Deutsche Wohnen Se · XETR:DWNI
Deutsche Wohnen — FY2012 Earnings Presentation
45 slides from Deutsche Wohnen's earnings presentation, Mar 26, 2013
Slide 1: Full year results 2012
Deutsche Wohnen AG » Full year results 2012 Conference Call, 26 March 2012 1
Slide 2: Agenda
» Agenda 1 Key figures 2012 2 Development of business segments / financial performance and position 3 Guidance 2013, integration and further outlook 4 Q&A 2
Slide 3: Key figures 2012
. ) a Deutsche Wohnen » Key figures 2012 deutsche-wohnen.com
Slide 4: Key figures 2012
» Key figures 2012 • Adjusted EBT EUR 78.5m + 71% Results • Recurring FFO (w/o disposals) EUR 68.2m + 44% (y-o-y) • EPRA NAV 12.48 EUR/share + EUR 0.98 per share 1) • LTV 57.2% • Strategic core and growth regions (letting portfolio) • In-place rent 5.54 EUR/sqm like-for-like: + 2.6% • Vacancy 1.8% R
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 39m / + 27% (y-o-y)
» Adjusted EBITDA increased by ~ EUR 39m / + 27% (y-o-y) in EUR m 2012 2011 Earnings from Residential Property Management 194.4 157.4 Earnings from Disposals 19.9 10.6 Earnings from Nursing and Assisted Living 9.9 9.2 Segment contribution margin 224.2 177.2 Corporate expenses -40.4 -32.9 Other opera
Slide 7: a) Segment – Residential Property Management
a) Segment – Residential Property Management 7
Slide 8: Ongoing increased earnings and cash contribution from letting
» Ongoing increased earnings and cash contribution from letting in EUR m 2012 2011 Current gross rental income 240.1 196.4 Earnings Non-recoverable expenses -4.1 -5.8 from letting: Rental loss -3.0 -1.9 Maintenance -34.7 -29.6 + EUR 37.0m Others -3.9 -1.7 Earnings from Residential Property Managemen
Slide 9: 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 Residential Share in Area Fair Share in Fair Multiple Multiple 31/12/2012 units terms of Value terms of Value in-place market units Fair Value rent rent # % k sqm EUR m % EUR/sqm Total 72,416 100% 4,425 4,3
Slide 10: 70% of total Fair Value is located in core+ regions: our 'stars'
» 70% of total Fair Value is located in core+ regions: our ‘stars’ Residential Share in Area Fair Share in Fair Multiple Multiple 31/12/2012 units terms of Value terms of Value in-place market units Fair Value rent rent # % k sqm EUR m % EUR/sqm + Core 45,857 63% 2,731 3,036 70% 1,080 15.3 13.0 Lett
Slide 11: 26% of total Fair Value is located in core regions: our 'cash cows'
» 26% of total Fair Value is located in core regions: our ‘cash cows’ Residential Share in Area Fair Share in Fair Multiple Multiple 31/12/2012 units terms of Value terms of Value in-place market units Fair Value rent rent # % k sqm EUR m % EUR/sqm Core 21,724 30% 1,383 1,111 26% 785 12.7 11.7 Letti
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 ∆ in % (like-for-like) units EUR/sqm in % 31/12/2012 31/12/2011 y-o-y 31/12/2012 31/12/2011 Strategic core and growth regions 42,353 5.78
Slide 13: Strong like-for-like development since GEHAG merger
» Strong like-for-like development since GEHAG merger Total portfolio Letting portfolio core+ regions In-place rent (EUR/sqm) In-place (EUR/sqm) Vacancy Vacancy Comprises ~ 40,600 units under management since Dec 07 Comprises ~ 28,400 units under management since Dec 07 Avg. growth of in-place rent
Slide 14: Strong like-for-like development since GEHAG merger
» Strong like-for-like development since GEHAG merger Letting portfolio core regions Letting portfolio Greater Berlin In-place rent (EUR/sqm) In-place (EUR/sqm) Vacancy Vacancy Comprises ~ 7,800 units under management since Dec 07 Comprises ~ 21,100 units under management since Dec 07 Avg. growth of
Slide 15: Focused and sustainable investments
