Deutsche Wohnen Se · XETR:DWNI
Deutsche Wohnen — 9M 2013 Earnings Presentation
34 slides from Deutsche Wohnen's earnings presentation, Nov 12, 2013
Slide 1: Deutsche Wohnen AG 9m 2013 results
Deutsche Wohnen AG » 9m 2013 results Conference Call, 12 November 2013 1
Slide 2: Agenda
» Agenda 1 Key figures 9m 2013 2 Development of business segments / financial performance and position 3 Guidance 2013 4 Status on public takeover offer on GSW Immobilien AG (GSW) 5 Q&A 2
Slide 3: Key figures 9m 2013
‘ ) a Deutsche Wohnen » Key figures 9m 2013 deutsche-wohnen.com
Slide 4: Key figures 9m 2013
» Key figures 9m 2013 • Adjusted EBT EUR 99.9m + 66% • Recurring FFO (w/o disposals) EUR 86.3m + 65% Results • Recurring FFO (w/o disposals) EUR 0.53 per share + 20%1) (y-o-y) • EPRA NAV EUR 12.89 per share + EUR 0.41 per share vs. Dec 12 • LTV 56.3% • Strategic core and growth regions (letting port
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 65m / + 49% (y-o-y)
» Adjusted EBITDA increased by ~ EUR 65m / + 49% (y-o-y) in EUR m 9m/2013 9m/2012 Earnings from Residential Property Management 208.2 135.4 Earnings from Disposals 17.9 14.6 Earnings from Nursing and Assisted Living 9.9 7.7 Segment contribution margin 236.0 157.7 Corporate expenses -34.4 -25.2 Other
Slide 7: a) Segment – Residential Property Management
a) Segment – Residential Property Management 7
Slide 8: Strong earnings and cash contributions from letting
» Strong earnings and cash contributions from letting in EUR m 9m/2013 9m/2012 Current gross rental income 259.5 164.1 Non-recoverable expenses -5.7 -3.7 Earnings Rental loss -2.6 -1.7 from letting: Maintenance -38.9 -21.0 Maintenance + EUR 72.8m Others -4.1 -2.3 (extrapolated full-year) in 9m/13: E
Slide 9: Portfolio overview: 97% of total Fair Value in strategic core and growth regions
» Portfolio overview: 97% of total Fair Value is located in strategic core and growth regions 30/09/2013 Residential Share in Area 1) Fair Share in Fair Multiple Multiple units terms of 2) terms of Value 3) in-place market Value units Fair Value rent rent # % k sqm EUR m % EUR/sqm Total 88,695 100%
Slide 10: Overview of portfolio as at 30 September 2013
» Overview of portfolio as at 30 September 2013 30/09/2013 Residential Share in Area 2) In-place Vacancy Commercial Parking units terms of units rent 1) units spaces # % k sqm EUR/sqm % # # Total 88,695 100% 5,425 5.59 3.0% 1,115 22,022 Strategic core and 83,944 95% 5,119 5.63 2.6% 1,063 20,422 grow
Slide 11: 4.0% like-for-like rental growth y-o-y in our Core+ regions
» 4.0% like-for-like rental growth y-o-y in our Core+ regions In-place rent (like-for-like) and vacancy (like-for-like) (like-for-like) Residential In-place rent 1) Δ in % Vacancy units EUR/sqm in % 30/09/2013 30/09/2012 y-o-y 30/09/2013 30/09/2012 Strategic core and growth regions 61,908 5.81 5.63
Slide 12: Positive impact from 'Berlin Mietspiegel' (Berlin rent index)
» Positive impact from ‘Berlin Mietspiegel’ (Berlin rent index) Total Deutsche Wohnen units in the City of Berlin: 44,643 1) units rent restricted: 2,170 Units non-rent restricted (subject to ‘Mietspiegel‘): 42,473 units affected in 2013: 18,504 Key impacts: % of non-rent restricted 44% 2) Average m
Slide 13: Rent potential up to 25% in Core+ regions
» Rent potential up to 25% in Core+ regions (letting portfolio) Rent potential (excluding acquisitions) 1) In-place rent in EUR/sqm New-letting rent 2) 3) Rent potential in EUR/sqm 30/09/2013 6.07 25.0% 7.59 Core + 31/12/2012 5.89 21.6% 7.16 30/09/2013 5.81 20.1% 6.98 Greater 31/12/2012 5.62 18.3% 6
Slide 14: b) Segment – Disposals
b) Segment — Disposals deutsche-wohnen.com ‘ ) a Deutsche Wohnen 14
Slide 15: Very strong privatisation business & successful non-core disposals
» Very strong privatisation business & successful non-core disposals 9m/2013 Units Transaction Fair Value Gross signed with expected volume margin Privatisation signed closing in 2013 (gross margin & sales price in EUR/sqm) # EUR m EUR m EUR m % 50% Privatisation 1,290 98.7 66.0 32.7 50% 35% 33% Ins
Slide 16: c) Segment – Nursing and Assisted Living
c) Segment – Nursing and Assisted Living 16
Slide 17: Nursing and Assisted Living − increasing EBITDA contribution
