Deutsche Wohnen Se · XETR:DWNI
Deutsche Wohnen — Q1 2009 Earnings Presentation
24 slides from Deutsche Wohnen's earnings presentation, May 28, 2009
Slide 1: First Quarter 2009 Conference Call
First Quarter 2009 Conference Call 28 May 2009
Slide 2: Agenda
» Agenda Operational and Financial Update Outlook Appendix 2
Slide 3: Operational Update Q1 2009
» Operational Update Q1 2009 Core Portfolio Rental business Rents up by 2.1% to 5.25 €/sqm in Q1 2009 (Q-o-Q) on track Vacancy reduction from 4.7% to 3.7% in Q1 2009 (Q-o-Q) Total units sold: 1,040 Sales proceeds: €31.8m Sales (notarised) Privatisation Units sold: 205 (500 units stated annual privat
Slide 4: Portfolio Overview as of 31 March 2009
» Portfolio Overview as of 31 March 2009 Apartments Commercial Parking Units Rental area Rent Vacancy Units Rental area Units # ‘000s sqm €/sqm % # ‘000s sqm # Core portfolio 33,788 2,038 5.25 3.7% 382 70 8,051 Berlin 22,757 1,369 5.04 3.0% 270 37 1,855 Frankfurt/Main 3,661 217 6,71 3.4% 43 17 1,825
Slide 5: Business Performance Q1 2009
» Business Performance Q1 2009 Property Management Vacancy in % Rents in € per sqm Market rent Q1 2008 Q1 2009 ∆ Q1 2008 Q1 2009 ∆ €/sqm Underrented Own portfolio 6.8 5.9 -13% 5.01 5.11 2.0% - - Core portfolio 4.7 3.7 -21% 5.14 5.25 2.1% 5.90 12.4% Cluster A 4.1 3.3 -20% 5.23 5.33 1.9% 5.80 8.8% Clu
Slide 6: Business Performance Q1 2009 - Sales
» Business Performance Q1 2009 Sales (notarised) Sales Transaction Fair value Disposal gain 1 (notarised) volume units €m €m €m Privatisation 205 16.2 12.3 3.9 Bloc sales 835 15.6 15.2 0.4 Total 1,040 31.8 27.5 4.3 Recent disposal successes Q1 2009 Privatisations (units): 59 2 Gross proceeds €4.6m p
Slide 7: Financial Result Q1 2009
» Financial Result Q1 2009 Stable Result from Rental Q1 Q1 Change € million 2008 Business despite disposal of 2008 2009 Q-o-Q 1,800 apartments due to rent Result from increases and reduced 147.8 39.3 39.0 -0.3 vacancy rates Rental Business Result from Sales 13.2 0.8 0.6 -0.2 Decrease in Corporate Ex
Slide 8: Cash flow Q1 2009
» Cash flow Q1 2009 € million 2008 Q1 2008 Q1 2009 Change Q-o-Q Proceeds from operating 120.7 32.1 39.1 21.8% activities Proceeds from disposals 123.5 12.6 7.3 nm 244.2 44.7 46.4 3.8% Interest payments -107.0 -22.5 -20.6 Investments -28.6 -4.6 -0.8 Cash flow before one-offs 108.6 17.6 25.0 42.0% One
Slide 9: NAV Calculation
» NAV Calculation 31-Dec-2008 31-Mar-2009 NAV per Share €24.5 €25.8 €28.8 €23.8 €25.9 €29.0 81 761 800 81 765 49 82 684 680 646 627 (15) (25) 600 €m 400 200 0 Reported Swap Deferred Swap Tax Liability EK02 Reported Swap Deferred Swap Tax EK02 NAV Valuation Tax Swap Adjusted EK02 Adjusted NAV Valuati
Slide 10: Solid Financing Q1 2009
» Solid Financing Q1 2009 Financial liabilities: €2,073.0m Debt structure Loan-to-value ratio (LTV): 70.1% Available credit lines: €58.0 m Average interest rate: 4.3% Attractive cost of financial debt Average redemption p. a.: 2.0% (excl. sales release payments) 92.3% hedged Average duration: 10 yea
Slide 11: Key figures – Q1 2009
» Key figures – Q1 2009 Portfolio value (€m) 2,894 Gross debt (€m) 2,073 Balance sheet Net debt (€m) 2,032 LTV (%) 70.1 Units total 50,414 of which own properties 47,793 Yield and Gross rental yield (%) 7.1 portfolio NOI yield (%) 5.4 Gross rental yield on EV (%) 8.6 NOI yield on EV (%) 6.5 11
Slide 12: Agenda
» Agenda Operational and Financial Update Outlook Appendix 12
