Deutsche Wohnen Se · XETR:DWNI
Deutsche Wohnen — Q1 2013 Earnings Presentation
37 slides from Deutsche Wohnen's earnings presentation, May 14, 2013
Slide 1: Deutsche Wohnen AG Q1 2013 results
Deutsche Wohnen AG » Q1 2013 results Conference Call, 14 May 2013 1
Slide 2: Agenda
» Agenda 1 Key figures Q1/2013 2 Development of business segments / financial performance and position 3 Details on latest acquisitions 4 Q&A 2
Slide 3: Key figures Q1/2013
. ) a Deutsche Wohnen » Key figures Q1/2013 deutsche-wohnen.com
Slide 4: Key figures Q1/2013
» Key figures Q1/2013 • Adjusted EBT EUR 34.3m + 75% • Recurring FFO (w/o disposals) EUR 30.9m + 68% Results • Recurring FFO (w/o disposals) EUR 0.20 per share +18%1) (y-o-y) • EPRA NAV 12.77 EUR/share + EUR 0.29 per share vs. Dec 12 • LTV 54.7% • Strategic core and growth regions (letting portfolio
Slide 5: Development of business segments / financial performance and position
» Development of business segments / financial performance and position 5
Slide 6: EBITDA increased by ~ EUR 23m / + 52% (y-o-y)
» EBITDA increased by ~ EUR 23m / + 52% (y-o-y) in EUR m Q1/2013 Q1/2012 Earnings from Residential Property Management 70.9 44.1 Earnings from Disposals 5.5 3.8 Earnings from Nursing and Assisted Living 3.1 2.6 Segment contribution margin 79.5 50.5 Corporate expenses -11.8 -7.7 Other operating expen
Slide 7: Status quo of integration: well on track
» Status quo of integration: well on track accomplished Major 2012 2013 acquisitions October November Dec January February Mar April May June Integration Signing of Official BauBeCon of entire Integration of termination Integration of termination (~23,400 units) operating remaining agreement 10,500
Slide 8: a) Segment – Residential Property Management
a) Segment – Residential Property Management 8
Slide 9: Ongoing increased earnings and cash contributions from letting
» Ongoing increased earnings and cash contributions from letting in EUR m Q1/2013 Q1/2012 Current gross rental income 83.3 52.0 Earnings Non-recoverable expenses -1.3 -0.9 from letting: Rental loss -1.1 -0.5 + EUR 26.8m Maintenance -8.4 -5.8 Others -1.6 -0.7 Earnings from Residential Property Manage
Slide 10: Portfolio overview: 96% of total Fair Value in strategic core and growth regions
» Portfolio overview: 96% of total Fair Value is located in strategic core and growth regions 31/03/2013 Residential Share in Area Fair Share in Fair Multiple Multiple units terms of Value terms of Value in-place market units Fair Value rent rent # % k sqm EUR m % EUR/sqm Total 82,205 100% 5,031 4,7
Slide 11: Overview of portfolio as at 31 March 2013
» Overview of portfolio as at 31 March 2013 31/03/2013 Residential Share in Area In-place Vacancy Commercial Parking units terms of units rent 1) units spaces # % k sqm EUR/sqm % # # Total 82,205 100% 5,031 5.52 2.8% 960 20,827 Strategic core and 76,708 93% 4,680 5.57 2.3% 908 19,037 growth regions
Slide 12: Compelling like-for-like rental growth y-o-y in our Core+ regions
» Compelling like-for-like rental growth y-o-y in our Core+ regions In-place rent (like-for-like) and vacancy (like-for-like) Residential In-place rent 1) Vacancy (like-for-like) ∆ in % units EUR/sqm in % 31/03/2013 31/03/2012 y-o-y 31/03/2013 31/03/2012 Strategic core and growth regions 42,352 5.82
