Deutsche Wohnen Se · XETR:DWNI
Deutsche Wohnen — Q1 2012 Earnings Presentation
27 slides from Deutsche Wohnen's earnings presentation, May 11, 2012
Slide 1: Q1 2012 results
Deutsche Wohnen AG » Q1 2012 results Conference Call, 11 May 2012 1
Slide 2: Highlights Q1/2012
. ) a Deutsche Wohnen » Highlights Q1/2012 deutsche-wohnen.com
Slide 3: Highlights Q1/2012 – Key figures at a glance
» Highlights Q1/2012 – Key figures at a glance • Core letting portfolio • In-place rent: 5.70 EUR/sqm like-for-like: + 3.6% Performance • New-letting rent: 6.89 EUR/sqm + 4.7% • Vacancy: 1.6% like-for-like: - 21% (y-o-y) • NOI in EUR m EUR 39.9m + 11.8% • Net profit: EUR 14.4m + 69% • Adjusted EBT:
Slide 4: Compelling performance in well managed portfolio
» Compelling performance in well managed portfolio 4
Slide 5: Overall portfolio quality: share of core regions further enhanced
» Overall portfolio quality: share of core regions further enhanced 31/03/2012 31/03/2011 Residential Share of total Residential Share of total Residential only units portfolio units portfolio # % # % Core regions 46,889 94% 42,485 90% Letting portfolio 42,641 86% 38,651 82% Privatisation 4,248 8% 3
Slide 6: Well managed portfolio with further growth potential
» Well managed portfolio with further growth potential Share of total Residential Units Area portfolio In-place rent1) New-letting rent2) Vacancy Number k sqm % EUR/sqm EUR/sqm % Total 49,822 3,025 5.60 6.78 2.3% Core regions 46,889 2,842 94% 5.65 6.90 2.0% Letting portfolio 42,641 2,566 86% 5.66 6.
Slide 7: Compelling like-for-like rental growth and increasing rent potential
» Compelling like-for-like rental growth and increasing rent potential In-place rent (like-for-like) in EUR/sqm Vacancy (like-for-like) In-place rent1) EUR/sqm ∆ in % Vacancy in % ∆ in % 31/03/2012 31/03/2011 y-o-y 31/03/2012 31/03/2011 y-o-y Letting portfolio in Letting portfolio in core regions 5.
Slide 8: Distribution of in-place rent of letting portfolio
» Distribution of in-place rent of letting portfolio Total letting portfolio 25% 22.2% 20% 16.4% 15% 13.6% 12.1% 10% 8.7% 6.8% 5.2% 5% 4.0% 2.3% 2.9% 1.7% 1.8% 0.9% 0.8% 0.6% 0% < 3.50 3.50 - 4.00 - 4.50 - 5.00 - 5.50 - 6.00 - 6.50 - 7.00 - 7.50 - 8.00 - 8.50 - 9.00 - 9.50 - >= 3.99 4.49 4.99 5.49 5
Slide 9: Increasing earnings and cash contribution from letting
» Increasing earnings and cash contribution from letting EUR m Q1/2012 Q1/2011 Current gross rental income 52.0 47.7 Non-recoverable expenses -0.9 -1.2 Letting Rental loss -0.5 -0.5 + EUR 4.5m Maintenance -5.8 -5.8 Others -0.7 -0.6 Earnings of Residential Property Management 44.1 39.6 Personnel, gen
Slide 10: Strong privatisation business and streamlining in disposal regions
» Strong privatisation business and streamlining in disposal regions Privatisation signed Signed in Q1/2012 Units Transaction Fair value Margin (incl. overhang 2011) volume (units and transaction volume) 1,200 €68.5 m # EUR m EUR m EUR m % 900 €21.4 m €25.3 m Privatisation 1,003 68.5 51.5 17.0 33% u
Slide 11: Nursing and Assisted Living – stable EBITDA contribution
» Nursing and Assisted Living – stable EBITDA contribution Q1/2012 Q1/2011 EUR m EUR m Income Average occupancy Nursing 8.3 8.5 100.0% Living 0.5 0.8 Other 0.8 0.9 98.0% 9.6 10.2 96.0% Costs 94.0% Nursing and corporate ecpenses -2.4 -2.7 96.7% 94.7% Staff expenses -4.6 -4.8 92.0% 93.4% -7.0 -7.5 90.
