21.03.2017
Deutsche Wohnen AG DE000A0HN5C6
DGAP-News: Annual earnings as at 31 December 2016: Deutsche Wohnen once again with record earnings
DGAP-News: Deutsche Wohnen AG / Key word(s): Final Results
Annual earnings as at 31 December 2016: Deutsche Wohnen once again with
record earnings
21.03.2017 / 07:02
The issuer is solely responsible for the content of this announcement.
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Annual earnings as at 31 December 2016
Deutsche Wohnen once again with record earnings
* Continuing positive market development lead to a portfolio revaluation
of EUR 2.7 billion
* Increase in EPRA NAV of 29 % to EUR 29.68 per share
* Rise in FFO I of 26 % to c. EUR 384 million or EUR 1.14 per share
* (Proposed) dividend up by 37 % to EUR 0.74 per share
* FFO I of c. EUR 425 million expected for 2017
Frankfurt / Main and Berlin, 21 March 2017. In the financial year 2016,
Deutsche Wohnen once again achieved increases in all its key performance
indicators due to valuation gains and its operational performance. At EUR
1.6 billion, group profit was approximately 35 % higher than in the previous
year. In the reporting year, Funds from Operations (FFO I) increased by 26 %
to EUR 383.9 million (previous year: EUR 304.0 million) due to portfolio
acquisitions, significantly reduced financing costs and organic growth. FFO
I per share rose by 20 % to EUR 1.14. FFO II (including disposals) increased
to EUR 438.2 million (previous year: EUR 372.9 million), and by around 12 %
to EUR 1.30 per share. As at the reporting date, the Loan-to-Value (LTV)
ratio was 37.7 % - the same level as in the previous year (31 December 2015:
38.0 %). EPRA NAV (undiluted) rose significantly in comparison to the
previous year by 29 % to EUR 29.68 per share (31 December 2015: EUR 23.02
per share).
Growth in value due to continuing buoyancy of market
In the financial year 2016, Deutsche Wohnen profited once again from a
dynamic market environment and the excellent development of its portfolio,
above all in the Core+ regions. This is reflected in the increase in value
of the portfolio of approximately EUR 2.7 billion following its revaluation.
The most significant increase in value was recorded in the key market of
Berlin with approximately EUR 2.4 billion. As at 31 December 2016, the
portfolio was valued at EUR 1,580 per sqm (previous year: EUR 1,282 per
sqm). This corresponds to an overall value that is 21.5 times greater than
the annual rental income or 17.6 times greater on the basis of current
market rents. The company's assets in Berlin are currently valued at EUR
1,738 per sqm, which corresponds to an overall value that is 23.7 times
greater than the annual rental income.
As Michael Zahn, CEO of Deutsche Wohnen AG, explains, "Our focus on dynamic
regions like Berlin or Frankfurt is paying off on a sustained basis. The
good operational development of our property portfolio is the basis of our
success. We are also profiting from the positive developments in our
domestic markets with attractive increases in value, which are reflected in
our net asset value, the so-called NAV."
Further increase in operating results
As at 31 December 2016, the portfolio of Deutsche Wohnen comprised
approximately 160,000 residential and commercial units with a fair value of
around EUR 15.5 billion. As at the reporting date, the average in-place rent
across the portfolio was EUR 6.10 per sqm, with a vacancy rate of 1.8 %. On
a like-for-like basis, Deutsche Wohnen achieved a rental growth of 2.9 %,
whereby the figure for Greater Berlin was 3.5 %. The vacancy rate in the
Berlin portfolio was 1.6 %.
In the reporting year, Deutsche Wohnen increased its rental income to EUR
704.5 million (previous year: EUR 634.0 million) with an operating result
(Net Operating Income - NOI) of EUR 545.7 million (previous year: EUR 474.9
million). The NOI margin rose from 74.9 % to 77.5 %. The adjusted EBITDA
without earnings from disposals and one-off expenses increased by
approximately 16 % to EUR 527.4 million (previous year: EUR 455.0 million).
