Deutsche Wohnen Se · XETR:DWNI

Deutsche Wohnen — Q3 2010 Earnings Presentation

24 slides from Deutsche Wohnen's earnings presentation, Nov 29, 2010

  1. Slide 1: Deutsche Wohnen AG Q1-Q3 2010 results

    Deutsche Wohnen AG » Q1-Q3 2010 results Conference Call, 29 November 2010 1 1

  2. Slide 2: Agenda

    » Agenda 1. Highlights 2. Operating development 3. Financials 4. Current shareholder structure 5. Forecast 2

  3. Slide 3: 1 Highlights

    | Deutsche Wohnen » @ Highlights deutsche-wohnen.com

  4. Slide 4: Ongoing successful and positive business development

    » Ongoing successful and positive business development Operating business Increase of in-place rent by 2.3% to EUR 5.43 per sqm (Sep08-Sep10: 5.0%) Vacancy reduction by 18% to 2.7% in core-portfolio Increase of market-rent, i.e. new letting-rent, by 2.6% to EUR 6.42 per sqm (Sep08-Sep10: 8.1%) Notar

  5. Slide 5: 2 Operating development

    | Deutsche Wohnen » @ Operating development deutsche-wohnen.com

  6. Slide 6: EBITDA increased by 2.0 % y-o-y

    » EBITDA increased by 2.0 % y-o-y EUR m 9m/2010 9m/2009 Revenue 259.2 216.7 Residential property management1 143.1 144.4 Nursing and assisted living 24.7 24.9 Disposals 91.4 47.4 Segment contribution margin 129.3 127.6 Residential property management 113.4 114.3 Nursing and assisted living 7.1 6.6 D

  7. Slide 7: Increasing performance from portfolio

    » Increasing performance from portfolio NOI per sqm EUR m 9m/2010 9m/2009 Current gross rental income 143.1 144.4 Non-recoverable expenses -4.7 -5.7 Rental loss -1.6 -1.7 Maintenance -21.8 -21.1 Others -1.6 -1.6 Earnings of residential property management 113.4 114.3 Personnel, general and administr

  8. Slide 8: Proven rent potential of 18 % in core portfolio

    » Proven rent potential of 18 % in core portfolio Units Area Share In-place Market rent** Vacancy rent* Number k sqm % EUR/sqm EUR/sqm % Berlin 21,277 1,271 58% 5.32 6.11 1.6% Frankfurt/Main 3,656 217 10% 6.88 8.36 1.8% Rhine-Main 3,746 224 10% 5.84 7.26 6.5% Rhine Valley South 4,310 258 12% 4.86 5.

  9. Slide 9: Increased fundamentals generate accelerating rent potential

    » Increased fundamentals generate accelerating rent potential Core portfolio Core portfolio 5.0 % 8.1 % 7.00 7.00 14.9% 17.9% 18.2% 6.50 2.6% 6.50 5.4% 6.00 in €/sqm 6.00 0.99 in €/sqm 6.42 0.95 5.50 2.3% 5.50 0.77 2.7% 6.26 5.43 5.43 5.00 5.00 5.31 5.94 5.31 5.17 5.17 4.50 4.50 In-place rent Market

  10. Slide 10: No structural vacancy in core portfolio

    » No structural vacancy in core portfolio Vacancy Rate (Core Portfolio) Vacancy Structure (Core Portfolio) in % as of 30 September 2010 -43% Number of Units Due to investments Already rented 390 360 -36% 5% 4.7% 4.2% 4% Due to fluctuations 423 3% 2.7% 2% Due to fluctuations: Vacancy due to terminati

  11. Slide 11: Overall disposals – incl. notarised – in 9m/2010

    » Overall disposals – incl. notarised – in 9m/2010 Units Transaction volume Fair value Margin # EUR m EUR m EUR m % Privatisation 657 56.1 41.9 14.2 34% Institutional sales 2,633 102.3 96.8 5.5 6% 3,290 158.4 138.7 19.7 14% > The sales volume in the disposals segment was more than doubled from EUR 7