Slide 13: Rent potential up to 27% in Core+ regions
» Rent potential up to 27% in Core+ regions (letting portfolio) Rent potential (excluding acquisitions) 1) 3) The increase in our actually achieved new-letting rent/our rent potential clearly demonstrates the accelerating demand-based dynamic in our core+ regions. 1) Contractually owed rent from ren
Slide 14: Strong new-letting rent development for BauBeCon regions
» Strong new-letting rent development for BauBeCon regions fully integrated by end of 2012 Development of new-letting rents in BauBeCon regions fully integrated in Deutsche Wohnen organisation by end of 2012 New-letting New-letting Actual in- Rent 1) 2) Δ 3) 4) rent 2012 rent 2013 place rent potenti
Slide 15: b) Segment – Disposals
b) Segment — Disposals deutsche-wohnen.com ) a Deutsche Wohnen 15
Slide 16: Ongoing strong privatisation business
» Ongoing strong privatisation business Q1/2013 Transaction Gross Privatisation signed Units Fair Value volume margin (gross margin & sales price in EUR/sqm) # EUR m EUR m EUR m % Privatisation 606 46.1 31.1 15.0 48% Institutional sales 424 19.4 16.1 3.3 20% thereof non-core 395 13.0 12.8 0.2 2% 1,0
Slide 17: c) Segment – Nursing and Assisted Living
c) Segment – Nursing and Assisted Living 17
Slide 18: Nursing and Assisted Living - stable EBITDA contribution
» Nursing and Assisted Living - stable EBITDA contribution in EUR m Q1/2013 Q1/2012 Income Average occupancy Nursing 11.8 8.3 Living 0.5 0.5 Other 1.0 0.8 Total income 13.3 9.6 Costs Nursing and corporate expenses -3.4 -2.4 Staff expenses -6.8 -4.6 Total costs -10.2 -7.0 Note: Figure 2011 consider a
Slide 19: d) Others
d) Others deutsche-wohnen.com . 19
Slide 20: Adjusted EBT increased by 75% (y-o-y)
» Adjusted EBT increased by 75% (y-o-y) in EUR m Q1/2013 Q1/2012 EBITDA 65.7 43.1 Depreciation -1.3 -0.7 EBITDA increased by ~ EUR 22.6m mainly attributable to an increase of earnings from Financial result (net) -30.1 -22.8 letting ~ EUR 26.8m and ~ EUR 1.7m to EBT (adjusted) 34.3 19.6 increased ear
Slide 21: Strong recurring FFO per share performance +18%
» Strong recurring FFO per share performance +18%2) (y-o-y) in EUR m Q1/2013 Q1/2012 Profit 26.2 14.4 Earnings from Disposals -5.5 -3.8 FFO (incl. disposals) 17.9 22.2 36.4 Depreciation 1.3 0.7 in EUR m Valuation SWAP 0.2 0.1 Non-cash financial expenses 2.9 2.7 + 23% Deferred taxes 5.3 4.3 Tax benef
Slide 22: e) Balance sheet
e) Balance sheet deutsche-wohnen.com . 22
Slide 23: Balance sheet – Assets
» Balance sheet – Assets in EUR m 31/03/2013 31/12/2012 Investment properties 4,874.9 4,614.6 Increase due to acquisitions Other non-current assets 40.3 24.1 Derivatives 0.2 0.0 Deferred tax assets 76.6 80.7 Trade receivables in EUR m 31/03/2013 Non current assets 4,992.0 4,719.4 Rental business 6.6
Slide 24: Balance sheet – Equity and Liabilities
» Balance sheet – Equity and Liabilities in EUR m 31/03/2013 31/12/2012 Equity in EUR m 31/03/2013 + Profit 26.2 Total equity 1,838.7 1,609.7 + Cash flow hedge 9.6 - Pensions -0.8 Financial liabilities 2,896.6 2,768.6 + Net proceeds (less tax effect) from capital increase 194.0 Tax liabilities 68.8
Slide 25: LTV at 54.7%; low average interest rate: 3.6%
