14.08.2018
Deutsche Wohnen SE DE000A0HN5C6
DGAP-News: Deutsche Wohnen SE: Interim result as of 30 June 2018 / Deutsche Wohnen portfolio continues to gain value
DGAP-News: Deutsche Wohnen SE / Key word(s): Half Year Results
Deutsche Wohnen SE: Interim result as of 30 June 2018 / Deutsche Wohnen
portfolio continues to gain value
14.08.2018 / 07:06
The issuer is solely responsible for the content of this announcement.
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Interim result as of 30 June 2018
Deutsche Wohnen portfolio continues to gain value
* FFO I up by 13% to EUR 248.5 million or EUR 0.70 per share
* Valuation increase of the portfolio by EUR 678 million
* EPRA NAV up by 5% to EUR 37.42 per share
* Acquisition of 30 nursing facilities with around 4,700 care places
Berlin, 14 August 2018. Deutsche Wohnen concluded the first half-year 2018
with a consolidated group profit of EUR 652.7 million (H1 2017: EUR 672.0
million). In particular, the valuation increase of the portfolio, higher
earnings from Residential Property Management and the improved financial
result had a positive effect on the total comprehensive income.
Compared to the previous year, FFO I (Funds from Operations, operating
result after current interest and taxes) increased by 13% to EUR 248.5
million (H1 2017: EUR 220.8 million). FFO I per share was up by 11% to EUR
0.70. EPRA NAV increased by 5% to EUR 37.42 per share (31 December 2017: EUR
35.74 per share). Due to the valuation increase, the loan-to-value ratio
decreased to 33.8% (31 December 2017: 34.5%).
Strong operating performance
As of 30 June 2018, the Deutsche Wohnen portfolio comprised around 164,000
residential and commercial units with a fair value of around EUR 19.7
billion (without Nursing and Assisted Living). The average monthly in-place
rent for the entire portfolio was EUR 6.51 per sqm as of the reporting date.
On a like-for-like basis, the Deutsche Wohnen letting portfolio generated
rental growth of 4.6% compared to the previous year. The vacancy rate
remained low at 1.9% (previous year: 1.7%), of which some 0.5% was due to
our investment programme.
Contracted rental income rose to EUR 387.3 million in the first half of 2018
(previous year: EUR 366.5 million) and led to an increase in net operating
income (NOI) to EUR 307.7 million (previous year: EUR 283.7 million). The
NOI margin in Residential Property Management improved to 79.4% (previous
year: 77.4%).
As of 30 June 2018, 501 units with transfer of risks and rewards were sold
and thus included in the Disposals result in the amount of EUR 9.0 million
(previous year: EUR 20.5 million). Gross margins remained high at 30%.
Attractive margins of 40% were achieved in the privatisation business,
despite the valuation uplifts in prior years.
The earnings contribution from the Nursing and Assisted Living segment
amounted to EUR 23.8 million in the first half-year of 2018 (previous year:
EUR 24.7 million). The occupancy rate of 99% of the nursing facilities
operated by KATHARINENHOF(R), in which Deutsche Wohnen holds a 49% stake,
has been at an above-average level for years.
Adjusted EBITDA excluding disposals improved to EUR 317.7 million (previous
year: EUR 290.7 million).
Significant increase in the value of the portfolio
Deutsche Wohnen continues to benefit from its focused portfolio strategy and
the strong demand for residential properties in metropolitan areas. This is
reflected in a significant increase in the value of the portfolio of around
EUR 678 million. The property portfolio is therefore valued at 25.2 times
the annualised net cold rent of EUR 783 million or a gross yield of
approximately 4.0%. This corresponds to a value of EUR 1,961 per sqm for the
entire portfolio and EUR 2,186 per sqm for the property portfolio in Greater
Berlin.
Acquisition of 30 nursing facilities with around 4,700 care places
Deutsche Wohnen has signed agreements to acquire 30 nursing properties with
around 4,700 care places. Nearly 90% of the acquired properties are located
in metropolitan areas, a big part of them in Hamburg (13 facilities). To
manage the Hamburg facilities, the company initially took a minority
interest in Pflegen & Wohnen Hamburg GmbH. The other 17 facilities are
leased to well-known operators on long term leases. The transfer of risks
and rewards is subject to normal market conditions and is expected to take
place in the fourth quarter.
The obligations from purchase agreements total approximately EUR 680
million. This corresponds to a return based on the anticipated EBITDA of
around 5% following integration.
Michael Zahn, Chief Executive Officer of Deutsche Wohnen SE: 'We are
consistently pursuing our growth strategy in the Nursing and Assisted Living
segment through the planned acquisitions of nursing facilities with
above-average qualities and locations. With over 12,000 care places we are
one of the largest owners of nursing properties in Germany and will
therefore benefit greatly from the positive macro trends in the nursing
market.'
Outlook
For the 2018 financial year, Deutsche Wohnen confirms its forecast for FFO I
of around EUR 470 million.
Deutsche Wohnen
Deutsche Wohnen is one of the leading publicly listed property companies in
Germany and Europe. Its operating focus is on managing and developing its
portfolio, concentrating on residential properties. As of 30 June 2018, its
portfolio comprised 163,942 units, of which 161,468 are residential and
2,474 commercial. Deutsche Wohnen is listed on Deutsche Börse's MDAX index
and also traded on the leading indices EPRA/NAREIT, STOXX(R) Europe 600 and
GPR 250.
Important note
This publication is neither an offer to sell nor a solicitation to buy
securities.
To the extent that this document contains forward-looking statements, these
are not facts and are recognisable by such words as 'will', 'expect',
'believe', 'estimate', 'intend', 'endeavour', 'assume' and similar
expressions. These statements express the intentions, opinions or current
expectations and assumptions of Deutsche Wohnen and the individuals acting
in concert with it. The forward-looking statements are based on current
plans, estimates and forecasts that Deutsche Wohnen and the individuals
acting in concert with it have made to the best of their knowledge, but do
not make any claims as to their future accuracy. Forward-looking statements
are subject to risks and uncertainties that are generally difficult to
predict and are usually not within the control of Deutsche Wohnen or the
individuals acting in concert with it. It should be remembered that the
actual results or consequences may differ considerably from those mentioned
or contained in the forward-looking statements.
Contact:
Phone +49 (0)30 897 86-5413
Fax +49 (0)30 897 86-5419
[email protected]
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14.08.2018 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 SE
Mecklenburgische Straße 57
14197 Berlin
Germany
Phone: +49 (0)30 89786-5413
Fax: +49 (0)30 89786-5419
E-mail: [email protected]
Internet: https://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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