As a further result of the new operational management approach and group-wide efficiency-enhancing measures, METRO GROUP has decided to disclose the group-wide operating real estate assets within the respective divisions and not report them as a separate segment as of 1 October 2013.
The rationale behind this change in the financial reporting is to reduce the administrative workload as well as optimise and streamline the management reporting process. Consequently, the operating divisions will be fully responsible for their overall profitability from 1 October 2013 on.
"The transparency we previously provided by splitting property from trading profits came at a substantial cost as well as increasing intra-group bureaucracy and conflict potential", said Mark Frese, CFO. "Furthermore, opco valuations were subsequently lower and the fair value of our freehold properties was hardly ever taken into account by capital market valuations", Frese added. The new reporting structure will increase METRO GROUP’s comparability within the sector.
"In future, METRO PROPERTIES will assume an even more important role in the METRO GROUP. As a professional service provider to the sales lines, it will concentrate on asset management, project development and the selective sale of freehold properties", Mark Frese said.
As per 30 June 2013, METRO GROUP owned 610 operating properties across 27 countries, of which 476 METRO Cash & Carry stores, 66 Real hypermarkets, 55 Galeria Kaufhof department stores, 13 Media-Saturn stores. Non-divisional real estate assets, such as shopping centres, warehouses and headquarters, will be reported in the segment Others.