» LTV at 54.7%; low average interest rate: 3.6% Financial liabilities in EUR m Mark-to-market 2,896.6 Debt structure LTV (%) 54.7% Nominal value 2,999.7 LTV (%) 56.8% ▪ Average interest rate: ~ 3.6% ▪ Average mandatory redemption p.a.: ~ 1.7% Debt service ▪ Average weighted maturity: ~ 7.8 years ▪ I
Slide 26: Details on latest acquisitions
» Details on latest acquisitions 26
Slide 27: Details on latest acquisition of 7,800 units in Greater Berlin
» Details on latest acquisition of 7,800 units in Greater Berlin (disclosed in April 2013) Rationale ~ 95% of the acquired units are located in the city of Berlin itself We strengthened our position in our strongest core+ region, i.e. increase our Greater Berlin exposure to ~ 54% of the entire portf
Slide 28: Details on latest acquisition: Letting portfolio overview
» Details on latest acquisition: Letting portfolio overview Hohenschönhausen Area 621 units 8.0% Residential units Portfolio share 4.59 EUR/sqm In-place rent 5.56 EUR/sqm 21.1% New-letting rent Rent potential 0.9% Vacancy Hellersdorf 910 units 11.7% 5.29 EUR/sqm 5.61 EUR/sqm 6.0% 5.6% Hellersdorf 1.
Slide 29: Details on latest acquisition: Multiple market rent < 12.5x
» Details on latest acquisition: Multiple market rent < 12.5x Cluster Area Construction Condition Residential In-place New-letting Rent Vacancy year units rent 1) 3) rent potential # EUR/sqm EUR/sqm % % Total 7,791 5.09 6.02 18.2% 2.1% Letting Portfolio 4,832 5.21 6.13 17.6% 1.4% good Frankfurter Al
Slide 30: Details on latest acquisition: Financing
» Details on latest acquisition: Financing at very advanced stage of negotiations Cluster Amount Interest Hedging Maturity Amortisation 1) rate Mio.EUR % ~% years % Total without capex-facility 228.5 2.8 80 6.7 1.5 Letting portfolio 157.9 2.7 90 6.7 1.5 Development portfolio 26.0 3.2 90 10.0 1.5 Add
Slide 31: Q&A
»Q&A deutsche-wohnen.com . 31
Slide 32: Appendix
» Appendix deutsche-wohnen.com . 32
Slide 33: Details on regions of portfolio as at 31 March 2013
» Details on regions of portfolio as at 31 March 2013 31/03/2013 Residential Share in Area In-place Vacancy Commercial Parking units terms of units 1) units spaces rent # % k sqm EUR/sqm % # # Total 82,205 100% 5,031 5.52 2.8% 960 20,827 Strategic core and growth 76,708 93% 4,680 5.57 2.3% 908 19,03
Slide 34: Overview of portfolio as at 31 March 2012 (for reconciliation)
» Overview of portfolio as at 31 March 2012 (for reconciliation) 31/03/2012 Residential Share in Area In-place Vacancy Commercial Parking units terms of rent 1) units spaces units # % k sqm EUR/sqm % # # Total 49,822 100% 3,025 5.60 2.3% 466 15,040 Strategic core and 46,801 94% 2,837 5.65 2.1% 457 1
Slide 35: Details on regions of portfolio as at 31 March 2012 (for reconciliation)
» Details on regions of portfolio as at 31 March 2012 (for reconciliation) 31/03/2012 Residential Share in Area In-place Vacancy Commercial Parking units terms of 1) units spaces rent # units % k sqm EUR/sqm % # # Total 49,822 100% 3,025 5.60 2.3% 466 15,040 Strategic core and growth regions 46,801
Slide 36: 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
Slide 37: Deutsche Wohnen AG contact details
Deutsche Wohnen AG Registered Office Berlin Office Pfaffenwiese 300 Mecklenburgische Straße 57 65929 Frankfurt/ Main 14197 Berlin Phone: +49 30 897 86 551 Fax: +49 30 897 86 507 © 2013 Deutsche Wohnen AG 37