Deutsche Wohnen Se · XETR:DWNI

Deutsche Wohnen — Q1 2017 Earnings Presentation

21 slides from Deutsche Wohnen's earnings presentation, May 12, 2017

  1. Slide 1: Q1 2017 results

    Deutsche Wohnen AG » Q1 2017 results Conference Call, 12 May 2017 1

  2. Slide 2: Agenda

    » Agenda 1 Highlights Q1 2017 2 Portfolio 3 Financials 4 Appendix 2

  3. Slide 3: Financial highlights Q1 2017

    » Financial highlights Q1 2017 Operational development KPIs In EUR m Q1 2017 YoY In EUR m Q1 2017 YoY NOI letting 143.6 +4.0% FFO I (after minorities) 113.1 +11.0% NOI margin 79.6% -0.9pp in EUR/ share (undiluted) 0.33 +10.0% Like-for-like rental growth 3.3% -0.4pp FFO I margin 62.7% +3.3pp Like-for

  4. Slide 4: Portfolio update Q1 2017 – significant expansion of reversionary potential

    » Portfolio update Q1 2017 – significant expansion of reversionary potential Strategic cluster Residential % of total In-place rent1) Fair value Multiple Multiple Rent potential2) Vacancy units measured by in-place market fair value EUR/sqm/month EUR/sqm rent rent in % in % Strategic core and growth

  5. Slide 5: Strong like-for-like development in particular in Berlin

    » Strong like-for-like development in particular in Berlin 2) 2) Like-for-like Residential units In-place rent In-place rent Change Vacancy Vacancy Change 31/03/2017 number 31/03/2017 31/03/2016 y-o-y 31/03/2017 31/03/2016 y-o-y EUR/sqm EUR/sqm in % in % Strategic core and growth regions Core+ 131,0

  6. Slide 6: Focused and increasing investments into the portfolio

    » Focused and increasing investments into the portfolio Q1 2017 Q1 2016 EUR m EUR / sqm1) EUR m EUR / sqm1) Maintenance 21.8 8.91 17.4 7.10 Maintenance is expected to level out (expensed through p&l) between 9-10 EUR/sqm Modernization (capitalized on balance 25.8 10.55 13.3 5.43 Doubling investments

  7. Slide 7: Stable margins and increased NOI per sqm

    » Stable margins and increased NOI per sqm in EUR m Q1 2017 Q1 2016 Decreasing operational cost items (in % of rental income) Rental income 180.4 171.5 Non-recoverable expenses (2.2) (2.8) 9.3% -1pp 8.3% Rental loss (1.2) (2.3) Maintenance (21.8) (17.4) 5.3% 5.9% Others (1.0) (1.8) 1.0% 3.0% 0.6% Ea

  8. Slide 8: Attractive margins of disposal business despite significant revaluations

    » Attractive margins of disposal business despite significant revaluations Disposals Privatization Institutional sales Total with closing in Q1 2017 Q1 2016 Q1 2017 Q1 2016 Q1 2017 Q1 2016 No. of units 184 491 306 1,280 490 1,771 Proceeds (EUR m) 23.9 43.5 28.4 115.6 52.3 159.1 Book value 18.3 32.8

  9. Slide 9: Increasing FFO contribution from Nursing and Assisted Living

    » Increasing FFO contribution from Nursing and Assisted Living Operations (in EUR m) Q1 2017 Q1 2016 in EUR m Q1 2017 Q1 2016 Total income 23.0 17.2 Nursing 17.8 13.6 Total expenses (20.9) (15.5) Living 2.2 1.6 EBITDA operations 2.1 1.7 Other 3.0 2.0 EBITDA margin 9.1% 9.9% in EUR m Q1 2017 Q1 2016

  10. Slide 10: EBITDA margin increased to more than 80%

    » EBITDA margin increased to more than 80% in EUR m Q1 2017 Q1 2016 Development of cost ratio Earnings from Residential Property Management 154.2 147.2 10.5% 10.6% Earnings from Disposals 8.6 23.7 9.6% Earnings from Nursing and Assisted Living 12.5 4.6 Segment contribution margin 175.3 175.5 FY 2016