Slide 13: Focus 2009
» Focus 2009 1 Ongoing operational and financial improvement 2 Focus on change of risk profile via de-leveraging 3 Continued disposal programme 4 Ongoing optimisation of business processes 13
Slide 14: Agenda
» Agenda Operational and Financial Update Outlook Appendix 14
Slide 15: FFO Calculation
» FFO Calculation € million Q1 2008 Q1 2009 Net profit -22.7 -2.2 + Depreciation 0.8 0.5 + Changes in market values of investment properties -0.5 0.0 + Changes in market values of derivatives 24.0 0.0 + Non-cash financial expenses 3.5 3.7 - Deferred taxes -0.6 2.9 + Restructuring costs 1.3 4.2 = FFO
Slide 16: Balance Sheet – Assets
» Balance Sheet – Assets € million 31.12.2008 31.03.2009 Investment properties 2,900.7 2,893.5 Other non core assets 23.0 22.6 Deferred tax assets 92.6 104.5 Non current assets 3,016.3 3,020.6 Land and buildings held for sale 19.3 19.4 Receivables from goods and services 21.2 14.2 Other current asse
Slide 17: Balance Sheet – Liabilities
» Balance Sheet – Liabilities € million 31.12.2008 31.03.2009 Total equity 649.3 624.4 Financial liabilities 2,089.2 2,073.0 Tax liabilities 82.3 82.8 Deferred tax liabilities 71.7 76.3 Derivatives 49.3 82.2 Other liabilities 184.9 188.5 Total liabilities 3,126.7 3,127.2 € million 31.12.2008 31.03.2
Slide 18: Revaluation of Portfolio – Assumptions
» Revaluation of Portfolio – Assumptions per December 2008 Valuation method DCF-model based on a clustering (AA-CC) in regions, quality of the property and location Main adjustments in comparison to previous year 2007 2008 on average on average Annual rate of rent increase 2.8% 2.3% Discount rate 5.
Slide 19: Revaluation of Portfolio – Result
» Revaluation of Portfolio – Result per December 2008 Fair Value Fair Value Units Multiple in € m in €/sqm 2008 New Old ∆ New Old Berlin 24,865 1,438 928 1,030 -9.9% 14.6 16.6 Brandenburg 1,857 54 433 492 -12.0% 8.8 10.6 Rhine-Main/ 12,382 846 1,068 1,069 0.0% 15.9 15.6 Lower Rhine-Valley Other Rhin
Slide 20: Business Performance 2008 - Impact of CapEx Measures
» Business Performance 2008 Impact of CapEx Measures Berlin-Zehlendorf, 2006 2008 ∆ Waldsiedlung (Cluster B) in €/sqm in €/sqm in % Net cold rent 4.40 5.29 +20.2 Re-letting rent up Re-letting rent after capex measures 5.45 6.84 +25.5 to €7.79 per sqm Vacancy 0.8% 3.5% Start of capital expenditures m
Slide 21: Shareholder Structure
» Shareholder Structure Attributed to the notifier, According to last shareholder with more WpHG notification Shareholder's Name than 3% Shares % Oaktree OCM Funds 6,388,000 24.20% Zurich Deutscher Herold Deutsche Asset Management Lebensversicherung AG 1,517,500 5.75% (ZDHL) Arnhold and S. Bleichroe
Slide 22: Key drivers of the German residential market
» Key drivers of the German residential market House price across Europe & US Housing remains relatively cheap 240 150 Rebased (1990 = 100) Rebased (2001 = 100) 140 200 130 160 120 110 120 100 80 90 2001 2002 2003 2004 2005 2006 2007 2008 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 Germany UK
Slide 23: 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 24: Deutsche Wohnen AG
Deutsche Wohnen AG Head Office Berlin Office Mainz Office Pfaffenwiese 300 Mecklenburgische Straße 57 Rhabanusstraße 3 65929 Frankfurt am Main 14197 Berlin 55118 Mainz tel: +49 (0)30 897 86 0 tel: +49 (0)6131 4800 301 deutsche-wohnen.com fax: +49 (0)30 897 86 191 fax: +49 (0)6131 4800 4441 © 2009 De