Slide 12: Improved results and strong financial profile
» Improved results and strong financial profile 12
Slide 13: Adjusted EBT increased by 40% (y-o-y)
» Adjusted EBT increased by 40% (y-o-y) EUR m Q1/2012 Q1/2011 EBITDA increased by ~ EUR 6m mainly due EBITDA 43.1 37.3 to increase in earnings from letting as a result Depreciation -0.7 -0.8 of acquisitions with proven scaling effect, i.e. Financial result (net) -22.8 -22.5 stable cost structure EBT
Slide 14: Strong recurring FFO performance in Q1/2012
» Strong recurring FFO performance in Q1/2012: + 21% (y-o-y) EUR m Q1/2012 Q1/2011 25 22.2 Profit 14.4 8.5 Earnings from Disposals -3.8 -2.7 17.9 4.8 20 Depreciation 0.7 0.8 0.0 Valuation SWAP 0.1 -0.2 +78% 13.7 2.7 Non-cash financial expenses 2.7 3.5 15 1.2 Deferred taxes 4.3 5.3 in EUR m FFO (w/o
Slide 15: FFO per share remained stable y-o-y despite capital increase
» FFO per share remained stable y-o-y despite capital increase in EUR per share Q1/2012 Q1/2011 0.25 0.22 0.22 FFO (w/o disposals) 0.18 0.191) 0.00 0.20 0.16 0.03 0.05 FFO from privatisation 0.05 0.03 0.01 in EUR per share FFO (incl. privatisation) 0.23 0.22 0.15 FFO from institutional sales -0.01 0
Slide 16: Balance sheet – Assets
» Balance sheet – Assets EUR m 31/03/2012 31/12/2011 Unchanged valuation matrix Investment properties 2,981.0 2,928.8 Other non current assets 21.4 21.7 Deferred tax assets 61.0 63.0 Non current assets 3,063.4 3,013.5 Thereof from 31/03/2012 Rental business EUR 3.2m Disposals EUR 4.2m Land and build
Slide 17: Balance sheet – Equity and Liabilities
» Balance sheet – Equity and Liabilities + Profit EUR 14.4m EUR m 31/03/2012 31/12/2011 - Cash flow hedge EUR 3.5m - Pensions EUR 1.2m Total equity 1,093.1 1,083.4 Financial liabilities 1,854.3 1,834.7 LTV at 54.9% Including EK 02: EUR 51.1m Tax liabilities 60.5 58.6 Deferred tax liabilities 96.3 96
Slide 18: LTV at 54.9%; average interest rate: 4.06%
» LTV at 54.9%; average interest rate: 4.06% Financial liabilities in EUR m Mark-to-market 1,854.3 Debt structure LTV (%) 54.9 Nominal value 1,956.8 LTV (%) 58.2 Average interest rate: ~ 4.06 % Average mandatory redemption p.a.: ~ 1.7 % Debt service Average weighted maturity: ~ 9.1 years Interest ra
Slide 19: Forecast 2012
» Forecast 2012 deutsche-wohnen.com . ) a Deutsche Wohnen 19
Slide 20: Forecast 2012
» Forecast 20121) Base case, i.e. w/o consideration of acquisitions in 2012 Residential Property Management Other Significant increase in earnings due to full-year- effect of both acquisitions and rental increases Earnings from Nursing and Assisted Living at in 2011 and rental increase in 2012 (fy-e
Slide 21: Appendix
» Appendix deutsche-wohnen.com . 21
Slide 22: EBITDA increased by EUR 5.8m / + 15.5% (y-o-y)
» EBITDA increased by EUR 5.8m / + 15.5% (y-o-y) EUR m Q1/2012 Q1/2011 Earnings from Residential Property Management 44.1 39.6 Earnings from Disposals 3.8 2.7 Earnings from Nursing and Assisted Living 2.6 2.7 Segment contribution margin 50.5 45.0 Corporate expenses -7.7 -7.6 Other operating expenses
Slide 23: NOI performance continuously increasing
» NOI performance continuously increasing Residential Property Management: Net Operating Income (NOI) per sqm and month1) 10.9 % 4.50 4.30 4.10 EUR/sqm 3.90 6.2 % 4.28 3.70 4.03 4.4 % 3.86 3.50 3.30 Monthly average Monthly average Monthly average Q1/2010 Q1/2011 Q1/2012 1) NOI: Net Operating Income
Slide 24: Valuation of portfolio
» Valuation of portfolio 31/03/2012 Fair value Fair value Multiple Multiple in-place rent market rent EUR m EUR/sqm (x) (x) Core regions 2,853 980 14.4 12.7 Greater Berlin 1,633 966 14.5 12.7 Frankfurt/Main 370 1,421 16.9 14.7 Rhine-Mine 305 1,006 13.9 12.1 Rhine Valley South 282 853 13.5 12.4 Rhine
Slide 25: Portfolio as at 31 March 2011 in current portfolio cluster format
» Portfolio as at 31 March 2011 in current portfolio cluster format In order to compare key figures of the portfolio y-o-y as shown on p. 6, we illustrate the current portfolio cluster format as at 31 March 2011 in the following table: Portfolio overview as at 31 March 2011 Share of total Residentia
Slide 26: 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 27: Deutsche Wohnen AG contact details
Deutsche Wohnen AG Registered Office Berlin Office Pfaffenwiese 300 Mecklenburgische Straße 57 65929 Frankfurt am Main 14197 Berlin Telefon: 030 897 86 551 Telefax: 030 897 86 507 © 2012 Deutsche Wohnen AG 27