Deutsche Wohnen Se · XETR:DWNI
Deutsche Wohnen — H1 2013 Earnings Presentation
39 slides from Deutsche Wohnen's earnings presentation, Aug 13, 2013
Slide 1: Deutsche Wohnen AG H1 2013 results
Deutsche Wohnen AG » H1 2013 results Conference Call, 13 August 2013 1
Slide 2: Agenda
» Agenda 1 Key figures H1/2013 2 Development of business segments / financial performance and position 3 Status on acquisitions - What we have accomplished in 2013 so far - 4 Updated guidance 2013 5 Q&A 2
Slide 3: Key figures H1/2013
. ) a Deutsche Wohnen » Key figures H1/2013 deutsche-wohnen.com
Slide 4: Key figures H1/2013
» Key figures H1/2013 • Adjusted EBT EUR 69.3m + 86% • Recurring FFO (w/o disposals) EUR 60.6m + 85% Results • Recurring FFO (w/o disposals) EUR 0.38 per share + 23%1) (y-o-y) • EPRA NAV EUR 12.79 per share + EUR 0.31 per share vs Dec 12 • LTV 55.8% • Strategic core and growth regions (letting portf
Slide 5: Development of business segments / financial performance and position
» Development of business segments / financial performance and position 5
Slide 6: Adjusted EBITDA increased by ~ EUR 49m / + 58% (y-o-y)
» Adjusted EBITDA increased by ~ EUR 49m / + 58% (y-o-y) in EUR m H1/2013 H1/2012 Earnings from Residential Property Management 139.3 86.6 Earnings from Disposals 12.3 9.1 Earnings from Nursing and Assisted Living 6.5 4.9 Segment contribution margin 158.1 100.6 Corporate expenses -22.2 -16.1 Other o
Slide 7: Status quo of integration: accomplished and well on track
» Status quo of integration: accomplished and well on track - Total staff and G&A expenses ~ 13% of current gross rental income already in 2013 - accomplished Major 2013 New service points in Magdeburg, Hanover, Brunswick and acquisitions June Berlin-Hellersdorf have been established 93 employees of
Slide 8: a) Segment – Residential Property Management
a) Segment – Residential Property Management 8
Slide 9: Strong earnings and cash contributions from letting
» Strong earnings and cash contributions from letting in EUR m H1/2013 H1/2012 Current gross rental income 168.1 103.7 Non-recoverable expenses -2.8 -2.1 Earnings from letting: Rental loss -2.1 -0.8 Maintenance -21.3 -12.6 Maintenance + EUR 52.7m (extrapolated full-year) Others -2.6 -1.6 in H1/13: E
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 30/06/2013 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 89,441 100% 5,468 5,1
Slide 11: Overview of portfolio as at 30 June 2013
» Overview of portfolio as at 30 June 2013 30/06/2013 Residential Share in Area In-place Vacancy Commercial Parking units terms of units rent 1) units spaces # % k sqm EUR/sqm % # # Total 89,441 100% 5,468 5.51 3.0% 1,121 22,165 Strategic core and 84,137 94% 5,129 5.56 2.6% 1,067 20,470 growth regio
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 % 30/06/2013 30/06/2012 y-o-y 30/06/2013 30/06/2012 Strategic core and growth regions 42,328 5.86
Slide 13: Rent potential up to 27% in Core+ regions (letting portfolio)
» 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 rent
Slide 14: New-letting rent development for BauBeCon regions
» New-letting rent development for BauBeCon regions fully integrated by end of 2012 within our expectations 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 p
Slide 15: b) Segment – Disposals
b) Segment — Disposals deutsche-wohnen.com ) a Deutsche Wohnen 15
Slide 16: Very strong privatisation business & successful non-core disposals
» Very strong privatisation business & successful non-core disposals H1/2013 Units Transaction Fair Value Gross Privatisation signed signed volume margin (gross margin & sales price in EUR/sqm) # EUR m EUR m EUR m % Privatisation 882 67.7 44.8 22.9 51% Institutional sales 1,063 37.4 33.4 4.0 12% the
Slide 17: c) Segment – Nursing and Assisted Living
c) Segment – Nursing and Assisted Living 17
Slide 18: Nursing and Assisted Living - increasing EBITDA contribution
» Nursing and Assisted Living - increasing EBITDA contribution in EUR m H1/2013 H1/2012 Income Average occupancy Nursing 25.0 17.1 Living 1.0 1.0 Other 2.0 1.7 Total income 28.0 19.8 Costs Nursing and corporate expenses -7.2 -5.2 Staff expenses -14.3 -9.7 Total costs -21.5 -14.9 Earnings from Nursin
Slide 19: d) Others
d) Others deutsche-wohnen.com . 19
Slide 20: Adjusted EBT increased by ~ 86% (y-o-y)
» Adjusted EBT increased by ~ 86% (y-o-y) in EUR m H1/2013 H1/2012 EBITDA (adjusted) 133.0 84.2 2) Adj. EBITDA increased by ~ EUR 49m mainly Depreciation -2.7 -1.4 attributable to an increase of earnings from Financial result (net) -61.0 -45.5 3) letting ~ EUR 53m and from disposals ~ EUR 3m EBT (ad