» Nursing and Assisted Living − increasing EBITDA contribution in EUR m 9m/2013 9m/2012 100,0% Income Average occupancy 98,0% Nursing 38.3 26.8 Living 1.5 1.5 96,0% Other 3.1 2.6 94,0% 97.6% 96.7% Total income 42.9 30.9 92,0% 94.6% Costs Nursing and corporate expenses -11.0 -8.0 90,0% 9m/2011 9m/201
Slide 18: d) Others
d) Others deutsche-wohnen.com vr) a Deutsche Wohnen 18
Slide 19: Adjusted EBT increased by ~ 66% (y-o-y)
» Adjusted EBT increased by ~ 66% (y-o-y) in EUR m 9m/2013 9m/2012 EBITDA (adjusted) 196.8 4) 132.1 2) Adj. EBITDA increased by ~ EUR 65m mainly attributable to an increase of earnings from Depreciation -4.0 -2.2 letting ~ EUR 73m and from disposals Financial result (net) -92.9 -69.7 3) ~ EUR 3m E
Slide 20: Strong recurring FFO per share performance +20% (y-o-y)
» Strong recurring FFO per share performance +20%2) (y-o-y) in EUR m 9m/2013 9m/2012 Profit 66.5 50.8 Earnings from Disposals -17.9 -14.6 Depreciation 4.0 2.2 FFO (incl. Valuation SWAP -0.2 0.1 disposals) in EUR m 47.3 67.0 104.2 One-off income due to settlement with RREEF 0.0 -20.0 120,00 One-off c
Slide 21: e) Balance sheet
e) Balance sheet deutsche-wohnen.com ‘ ) a Deutsche Wohnen 21
Slide 22: Balance sheet – Assets
» Balance sheet – Assets in EUR m 30/09/2013 31/12/2012 Investment properties 5,228.4 4,614.6 Increase due to acquisitions Other non-current assets 40.2 24.1 Derivatives 3.2 0.0 Increase due to acquisitions of partly Deferred tax assets 63.4 80.7 privatisised portfolio; to be sold within privatisati
Slide 23: Balance sheet – Equity and Liabilities
» Balance sheet – Equity and Liabilities in EUR m 30/09/2013 31/12/2012 Equity in EUR m 30/09/2013 + Profit 66.5 Total equity 1,980.3 1,609.7 + Cash flow hedge 32.9 + Pensions 0.2 Financial liabilities 3,136.5 2,768.6 + Net proceeds (less tax effect) from capital increase 297.0 Tax liabilities 62.5
Slide 24: LTV at 56.3%; low average interest rate: 3.45%
» LTV at 56.3%; low average interest rate: 3.45% Financial liabilities in EUR m Mark-to-market 3,136.5 Debt structure LTV (%) 56.3% p Nominal value 3,237.2 p LTV (%) 58.1% r ▪ Average interest rate: ~ 3.45% ▪ Average mandatory redemption p.a.: ~ 1.6% Debt service ▪ Average weighted maturity: ~ 7.3 y
Slide 25: Guidance 2013
» Guidance 2013 deutsche-wohnen.com ‘ ) a Deutsche Wohnen 25
Slide 26: Guidance 2013 - FFO (w/o disposals)
» Guidance 2013 - FFO (w/o disposals) The first nine months of 2013 have been very successful for Deutsche Wohnen AG. With the publication of the half-year results in August 2013, we already raised our forecast of the FFO (w/o disposals) for 2013 by 10% to EUR 110m. We fully confirm this forecast, a
Slide 27: Status on public takeover offer on GSW Immobilien AG (GSW)
» Status on public takeover offer on GSW Immobilien AG (GSW) 27
Slide 28: Status on public takeover offer on GSW Immobilien AG (GSW)
» Status on public takeover offer on GSW Immobilien AG (GSW) • ~ 78% of GSW shareholders tendered their shares within the ‘regular’ acceptance period • Additional acceptance period until 18 November 2013 24:00 (CET) • Closing of the transaction expected at the beginning of December 2013 • Envisaged
Slide 29: Q&A
»Q&A deutsche-wohnen.com vr) a Deutsche Wohnen 29
Slide 30: Appendix
» Appendix deutsche-wohnen.com ‘ ) a Deutsche Wohnen 30
Slide 31: Details on acquisition of ~ 380 units in Greater Berlin
» Details on acquisition of ~ 380 units in Greater Berlin Transaction volume in EUR m 33 1) Units (residential) 376 Area (residential) in k sqm 26 In-place rent (residential) EUR/sqm p.m. 5,82 Vacancy (residential) 1.1% Closing (expected) December 2013 Net initial yield 2) 6.0% Rent potential 3) 11.
Slide 32: Details on regions of portfolio as at 30 September 2013
» Details on regions of portfolio as at 30 September 2013 30/09/2013 Residential Share in Area In-place Vacancy Commercial Parking units terms of units rent 1) units spaces # % k sqm EUR/sqm % # # Total 88.695 100% 5.425 5,59 3,0% 1.115 22.022 Strategic core and growth regions 83.944 95% 5.119 5,63
Slide 33: 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 34: 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 34