Deutsche Wohnen Se · XETR:DWNI

Deutsche Wohnen — H1 2010 Earnings Presentation

20 slides from Deutsche Wohnen's earnings presentation, Aug 30, 2010

  1. Slide 1: Deutsche Wohnen AG 1st half-year 2010

    Deutsche Wohnen AG » 1st half-year 2010 Conference Call, 30 August 2010 1 1

  2. Slide 2: Agenda

    » Agenda 1. Highlights 2. Operative development 3. Financials 4. Forecast 2

  3. Slide 3: Highlights

    | Deutsche Wohnen » @ Highlights deutsche-wohnen.com

  4. Slide 4: Ongoing positive business development

    » Ongoing positive business development » First half-year 2010 earnings after taxes of EUR 8.1 million. » Ongoing strong performance and reduced interest expenses increased funds from operations (FFO) in the first half-year 2010 by 41 % from EUR 0.22 to EUR 0.31 per share. » Increased real estate de

  5. Slide 5: Operative development

    | Deutsche Wohnen » @ Operative development deutsche-wohnen.com

  6. Slide 6: Improvement of EBITDA by 3.7 %

    » Improvement of EBITDA by 3.7 % EUR m H1/2010 H1/2009 Revenue 167.8 131.3 Residential property management 95.8 96.2 Nursing and assisted living 16.3 16.4 Disposals 55.7 18.7 Segment contribution margin 85.9 84.3 Residential property management 76.2 77.3 Nursing and assisted living 4.6 4.5 Disposals

  7. Slide 7: Growing NOI per sqm based on solid rental income

    » Growing NOI per sqm based on solid rental income EUR m H1/2010 H1/2009 Current gross rental income 95.8 96.2 Non-recoverable expenses -2.7 -3.2 Rental loss -1.2 -0.9 Maintenance -14.7 -13.8 Others -1.0 -1.0 Earnings of residential property management 76.2 77.3 Personnel, general and administration

  8. Slide 8: Proven rent potential of 18 % in core portfolio

    » Proven rent potential of 18 % in core portfolio Units Area Share In-place Market rent** Vacancy rent* Number k sqm % EUR/sqm EUR/sqm % Core portfolio 36,974 2,226 100% 5.40 6.35 3.0% Berlin 21,404 1,279 57% 5.29 6.02 1.8% Frankfurt/Main 3,656 217 10% 6.86 8.32 2.0% Rhine-Main 3,743 224 10% 5.81 7.

  9. Slide 9: Overall disposals – incl. notarised – in H1/2010

    » Overall disposals – incl. notarised – in H1/2010 Units Transaction volume Fair value Margin # EUR m EUR m EUR m % Privatisation 467 40.4 29.4 11.0 37% Institutional sales 1,568 55.6 53.4 2.2 4% 2,035 96.0 82.8 13.2 16% > The sales volume in the disposals segment was increased from EUR 41.1 million

  10. Slide 10: Successful portfolio adjustment

    » Successful portfolio adjustment Transaction volume in EUR m 96.0 40.4 41.1 Privatisation Institutional sales 33.4 55.6 7.7 H1/2009 H1/2010 > Positive stimulation of the transaction market in 2010 > Focus of institutional sales was to streamline the portfolio in structurally weak regions > Institut

  11. Slide 11: Financials

    » © Financials deutsche-wohnen.com Deutsche Wohnen 11

  12. Slide 12: Half-year's earnings of EUR 8.1 m

    » Half-year‘s earnings of EUR 8.1 m EUR m H1/2010 H1/2009 > Significant increase in profit / loss from EUR -2.4 million to EUR 8.1 million EBITDA 69.8 67.3* Depreciation -1.6 -1.4 > Substantial reduction of interest expenses Financial result (net) -50.3 -55.9 as a result of the continuing deleveragi

  13. Slide 13: Significant increase of funds from operations

    » Significant increase of funds from operations EUR m H1/2010 H1/2009 > FFO increased by 41 % to EUR 0.31 per Profit / loss 8.1 -2.4 share YoY > 2010 full year forecast increased to Depreciation 1.6 1.4 EUR 0.54 Valuation SWAP 1.9 0.5 Non-cash financial expenses 7.5 7.5 Deferred taxes 6.2 5.4 Restru

  14. Slide 14: Strong cash position

    » Strong cash position EUR m 30/06/2010 31/12/2009 Unchanged valuation matrix: Investment properties 2,780.5 2,835.5 899 EUR/sqm 14.2 times in-place rent Other non current assets 21.2 22.4 Deferred tax assets 103.6 98.4 Non current assets 2,905.3 2,956.3 Land and building held for sale 17.6 18.4 Tra

  15. Slide 15: Stable equity and NNAV

    » Stable equity and NNAV EUR m 30/06/2010 31/12/2009 Total equity 844.3 862.0 Financial liabilities 1,770.8 1,802.7 Improvement of LTV to 60.0% Tax liabilities 81.0 84.1 Expected EK 02-payments 2010: EUR 21 million Deferred tax liabilities 82.0 81.4 Derivatives 109.0 70.5 Increase due to reduced mar

  16. Slide 16: Reduction of LTV to 60.0 %

    » Reduction of LTV to 60.0 % Financial liabilities in EUR m DW stand alone DB 14 Total Mark-to-market 1,666 105 1,771 Debt structure LTV (%) 59.9 61.7 60.0 Nominal value 1,726 158 1,884 LTV (%) 62.1 92.7 64.0 Average interest rate: ~ 4.3% Debt service Average mandatory redemption p.a.: ~ 1.8% Intere

  17. Slide 17: Forecast

    » @ Forecast deutsche-wohnen.com . 17

  18. Slide 18: New increased FFO target of 54 cents

    » New increased FFO target of 54 cents » Updated forecast: New FFO target of EUR 0.54 per share, i.e. a 25 % increase compared to actual FFO in 2009 (EUR 0.43 per share) » Continued monetisation of rent potential in the core portfolio; further decrease of investment-related vacancies upon conclusion

  19. Slide 19: 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, development or perform

  20. Slide 20: Deutsche Wohnen AG Pfaffenwiese 300 65929 Frankfurt am Main

    Deutsche Wohnen AG Head Office Berlin Office Pfaffenwiese 300 Mecklenburgische Straße 57 65929 Frankfurt am Main 14197 Berlin Telefon: 030 897 86 551 Telefax: 030 897 86 507 © 2010 Deutsche Wohnen AG 20

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