Deutsche Wohnen Se · XETR:DWNI
Deutsche Wohnen — Q1 2014 Earnings Presentation
28 slides from Deutsche Wohnen's earnings presentation, May 14, 2014
Slide 1: Deutsche Wohnen AG Q1 2014 results
Deutsche Wohnen AG » Q1 2014 results Conference Call, 14 May 2014 1
Slide 2: Agenda
» Agenda 1 Highlights Q1-2014 2 Portfolio development & operations 3 Financials 4 Outlook 5 Q&A 2
Slide 3: Highlights Q1-2014
‘ ) a Deutsche Wohnen » Highlights Q1-2014 deutsche-wohnen.com
Slide 4: Highlights Q1-2014
» Highlights Q1-2014 Very strong like for like rental growth +3.5% (Letting Portfolio Core+ and Core)1) Operations Significantly increased NOI / sqm / month EUR 4.33 sqm (+5.1%) (y-o-y) Value creation by strong privatisation business 52% gross margin above book value2) Successful institution
Slide 5: Portfolio development and operations
» Portfolio development and operations 5
Slide 6: Strong earnings and cash contributions from letting
» Strong earnings and cash contributions from letting in EUR m Q1-2014 Q1-2013 In-place rent: Q1-14: EUR 5.58 / sqm Current gross rental income 157.0 83.3 Non-recoverable expenses (3.2) (1.3) Earnings Maintenance1) from letting: Rental loss (2.5) (1.1) Q1-14: EUR 7.38 /sqm + EUR Maintenance (17.2) (
Slide 7: Overview of portfolio as at March 2014
» Overview of portfolio as at 31 March 2014 1) 31/03/2014 Residential Share in Area In-place Vacancy Fair Share in Fair Multiple Yield Multiple Yield 2) 3) 4) units terms of rent Value terms Value in-place market units K sqm of Fair Value rent rent # % EUR/sqm % EUR m % EUR/sqm % % Total 148,797 100
Slide 8: Pro forma like for like overview of portfolio as at March 2014
» Pro forma like for like overview of portfolio as at 31 March 2014 In-place rent (like-for-like) and vacancy (like-for-like) Like-for-like Residential units In-place In-place in % Vacancy Vacancy 1) 1) 31/03/2014 rent rent 31/03/2014 31/03/2013 # 31/03/2014 31/03/2013 EUR/sqm EUR/sqm y-o-y in % in
Slide 9: Dynamic rent potential in Core+ regions
» Dynamic rent potential in Core+ regions (letting portfolio) 1) 3) New-letting rent in New-letting In-place rent in EUR/sqm Rent potential EUR/sqm2) contracts4) Core+ 5.69 24.6% 7.09 2,340 Greater 5.57 22.3% 6.81 1,979 Berlin Rhine- 7.04 26.3% 8.89 301 Main Rhineland 6.50 25.7% 8.17 60 Current te
Slide 10: Focused and sustainable investments in the portfolio
» Focused and sustainable investments in the portfolio Maintenance and modernisation Q1-2014 Q1-2013 EUR m EUR/sqm1) EUR m EUR/sqm1) Maintenance 17.2 7.38 8.4 6.48 Modernisation 7.9 3.39 1.0 0.77 Total 25.1 10.76 9.4 7.25 10.76 9.91 2.44 7.25 3.39 We continue to target a high level for 0.77 mainte
Slide 11: NAV contribution by strong disposal business
» NAV contribution by strong disposal business Closed in EUR m Q1-2014 Q1-2013 Free cash flow from sales Sales proceeds 86.4 32.1 activities of ca. EUR 45m (520 closed privatisation units and 982 Cost of sales (3.0) (2.0) closed units institutional sales) Net sales proceeds 83.4 30.1 Carrying amou
Slide 12: Signed units for privatisation business & non-core disposals
» Signed units for privatisation business & non-core disposals Signed with Units Transaction Fair value Gross Margin expected closing volume 1) in 2014 # EUR m EUR m EUR m %2) Ongoing and successful focus on disposals in Privatisation 1,082 92.7 62.4 30.3 49% none-core regions Institutional sales
Slide 13: Nursing and Assisted Living − increasing FFO contribution
» Nursing and Assisted Living − increasing FFO contribution in EUR m Q1-2014 Q1-2013 31/03/2014 Facilities Places Income Greater Berlin 12 1,442 Nursing 13.7 11.8 Saxony 7 475 Living 1.5 0.5 Others 2 257 Other 1.6 1.0 In total 21 2,174 Total income 16.8 13.3 Costs Average Occupancy Nursing and corpo
