Deutsche Wohnen Se · XETR:DWNI
Deutsche Wohnen — FY2011 Earnings Presentation
31 slides from Deutsche Wohnen's earnings presentation, Mar 29, 2012
Slide 1: Full year results 2011
Deutsche Wohnen AG » Full year results 2011 Conference Call, 29 March 2012 1
Slide 2: Highlights 2011
. ) a Deutsche Wohnen » Highlights 2011 deutsche-wohnen.com
Slide 3: Highlights 2011 – Key figures at a glance
» Highlights 2011 – Key figures at a glance • Core letting portfolio • In-place rent: 5.63 EUR/sqm like-for-like: + 3.8% Performance • New-letting rent: 6.74 EUR/sqm + 4.3% (y-o-y) • Vacancy: 1.6% like-for-like: - 25% • NOI in EUR m EUR 140.6m + 5.0% • Net profit: EUR 50.6m + > 100% Results • Adjust
Slide 4: Compelling performance in well managed portfolio
» Compelling performance in well managed portfolio 4
Slide 5: Core regions further supplemented and enhanced
» Core regions further supplemented and enhanced 31/12/2011 31/12/2010 Residential only Residential Share of total Residential Share of total units portfolio units portfolio # % # % Core regions 47,325 93% 42,745 90% Letting portfolio 42,652 84% 38,785 81% Privatisation 4,673 9% 3,960 9% Disposal re
Slide 6: Well managed portfolio with further growth potential
» Well managed portfolio with further growth potential Residential Units Area Share of total In-place rent1) New-letting rent2) Vacancy portfolio # k sqm % EUR/sqm EUR/sqm % Total 50,626 3,076 5.57 2.4% Core regions 47,325 2,869 93% 5.63 2.1% Letting portfolio 42,652 2,567 84% 5.63 6.74 1.6% Privati
Slide 7: Metropolitan Areas in Germany
» Metropolitan Areas in Germany The map illustrates the eleven Metropolitan Areas in Germany defined by the German Federal Office for Building and Regional Planning: › These regions are characterised by fundamentally positive growth rates and migration inflows. › Deutsche Wohnen portfolio is current
Slide 8: Increasing rent potential despite compelling like-for-like rental growth
» Increasing rent potential despite compelling like-for-like rental growth In-place rent (like-for-like) Vacancy (like-for-like) In-place rent1) EUR/sqm % Vacancy in % % 31/12/2011 31/12/2010 31/12/2011 31/12/2010 Letting portfolio in Letting portfolio in core regions 5.67 5.46 3.8% core regions 1.5
Slide 9: Strong like-for-like development since December 2007
» Strong like-for-like development since December 2007 Total portfolio Letting portfolio core regions In-place rent (EUR/sqm) In-place (EUR/sqm) 6.00 € 6.00 € 5.59 € 5.67 € 5.50 € 5.41 € 5.46 € 5.32 € 5.50 € 5.37 € 5.17 € 5.21 € 5.05 € 5.08 € 5.00 € 5.00 € 4.50 € 4.50 € 4.00 € 4.00 € Dec 2007 Dec 20
Slide 10: Berlin: Compelling like-for-like development since December 2007
» Berlin: Compelling like-for-like development since December 2007 Letting portfolio Greater Berlin In-place (EUR/sqm) 6.00 € 5.56 € Comprises ~ 21,000 units under management since Dec 07 5.50 € 5.31 € Avg. growth of in-place rent (3.5% p.a.) translates into: 5.20 € 5.01 € › EUR + 0.71 per sqm per m
Slide 11: Sustainable valuation of our portfolio: + EUR 40.0m (+ 1.4%)
» Sustainable valuation of our portfolio: + EUR 40.0m (+ 1.4%) 31/12/2011 31/12/2010 Fair value Fair value Multiple Multiple Fair value Fair value Multiple Multiple in-place rent market rent in-place rent market rent EUR m EUR/sqm EUR m EUR/sqm Core regions Letting portfolio 2,523 988 14.5 x 12.9 x
Slide 12: Increasing letting earnings and cash contribution
» Increasing letting earnings and cash contribution EUR m 2011 2010 Current gross rental income 196.4 189.8 Letting Non-recoverable expenses -5.8 -6.4 Rental loss -1.9 -2.1 + EUR 6.5m Maintenance -29.6 -28.0 Others -1.7 -2.4 Earnings of Residential Property Management 157.4 150.9 Personnel, general
Slide 13: Strong privatisation business while streamlining disposal regions
» Strong privatisation business while streamlining disposal regions 2011 Units Transaction Fair value Margin Privatisation (units and transaction volume) volume 1,200 78.1 m # EUR m EUR m EUR m % 900 57.6 m 56.8 m Privatisation 1,053 78.1 57.9 20.2 34.9% units 600 1,053 Institutional sales 2,246 72.