  12. Slide 12: Acquisition of 1,125 units

    » Acquisition of 1,125 units Acquisitions Units Area In-place rent1 Vacancy Envis. closing # sqm EUR/sqm in% Berlin 745 37,793 4.72 2.1 Jan 11 Potsdam 215 10,927 5.53 0.6 Jan 11 Mainz 165 9,267 6.22 3.6 Oct 10 Total 1,125 57,987 > Overall purchase price: EUR 43.7 million > Overall purchase price cor

  13. Slide 13: 3 Financials

    » © Financials deutsche-wohnen.com Deutsche Wohnen 13

  14. Slide 14: 9m-EBT more than tripled y-o-y to EUR 24.5 m

    » 9m-EBT more than tripled y-o-y to EUR 24.5 m EUR m 9m/2010 9m/2009 > Substantial further reduction of interest expenses as a result of the continuing EBITDA 104.6 102.5* deleveraging process Depreciation -2.4 -2.1 > Taxes affected by higher deferred taxes Financial result (net) -75.3 -85.1 (+ EUR

  15. Slide 15: Significant increase of funds from operations (+35%)

    » Significant increase of funds from operations (+35%) FFO EUR m 9m/2010 9m/2009 + 35% Profit / loss 10.1 -2.5 Depreciation 2.4 2.1 Valuation SWAP 2.4 0.8 37.7 Non-cash financial expenses 11.2 11.1 50 0,50 27.4 Deferred taxes 11.6 8.7 FFO per share € FFO in EUR million 45 0,45 40 0,40 Restructuring

  16. Slide 16: Balance sheet – assets

    » Balance sheet – assets EUR m 09/30/2010 12/31/2009 Unchanged valuation matrix Investment properties 2,740.4 2,835.5 Other non current assets 20.8 22.4 Deferred tax assets 101.6 98.4 Thereof from Non current assets 2,862.8 2,956.3 Rental business € 4.8 m Disposals € 2.4 m Other € 0.8 m Land and bui

  17. Slide 17: Balance sheet – equity and liabilities

    » Balance sheet – equity and liabilities EUR m 09/30/2010 12/31/2009 Total equity 844.9 862.0 Improvement of LTV to 58.8 % Financial liabilities 1,721.7 1,802.7 Tax liabilities 62.8 84.1 Including EK 02: EUR 58.3 million Deferred tax liabilities 83.5 81.4 Derivatives 112.8 70.5 Other liabilities mai

  18. Slide 18: Reduction of LTV to 58.8 %

    » Reduction of LTV to 58.8 % Financial liabilities in EUR m DW stand alone DB 14 Total Mark-to-market 1,617 105 1,722 Debt structure LTV (%) 58.6 61.8 58.8 Nominal value 1,676 157 1,833 LTV (%) 60.8 92.4 62.7 Average interest rate: ~ 4.4 % Debt service Average mandatory redemption p.a.: ~ 2.0 % Inte

  19. Slide 19: 4 Current shareholder structure

    » 4 Current shareholder structure 19

  20. Slide 20: Current shareholder structure

    » Current shareholder structure* » Placement of approx. 9.3m shares by Oaktree Capital Group Holdings GP, LLC 1); Oaktree-funds at the end of October 2010 - 11.35% We expect share-liquidity and- Asset Value Investors 2) Ltd. ; 9.99% turnover to increase, which would Zurich Deutscher increase the MDA

  21. Slide 21: 5 Forecast

    » @ Forecast deutsche-wohnen.com . 21

  22. Slide 22: Substantiation of updated forecast given at H1/2010

    » Substantiation of updated forecast given at H1/2010 » Continued monetisation of rent potential in the core portfolio » Overachievement of target volume of sales of privatisation units from 500 to 550 units with gross margins of 35 %; enhanced use of market opportunities for selective sales in our

  23. 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

  24. Slide 24: Deutsche Wohnen AG offices

    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 © 2010 Deutsche Wohnen AG 24

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