Deutsche Wohnen Se · XETR:DWNI

Deutsche Wohnen — Q1 2016 Earnings Presentation

21 slides from Deutsche Wohnen's earnings presentation, May 13, 2016

  1. Slide 1: Deutsche Wohnen AG Q1 2016 results

    Deutsche Wohnen AG » Q1 2016 results Conference Call, 13 May 2016 1

  2. Slide 2: Agenda

    » Agenda 1 Highlights Q1 2016 2 Portfolio 3 Financials 4 Guidance & Outlook 5 Appendix 2

  3. Slide 3: Financial highlights Q1 2016

    » Financial highlights Q1 2016 Operational development KPIs In EUR m Q1 2016 YoY In EUR m Q1 2016 YoY NOI letting 138.1 +13.2% FFO I (after minorities) 100.9 +41.5% NOI margin 80.5% +3.7ppt in EUR/ share1) 0.30 +25.0% Like-for-like rental growth 3.7% +1.3ppt FFO I margin 58.8% +13.9ppt Vacancy rate

  4. Slide 4: Portfolio update Q1 2016 – focused and concentrated

    » Portfolio update Q1 2016 – focused and concentrated Strategic cluster Residential % of total In-place rent1) Fair value Multiple Multiple Rent potential2) Vacancy units measured by 31/03/2016 31/03/2016 in-place market 31/03/2016 31/03/2016 fair value EUR/sqm/month EUR/sqm rent rent in % in % Stra

  5. Slide 5: Strong like-for-like development as of 31 March 2016

    » Strong like-for-like development as of 31 March 2016 2) 2) Like-for-like Residential units In-place rent In-place rent Change Vacancy Vacancy Change 31/03/2016 number 31/03/2016 31/03/2015 y-o-y 31/03/2016 31/03/2015 y-o-y EUR/sqm EUR/sqm in % in % Letting portfolio1) 129,014 6.00 5.78 3.8% 1.5% 1

  6. Slide 6: Strong earnings and cash contributions from letting

    » Strong earnings and cash contributions from letting in EUR m Q1 2016 Q1 2015 Development of operational line items Non-rec. exp. Rental loss Admin exp. Rental income 171.5 158.9 Non-recoverable expenses (2.8) (3.6) 16.3 15.9 14.2 Rental loss (2.3) (1.8) Maintenance (17.4) (19.0) 10.6 10.5 9.1 Othe

  7. Slide 7: Growing prices as demonstrated by disposal business

    » Growing prices as demonstrated by disposal business Disposals Privatization Institutional sales Total with closing in Q1 2016 Q1 2015 Q1 2016 Q1 2015 Q1 2016 Q1 2015 No. of units 491 453 1,280 108 1,771 561 Proceeds (EUR m) 43.5 40.0 115.6 9.7 159.1 49.7 Book value 32.8 28.1 99.2 8.8 132.0 36.9 Pr

  8. Slide 8: Attractive FFO contribution from Nursing and Assisted Living

    » Attractive FFO contribution from Nursing and Assisted Living in EUR m Q1 2016 Q1 2015 Q1 2016 # of facilities # of places Income Greater Berlin 12 1,442 Nursing 13.6 12.9 Saxony 7 475 Living 1.6 1.5 Others 1 131 Other 2.0 1.9 In total 20 2,048 Total income 17.2 16.3 Costs Average occupancy Nursing

  9. Slide 9: Best in class EBITDA margin

    » Best in class EBITDA margin in EUR m Q1 2016 Q1 2015 Development of cost ratio Earnings from Residential Property Management 147.2 132.5 11.8% 9.6% Earnings from Disposals 23.7 9.3 Earnings from Nursing and Assisted Living 4.6 3.8 Segment contribution margin 175.5 145.6 Q1 2015 Q1 2016 Cost Ratio

