Balance Sheet Disclosures


23. Investment Properties

Change in Investment Properties
in million € 
As at 1 Jan. 201691.7
Reclassification as discontinued operations-1.1
As at 31 Dec. 2016/1 Jan. 201790.5
As at 31 Dec. 2017112.8
Depreciation, amortisation and impairments 
As at 1 Jan. 201644.3
Reclassification as discontinued operations-0.9
As at 31 Dec. 2016/1 Jan. 201744.0
As at 31 Dec. 201776.1
Carrying amount as at 1 Jan. 201647.4
Carrying amount as at 31 Dec. 2016/1 Jan. 201746.5
Carrying amount as at 31 Dec. 201736.7

The change in the carrying amount of investment property resulted from a reclassification of real estate from property, plant and equipment into investment property in the Retail International business segment (21.2 million euros). This was offset by a reclassification of investment property into property, plant and equipment in the Retail Germany business segment (32.2 million euros), resulting from the fact that certain properties are now owner-occupied or are used for the purpose of goods delivery. Under IAS 40.5, these properties no longer meet the requirements for recognition as investment property.

The rental income from these properties during the financial year was 3.5 million euros (previous year: 5.5 million euros). The operating expenses for these properties amounted to 1.9 million euros (previous year: 1.9 million euros). Operating expenses for properties not generating rental income amounted to 0.3 million euros.

The fair value of investment properties is 61.5 million euros (previous year: 66.1 million euros).

Recognised valuation techniques (discounted value of future earnings method) are used to determine the fair value. Based on the inputs to the valuation techniques used, fair value measurement is categorised to level 3 in accordance with the measurement hierarchy used to measure fair value. In addition to reasonable management costs and market rents, rental income from current rental agreements was also used as a key measurement parameter. The discount rate for properties factors in the individual situation and condition of each property. More information on determining fair value can be found in note 13 "Depreciation, Amortisation and Impairments". Appraisals are made by independent experts in individual cases.