15.11.2016
Deutsche Wohnen AG DE000A0HN5C6
DGAP-News: Deutsche Wohnen AG: Interim result as at 30 September 2016 - Deutsche Wohnen achieves significant increase in profitability and raises its forecast for 2016 once again
DGAP-News: Deutsche Wohnen AG / Key word(s): 9-month figures
Deutsche Wohnen AG: Interim result as at 30 September 2016 - Deutsche Wohnen
achieves significant increase in profitability and raises its forecast for
2016 once again
15.11.2016 / 07:02
The issuer is solely responsible for the content of this announcement.
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Interim result as at 30 September 2016
Deutsche Wohnen achieves significant increase in profitability and raises
its forecast for 2016 once again
- Increase in FFO I by 32 % to more than EUR 300 million
- Increase of at least EUR 2.2 billion in value of portfolio expected for
2016
- Investment programme, including new construction, expanded to EUR 1.5
billion
- EPRA NAV forecast raised to approximately EUR 30 per share for 2016
Frankfurt am Main / Berlin, 15 November 2016. In the first nine months of
the financial year 2016, Deutsche Wohnen performed strongly once again and
generated a group profit of EUR 638.4 million (previous year: EUR 521.7
million). FFO I (Funds from Operations: operating result after current
interest and taxes) rose in comparison to the previous year by
approximately 32 % to EUR 301.4 million (previous year: EUR 228.7 million).
FFO I per share rose by 22 % to EUR 0.89. FFO II, which includes earnings
from disposals, improved by 20 % to EUR 347.8 million (previous year: EUR
289.5 million) and per share by approximately 12 % to EUR 1.03.
EPRA NAV (undiluted) increased by around 9 % to EUR 25.10 per share (31
December 2015: EUR 23.01 per share). The Loan-to-Value (LTV) ratio of the
group was 41.7 % as at the reporting date (31 December 2015: 38.0 %).
Increase in value clear evidence of continued market dynamics
The positive development in the value of the property portfolio is
supported by the continued buoyancy of the housing market. As Philip
Grosse, CFO of Deutsche Wohnen AG, points out, "Current transactions,
especially on the Berlin residential property market, regularly achieve
prices that are significantly higher than the valuation we have given to
comparable properties in our portfolio. For this reason, we are expecting
the revaluation of our portfolio to represent an increase in value of EUR
2.2 billion for the whole of 2016. This figure includes the valuation gain
of EUR 0.7 billion which we already realized as at 30 June 2016."
Investment programme expanded significantly
In order to further enhance the quality of our property portfolio, the
existing investment programme of EUR 400 million has been expanded to EUR
1.0 billion. By 2021, Deutsche Wohnen plans to invest in approximately
30,000 flats with above-average future prospects. In addition, a
redensification and new construction programme of just under EUR 0.5
billion has been agreed, so that we can use existing land reserves
efficiently and create approximately 2,200 flats within the next four
years.
As Michael Zahn, CEO of Deutsche Wohnen AG, explains, "Berlin is just at
the beginning of its development towards becoming a successful,
international metropolis. But this also comes with enormous challenges,
which we are actively seeking to address. We intend to make significant
investments in our portfolio, especially in Berlin, in order to be able to
provide contemporary flats for an urban population. In doing so, we plan to
work in a spirit of partnership with the relevant local authorities and to
set high standards of quality in terms of both architecture and urban
design. In all of this, our guiding principle is not short-term profit but
sustainable investment and value creation."
Clear increase in operating results
As at 30 September 2016, the portfolio of Deutsche Wohnen AG comprised
approximately 160,000 residential and commercial units with a fair value of
approximately EUR 13.5 billion. The average in-place rent of the entire
portfolio was EUR 6.05 per sqm as at 30 September 2016, with a vacancy rate
of 1.8 %. On a like-for-like basis, Deutsche Wohnen generated rental growth
of 3.2 % in the core and growth regions compared with the previous year.
Moreover, the vacancy rate in these regions fell from 1.7 % to 1.5 %.
In the first nine months of the financial year 2016, rental income rose to
EUR 526.1 million (previous year: EUR 473.1 million), leading to an
operating result (Net Operating Income - NOI) of EUR 414.6 million
(previous year: EUR 360.3 million). Accordingly, the NOI margin increased
from 76.2 % to 78.8 %. The adjusted EBITDA (without disposals) improved by
19 % to EUR 405 million (previous year: EUR 341.4 million). The rise in
rental income contributed to this result, as did further efficiency gains
in business operations and a reduction in administrative costs. The EBITDA
margin, adjusted for disposals, rose by just under 5 percentage points from
72.2 % to 77.0 %.
The sale of 3,605 units (previous year: 8,430) resulted in earnings from
disposals of EUR 46.4 million (previous year: 60.8 million). The lower
amount of block disposals led to an increase in the gross margin from an
average of 15 % to 22 %. With an occupancy rate of almost 99 %, the segment
Nursing and Assisted Living was able to contribute earnings of EUR 13.7
million (previous year: EUR 12.0 million).
Outlook
For the financial year 2016, Deutsche Wohnen is confirming its forecast of
FFO I of at least EUR 380 million. This would mean a dividend of
approximately EUR 0.73 per share, an increase of around 35 % compared to
the previous year. Without special effects, and assuming that overall
conditions remain the same, Deutsche Wohnen is anticipating an EPRA NAV of
around EUR 30 per share for 2016 following the revaluation of its
portfolio. This represents an increase of around 30 % compared with 31
December 2015. The LTV ratio will fall to below 40% by the end of the year.
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 mainly residential property portfolio. As at 30 September
2016, the portfolio comprised a total of 160,474 units, of which 158,274
were residential and 2,200 commercial. Deutsche Wohnen is listed in the
Deutsche Börse's MDAX and is also included in 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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15.11.2016 Dissemination of a Corporate News, transmitted by DGAP - a
service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.
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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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