Slide 21: Strong recurring FFO per share performance +23% (y-o-y)
» Strong recurring FFO per share performance +23%2) (y-o-y) in EUR m H1/2013 H1/2012 Profit 50.2 36.9 Earnings from Disposals -12.3 -9.1 Depreciation 2.7 1.4 FFO (incl. disposals) 33.4 41.9 72.9 Valuation SWAP 0.0 0.1 in EUR m One-off income due to settlement with RREEF 0.0 -20.0 One-off financing c
Slide 22: e) Balance sheet
e) Balance sheet deutsche-wohnen.com . 22
Slide 23: Balance sheet – Assets
» Balance sheet – Assets in EUR m 30/06/2013 31/12/2012 Investment properties 5,178.7 4,614.6 Increase due to acquisitions Other non-current assets 40.0 24.1 Derivatives 4.3 0.0 Deferred tax assets 64.1 80.7 Trade receivables in EUR m 30/06/2013 Non current assets 5,287.1 4,719.4 Rental business 9.1
Slide 24: Balance sheet – Equity and Liabilities
» Balance sheet – Equity and Liabilities in EUR m 30/06/2013 31/12/2012 Equity in EUR m 30/06/2013 + Profit 50.2 Total equity 1,963.7 1,609.7 + Cash flow hedge 32.4 + Pensions 0.4 Financial liabilities 3,069.6 2,768.6 + Net proceeds (less tax effect) from capital increase 297.0 Tax liabilities 70.2
Slide 25: LTV at 55.8%; low average interest rate: 3.5%
» LTV at 55.8%; low average interest rate: 3.5% Financial liabilities in EUR m Mark-to-market 3,069.6 Debt structure 1) LTV (%) 55.8% Nominal value 3,171.0 LTV (%) 57.7% ▪ Average interest rate: ~ 3.5% ▪ Average mandatory redemption p.a.: ~ 1.7% Debt service 2) ▪ Average weighted maturity: ~ 7.5 yea
Slide 26: Status on acquisitions - What have we accomplished in 2013 so far
» Status on acquisitions - What have we accomplished in 2013 so far - 26
Slide 27: Accretive bolt-on acquisitions with a focus on our Core+ regions
» Accretive bold-on acquisitions with a focus on our Core+ regions already done in 2013 Expanding in our strategic core and growth regions Over the last six months we have already acquired ~10,700 units with a transaction volume of ~ EUR 592m1) incl. Nursing and Assisted Living. Residential units #
Slide 28: Updated guidance 2013
» Updated guidance 2013 deutsche-wohnen.com . ) a Deutsche Wohnen 28
Slide 29: New guidance 2013 - FFO (w/o disposals)
» New guidance 2013 - FFO (w/o disposals) As a result of a successful first half year 2013 and in light of our recent acquisitions we increase our recurring FFO guidance by 10%: Increased guidance for FFO (w/o disposals) from EUR 100m to EUR 110m for 2013 29
Slide 30: Q&A
»Q&A deutsche-wohnen.com . 30
Slide 31: Appendix
» Appendix deutsche-wohnen.com . 31
Slide 32: Additional acquisitions
» Additional acquisitions 32
Slide 33: Details on latest acquisitions of ~ 2,900 units
» Details on latest acquisitions of ~ 2,900 units Transaction volume in EUR m 148 1) Units (residential) ~ 2,900 Area (residential) in k sqm 172 In-place rent (residential) EUR/sqm p.m. 5.00 Vacancy (residential) 3.3% 2) Net initial yield 6.9% 3) Rent potential ~ 14% 14.6x In-place rent multiple ~ E
Slide 34: Details on acquisition of ~ 7,800 units in Greater Berlin
» Details on acquisition of ~ 7,800 units in Greater Berlin Transaction volume in EUR m 414 1) Units (residential) ~7,800 Area (residential) in k sqm 473 In-place rent (residential) EUR/sqm p.m. 5.10 Vacancy (residential) 1.9% Closing June 2013 (accomplished) 2) Net initial yield 7.2% 3) Rent potent
Slide 35: Details on regions of portfolio as at June 2013
» Details on regions of portfolio as at 30 June 2013 30/06/2013 Residential Share in Area In-place Vacancy Commercial Parking units terms of units 1) units spaces rent # % k sqm EUR/sqm % # # Total 89,441 100% 5,468 5.51 3.0% 1,121 22,165 Strategic core and growth regions 84,137 94% 5,129 5.56 2.6%
Slide 36: Overview of portfolio as at June 2012 (for reconciliation)
» Overview of portfolio as at 30 June 2012 (for reconciliation) 30/06/2012 Residential Share in Area In-place Vacancy Commercial Parking units terms of rent 1) units spaces units # % k sqm EUR/sqm % # # Total 49,099 100% 2,979 5.65 2.2% 465 14,856 Strategic core and 46,381 94% 2,811 5.70 2.0% 457 13
Slide 37: Details on regions of portfolio as at June 2012 (for reconciliation)
» Details on regions of portfolio as at 30 June 2012 (for reconciliation) 30/06/2012 Residential Share in Area In-place Vacancy Commercial Parking units terms of 1) units spaces rent # units % k sqm EUR/sqm % # # Total 49,099 100% 2,979 5.65 2.2% 465 14,856 Strategic core and growth regions 46,381 9
Slide 38: 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 39: 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 39