31.08.2018
Vonovia SE DE000A1ML7J1
DGAP-News: Vonovia SE: Vonovia Operationally Strong in the First Six Months of the Year - Improvement to Customer Management During Modernization
DGAP-News: Vonovia SE / Key word(s): Half Year Results
Vonovia SE: Vonovia Operationally Strong in the First Six Months of the Year
- Improvement to Customer Management During Modernization (news with
additional features)
31.08.2018 / 07:01
The issuer is solely responsible for the content of this announcement.
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Results as of June 30, 2018
Vonovia Operationally Strong in the First Six Months of the Year -
Improvement to Customer Management During Modernization
- FFO 1 (without BUWOG and Victoria Park) up by 11.5 % to
EUR 510.3 million.
- Earnings contribution in Value-add Business increased by 13.4 % in total
to EUR 51.7 million; car sharing launched.
- Integration of BUWOG proceeding according to plan; takeover offer to
Victoria Park shareholders successful.
- Increase in FFO 1 compared to 2017 expected of approximately 15 % to reach
EUR 1,050 million to EUR 1,070 million; forecast for 2018 fiscal year
supplemented to include earnings contribution from
Victoria Park.
- Hardship management for modernization work is being further expanded;
Vonovia passes along an average of only 7 % instead of 11 % of modernization
costs to tenants.
Bochum, August 31, 2018 - The first half of the 2018 fiscal year was
successful for Vonovia SE (hereafter "Vonovia"). The investment program went
as planned, services closely connected to real estate were expanded and
efficiency in property management again increased. The successful takeovers
of BUWOG and Victoria Park made it possible to diversify the portfolio on a
European level.
"Vonovia is in an excellent position. One contributing factor is our
financial structure: In the first half of the year, we took on equity
capital and borrowed capital in the amount of approximately EUR 5 billion,
and yet in the same period, paid out dividends of only around EUR 380
million.
We invest a majority of these funds here in Germany in order to provide
those who live in our neighborhoods with attractive and modern homes for the
long term," said Rolf Buch, Chairman of the Management Board.
"Through our many modernization projects we have learned that we need to
work to gain acceptance from our customers before we begin modernization. We
want to give them certainty and make it clear that we are not going to
modernize anyone out of their homes."
Vonovia Also Operationally Strong in the First Half of the Year
Vonovia increased FFO 1 (Funds from operations; operating result after
interest and taxes; without BUWOG and Victoria Park) as against the same
period of 2017 by 11.5 % to EUR 510.3 million (H1 2017:
EUR 457.7 million). FFO 1 per share rose by 2.5 % to EUR 0.98
(H1 2017: EUR 0.96).
The apartment vacancy rate dropped slightly to 2.8 % (H1 2017: 2.9 %).
Rental income was EUR 838.8 million (without BUWOG and Victoria Park). An
increase in rents due to market-related factors (1.5 %) and the effects from
property value improvements and new construction (2.6 %) increased the
monthly rent per square meter to EUR 6.41
(H1 2017: EUR 6.12). The loan-to-value ratio came to 43.9 % in the first
half of 2018 (H1 2017: 43.2 %). Profit for the period came to EUR 1,200.0
million (H1 2017: EUR 1,064.6 million). This reflects, among other things,
the valuation of the properties undertaken as of the first half of the year
with an increase in value of nearly EUR 1.4 billion.
Investment Program 2018 On Track - Customer Management Improved for
Modernization
The investment program for new construction and modernization continued
successfully in the first half of the year. All measures of the project to
invest billions have either been completed, started or commissioned. In
addition, around EUR 182.1 million and thus costs that are approximately
14.7 % higher compared to the previous year's period (H1 2017: EUR 158.8
million) have been put into the maintenance of the housing stock.
Vonovia is already preparing for the legal change being pursued in the
coalition agreement of the German federal government of lowering the
modernization allocation for tenants to 8 %. In its modernization projects,
the company already passes on an average of only 7 % of its modernization
costs to tenants and thus generally stays significantly under the maximum
allocation of EUR 3 per square meter.
Vonovia takes criticism of individual modernizations seriously and is
working continuously to improve dialogue with tenants. To prepare for
comprehensive modernization measures, tenant assemblies are increasingly
being held in addition to formally announcing the measures. Moreover, the
company has begun to hire employees who exclusively address tenant concerns
individually on site.
Vonovia has likewise also restructured its customer management during
modernization work and provided additional personnel in order to allow
tenants who demonstrate personal or economic hardship to stay in their
accustomed surroundings. The aim is to reach a good and mutual solution with
tenants before construction begins.
