12.08.2016
Deutsche Wohnen AG DE000A0HN5C6
DGAP-News: Deutsche Wohnen AG: Deutsche Wohnen raises its forecasts following strong half year performance
DGAP-News: Deutsche Wohnen AG / Key word(s): Half Year Results
Deutsche Wohnen AG: Deutsche Wohnen raises its forecasts following strong
half year performance
12.08.2016 / 07:04
The issuer is solely responsible for the content of this announcement.
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Interim result as at 30 June 2016
Deutsche Wohnen raises its forecasts following strong half year performance
- FFO I improves by 24% to EUR 0.58 per share
- FFO I forecast for 2016 raised to at least EUR 380 million
- Market dynamics lead to revaluation gains of around EUR 730 million
- Like-for-like rental growth of 3.9%
- Strengthening of nursing segment by the acquisition of a nursing
portfolio comprising c. 4,100 beds and annual rental income of c. EUR
27 million
Frankfurt/Main and Berlin, 12 August 2016. With a consolidated group profit
of EUR 623.0 million (previous year: EUR 542.8 million), the first half of
2016 was very successful for Deutsche Wohnen. The increase was mostly due
to portfolio appreciation as a result of the continued highly positive
performance of the market. As compared to the previous year, funds from
operations (FFO I) increased by 38% to EUR 196.7 million (previous year:
EUR 142.7 million). FFO I rose by approximately 24% to EUR 0.58 per share.
FFO II improved by 24%, rising to EUR 233.4 million (previous year: EUR
188.9 million), which was equivalent to an increase of approximately 11% to
EUR 0.69 per share.
The very positive half-year results produced an increase in EPRA NAV
(undiluted) of approximately 9% to EUR 25.04 per share (31 December 2015:
EUR 23.01 per share). The leverage ratio (LTV) fell from 42.0% on 31 March
2016 to 41.2%.
Strong operating performance
As at 30 June 2016, the Deutsche Wohnen portfolio comprised approximately
161,000 residential and commercial units with a fair value of approximately
EUR 13.5 billion, or EUR 1,372 per square metre. On a like-for-like basis,
Deutsche Wohnen achieved a rental growth in the strategic core and growth
regions of 3.9% as compared to the previous year. The vacancy rate once
more decreased from 1.7% to 1.4%.
Current gross rental income rose to EUR 347.8 million in the first six
months of the financial year 2016 (previous year: EUR 313.3 million), while
the operating earnings (net operating income - NOI) amounted to EUR 272.9
million (previous year: EUR 236.8 million). The NOI margin correspondingly
increased from 75.6% to 78.5%. Adjusted EBITDA excluding earnings from
disposals improved by 18% to EUR 266.5 million (previous year: EUR 225.2
million), largely due to further efficiency gains in business operations
and a fall in general and administration expenses. The adjusted EBITDA
margin rose by a good 8 percentage points from 68.3% to 76.6%.
The sale of 2,254 units (previous year: 7,329) resulted in earnings from
disposal of EUR 36.7 million (previous year: EUR 46.2 million), while the
lower share of block sales triggered an increase in the gross margin from
13% to 24% on average. The Nursing and Assisted Living segment recorded an
occupancy rate of more than 98% and earnings (NOI) of EUR 8.7 million
(previous year: EUR 7.9 million).
Portfolio continues to increase in value
The revaluation of the portfolio at the end of the first half of the year
once more took account of the dynamic market environment, particularly in
Berlin. The value of the portfolio thus increased by approximately EUR 730
million to approximately EUR 13.5 billion, or by approximately EUR 90 to
EUR 1,372 per square meter. The company's property holdings are therefore
valued at 19.1 times the annualised net cold rent of EUR 708 million or a
gross yield of 5.2%.
Deutsche Wohnen significantly expands its nursing segment
Deutsche Wohnen has notarised its acquisition, by way of an asset deal, of
a high-quality nursing property portfolio comprising 28 residential nursing
home facilities and a total of 4,132 beds. The residential nursing home
facilities, which are mainly located in Western Germany, have been leased
to reputable operators on a long-term basis. The portfolio currently
generates annual rental income in the amount of EUR 27.3 million,
approximately 90% of which are attributable to inpatient nursing care and
approximately 10% to assisted living services. The transaction remains
subject to standard conditions precedent - among others, the granting of
consent thereto by the supervisory board of the seller. The transfer of the
benefits and encumbrances associated with the properties is set to take
place in the fourth quarter of 2016.
"The planned acquisition of the nursing portfolio will enable us to
significantly strengthen our presence in the as yet still largely
fragmented nursing market and become one of the leading providers in this
market. Due to the demographic changes currently underway, the German
nursing market clearly represents a growth market for us, one from which
we, as a company with long-standing experience in this segment, wish to
benefit to a greater degree," says Michael Zahn, Chief Executive Officer of
Deutsche Wohnen.
FFO I forecast raised
Due to the positive development of the company, Deutsche Wohnen has
increased its forecast for FFO I for the financial year 2016 - without
taking other acquisitions or opportunistic sales into consideration - from
at least EUR 360 million to at least EUR 380 million. Assuming the
framework conditions remain constant and barring any one-off items, we
expect further price increases and a corresponding EPRA NAV of at least EUR
26 per share in 2016.
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 portfolio, which focusses on residential properties. As at
30 June 2016, the holdings comprised a total of 160,836 units, of which
158,647 are residential units and 2,189 are commercial properties. Deutsche
Wohnen is listed on the MDAX of Deutsche Börse and is additionally traded
on the leading indices EPRA/NAREIT, STOXX(R) Europe 600 and GPR 15.
Important information
This publication constitutes neither an offer of sale nor an invitation to
purchase securities.
To the extent that this document contains any forward-looking statements,
these are not to be understood as statements of fact and are characterised
by the use of the words "will", "expect", "believe", "estimate", "intend",
"aim", "assume" and similar expressions. These statements are an expression
of the intentions, views or current expectations and assumptions of
Deutsche Wohnen and those individuals acting in concert with it. These
forward-looking statements are based on current plans, estimates and
forecasts that have been generated by Deutsche Wohnen and the individuals
acting in concert with it to the best of their knowledge; however, they do
not constitute a guarantee of the accuracy of those plans, estimates and
forecasts in future contexts. Forward-looking statements are subject to
risks and uncertainties, which can usually only be predicted with some
difficulty and generally fall outside of the sphere of influence of
Deutsche Wohnen or the individuals acting in concert with it. It should be
kept in mind that actual events or consequences may deviate significantly
from those indicated or contained in such forward-looking statements.
Contact Investor Relations:
Phone +49 (0)30 897 86-5413
Fax +49 (0)30 897 86-5419
[email protected]
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12.08.2016 Dissemination of a Corporate News, transmitted by DGAP - a
service of EQS Group AG.
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Language: English
Company: Deutsche Wohnen AG
Pfaffenwiese 300
65929 Frankfurt am Main
Germany
Phone: +49 (0)30 89786-0
Fax: +49 (0)30 89786-5419
E-mail: [email protected]
Internet: http://www.deutsche-wohnen.com
ISIN: DE000A0HN5C6
WKN: A0HN5C
Indices: MDAX
Listed: Regulated Market in Frankfurt (Prime Standard); Regulated
Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover,
Munich, Stuttgart, Tradegate Exchange
End of News DGAP News Service
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