In particular, improvements in efficiency in the management of the portfolio
as well as the reduction of the Cost Ratio again contributed to this result.
The adjusted EBITDA margin rose significantly from 71.8 % to 74.9 % and
provides a good indication of the efficiency of the business model
demonstrated once again.
Earnings from disposals fell by 21 % to EUR 54.3 million (previous year: EUR
68.9 million) because fewer properties were sold. At the same time, the
average sales margin rose from 16 % to 22 % despite the increase in value of
the assets. In the case of individual privatisations, the sales margin was -
as in the previous year - around 40 %. Overall, 4,308 units were sold and
recorded in the balance sheet for 2016 (previous year: 9,405), of which
1,235 were individual privatisations (previous year: 1,908) and 3,073 were
sales to institutional investors (previous year: 7,497).
Significant expansion of investment programme to increase quality of
properties
In 2016, an investment programme of EUR 1.0 billion was agreed with a view
to further enhancing the quality of the portfolio. The programme, which is
set to run for five years, covers 30,000 apartments which are to be brought
up to a modern standard and refurbished with energy-saving measures. In
addition, a new-build and redensification programme of just under EUR 0.5
billion was agreed. The intention here is to make efficient use of existing
land reserves and to create approximately 2,200 residential units within the
next four years. With this targeted investment programme of EUR 1.5 billion
for modernisation and new building, Deutsche Wohnen expects to realise
further value potential in future.
Attractive acquisitions of nursing home facilities
In 2016, Deutsche Wohnen succeeded in acquiring 31 nursing home facilities
with a total of 4,600 beds in two different transactions. These acquisitions
will make a significant contribution to earnings in 2017. When making these
acquisitions, Deutsche Wohnen was able to profit from its long-standing
expertise in this particular market and to successfully expand its business
segment Nursing and Assisted Living.
Strong development in the capital markets
In 2016 the Deutsche Wohnen share price developed outstandingly once again,
achieving a plus of 19 % and managing to outperform the industry benchmarks
like EPRA Germany. With a current market capitalisation of approximately EUR
11 billion, Deutsche Wohnen is the second largest publicly listed property
company in Germany and the third largest in Europe. Subject to approval by
the Annual General Meeting, the dividend for the financial year 2016 will be
EUR 0.74 per share, which marks a significant increase of 37 % in comparison
to the previous year.
For the financial year 2017, the company anticipates an increase in FFO I to
approximately EUR 425 million, whereby the LTV ratio is intended to remain
unchanged in the target range of 35 % to 40 %.
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 consists mainly of residential properties.
As at 31 December 2016, the portfolio comprised a total of 160,160 units, of
which 157,976 are residential and 2,184 commercial. The company is listed in
the Deutsche Börse's MDAX and is also included in the leading indices
EPRA/NAREIT, STOXX Europe 600 and GPR 250.
Important Notice
This publication represents neither an offer for sale nor request for
purchase of securities.
Any statements regarding the future in this document do not represent any
facts and use terms such "will", "expected", "believe", "estimate",
"intend", "strive", and "assume" and other similar phrases. The statements
express the intention, views and current expectations and assumptions of
Deutsche Wohnen and parties acting in concert with Deutsche Wohnen. The
statements directed at the future are based on current planning, estimates
and forecasts, which Deutsche Wohnen and the parties acting in concert with
Deutsche Wohnen have made to the best of their knowledge but do not contain
any statement about their future validity. Future-based statements are
subject to risks and uncertainties, which are generally difficult to predict
and are generally not in Deutsche Wohnen's sphere of influence or that of
the parties acting in concert with Deutsche Wohnen. Please note that the
actual results or events may deviate substantially from those provided in or
removed from the future-based statements.
Contact Investor Relations
Phone +49 (0)30 897 86-5413
Fax +49 (0)30 897 86-5419
[email protected]
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21.03.2017 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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Financial/Corporate News and Press Releases.
Archive at www.dgap.de
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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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