Deutsche Wohnen Se · XETR:DWNI
Deutsche Wohnen — H1 2012 Earnings Presentation
31 slides from Deutsche Wohnen's earnings presentation, Aug 13, 2012
Slide 1: Deutsche Wohnen AG H1 2012 results
Deutsche Wohnen AG » H1 2012 results Conference Call, 13 August 2012 1
Slide 2: Highlights H1/2012
. ) a Deutsche Wohnen » Highlights H1/2012 deutsche-wohnen.com
Slide 3: Highlights H1/2012
» Highlights H1/2012 Fundamental Major events growth › Acquisition of BauBeCon with 23k units for EUR 1.2bn with closing in August 2012 › Additional acquisition of ~ 1,500 units in Berlin and Potsdam › Successful capital increase of ~ EUR 460m New dimension of Deutsche Wohnen › With current market c
Slide 4: Key figures H1/2012 at a glance
» Key figures H1/2012 at a glance • Core letting portfolio • In-place rent: 5.71 EUR/sqm like-for-like: + 4.0% Performance • New-letting rent: 6.98 EUR/sqm + 4.5% • Rent-potential: 22.2% (y-o-y) • Vacancy: 1.4% like-for-like: - 17% • NOI in EUR m EUR 78.2m + 10% • Net profit: EUR 36.9m + >100% • Adj
Slide 5: Compelling performance in well managed portfolio - before BauBeCon
» Compelling performance in well managed portfolio - before BauBeCon 5
Slide 6: Well managed portfolio with further growth potential
» Well managed portfolio with further growth potential Share of total In-place New-letting Residential Units Area Vacancy portfolio rent1) rent2) # k sqm % EUR/sqm EUR/sqm % Total 49,099 2,979 5.65 6.85 2.2% Core regions 46,469 2,815 95% 5.70 6.98 1.9% Letting portfolio 42,627 2,564 87% 5.71 6.98 1.
Slide 7: Compelling like-for-like rental growth across our core regions
» Compelling like-for-like rental growth across our core regions In-place rent (like-for-like) in EUR/sqm Vacancy (like-for-like) In-place rent1) EUR/sqm ∆ in % Vacancy in % ∆ in % 30/06/2012 30/06/2011 y-o-y 30/06/2012 30/06/2011 y-o-y Letting portfolio in Letting portfolio in core regions 5.75 5.5
Slide 8: Increasing rent potential across our core regions
» Increasing rent potential across our core regions Rent potential 30/06/2012 31/12/2011 in EUR/sqm New-letting In-place Rent Rent rent 2) rent 1) potential 3) potential 3) Letting portfolio in core regions 6.98 5.71 22.2% 19.7% Greater Berlin 6.66 5.56 19.8% 17.0% Frankfurt/Main 8.88 7.19 23.5% 20.
Slide 9: Increasing earnings and cash contribution from letting
» Increasing earnings and cash contribution from letting in EUR m H1/2012 H1/2011 Current gross rental income 103.7 95.6 Letting Non-recoverable expenses -2.1 -2.5 + EUR 7.0m Rental loss -0.8 -0.9 Maintenance -12.6 -12.8 Others -1.6 0.2 Earnings of Residential Property Management 86.6 79.6 Personnel
Slide 10: Strong privatisation business and streamlining in disposal regions
» Strong privatisation business and streamlining in disposal regions Signed in H1/2012 Transaction Privatisation signed Units Fair value Margin incl. overhang 2011 volume (units and transaction volume) # EUR m EUR m EUR m % in EUR m 83.8 Privatisation 1,192 83.8 61.8 22.02 36% Institutional sales 1,
Slide 11: Nursing and Assisted Living – stable EBITDA contribution
» Nursing and Assisted Living – stable EBITDA contribution in EUR m H1/2012 H1/2011 Income Average occupancy Nursing 17.1 16.9 Living 1.0 1.5 Other 1.7 2.0 19.8 20.4 Costs Nursing and corporate expenses -5.2 -5.7 Staff expenses -9.7 -9.7 -14.9 -15.4 Segment's earnings 4.9 5.0 Note: Figures for 2010
Slide 12: Improved results and strong financial profile
» Improved results and strong financial profile 12
Slide 13: Adjusted EBT increased by 39% (y-o-y)
» Adjusted EBT increased by 39% (y-o-y) in EUR m H1/2012 H1/2011 Adjusted EBITDA increased by ~ EUR 10m EBITDA (adjusted) 1) 84.2 73.9 thereof ~ EUR 7m attributable to increasing Depreciation -1.4 -1.6 earnings from letting as a result of Financial result (adjusted, net) 2) -45.5 -45.4 acquisitions
Slide 14: Strong recurring FFO performance in H1/2012
» Strong recurring FFO performance in H1/2012: 15% (y-o-y) in EUR m H1/2012 H1/2011 Profit 36.9 16.9 41.9 45.0 Earnings from Disposals -9.1 -5.0 Depreciation 1.4 1.6 33.4 9.7 Valuation SWAP 0.1 -0.3 35.0 +80% 25.3 5.4 Non-cash financial expenses 5.6 6.5 Deferred taxes 8.6 8.7 25.0 2.1 Tax benefit fr
Slide 15: Balance sheet – Assets
» Balance sheet – Assets in EUR m 30/06/2012 31/12/2011 Investment properties 2,983.7 2,928.8 Unchanged valuation matrix Other non current assets 22.6 21.7 Deferred tax assets 67.8 63.0 Non current assets 3,074.1 3,013.5 Trade receivables 30/06/2012 Rental business 4.2 Land and building held for sal
