Deutsche Wohnen Se · XETR:DWNI
Deutsche Wohnen — H1 2011 Earnings Presentation
27 slides from Deutsche Wohnen's earnings presentation, Aug 16, 2011
Slide 1: Deutsche Wohnen AG H1 2011 results
Deutsche Wohnen AG » H1 2011 results Conference Call, 16 August 2011 1
Slide 2: Summary
» Summary deutsche-wohnen.com .
Slide 3: Robust H1/2011 lead to uplift of recurring FFO-guidance by 10%
» Robust H1/2011 lead to uplift of recurring FFO-guidance by 10% • Reclustering for higher transparency • ~ 5,300 units since July 2010 acquired at a Net Initial Yield of 7.5% Portfolio • 623 units privatised at a gross margin of 38% • 1,269 units further execution of non-core divestments • Core let
Slide 4: Well managed portfolio with growth potential
» Well managed portfolio with growth potential 4
Slide 5: Well managed portfolio with organic growth potential
» Well managed portfolio with organic growth potential Share of total In-place New-letting Residential Units Area portfolio rent1) rent2) Vacancy Number k sqm % EUR/sqm EUR/sqm % Total 48,206 2,931 5.45 6.34 3.17 Core regions 43,835 2,662 91 5.53 6.51 2.50 Letting portfolio 38,520 2,320 80 5.53 6.53
Slide 6: More than 5,300 units acquired since 2nd half-year 2010
» More than 5,300 units acquired since 2nd half-year 2010 Acquisitions: Residential units Area In-place rent Vacancy Transfer of risks and rewards # sqm EUR/sqm % Acquisitions 2010 1,808 96,482 5.24 1.5 accomplished Acquisitions approx. 1,800 accomplished, remaining 2011 3,512 215,378 5.09 5.3 sched
Slide 7: Strong privatisation business and successful non-core divestments
» Strong privatisation business and successful non-core divestments Signed in H1/2011 Units Transaction volume Fair value Gross margin # EUR m EUR m EUR m % Privatisation 623 49.4 35.7 13.7 38% Institutional sales 1,269 38.3 38.5 -0.2 -1% 1,892 87.7 74.2 13.5 18% Privatisation (i.e. sales of individ
Slide 8: Strong performance
. ) | Deutsche Wohnen » Strong performance deutsche-wohnen.com
Slide 9: Positive impact from newly published Mietspiegel (rent index)
» Positive impact from newly published Mietspiegel (rent index) Berlin Frankfurt/Main No. of units affected 9,100 970 % of non-rent restricted portfolio 44% 24% Average monthly increase per sqm1) - in EUR EUR 0.36 EUR 0.33 - in % 7% 5% 1) Basis 1 January 2011 9
Slide 10: Dynamic development of rents continues
» Dynamic development of rents continues Letting portfolio1) in our core regions – Letting portfolio1) in our core regions – rent per sqm/month rent potential 7.00 7.00 17.5% 16.8% 18.1% 5.5% 6.50 6.50 4.9% 6.00 6.00 1.00 0.91 EUR/sqm EUR/sqm 0.92 5.50 5.50 6.53 6.19 6.33 5.00 5.00 5.53 5.42 5.53 5.