  11. Slide 11: FFO growth of 10% mainly driven by operations and acquisitions

    » FFO growth of 10% mainly driven by operations and acquisitions in EUR m Q1 2017 Q1 2016 FFO per share development in EUR EBITDA (adjusted) 155.3 159.2 FFO II 0.37 0.35 Earnings from Disposals (8.6) (23.7) 0.02 0.07 Long-term remuneration component 1.1 1.0 (share based) FFO I + 10% At equity valuat

  12. Slide 12: EPRA NAV per share stable in Q1 2017

    » EPRA NAV per share stable in Q1 2017 in EUR m 31/03/2017 31/12/2016 EPRA NAV per share (undiluted) in EUR Equity (before non-controlling interests) 8,466.9 7,965.6 29.68 29.64 0% 23.01 Fair values of derivative financial 27.7 47.0 + 29% instruments Deferred taxes (net) 2,017.1 2,004.4 EPRA NAV (un

  13. Slide 13: Conservative long term capital structure with <1.5% interest costs

    » Conservative long term capital structure with <1.5% interest costs Rating A- / A3; stable outlook  Low leverage, long maturities and strong rating ICR1) (excl. disposals) ~ 6x  Flexible financing approach to optimize financing costs Ø maturity ~ 8.1 years  No significant maturities until and in

  14. Slide 14: Appendix

    » Appendix deutsche-wohnen.com .

  15. Slide 15: Bridge from adjusted EBITDA to profit

    » Bridge from adjusted EBITDA to profit in EUR m Q1 2017 Q1 2016 in EUR m Q1 2017 Q1 2016 EBITDA (adjusted) 155.3 159.2 Interest expenses (24.7) (26.5) Depreciation (1.7) (1.3) In % of rental income ~13.7% ~15.5% At equity valuation 0.2 0.2 Non-cash interest expenses (13.7) (0.0) (38.3) (38.4) (26.5

  16. Slide 16: Summary balance sheet

    » Summary balance sheet Assets Equity and Liabilities in EUR m 31/03/2017 31/12/2016 in EUR m 31/03/2017 31/12/2016 Investment properties 16,535.0 16,005.1 Total equity 8,737.2 8,234.0 Other non-current assets 124.7 108.6 Financial liabilities 4,536.1 4,600.0 Deferred tax assets 0.7 0.7 Convertibles

  17. Slide 17: Guidance unchanged

    » Guidance unchanged 2016 2017e Main drivers FFO I (EUR m) 384 ~425 Operational performance and recent acquisitions Based on 65% pay-out ratio from FFO I and current Dividend per share (EUR) 0.74 ~0.78 shares outstanding 35-40% LTV 37.7% Aim to keep current rating (target range) Like-for-like rental

  18. Slide 18: Strong like-for-like development in particular in Berlin

    » Strong like-for-like development in particular in Berlin 2) 2) Like-for-like Residential units In-place rent In-place rent Change Vacancy Vacancy Change 31/03/2017 number 31/03/2017 31/03/2016 y-o-y 31/03/2017 31/03/2016 y-o-y EUR/sqm EUR/sqm in % in % Letting portfolio1) 148,901 6.15 5.95 3.3% 1.

  19. Slide 19: The Berlin portfolio at a glance

    » THE BERLIN-PORTFOLIO AT A GLANCE Reinickendorf Pankow # 9,300  6.17  1.7% # 9,195  6.57  2.0% Mitte Friedrichshain-Kreuzberg # 3,316  6.27  0.8% # 7,766  6.01  3.3% Lichtenberg # 8,717  6.12  1.4% Spandau # 13,671  5.99  1.7% Marzahn-Hellersdorf # 14,873  5.51  0.9% Charlottenburg-Wi

  20. Slide 20: 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

  21. Slide 21: Deutsche Wohnen AG Pfaffenwiese 300 65929 Frankfurt/ Main

    Deutsche Wohnen AG Registered Office Berlin Office Pfaffenwiese 300 Mecklenburgische Straße 57 65929 Frankfurt/ Main 14197 Berlin Phone: +49 30 897 86 5413 Fax: +49 30 897 86 5419 © 2017Deutsche Wohnen AG

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