  10. Slide 10: Operational improvements and acquisitions drive FFO growth

    » Operational improvements and acquisitions drive FFO growth in EUR m Q1 2016 Q1 2015 FFO per share development in EUR EBITDA (adjusted) 159.2 122.6 0.37 Earnings from Disposals (23.7) (9.3) 0.27 0.07 At equity valuation 0.2 0.4 0.03 + 25% Interest expense/ income (26.1) (35.0) 0.30 0.24 Income taxe

  11. Slide 11: Steady increase of EPRA NAV per share

    » Steady increase of EPRA NAV per share in EUR m 31/03/2016 31/12/2015 NAV per share undiluted in EUR 23.01 23.39 Equity (before non-controlling interests) 6,743.4 6,653.5 17.86 + 2% Fair values of derivative financial 60.0 44.8 + 28% instruments Deferred taxes (net) 1,090.4 1,064.1 EPRA NAV (undilu

  12. Slide 12: Appendix

    » Appendix deutsche-wohnen.com ‘ ) a Deutsche Wohnen

  13. Slide 13: Bridge from adjusted EBITDA to profit

    » Bridge from adjusted EBITDA to profit in EUR m Q1 2016 Q1 2015 in EUR m Q1 2016 Q1 2015 EBITDA (adjusted) 159.2 122.6 Interest expenses (26.5) (35.2) Depreciation (1.3) (1.3) In % of rents ~16% ~22% At equity valuation 0.2 0.4 Non-cash interest expenses (0.0) (5.0) (26.5) (30.2) Financial result (

  14. Slide 14: Summary balance sheet

    » Summary balance sheet Assets Equity and Liabilities in EUR m 31/03/2016 31/12/2015 in EUR m 31/03/2016 31/12/2015 Investment properties 12,692.9 11,859.1 Total equity 6,986.2 6,872.0 Other non-current assets 616.4 614.3 Financial liabilities 4,357.7 3,780.4 Deferred tax assets 327.7 325.5 Converti

  15. Slide 15: Focused and increasing investments into the portfolio

    » Focused and increasing investments into the portfolio Q1 2016 Q1 2015 EUR m EUR m Maintenance 17.4 19.0 (expensed through p&l) Modernization 13.3 15.7 (capitalized on balance sheet) Total 30.7 34.7 Total EUR/ sqm1) 12.52 15.06 Maintenance and capex will increase in the course of the year to EUR 25

  16. Slide 16: Conservative long term capital structure with <1.7% interest costs

    » Conservative long term capital structure with <1.7% interest costs Rating A- / A3; stable outlook LTV 42%  Low leverage, long maturities and best in class rating ICR1) >5x  Flexible financing approach to optimize financing costs Ø maturity ~9 years  No significant maturities until and including

  17. Slide 17: Unchanged guidance (base case)

    » Unchanged guidance (base case) Mid-term 2015 2016e Main drivers perspective4) EPRA NAV per share Capex upgrade, rent development, further yield 23.01 25 – 26 (undiluted)1)2) compression expected based on market evidence Addition of 15k units on a net base and like-for-like FFO I in EUR m 303 >360

  18. Slide 18: Strong generation of total shareholder return

    » Strong generation of total shareholder return Development of dividend in EUR per share Development of EPRA NAV (undiluted) in EUR per share 0.54 23.01 0.44 17.86 +3.8% +2.5% +2.3% 0.34 14.51 12.48 0.21 2012 2013 2014 2015 2012 2013 2014 2015 Leading to strong shareholder return Summary 5.69 EUR 

  19. Slide 19: The Berlin portfolio at a glance

    » THE BERLIN-PORTFOLIO AT A GLANCE Reinickendorf Pankow # 9,429  5.89  1.9% # 9,209  6.38  1.3% Mitte Friedrichshain-Kreuzberg # 3,357  5.99  1.0% # 7,783  5.82  1.8% Lichtenberg # 8,738  5.94  1.0% Spandau # 13,785  5.76  1.6% Marzahn-Hellersdorf # 14,878  5.22  1.6% 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 contact details

    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 © 2016 Deutsche Wohnen AG

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