Slide 16: Balance sheet – Equity and Liabilities
» Balance sheet – Equity and Liabilities + Profit EUR 36.9 - Cash flow hedge EUR -11.6 - Pensions EUR -3.4 + Net proceeds (less tax effect) in EUR m 30/06/2012 31/12/2011 from capital increase EUR 449.2 - Dividend EUR -23.5 Total equity 1,531.0 1,083.4 LTV at 39.8% Financial liabilities 1,827.7 1,83
Slide 17: LTV at 39.8%; average interest rate: 4.05%
» LTV at 39.8%; average interest rate: 4.05% Financial liabilities in EUR m Mark-to-market 1,827.7 LTV (%) 39.8% Debt structure Nominal value 1,928.0 LTV (%) 43.1% Average interest rate: ~ 4.05 % Average mandatory redemption p.a.: ~ 1.7 % Debt service Average weighted maturity: ~ 9.0 years Interest
Slide 18: Updated guidance
» Updated guidance deutsche-wohnen.com . ) a Deutsche Wohnen 18
Slide 19: New guidance 2012 – FFO (w/o disposals): EUR 60m-65m
» New guidance 2012 – FFO (w/o disposals): EUR 60m-65m Successful H1/2012 Gross proceeds of EUR 460m from capital increase for BauBeCon transaction and two potential/promising additional mid-size portfolios Our operating performance, both in our letting- and privatisation business, clearly benefits
Slide 20: Appendix – BauBeCon and signed add-on acquisitions
» Appendix – BauBeCon and signed add-on acquisitions 20
Slide 21: Signed add-on acquisitions in Greater Berlin
» Signed add-on acquisitions in Greater Berlin Residential Residential Units Area Closing in-place rent vacancy # k sqm EUR/ sqm % Greater Berlin ~ 1,500 82 5.44 1.8% 01/07 and 01/08/2012 > 50% located in Berlin, the remaining units are located in Potsdam Net purchase price: EUR 77.8m or 909 EUR/sqm
Slide 22: BauBeCon – excellent strategic fit for Deutsche Wohnen
» BauBeCon – excellent strategic fit for Deutsche Wohnen Adding ~ 23,400 residential units - achieve additional exposure to new German Metropolitan Area Hanover, Sizeable Braunschweig and Magdeburg geographic overlap, More than 30% of BauBeCon units located in existing core regions of portfolio expa
Slide 23: BauBeCon – compelling key portfolio metrics
» BauBeCon – compelling key portfolio metrics Implied in- Implied BauBeCon group Residential Share of total In-place place rent in-place 31 March 2012 (1) units portfolio rent (2) Vacancy Fair value (3) Fair value (3) multiple rental yield # % EUR/sqm % EUR m EUR/sqm x % Total core regions 19,099 81
Slide 24: Integration plan for BauBeCon
» Integration plan for BauBeCon Integration of BauBeCon into Deutsche Wohnen - Prelios contract will be terminated 31 May 2013 Central functions to be integrated into existing Kiel central organisation in Berlin Accounting and rent collection Centralised purchasing Centralised service centre Berlin
Slide 25: Appendix - Other
» Appendix - Other deutsche-wohnen.com . ) a Deutsche Wohnen 25
Slide 26: Overall portfolio quality: share of core regions further enhanced
» Overall portfolio quality: share of core regions further enhanced 30/06/2012 30/06/2011 Residential Share of total Residential Share of total Residential only units portfolio units portfolio # % # % Core regions 46,469 95% 43,835 91% Letting portfolio 42,627 87% 38,520 80% Privatisation 3,842 8% 5
Slide 27: Adjusted EBITDA increased by ~ EUR 10m / + 14% (y-o-y)
» Adjusted EBITDA increased by ~ EUR 10m / + 14% (y-o-y) in EUR m H1/2012 H1/2011 Earnings from Residentail Property Management 86.6 79.6 Earnings from Disposals 9.1 5.0 Earnings from Nursing and Assisted Living 4.9 5.0 Segment contribution margin 100.6 89.6 Corporate expenses -16.1 -15.3 Other oper
Slide 28: NOI performance continuously increasing
» NOI performance continuously increasing Residential Property Management: Net Operating Income (NOI) per sqm and month1) 12.8 % 4.30 4.10 3.90 EUR/sqm 5.8 % 4.22 3.70 6.7 % 3.99 3.50 3.74 3.30 Monthly average Monthly average Monthly average H1/2010 H1/2011 H1/2012 1) NOI: Net Operating Income of th
Slide 29: Valuation of portfolio
» Valuation of portfolio 30/06/2012 Fair value Fair value Multiple Multiple EUR m EUR/sqm in-place rent market rent Core regions 2,831 981 14.2 12.6 Greater Berlin 1,615 968 14.2 12.6 Frankfurt/Main 368 1,421 16.9 14.6 Rhine-Mine 303 1,006 13.7 12.0 Rhine Valley South 281 854 13.4 12.4 Rhine Valley
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, the development or the
Slide 31: 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 © 2012 Deutsche Wohnen AG 31