DGAP-News: Deutsche Wohnen AG: Group earnings 2013 - Deutsche Wohnen continues to expand its market position

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DGAP-News: Deutsche Wohnen AG / Key word(s): Final Results
Deutsche Wohnen AG: Group earnings 2013 - Deutsche Wohnen continues to
expand its market position

28.03.2014 / 07:05

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Group earnings 2013
Deutsche Wohnen continues to expand its market position

» Consolidated profit increased by 46 % to EUR 212.7 million
» FFO (without disposals) enhanced by 68 % to EUR 114.5 million
» FFO forecast of at least EUR 210 million for 2014

Frankfurt/Main and Berlin, 28 March 2014. With a consolidated profit of EUR
212.7 million Deutsche Wohnen increased its result for the financial year
2013 by 46 %. Adjusted earnings before taxes rose by around 68 % to EUR
131.9 million (previous year: EUR 78.5 million). Contributory factors to
the increase include the residential holdings acquired in recent years and
the realisation of the corresponding economies of scale.
 
The essential key figure Funds from Operations (FFO, without disposals)
rose in comparison to the previous year by just under 68 % to EUR 114.5
million (previous year: EUR 68.2 million). Calculated per share, the FFO
increased by around 20 % from EUR 0.54 to EUR 0.65. As at the reporting
date, the Loan-to-Value Ratio (LTV) was approximately 57.3 % (31 December
2012: 57.2 %). The intrinsic value of the company, measured as EPRA NAV
(undiluted), increased in the reporting period to EUR 13.99 per share (31
December 2012: EUR 12.48 per share).

Strong operational development

In its Core+ regions Deutsche Wohnen (stand-alone) was able to achieve
rental growth of 4.2 % on a like-for-like basis, with a vacancy rate of
just 1.2 %. Here the company is benefiting from rising demand for housing
in German conurbations and metropolitan regions.
 
Further concentration of portfolio

In the reporting year Deutsche Wohnen increased its residential holdings
from just under 83,000 to over 150,000. With the acquisitions it was
possible to strengthen the Core+ regions in particular.
 
"The acquisition of GSW was the highlight of Deutsche Wohnen's growth story
to date and the logical consequence in the context of our strategic and
focused expansion course. We have demonstrated our ability to integrate
acquisitions many times in recent years. We have continuously developed the
efficiency and capacity of our corporate structures and work processes, so
we are now in a position to integrate a company like GSW and to realise
joint synergies," explains Michael Zahn, Chief Executive Officer of
Deutsche Wohnen AG.

Because of the company's focused growth strategy 79 % of the total
portfolio is located in Core+ regions and 19 % in Core regions. 72 % of the
holdings are located in Berlin alone - the most dynamic residential
property market in Germany.

High visibility on the capital markets

With a market capitalisation of around EUR 4 billion Deutsche Wohnen is one
of the leading listed real estate companies today in Germany and Europe. At
the same time, it has the highest share liquidity of all German property
companies. As at 31 December the share price was EUR 14.04.

Because of the improved earnings power of Deutsche Wohnen the dividend
planned for 2013 will rise to EUR 57.4 million. "For the 2014 dividend we
intend to increase the pay-out ratio from 50 % to 60 % of recurring FFO
(without disposals). This corresponds to an increase of around 24 % to EUR
0.42 per share. Thereby we want our shareholders to participate to an even
greater extent in the success of Deutsche Wohnen," says Zahn.

Considerable synergy effects following integration of GSW

Following the acquisition of around 70,000 units in 2013 the takeover and
the integration of these portfolios are the primary objective in the
financial year 2014. In all of this, the integration of GSW with its
structures and processes has the highest priority. The task here is to
generate the anticipated synergies of EUR 25 million p.a. within the next
two years. In 2014 alone we intend to achieve synergies of EUR 15 million,
of which EUR 10 million are to be recorded in the profit and loss statement
of the Group for 2014. In this way, Deutsche Wohnen will further expand its
position as a cost leader. Following completion of the integration process
it is aiming for a cost ratio of below 13 % from 2016.
 
For the financial year 2014 Deutsche Wohnen anticipates an FFO (without
disposals) of at least EUR 210 million, including its most recent
acquisitions. Taking an 8 % minority interest in GSW into consideration,
the FFO (without disposals) in 2014 is expected to be approximately EUR 203
million or EUR 0.71 per share.


Deutsche Wohnen

Deutsche Wohnen is one of the largest publicly listed residential property
companies in Germany and Europe with a business focus on managing and
developing its residential property portfolio. As at 31 December 2013 the
portfolio comprises a total of 152,365 units, of which 150,219 are
residential units and 2,146 are commercial properties. The company is
listed in the Deutsche Börse's MDAX and is also included in the leading
indices EPRA/NAREIT and GPR 250.


Contact:
+49 (0)30 / 89786 - 551 


End of Corporate News

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28.03.2014 Dissemination of a Corporate News, transmitted by DGAP - a
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Language:    English                                               
Company:     Deutsche Wohnen AG                                    
             Pfaffenwiese 300                                      
             65929 Frankfurt                                       
             Germany                                               
Phone:       +49 (0)30 89786-0                                     
Fax:         +49 (0)30 89786-507                                   
E-mail:      ir@deutsche-wohnen.com                                
Internet:    http://www.deutsche-wohnen.com                        
ISIN:        DE000A0HN5C6, DE000A1X3R56, DE0006283302,             
WKN:         A0HN5C, A1X3R5, 628330                                
Indices:     MDAX                                                  
Listed:      Regulierter Markt in Frankfurt (Prime Standard);      
             Freiverkehr in Berlin, Düsseldorf, Hamburg, München,  
             Stuttgart                                             
 
 
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