Deutsche Wohnen Se · XETR:DWNI

Deutsche Wohnen — Q1 2020 Earnings Presentation

27 slides from Deutsche Wohnen's earnings presentation, May 13, 2020

  1. Slide 1: Deutsche Wohnen SE Q1 2020 results

    Deutsche Wohnen SE Q1 2020 results Conference Call 13 May 2020

  2. Slide 2: Agenda

    01 Highlights 02 Market and Portfolio 03 Financials and Outlook 04 Appendix Agenda 01 Highlights 02 Market and Portfolio 03 Financials and Outlook 04 Appendix deutsche-wohnen.com 2

  3. Slide 3: Highlights Q1-2020

    01 Highlights 02 Market and Portfolio 03 Financials and Outlook 04 Appendix Highlights Q1-2020 Operating business remains strong ▪ L-f-l rental growth at 2.4% for letting portfolio (Berlin at 2.3%) as Berlin rent freeze starts to kick-in ▪ Excluding the effects of Berlin rent freeze the total l-f-l

  4. Slide 4: Portfolio overview

    01 Highlights 02 Market and Portfolio 03 Financials and Outlook 04 Appendix Portfolio overview Strategic cluster Residential units % of total In-place rent Fair value Multiple Multiple Vacancy (#) (measured by (EUR/sqm/month) (EUR/sqm) in-place rent re-letting rent (in %) 31/03/2020 fair value) (x)

  5. Slide 5: Total like-for-like development at 2.3% y-o-y

    01 Highlights 02 Market and Portfolio 03 Financials and Outlook 04 Appendix Total like-for-like development at 2.3% y-o-y Like-for-like Residential In-place rent In-place rent Change Vacancy Vacancy Change 31/03/2020 units 31/03/2020 31/03/2019 (y-o-y) 31/03/2020 31/03/2019 (y-o-y) (#) (EUR/sqm/mont

  6. Slide 6: Stable letting business

    01 Highlights 02 Market and Portfolio 03 Financials and Outlook 04 Appendix Stable letting business Refurbishment & Maintenance per sqm in EUR m Q1-2020 Q1-2019 45.45 28.29 28.01 Income from rents (rental income) 210.6 204.7 35.53 20.84 19.75 Income relating to utility/ancillary costs 107.3 104.6 9.

  7. Slide 7: Disposal business delivering double digit gross margins

    01 Highlights 02 Market and Portfolio 03 Financials and Outlook 04 Appendix Disposal business delivering double digit gross margins Disposals Privatization Institutional sales Total with closing in Q1-2020 Q1-2019 Q1-2020 Q1-2019 Q1-2020 Q1-2019 No. of units 104 108 319 38 423 146 Proceeds (EUR m) 2

  8. Slide 8: Stable EBITDA contribution from Nursing business

    01 Highlights 02 Market and Portfolio 03 Financials and Outlook 04 Appendix Stable EBITDA contribution from Nursing business Operations (in EUR m) Q1-2020 Q1-2019 Total income 56.3 55.7 in EUR m Q1-2020 Q1-2019 Total expenses -52.9 -51.2 Nursing & Assisted Living 51.6 51.2 EBITDA operations 3.4 4.5

  9. Slide 9: Adjusted EBITDA margin at 80.4%

    01 Highlights 02 Market and Portfolio 03 Financials and Outlook 04 Appendix Adjusted EBITDA margin at 80.4% in EUR m Q1-2020 Q1-2019 Development of cost ratio1 Earnings from Residential Property Management 186.4 183.7 13.0% (4.1) 19.9 11.7% Earnings from Disposals 10.9% Earnings from Nursing and Ass

  10. Slide 10: FFO I per share at EUR 0.40

    01 Highlights 02 Market and Portfolio 03 Financials and Outlook 04 Appendix FFO I per share at EUR 0.40 in EUR m Q1-2020 Q1-2019 EBITDA (adjusted) 178.9 203.6 FFO I margin development1 Earnings from Disposals 4.1 (19.9) 69.4% Corporate Expenses for Disposals 0.8 0.8 66.0% 65.5% 61.6% Finance lease b

  11. Slide 11: Adjusted NAV per share at EUR 47.84

    01 Highlights 02 Market and Portfolio 03 Financials and Outlook 04 Appendix Adjusted NAV per share at EUR 47.84 in EUR m 31/03/2020 31/12/2019 Equity (before non-controlling interests) 12,689.9 12,700.4 Adj. NAV2 per share (undiluted) in EUR Fair values of derivative financial instruments 56.9 50.8

  12. Slide 12: Conservative long-term capital structure

    01 Highlights 02 Market and Portfolio 03 Financials and Outlook 04 Appendix Conservative long-term capital structure A- (negative outlook) / Rating A3 (negative outlook) ▪ New issue of approximately EUR 1.2 bn corporate bonds with an average Ø maturity ~ 7.3 years maturity of 7.5 years and 1.25% int

  13. Slide 13: Outlook 2020

    01 Highlights 02 Market and Portfolio 03 Financials and Outlook 04 Appendix Outlook 2020 FY-2019 reported FY 2020 Guidance / comments FFO I1 ▪ FFO I flat 538.1 (EUR m) FY 2019 35.4% LTV ▪ 35-40% target range FY 2019 Like-for-like 3.40% ▪ C. 1% l-f-l rental growth on a cash flow basis rental growth F

