 (40,793) at the end of the financial year. The VVO Non-subsidised segment accounted for 28,716 (20,044) and the VVO State-subsidised segment for 12,437 (20,749) of these apartments. At the end of the financial year, The Group owned apartments in 40 (42) municipalities.

The fair value of the rental apartments and business premises owned by VVO Group was EUR 3,999.2 (3,708.8) million on 31 December 2015, including the EUR 534.3 million amount classified as Non-current assets held for sale. In 2015, the fair value increased by EUR 290.4 (198.2) million. The changes include EUR 70.3 (26.2) million in net valuation gains on the fair value assessment of investment properties. Changes in market prices of apartments, rents and maintenance costs, as well as the expiry of state-subsidy limitations on individual properties contributed to the change.

The fair value of the rental apartments and business premises owned by the Group is determined quarterly on the basis of the company’s own evaluation. An external expert issues a statement on the valuation of rental apartments and business premises owned by the Group. The last valuation statement was issued on the balance sheet date 31 December 2015. The criteria for determining fair value are presented in the Notes to the Financial Statements.

At the end of the financial year, the plot reserve held by the Group totalled approximately 130,000 floor sq m, being approximately 120,000 floor sq m at the beginning of the year. The value of the plot reserve on the balance sheet was approximately EUR 60 (39) million at the end of the financial year.