Slide 11: Ongoing strong NOI per sqm development
» Ongoing strong NOI per sqm development Residential Property Management: NOI per sqm and month1) 11.1% 4.10 4.00 3.90 3.80 EUR/sqm 3.70 6.7% 3.99 3.60 4.2% 3.74 3.50 3.59 3.40 3.30 Monthly average Monthly average Monthly average H1/2009 H1/2010 H1/2011 1) NOI: Net Operating Income of the period div
Slide 12: Continued improvement of operating performance and cash contribution
» Cont. improvement of operating performance and cash contribution EUR m H1/2011 H1/2010 Letting Current gross rental income 95.6 95.8 Non-recoverable expenses -2.5 -2.7 Rental loss -0.9 -1.2 Maintenance -12.8 -14.7 Others 0.2 -1.0 Earnings of Residential Property Management 79.6 76.2 Staff, general
Slide 13: Enhanced results and strong financial profile
» Enhanced results and strong financial profile 13
Slide 14: EBITDA increased by 5.9% (y-o-y)
» EBITDA increased by 5.9% (y-o-y) EUR m H1/2011 H1/2010 Earnings from Residentail Property Management 79.6 76.2 Earnings from Disposals 5.0 5.1 Earnings from Nursing and Assisted Living 5.0 4.6 Segment contribution margin 89.6 85.9 Corporate expenses -15.3 -14.9 Other operating expenses/income -0.4
Slide 15: Adjusted EBT increased by 52% (y-o-y)
» Adjusted EBT increased by 52% (y-o-y) EUR m H1/2011 H1/2010 Further reduction of interest expenses as a result of the debt structure EBITDA 73.9 69.8 optimisation in 2010 Depreciation -1.6 -1.6 Taxes affected by higher deferred taxes Financial result (net) -45.4 -50.3 (+ EUR 2.5 m) EBT adjusted 26
Slide 16: Recurring FFO increased significantly
» Recurring FFO increased significantly + 88% FFO-calculation FFO1) + 32% EUR m H1/2011 H1/2010 Profit 16.9 8.1 0.50 33.4 EUR m Earnings from Disposals -5.0 -5.1 0.41 Depreciation 1.6 1.6 25.3 0.40 0.06 Valuation SWAP -0.3 1.9 17.8 0.31 Non-cash financial expenses 6.5 7.5 EUR per share 0.30 Deferred
Slide 17: Balance sheet – Assets
» Balance sheet – Assets EUR m 30/06/2011 31/12/2010 Unchanged valuation matrix Investment properties 2,795.8 2,821.0 Other non current assets 20.3 20.5 Derivatives 9.2 9.2 Deferred tax assets 66.1 78.7 Due to acquisition of residential units held for privatisation Non current assets 2,891.4 2,929.4
Slide 18: Balance sheet – Liabilities
» Balance sheet – Liabilities + Profit EUR 16.9 m + Cash flow hedge EUR 11.9 m EUR m 30/06/2011 31/12/2010 + Pensions EUR 1.7 m - Dividend EUR 16.4 m Total equity 904.1 889.9 Consistent LTV of 60.7% Financial liabilities 1,798.8 1,784.5 Tax liabilities 67.5 63.9 Including EK 02: EUR 59.0 m Deferred
Slide 19: LTV stable around 60%, average interest rate at 4.06%
» LTV stable around 60%, average interest rate at 4.06% Financial liabilities in EUR m Mark-to-market 1,798.8 Debt structure LTV (%) 60.7 Nominal value 1,905.2 LTV (%) 64.4 Average interest rate: ~ 4.06 % Debt service Average mandatory redemption p.a.: ~ 1.6 % Interest rates fixed or hedged: ~ 76 %
Slide 20: Guidance
» Guidance deutsche-wohnen.com . 20
Slide 21: Increased guidance of recurring FFO to EUR 0.55 per share
» Increased guidance of recurring FFO to EUR 0.55 per share Strong performance in the first half of 2011 and an unchanged positive residential market environment lead to an increase in our guidance for financial year 2011 FFO (w/o disposals) per share of EUR 0.55 for 2011 › This represents an increa
Slide 22: Appendix
» Appendix deutsche-wohnen.com . 22
Slide 23: Former portfolio cluster as of 30 June 2011
» Former portfolio cluster as of 30 June 2011 For reconciliation purposes, the current portfolio as of 30 June 2011 in our formerly used portfolio cluster Share of total New-letting 30/06/2011 Units Area portfolio In-place rent1) rent2) Vacancy Number k sqm % EUR/sqm EUR/sqm % Berlin 21,324 1,263 44
Slide 24: New portfolio cluster as of 30 June 2010
» New portfolio cluster as of 30 June 2010 For reconciliation purposes, last years portfolio as of 30 June 2010 in our newly used portfolio cluster Share of total New-letting Residential Units Area portfolio In-place rent1) rent2) Vacancy Number k sqm % EUR/sqm EUR/sqm % Total 48,030 2,941 5.33 6.12
Slide 25: Nursing and Assisted Living
» Nursing and Assisted Living H1/2011 H1/2010 EUR m EUR m Income Nursing 16.9 16.4 Living 1.5 1.6 Other 2.0 1.9 20.4 19.9 Costs Nursing and corporate ecpenses -5.7 -5.6 Personnel expenses -9.7 -9.7 -15.4 -15.3 Earnings (EBITDA) 5.0 4.6 25
Slide 26: 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 27: Deutsche Wohnen AG Pfaffenwiese 300 65929 Frankfurt am Main
Deutsche Wohnen AG Head Office Berlin Office Pfaffenwiese 300 Mecklenburgische Straße 57 65929 Frankfurt am Main 14197 Berlin Telefon: 030 897 86 551 Telefax: 030 897 86 507 © 2011 Deutsche Wohnen AG 27