Deutsche Wohnen Se · XETR:DWNI
Deutsche Wohnen — Q1 2011 Earnings Presentation
22 slides from Deutsche Wohnen's earnings presentation, May 12, 2011
Slide 1: Deutsche Wohnen AG Q1 2011 results
Deutsche Wohnen AG » Q1 2011 results Conference Call, 12 May 2011 1
Slide 2: Summary
» Summary deutsche-wohnen.com .
Slide 3: Successful and strong start into 2011
» Successful and strong start into 2011 • 4,300 units acquired last nine months, thereof • 1,800 units closed in 2010 Acquisitions/ • 2,500 units signed in 2011 (April, May) Sustainability • 2,500 new acquisitions are economically advantageous: • Net Initial Yield: 8.1 % • In-place rent core: 5.50 E
Slide 4: Acquisitions/Sustainability
» Acquisitions/Sustainability 4
Slide 5: Accretive purchase of 4,300 units within last nine months
» Accretive purchase of 4,300 units within last nine months Residential Area In-place rent Vacancy Transfer of risks units and rewards # sqm EUR/sqm % Acquisitions 2010 1,808 96,482 5.24 1.5 accomplished Acquisitions scheduled from 2011: Berlin 2,520 150,548 5.14 5.7 Q2/2011 onwards Total 4,328 247,
Slide 6: Performance
. ) a Deutsche Wohnen » Performance deutsche-wohnen.com
Slide 7: Accelerating rents and higher rent potential in core portfolio
» Accelerating rents and higher rent potential in core portfolio Core portfolio1) – rent per sqm/month Core portfolio1) – rent potential 5.2 % 5.4 % 17.2% 16.0% 17.5% 2) 3) 3) Dynamic growth of the average new-letting rent of non-rent restricted core portfolio by EUR 0.22 per sqm to EUR 6.46 per sqm
Slide 8: Strong operating performance continued
» Strong operating performance continued Residential property management: NOI per month per sqm1) 11.3% 4.4% 6.6% 1) NOI: Net Operating Income of the quarter divided by months of the quarter and floor space at the end of the quarter under review 8
Slide 9: Increasing performance and cash contribution from portfolio
» Increasing performance and cash contribution from portfolio EUR m Q1/2011 Q1/2010 Earnings from Current gross rental income 47.7 48.1 letting: Non-recoverable expenses -1.2 -1.6 stable1) Rental loss -0.5 -0.8 Maintenance -5.8 -6.0 Others -0.6 -0.5 Earnings of Residential Property Management 39.6 3
Slide 10: Proven rent potential of 17.5 % in core portfolio
» Proven rent potential of 17.5 % in core portfolio Portfolio overview as of 31 March 2011 Residential Units Area Share In-place New-letting Vacancy rent1) rent2) Number k sqm % EUR/sqm EUR/sqm % Berlin 21,488 1,275 46% 5.37 6.20 1.3% Frankfurt/Main 3,656 217 8% 6.93 8.28 1.5% Rhine-Main 4,283 257 9
Slide 11: Disposals – privatisation: increased margin of 41 %
» Disposals – privatisation: increased margin of 41 % Signed in Q1/2011 Units Transaction volume Fair value Gross margin # EUR m EUR m EUR m % Privatisation 306 25.3 18.0 7.3 41% Institutional sales 1,032 32.7 32.6 0.1 0% 1,338 58.0 50.6 7.4 15% Privatisation (i.e. sale of individual apartments): ›
Slide 12: Improved earnings in Nursing and Assisted Living
» Improved earnings in Nursing and Assisted Living Q1/2011 Q1/2010 EUR m EUR m Income Nursing 8.5 8.1 Living 0.8 0.8 Other 0.9 0.9 10.2 9.8 Costs Nursing and corporate expenses -2.7 -2.8 Personnel expenses -4.8 -4.8 -7.5 -7.6 Earnings (EBITDA) 2.7 2.2 Improved earnings of EUR 2.7 m in Nursing and As
Slide 13: Results
» Results deutsche-wohnen.com . 13
Slide 14: Adjusted EBT increased y-o-y to EUR 14.0 m
» Adjusted EBT increased y-o-y to EUR 14.0 m (+ 54 %) Further reduction of interest expenses as a EUR m Q1/2011 Q1/2010 result of the debt structure optimisation in EBITDA 37.3 34.5 2010 Depreciation -0.8 -0.7 Taxes mainly affected by higher deferred Financial result (net, adjusted) -22.5 -24.6 taxe
Slide 15: FFO (w/o sales) almost doubled in the last two years
» FFO (w/o sales) almost doubled in the last two years FFO-calculation FFO1) + 100% EUR m Q1/2011 Q1/2010 + 29% Profit / loss 8.5 5.2 17.9 EUR m Earnings from Disposals -2.7 -0.6 Depreciation 0.8 0.7 0.22 13.7 Valuation SWAP -0.2 0.4 9.0 0.17 Non-cash financial expenses 3.5 3.7 EUR per share Deferre
Slide 16: Balance sheet – assets
» Balance sheet – assets EUR m 31/03/2011 31/12/2010 Investment properties 2,806.7 2,821.0 Unchanged valuation matrix Other non current assets 20.3 20.5 Derivatives 12.1 9.2 Deferred tax assets 67.2 78.7 Non current assets 2,906.3 2,929.4 Thereof from 31/03/2011 Rental business EUR 3.2m Land and bui
Slide 17: Balance sheet – equity and liabilities
» Balance sheet – equity and liabilities EUR m 31/03/2011 31/12/2010 + Profit: EUR 8.5m + Cash flow hedge EUR -19.0m Total equity 917.3 889.9 Improvement of LTV to 60.1 % Financial liabilities 1,756.5 1,784.5 Tax liabilities 65.2 63.9 Including EK 02: EUR 58.4m Deferred tax liabilities 94.4 92.0 Der
Slide 18: LTV at 60.1 %, average interest rate at 4.0 %
» LTV at 60.1 %, average interest rate at 4.0 % Financial liabilities in EUR m DW stand alone DB 14 Total Mark-to-market 1,653 104 1,757 Debt structure LTV (%) 60.1 61.2 60.1 Nominal value 1,709 155 1,864 LTV (%) 62.2 91.1 63.9 Average interest rate: ~ 4.0 % Debt service Average mandatory redemption
Slide 19: Appendix
» Appendix deutsche-wohnen.com . 19
Slide 20: EBITDA increased by 8.1 % y-o-y
» EBITDA increased by 8.1 % y-o-y EUR m Q1/2011 Q1/2010 Earnings from Residential Property Management 39.6 39.2 Earnings from Disposals 2.7 0.6 Earnings from Nursing and Assisted Living 2.7 2.2 Segment contribution margin 45.0 42.0 Corporate expenses -7.6 -7.4 Other operating expenses/income -0.1 -0
Slide 21: 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 22: 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 22