  14. Slide 14: Appendix

    Appendix

  15. Slide 15: Robust business model throughout COVID-19

    01 Highlights 02 Market and Portfolio 03 Financials and Outlook 04 Appendix Robust business model throughout COVID-19 ▪ Residential business: ▪ Employees work with increased safety measures, technical possibilities allow majority of employees to work from home ▪ Customer service is running smoothly

  16. Slide 16: Like-for-like development by regions

    01 Highlights 02 Market and Portfolio 03 Financials and Outlook 04 Appendix Like-for-like development by regions 2 2 Like-for-like Residential In-place rent In-place rent Change Vacancy Vacancy Change 31/03/2020 units 31/03/2020 31/03/2019 (y-o-y) 31/03/2020 31/03/2019 (y-o-y) (#) (EUR/sqm) (EUR/sqm

  17. Slide 17: Fair Values across regions

    01 Highlights 02 Market and Portfolio 03 Financials and Outlook 04 Appendix Fair Values across regions Regions Residential units FV FV Multiple Multiple Multiple (#) 31/03/2020 31/03/2020 in-place rent re-letting rent spread (EUR m) (EUR/sqm) 31/03/2020 31/03/2020 Core+ 148,114 23,095 2,492 29.6 22.

  18. Slide 18: Deutsche Wohnen's residential portfolio is best-in-class

    01 Highlights 02 Market and Portfolio 03 Financials and Outlook 04 Appendix Deutsche Wohnen's residential portfolio is best-in-class Siemensstadt, Berlin Hellersdorf, Berlin Carl-Legien-Siedlung, Berlin Südwestkorso, Berlin Oranienkiez, Berlin Hufeisensiedlung, Berlin Dresden Otto-Suhr-Siedlung, Ber

  19. Slide 19: The Berlin portfolio at a glance

    01 Highlights 02 Market and Portfolio 03 Financials and Outlook 04 Appendix The Berlin portfolio at a glance Pankow Reinickendorf # 9,956 | 2.3% # 9,728 | 0.7% EUR 7.56 | EUR 3,265 EUR 6.88 | EUR 2,515 Lichtenberg Mitte # 8,803 | 1.1% # 4,574 | 1.2% EUR 6.81 | EUR 2,633 EUR 7.33 | EUR 2,916 Friedric

  20. Slide 20: Update on Berlin residential market

    01 Highlights 02 Market and Portfolio 03 Financials and Outlook 04 Appendix Update on Berlin residential market Development of asking rents Development of asking prices for Development of asking prices for (EUR / sqm) multi-family-homes (EUR / sqm) condominiums (EUR / sqm) 6% 9% 5% 1% 1% 17% 15% 13%

  21. Slide 21: Current level of rents and prices in TOP German cities

    01 Highlights 02 Market and Portfolio 03 Financials and Outlook 04 Appendix Current level of rents and prices in TOP German cities Asking prices multifamily housing (in EUR / sqm)1 Development of rents (EUR/sqm/month)1 DW Berlin (book value) 2.585 DW Berlin +25% (re-letting rent) 8.50 Berlin +24% 3.

  22. Slide 22: Bridge from adjusted EBITDA to profit

    01 Highlights 02 Market and Portfolio 03 Financials and Outlook 04 Appendix Bridge from adjusted EBITDA to profit in EUR m Q1-2020 Q1-2019 EBITDA (adjusted) 178.9 203.6 in EUR m Q1-2020 Q1-2019 Depreciation (9.4) (12.4) Interest expenses (33.1) (30.9) At equity valuation 0.5 1.7 In % of gross rents

  23. Slide 23: Ongoing investments into the portfolio

    01 Highlights 02 Market and Portfolio 03 Financials and Outlook 04 Appendix Ongoing investments into the portfolio Q1-2020 Q1-2019 Refurbishment & Maintenance per sqm EUR m EUR / EUR m EUR / sqm1 sqm1 45.45 28.29 28.01 ~ 40.00 Maintenance (expensed 21.0 8.26 19.2 7.45 through p&l) 35.53 ~ 30.00 20.8

  24. Slide 24: Strong generation of total shareholder return

    01 Highlights 02 Market and Portfolio 03 Financials and Outlook 04 Appendix Strong generation of total shareholder return Development of dividend in EUR per share Development of adjusted NAV (undiluted) in EUR per share CAGR 2015-2019: +14% CAGR 2015-2019: +20% +11% +3% +9% +18% +8% 1 47.02 0.87 0.9

  25. Slide 25: Summary balance sheet

    01 Highlights 02 Market and Portfolio 03 Financials and Outlook 04 Appendix Summary balance sheet Assets Equity and Liabilities in EUR m 31/03/2020 31/12/2019 in EUR m 31/03/2020 31/12/2019 Investment properties 25,725.6 25,433.3 Total equity 13,097.4 13,107.3 Other non-current assets 434.2 442.2 Fi

  26. Slide 26: Disclaimer

    Disclaimer This presentation contains forward-looking statements including assumptions, opinions and views of Deutsche Wohnen or quoted from third party sources. Various known and unknown risks, uncertainties and other factors could cause actual results, financial positions, the development or the p

  27. Slide 27: Deutsche Wohnen SE

    Deutsche Wohnen SE Mecklenburgische Straße 57 14197 Berlin Phone +49 30 89786-5413 Fax +49 30 89786-5419 © 2020 Deutsche Wohnen Gruppe

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