Source: EQS Group AG

DGAP-News: Deutsche Wohnen AG: Successful business operations in the first quarter of 2008

Deutsche Wohnen AG / Interim Report

29.05.2008 

Release of a Corporate News, transmitted by DGAP - a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.
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Deutsche Wohnen AG will be presenting its business figures for the first
quarter of 2008 today, 29 May 2008. The Group achieved an EBITDA of EUR
32.9 million, which represents a 15% increase over the first quarter of
2007 (pro forma). In terms of business operations, the first quarter thus
exceeded expectations. In particular, it was possible to increase rents
over the entire portfolio by 2.5%, relative to 31 December 2007. Re-letting
rents exceeded the previous rents by around 15%. With respect to sales, we
achieved an average sales price of EUR 1,366 per m². These prices exceeded
the fair value by 33%.

At EUR -22.7 million, the result for the period is negative only as a
result of adjusting the valuation of the interest rate swaps (EUR -24
million), which did not affect liquidity.


Details of the results: 

Development of rents continues positive trend

  - In the period under review, 1,346 new lease agreements (not subject to
    rent controls) were concluded at an average rent of 5.69 EUR per m²,
    which corresponds to an increase of 15% over the previous rent.

  - Between 31 December 2007 and 31 March 2008, the average net cold rent 
    grew by 2.5% to EUR 5.01 per m².

  - The remaining potential for increasing rents to market levels is
    currently 14.1%.


Sales revenue exceeds fair value by 33% on average

  - In the first quarter of 2008, purchase and sale agreements concerning
    the sale of 189 apartments were notarially recorded. The average sales
    price was 1,366 EUR per m², which exceeded the average fair value by
    33%.


Significant cost reductions

  - General administration expenses amounted to EUR 10.6 million, or about
    13.5% below the corresponding figure for the first quarter of 2007 (pro
    forma).


Staff / reorganisation proceeding 

Negotiations with the works councils were concluded on 29 April 2008 and 22
May 2008. This means that the reconciliation of conflicting interests has
been achieved in the second quarter and the conditions for implementing the
reorganisation have been established, so that implementation can commence
earlier than anticipated.

  - In Berlin, the reorganisation has been completed.

  - In Western Germany, the prerequisites for implementing the target
    structure by 01 July 2008 have been established.

  - The top and mid-level managers are already working in their new
    capacities. All key staff members have been retained within the Group.

  - By 30 June 2008, employees in Berlin and Western Germany who have not
    been given a new position in the target structure will receive their
    termination notices.

  - Since the merger in August 2007, we have already concluded settlements
    with 88 employees. This corresponds to savings of around EUR 5.5
    million per year which have already been realised.


Key figures from the annual financial statements and the balance sheet

  - Compared to the same period in 2007 (pro forma), EBITDA increased by
    15%, to EUR 32.9 million.

  - Funds from operations (FFO) grew by around 37% to EUR 5.9 million. 

  - Due to falling interest rates since the beginning of the year, the
    market values of the interest rate swaps that were recorded at fair
    value fell significantly during the first quarter (EUR 24.0 million).
    The interest rate swaps are meant to hedge against interest rate risks
    and thus against cash flow risks associated with variable-rate loans,
    and are not held for trading.


A telephone conference is scheduled for today, 29 May 2008, at 02:00 p.m.
CET, in which the Management Board will present the interim results (Live
stream at http://www.deutsche-wohnen.com).

The complete Interim Report is available on the Internet at
http://www.deutsche-wohnen.com.



Hubert Bonn
Head of Investor Relations
Phone: +49 (0)30 897 86 385
email: hubert.bonn@deuwo.com



DGAP 29.05.2008 
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Language:     English
Issuer:       Deutsche Wohnen AG
              Pfaffenwiese 300
              65929 Frankfurt am Main
              Deutschland
Phone:        +49 (0)6131 4800 262
Fax:          +49 (0)6131 4800 4441
E-mail:       hubert.bonn@deuwo.com
Internet:     www.deutsche-wohnen.de
ISIN:         DE000A0HN5C6, DE0006283302
WKN:          A0HN5C, 628330
Indices:      SDAX
Listed:       Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr
              in Berlin, Hamburg, Düsseldorf, München, Stuttgart
End of News                                     DGAP News-Service
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