Slide 14: More than 50% of holdings in disposal regions sold in last 3 years
» More than 50% of holdings in disposal regions sold in last 3 years Disposal regions only comprise ~ 3,300 units as at Dec 11 › Adjustment portfolio: ~ 1,400 units (- 59 %1)) › Other disposal holdings: ~ 1,900 units (- 47%1)) → We demonstrably proved successfully streamlining non-core assets at rea
Slide 15: Nursing and Assisted Living – stable EBITDA contribution
» Nursing and Assisted Living – stable EBITDA contribution 2011 2010 EUR m EUR m Income Occupancy Nursing 33.6 33.4 100.0% Living 2.7 3.1 Other 3.8 4.1 98.0% 40.1 40.6 96.0% Costs 96.2% 94.0% Nursing and corporate expenses -11.5 -11.7 92.0% 94.8% Staff expenses -19.4 -20.0 93.0% -30.9 -31.7 90.0% 31
Slide 16: Improved results and strong financial profile
» Improved results and strong financial profile 16
Slide 17: Adjusted EBT increased by 36% (y-o-y)
» Adjusted EBT increased by 36% (y-o-y) EUR m 2011 2010 EBITDA increased by ~ EUR 6m mainly due to increase in letting earnings as a result of EBITDA 142.0 136.1 acquisition while keeping the overall cost Depreciation -3.0 -3.0 structure stable (proven scaling effect) Financial result (net) -93.0 -9
Slide 18: Strong recurring FFO performance in 2011: + 44% (y-o-y)
» Strong recurring FFO performance in 2011: + 44% (y-o-y) EUR m 2011 2010 Profit 50.6 23.8 50 Earnings from Disposals -10.6 -12.7 Depreciation 3.0 3.0 40 Valuation investm. properties -40.0 -47.2 Valuation SWAP 0.2 0.2 30 in EUR m Non-cash financial expenses 12.1 13.9 47.5 20 Prepayment penalties 0.
Slide 19: Ongoing FFO from privatisation increased by 49% y-o-y
» Ongoing FFO from privatisation increased by 49% y-o-y 70 EUR m 2011 2010 58.1 60 FFO (w/o disposals) 47.5 33.1 45.8 14.2 50 FFO from privatisation 14.2 9.5 +49% 3.2 40 34.8 9.5 FFO (incl. privatisation) 61.7 42.6 in EUR m 30 9.9 FFO from institutional sales -3.6 3.2 47.5 20 FFO (incl. disposals) 5
Slide 20: Balance sheet – Assets
» Balance sheet – Assets EUR m 31/12/2011 31/12/2010 Investment properties 2,928.8 2,821.0 + EUR 40.0m upward valuation of investment properties Other non current assets 21.8 20.5 Due to acquisition of residential units held for privatisation Derivatives - 9.2 Deferred tax assets 63.0 78.7 Thereof f
Slide 21: Balance sheet – Equity and Liabilities
» Balance sheet – Equity and Liabilities + Profit EUR 50.6m - Cash flow hedge EUR 23.2m + Pensions EUR 1.1m EUR m 31/12/2011 31/12/2010 + Net proceeds (w/o tax effect) from capital increase EUR 181.4m Total equity 1,083.4 889.9 - Dividend EUR 16.4m Financial liabilities 1,834.7 1,784.5 Decrease of L
Slide 22: LTV decreased to 55%; average interest rate 4.07% from Jan 12 onwards
» LTV decreased to 55%; Ø interest rate: 4.07% from Jan 12 onwards Financial liabilities in EUR m Mark-to-market 1,834.7 Debt structure LTV (%) 55.0 Nominal value 1,937.9 LTV (%) 58.4 Average interest rate: ~ 4.07 % Average mandatory redemption p.a.: ~ 1.7 % Debt service Average weighted maturity: ~
Slide 23: Forecast
» Forecast deutsche-wohnen.com . 23
Slide 24: Forecast 2012
» Forecast 20121) Base case, i.e. w/o consideration of acquisitions in 2012 Residential Property Management Other Significant increase in earnings due to full-year- effect of both acquisitions and rental increases Earnings from Nursing and Assisted Living at in 2011 and rental increase in 2012 (fy-e
Slide 25: Appendix
» Appendix deutsche-wohnen.com . 25
Slide 26: EBITDA increased by EUR 5.9m / + 4.3% (y-o-y)
» EBITDA increased by EUR 5.9m / + 4.3% (y-o-y) EUR m 2011 2010 Earnings from Residential Property Management 157.4 150.9 Earnings from Disposals 10.6 12.7 Earnings from Nursing and Assisted Living 9.2 8.9 Subtotal 177.2 172.5 Corporate expenses -32.9 -31.8 Other operating expenses/income -2.3 -4.6
Slide 27: NOI performance continuously increased
» NOI performance continuously increased Residential Property Management: Net Operating Income (NOI) per sqm and month1) 10.5 % 4.00 3.90 3.80 EUR/sqm 3.70 4.0 % 3.60 3.88 3.50 3.73 6.3 % 3.40 3.51 3.30 Monthly average 2009 Monthly average 2010 Monthly average 2011 1) NOI: Net Operating Income of th
Slide 28: Portfolio as at 31 December 2010 in current portfolio-cluster-format
» Portfolio as at 31 December 2010 in current portfolio-cluster-format In order to compare key figures of the portfolio y-o-y as shown on p. 6, we illustrate the current portfolio cluster format as at 31 December 2010 in the following table: Portfolio overview as at 31 December 2010 Residential Unit
Slide 29: Track record: Successful execution of growth strategy in 2010/2011
» Track record: Successful execution of growth strategy in 2010/2011 Accretive acquisitions and realisation of economies of scale Acquisitions 2010 and 2011 Region Berlin Berlin Rhine-Main Rhine Valley Rhine Valley Total Letting Privatisation South North Portfolio Total units 4,145 1,867 466 350 1,1
Slide 30: 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
Slide 31: Deutsche Wohnen AG contact details
Deutsche Wohnen AG Registered Office Berlin Office Pfaffenwiese 300 Mecklenburgische Straße 57 65929 Frankfurt am Main 14197 Berlin Telefon: 030 897 86 551 Telefax: 030 897 86 507 © 2012 Deutsche Wohnen AG 31