» Focused and sustainable investments … Maintenance and modernisation 2012 2011 1) 1) EUR m EUR/sqm EUR m EUR/sqm Signed rent increases in 2012 with a Maintenance 34.7 9.68 29.6 9.81 full year effect of EUR 4.8m Ongoing & small-scale 23.4 6.65 19.6 6.85 maintenance thereof EUR 2.9m result from Relet
Slide 16: … allow us to achieve market rents
» … allow us to achieve market rents Rent potential 31/12/2012 31/12/2011 Letting portfolio New-letting In-place Rent New-letting Rent ∆ Rent excluding BauBeCon rent 2) rent 1) potential 3) rent 2) potential 3) potential 3) + Core 7.16 5.89 21.6% 6.91 20.4% 5.8% Greater Berlin 6.65 5.62 18.3% 6.41 1
Slide 17: b) Segment – Disposals
b) Segment — Disposals deutsche-wohnen.com ) a Deutsche Wohnen 17
Slide 18: Ongoing strong privatisation business
» Ongoing strong privatisation business Transaction Privatisation 2012 Units Fair Value Margin (units and transaction volume) volume # EUR m EUR m EUR m % volume in 56.8 78.1 115.4 EUR m Privatisation 1,623 115.4 86.3 29.1 34% 1,600 Institutional sales 1,377 52.4 49.8 2.6 5% thereof non-core 1,233 3
Slide 19: c) Segment – Nursing and Assisted Living
c) Segment – Nursing and Assisted Living 19
Slide 20: Nursing and Assisted Living – stable EBITDA contribution
» Nursing and Assisted Living – stable EBITDA contribution in EUR m 2012 2011 Income Average occupancy Nursing 36.4 33.6 Living 2.0 2.7 Other 3.6 3.8 Total income 42.0 40.1 Costs Nursing and corporate expenses -11.3 -11.5 Staff expenses -20.8 -19.4 Total costs -32.1 -30.9 Note: Figures for 2010 and
Slide 21: d) Others
d) Others deutsche-wohnen.com . 21
Slide 22: Details on corporate expenses
» Details on corporate expenses in EUR m 2012 2011 Staff expenses -23.6 -20.3 Holding Company function -9.1 -7.0 Asset Management/Disposals -2.0 -2.2 Property Management -12.5 -11.1 General and administration expenses -12.7 -12.6 Property Management (external management BauBeCon) -4.1 0.0 In total -
Slide 23: Adjusted EBT increased by 71% (y-o-y)
» Adjusted EBT increased by 71% (y-o-y) in EUR m 2012 2011 1) EBITDA (adjusted) 180.6 142.0 Adjusted EBITDA increased by ~ EUR 39m Depreciation -3.1 -3.0 thereof ~ EUR 37m attributable to increasing Financial result (adjusted, net) -99.0 -93.0 earnings from letting and ~ EUR 9m to EBT (adjusted) 78.
Slide 24: Strong recurring FFO performance in 2012: 44% (y-o-y)
» Strong recurring FFO performance in 2012: 44% (y-o-y) in EUR m 2012 2011 Profit 145.5 50.6 Earnings from Disposals -19.9 -10.6 Depreciation 3.1 3.0 100.00 FFO (incl. 45.8 58.1 88.1 Fair value adjustments of investment properties -119.2 -40.0 0.0 disposals) Valuation SWAP 0.2 0.2 in EUR m 80.00 19.
Slide 25: e) Balance Sheet
e) Balance Sheet deutsche-wohnen.com . 25
Slide 26: Balance sheet – Assets
» Balance sheet – Assets in EUR m 31/12/2012 31/12/2011 Increase mainly due to closing of Investment properties 4,614.6 2,928.8 acquisitions Other non current assets 24.1 21.7 Deferred tax assets 80.7 63.0 Non current assets 4,719.4 3,013.5 Trade receivables 31/12/2012 Rental business 7.9 Land and b
Slide 27: Details on fair value adjustments of investment properties
» Details on fair value adjustments of investment properties Before Fair Value adjustments of investment Fair Value After Fair Value adjustments of investment properties adjustment properties Fair Value Fair Value Multiple Multiple Fair Value Fair Value Fair Value Multiple Multiple in-place rent mar
Slide 28: Balance sheet – Equity and Liabilities
» Balance sheet – Equity and Liabilities Equity 31/12/2012 + Profit EUR 145.5 - Cash flow hedge EUR -39.8 - Pensions EUR -5.5 in EUR m 31/12/2012 31/12/2011 + Net proceeds (less tax effect) from capital increase EUR 449.6 Total equity 1,609.7 1,083.4 - Dividend EUR -23.5 Financial liabilities 2,768.