Neighborhood Development Driven Forward
Vonovia is committed to the holistic development of neighborhoods, including
the Ziekow district in Berlin-Reinickendorf. Here the plan is to invest
around EUR 140 million in total by 2023. The first major step was to create
a neighborhood community center in which older residents can find support
services. The services are being offered by the "Johanniter-Unfall-Hilfe"
(Order of St. John charitable organization). In addition, Vonovia is
successively renovating two apartment buildings to make them suitable for
senior living in order to meet the high need for accessible apartments in
the neighborhood.
Vonovia is also changing floor plans in other districts so that central
locations have smaller, affordable apartments for seniors, couples and
single people. The company can thus offer moves within a neighborhood when
needed. This especially makes sense when living circumstances change and
occurs only when requested by the tenant. In these cases, Vonovia usually
covers the costs.
Moreover, Vonovia is carrying out new construction: The company plans to
complete construction on approximately 550 apartments by the end of the
year, and construction on another 500 will be started or commissioned.
Looking ahead to the future, the company wants to increase the yearly volume
to up to 2,000 apartments; in 2019, the target is 1,200. However, this
mainly depends on external conditions. The biggest obstacle for new
construction is a lack of construction permits; another bottleneck lies in
available construction capacity.
Range of Services Closely Connected to Real Estate Expanded
The adjusted EBITDA Value-add Business improved overall as against the same
period of the previous year from EUR 45.6 million to EUR 51.7 million in the
first half of 2018. Vonovia has further expanded its range of services and
offers car sharing in several neighborhoods. Various vehicle models are
available in Stuttgart, Berlin, Frankfurt, Dresden and Düsseldorf.
Approximately ten further sites will follow by the end of the year,
including Essen and Frankfurt.
International Growth for More Diversity
The integration of BUWOG is proceeding as planned. The takeover of Victoria
Park has been successful. The Swedish housing company operates in an
environment that is very similar to the German housing market and owns
approximately 14,000 apartments in the metropolitan regions of Stockholm,
Malmö and Gothenburg. By the end of the third quarter of 2018, BUWOG and
Victoria Park will be completely integrated into Vonovia's performance key
indicators.
Forecast Improved for the 2018 Fiscal Year
Vonovia is supplementing its forecast for the 2018 fiscal year with the
expected earnings contribution from Victoria Park. The company forecasts FFO
1 of between EUR 1,050 million and EUR 1,070 million. (Earnings
contributions in the amount of approximately EUR 30 million from BUWOG and
approximately EUR 20 million from Victoria Park are included; forecast as of
March 31, 2018, including BUWOG:
EUR 1,030 million to EUR 1,050 million). This is likely to put the FFO 1
around 15 % above the previous year's figure (2017: EUR 920.8 million). In
light of the dynamic development in the German housing market, the company
expects a further increase in the value of its real estate.
The 2018 H1 report: http://reports.vonovia.de/2018/q2/en
Further information can be found in the Press Section.
2018/2019 Financial Calendar
December 6, 2018: Interim Report for the first nine months of 2018
March 7, 2019: Publication of 2018 Annual Report
May 7, 2019: Interim Report for the first three months of 2019
May 16, 2019: Annual General Meeting
August 2, 2019: Interim Financial Report for 2019
November 5, 2019: Interim Report for the first nine months of 2019
>
Financial Key Figures in EUR H1 2018 H1 2017 Change 12M 2017
million in %
0
Rental income 838.8 833.2 0.7 1,667.9
Adjusted EBITDA Operations 632.6 607.6 4.1 1,224.2
Adjusted EBITDA Rental 597.0 573.5 4.1 1,150.0
Adjusted EBITDA Value-add 51.7 45.6 13.4 102.1
Business
Adjusted EBITDA Other -16.1 -11.5 40.0 -27.9
Adjusted EBITDA Sales 48.3 44.3 9.0 110.8
Adjusted EBITDA 680.9 651.9 4.4 1,335.0
EBITDA IFRS* 692.8 651.4 6.4 1,271.8
thereof EBITDA IFRS BUWOG* 40.7 - - -
FFO 1 510.3 457.7 11.5 920.8
FFO 1 per share in EUR** 0.98 0.96 2.5 1.90
Profit for the period* 1,200.0 1,064.6 12.7 2,566.9
Maintenance and modernization 542.4 456.4 18.8 1,124.8
thereof for maintenance expenses 182.1 158.8 14.7 346.2
and investments in maintenance
thereof modernization (incl. new 360.3 297.6 21.1 778.6
construction)