Slide 14: Financials
» Financials deutsche-wohnen.com . ) Deutsche Wohnen 14
Slide 15: Adjusted EBITDA increased by ~ EUR 61m / + 93% (y-o-y)
» Adjusted EBITDA increased by ~ EUR 61m / + 93% (y-o-y) in EUR m Q1-2014 Q1-2013 Earnings from Residential Property Management 131.7 70.9 Earnings from Disposals 15.8 5.5 Earnings from Nursing and Assisted Living 4.2 3.1 Segment contribution margin 151.7 79.5 Cost Ratio1) Corporate expenses (22.8)
Slide 16: Adjusted EBT increased by ~ 113% (y-o-y)
» Adjusted EBT increased by ~ 113% (y-o-y) in EUR m Q1-2014 Q1-2013 in EUR m Q1-2014 Q1-2013 EBITDA (adjusted) 126.7 65.7 Interest expenses (47.1) (27.4) Non-cash interest expenses (5.2) (2.9) Depreciation (1.6) (1.3) 2) 3) (52.3) (30.3) Financial result (net) (52.0) (30.1) Interest income 0.3 0.2 E
Slide 17: Recurring FFO per share performance +5% (y-o-y)
» Recurring FFO per share performance +5 % (y-o-y) in EUR m Q1-2014 Q1-2013 FFO development in EUR m Profit 45.5 26.2 22.2 36.4 74.4 Earnings from Disposals (15.8) (5.5) Depreciation 1.6 1.3 15.3 Valuation SWAP and Convertible Bond 16.7 0.2 Non-cash financial expenses 5.2 2.9 Deferred taxes 5.4 5.3
Slide 18: Balance sheet – Assets
» Balance sheet – Assets in EUR m 31/03/2014 31/12/2013 Investment properties 8,907.8 8,937.1 Other non-current assets 551.4 552.2 Derivatives 0.2 2.7 Deferred tax assets 282.9 280.5 Non current assets 9,742.3 9,772.5 Land and buildings held for sale 91.6 97.1 Trade receivables 22.3 29.8 Other curre
Slide 19: Balance sheet – Equity and Liabilities
» Balance sheet – Equity and Liabilities in EUR m 31/03/2014 31/12/2013 Total equity 3,977.8 3,944.3 Equity in EUR m 31/03/2014 Financial liabilities 5,032.1 5,154.6 + Profit 45.5 - Cash flow hedge 11.3 Convertible 256.4 250.2 - Pensions 0.7 Tax liabilities 68.5 62.6 Deferred tax liabilities 355.4 3
Slide 20: EPRA NAV per share up by 1.6%
» EPRA NAV per share up by 1.6% in EUR m 31/03/2014 31/12/2013 in EUR m 31/03/2014 31/12/2013 Equity (before non-controlling EPRA NAV per share in EUR 3,810.1 3,777.8 14.22 13.99 interests) (undiluted) Fair value adjustment of Adjusted NAV per share in 6.0 (2.2) 12.50 12.27 convertible bond EUR (und
Slide 21: Outlook
» Outlook deutsche-wohnen.com ‘ ) a Deutsche Wohnen 21
Slide 22: Guidance 2014 (unchanged)
» Guidance 2014 (unchanged) FFO (w/o disposals): min. EUR 210m FFO expected 1 EUR 203m considering 8% minority share = EUR 0.71 per share (+9.2% growth) 2 Dividend policy: 60% of FFO (w/o disposals) = EUR 0.42 per share (+23.5% growth) 3 Synergies: EUR 15m to be generated in 2014, thereof EUR 10m
Slide 23: Q&A
»Q&A deutsche-wohnen.com vr) a Deutsche Wohnen 23
Slide 24: Appendix
» Appendix deutsche-wohnen.com ‘ ) a Deutsche Wohnen 24
Slide 25: LTV at 56.5%; low average interest rate ~ 3.36%
» LTV at 56.5%; low average interest rate ~ 3.36% Financial liabilities in EUR m Mark-to-market 5,288.5 Debt structure LTV (%) 56.5% Nominal value 5,379.0 LTV (%) 57.5% Avg. interest rate incl. Convertible bond: ~ 3.36% Avg. mandatory redemptions p.a.: ~ 1.6% Debt service Avg. weighted maturit
Slide 26: Details on regions of portfolio as at March 2014
» Details on regions of portfolio as at 31 March 2014 31/03/2014 Residential Share in terms Commercial Parking units of units Area In-place rent 1) Vacancy units spaces # in % k sqm EUR/sqm in % # # Total 148,797 100% 9,040 5.58 2.6% 2,098 31,408 Strategic core and growth regions 145,979 98% 8,860 5
Slide 27: 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 28: Deutsche Wohnen AG Pfaffenwiese 300 65929 Frankfurt/ Main
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 © 2014 Deutsche Wohnen AG 28