Slide 29: LTV at 57.2%; low average interest rate: 3.7%
» LTV at 57.2%; low average interest rate: 3.7% Financial liabilities in EUR m Mark-to-market 2,768.6 Debt structure LTV (%) 57.2% Nominal value 2,872.8 LTV (%) 59.5% ▪ Average interest rate: ~ 3.7% ▪ Average mandatory redemption p.a.: ~ 1.7% Debt service ▪ Average weighted maturity: ~ 7.9 years ▪ I
Slide 30: Guidance 2013, integration and further outlook
» Guidance 2013, integration and further outlook 30
Slide 31: FFO Guidance 2013
» FFO Guidance 2013 1) Base case 2013, i.e. w/o consideration of further acquisitions Earnings from Residential Earnings from Nursing Earnings from Disposals Property Management and Assisted Living Significant increase in earnings to Earnings increase to Privatisation: ~ 1,000 units ~ EUR 264m (+27%
Slide 32: Compelling recurring FFO development since 2010
» Compelling recurring FFO development since 2010 FFO (w/o disposals) in EUR m + 61% + 106% 1) 1) 1) Business plan: base case w/o consideration of further acquisitions 32
Slide 33: Status quo of integration: well on track
» Status quo of integration: well on track accomplished 2012 2013 Major acquisitions October November December January February … April May June Integration Signing of Official BauBeCon of entire Integration of termination Integration of termination (~23,400 units) operating remaining agreement 10,5
Slide 34: Further acquisition outlook
» Further acquisition outlook We will continue our growth strategy in residential real estate which is based on selective investments focused on portfolios in attractive metropolitan areas › Focus on existing strategic core and growth regions as well as opportunities to expand total residential port
Slide 35: Q&A
»Q&A deutsche-wohnen.com . 35
Slide 36: Appendix – Details on new acquisition
» Appendix – Details on new acquisition 36
Slide 37: Details on acquisition of 5,200 units in Berlin
» Details on acquisition of 5,200 units in Berlin (disclosed in January 2013) Units Area Residential Residential Signing in-place rent vacancy # k sqm EUR/ sqm % Berlin ~ 5,200 ~ 331 4.65 2.6% December 2012 Located in the city of Berlin Current gross rental income: EUR 18.7m Net initial yield (curre
Slide 38: Appendix - Other
» Appendix - Other deutsche-wohnen.com . ) a Deutsche Wohnen 38
Slide 39: NOI performance continuously increasing
» NOI performance continuously increasing + 8.3% In-place rent in EUR per sqm and month 1) + 13.0% NOI in EUR per sqm and month 2) NOI Margin 1) Current gross rental income divided by months of the period and average floor space on quarterly basis in the period under review; BauBeCon floor space for
Slide 40: Overview of portfolio as at 31 December 2012
» Overview of portfolio as at 31 December 2012 Incl. transfer of risks and Residential Share in Area In-place Vacancy Commercial Parking units terms of units 1) units spaces rewards 1 January and rent 1 February 2013 # % k sqm EUR/sqm % # # Total 82,738 100% 5,066 5.49 2.5% 961 21,029 Strategic core
Slide 41: Details on regions of portfolio as at 31 December 2012
» Details on regions of portfolio as at 31 December 2012 Incl. transfer of risks and Residential Share in Area In-place Vacancy Commercial Parking units terms of units 1) units spaces rewards 1 January and rent 1 February 2013 # % k sqm EUR/sqm % # # Total 82,738 100% 5,066 5.49 2.5% 961 21,029 Stra
Slide 42: Overview of portfolio as at 31 December 2011 (for reconciliation)
» Overview of portfolio as at 31 December 2011 (for reconciliation) For reconciliation purpose, last reported portfolio as at 31 December 2011 in our newly used portfolio cluster Incl. transfer of risks and Residential Share in Area In-place Vacancy Commercial Parking units terms of units 1) units s
Slide 43: Details on regions of portfolio as at 31 December 2011 (for reconciliation)
» Details on regions of portfolio as at 31 December 2011 (for reconciliation) Incl. transfer of risks and Residential Share in Area In-place Vacancy Commercial Parking units terms of units 1) units spaces rewards 1 and 2 January rent 2012 # % k sqm EUR/sqm % # # Total 50,626 100% 3,076 5.57 2.4% 477
Slide 44: 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 45: 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 45