Key Balance Sheet Figures in EUR Jun. 30, Jun. 30, Change Dec. 31,
million 2018 2017 in % 2017
Fair value of the real estate 41,732.3 30,830.2 35.4 33,436.3
portfolio*
Adjusted NAV* 20,634.4 15,771.0 30.8 18,671.1
Adjusted NAV per share in EUR** 39.83 33.10 20.3 38.49
LTV in %* 43.9 43.2 0.7 pp 39.8
Non-financial Key Figures H1 2018 H1 2017 Change 12M 2017
in %
Number of own apartments* 403,926 352,815 14.5 346,644
Vacancy rate in % 2.8 2.9 -0.1 2.5
pp
Number of employees (as of June 9,685 8,257 17.3 8,448
30/ December 31)*
EPRA Key Figures in EUR million Jun. 30, Jun. 30, Change Dec. 31,
2018 2017 in % 2017
EPRA NAV* 24,238.3 18,702.8 29.6 21,284.6
EPRA NAV per share in EUR** 46.79 39.25 19.2 43.88
* All values without BUWOG and without Victoria Park except key figures
marked separately with *
** Based on the shares carrying dividend rights on the reporting date: Jun.
30, 2018: 518,077,934, Jun. 30, 2017: 476,460,248, Dec. 31, 2017:
485,100,826
About Vonovia
Vonovia SE is Europe's leading housing company. Vonovia currently owns
around 400,000 residential units in all attractive cities and regions in
Germany and Austria. Its portfolio is worth approximately EUR 41.7 billion.
As a modern service company, Vonovia focuses on customer orientation and
tenant satisfaction. Offering tenants affordable, attractive and livable
homes is a prerequisite for the company's successful development.
Accordingly, Vonovia makes long-term investments in the maintenance,
modernization and senior-friendly conversion of its properties. The company
is also creating more and more new apartments by realizing infill
developments and adding to existing buildings.
The company, which is based in Bochum, has been listed on the stock exchange
since 2013 and on the DAX 30 since September 2015. Vonovia SE is also listed
on the international indices STOXX Europe 600, MSCI Germany, GPR 250 and
EPRA/NAREIT Europe. Vonovia has a workforce of approximately 9,700
employees.
Additional Information:
Approval: Regulated Market/Prime Standard, Frankfurt Stock Exchange
ISIN: DE000A1ML7J1
WKN: A1ML7J
Common code: 094567408
Registered headquarters of Vonovia SE: Bochum, Germany, Bochum Local Court,
HRB 16879
Business address of Vonovia SE: Universitätsstrasse 133, 44803 Bochum,
Germany
This press release has been issued by Vonovia SE and/or its subsidiaries
solely for information purposes. This press release may contain statements,
assumptions, opinions and predictions about the anticipated future
development of Vonovia ("forward-looking statements") that reproduce various
assumptions regarding, e.g., results derived from Vonovia's current business
or from publicly available sources that have not been subject to an
independent audit or in-depth evaluation by Vonovia and that may turn out to
be incorrect at a later stage. All forward-looking statements express
current expectations based on the current business plan and various other
assumptions and therefore come with risks and uncertainties that are not
insignificant. All forward-looking statements should not therefore be taken
as a guarantee for future performance or results and, furthermore, do not
necessarily constitute exact indicators that the forecast results will be
achieved. All forward-looking statements relate solely to the day on which
this press release was issued to its recipients. It is the responsibility of
the recipients of this press release to conduct a more detailed analysis of
the validity of forward-looking statements and the underlying assumptions.
Vonovia accepts no responsibility for any direct or indirect damages or
losses or subsequent damages or losses, as well as penalties that the
recipients may incur by using the press release, its contents and, in
particular, all forward-looking statements or in any other way, as far as
this is legally permissible. Vonovia does not provide any guarantees or
assurances (either explicitly or implicitly) in respect of the information
contained in this press release. Vonovia is not obliged to update or correct
the information, forward-looking statements or conclusions drawn in this
press release or to include subsequent events or circumstances or to report
inaccuracies that become known after the date of this press release.
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Additional features:
Document: http://n.eqs.com/c/fncls.ssp?u=QYSCMXMVOG
Document title: Vonovia Operationally Strong in the First Six Months of the
Year - Improvement to Customer Management During Modernization
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31.08.2018 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.
The DGAP Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
Archive at www.dgap.de
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Language: English
Company: Vonovia SE
Universitätsstraße 133
44803 Bochum
Germany
Phone: +49 234 314 1609
Fax: +49 234 314 2995
E-mail: [email protected]
Internet: www.vonovia.de
ISIN: DE000A1ML7J1
WKN: A1ML7J
Indices: DAX
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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