News
03/29/2011
Deutsche Wohnen with sharp profit increase
DGAP-News: Deutsche Wohnen with sharp profit increase
Deutsche Wohnen AG / Key word(s): Final Results
29.03.2011 / 07:18
- Consolidated profit of EUR 23.8 million
- FFO up 30% to EUR 0.56 per share
- Intrinsic value increased by 5.4%
Frankfurt am Main / Berlin, 29 March 2011. Deutsche Wohnen successfully closed the 2010 financial year with a consolidated profit of EUR 23.8 million (previous year: EUR -13.3 million). After adjustment of non-recurring items, earnings before taxes nearly doubled from EUR 18.6 million to EUR 33.7 million. Funds from Operations (FFO), which reflect the sustainable operating result as well as the result from disposals, rose by 30 % year on year to EUR 0.56 per share. The intrinsic value, calculated on the basis of the long-term fair value of equity (EPRA NAV), went up by 5.4 % to EUR 11.78 per share.
'We further developed Deutsche Wohnen in a good way in 2010. Strong operating results, early refinancing, increase in share price, MDAX listing - all these are important milestones in the Company's development. Strategically and operationally, we are well set up for the future in every respect,' declared Michael Zahn, Chief Executive Officer of Deutsche Wohnen AG.
Sound operative growth
Thanks to increasing rental income and lower vacancy rates, rental earnings - defined as Net Operating Income (NOI) - rose by 6.3% year on year per square metre and month.
The vacancy rate for the core portfolio fell sharply to 2.3 % compared to the previous year. In the main markets Berlin and Frankfurt/Main, the vacancy rate is down to 1.3 % and 1.5 % respectively, which is virtually fully let. Here the Company particularly benefits from the increasing attractiveness of urban areas and the growing number of households. Overall, cash from the sustainable business - FFO without disposals - improved by 29 % to EUR 0.40 per share.
The Company attaches great importance to maintaining and improving the properties, and the earnings improvement was therefore not achieved by cutting back on investment in the properties. On the contrary: expenses for modernisation (EUR 17.6 million) and maintenance (EUR 28.0 million) rose to a total of EUR 45.6 million. This is equivalent to average total spending of EUR 15.65 per square metre, which is around EUR 1.50 per square metre more than in 2009.
The disposals segment doubled its transaction volume compared to the previous year (EUR 85.7 million) to EUR 171.7 million. In the privatisation business Deutsche Wohnen again beat its target for the full year, earning average margins of approximately 34 %. The disposal ratio improved from around 13 % to around 31 % in the course of streamlining the portfolio. Portfolio management and valuation
The strong operative growth in terms of rents and vacancy rates is also reflected in the valuation as of 31 December 2010. Higher new-letting rents in particular had a positive effect on the valuation. Deutsche Wohnen accordingly positively revalued its portfolio by EUR +47 million or +1.8 %. As a result, the Company's total portfolio is valued at an average of EUR 926 per square metre, or a multiple of 14.4 times the current gross rental income.
The acquisition of 1,808 residential units in Mainz, Berlin and Potsdam further enhanced the quality of the portfolio. The newly purchased residential units have a rent development potential of 32 %.
Debt capital structure optimised
Deutsche Wohnen took advantage of the attractive interest rate environment last year to improve its debt capital structure. Loans totalling EUR 516 million were refinanced in 2010, and additional long-term loan funds of EUR 94 million were concluded. Almost all large loan obligations until the end of 2015 have therefore now been refinanced prematurely. The Loan-to-Value Ratio is relatively low compared with competitors, at 60.6 %.
Successful share price performance
Deutsche Wohnen's strong operating performance was also acknowledged by the capital markets. 'The share price rose by over 56 % in 2010, taking the market capitalisation to EUR 859 million. The changes to the shareholder structure also increased the free float, simultaniouesly the liquidity of our share improved,' commented Helmut Ullrich, Chief Financial Officer of Deutsche Wohnen AG. In December 2010 the Company was included in Deutsche Börse's MDAX index. A dividend distribution of EUR 0.20 per share for the financial year 2010 is proposed to the Annual General Meeting.
Outlook
The acquisition of residential units for the core portfolios is to be accelerated in future, to continue scaling up Deutsche Wohnen's business model. In addition, strategic market opportunities are to be exploited in conjunction with a capital increase. The Company is now well positioned to do this.
'We expect a significant increase in FFO without disposals in 2011, from EUR 0.40 per share to about EUR 0.48 to 0.50 per share. Acquisitions could also generate further positive developments,' said Michael Zahn. The Loan-to-Value Ratio should also stabilise over the long term at today's level of around 60 %.
Deutsche Wohnen
Deutsche Wohnen is Germany's second-largest listed residential property company with a business focus on managing and developing its residential property portfolio. The portfolio comprises 48,131 units in total, of which 47,688 are residential units and 443 are commercial properties. The Company has 81.84 million shares listed in the Deutsche Börse's MDAX from December 2010 and is also included in the leading indices EPRA/NAREIT and GPR 250.
Contact:
+49 (0)30 / 89786 - 551
End of Corporate News
---------------------------------------------------------------------
29.03.2011 Dissemination of a Corporate News, transmitted by DGAP - a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.
DGAP's Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases.
Media archive at www.dgap-medientreff.de and www.dgap.de
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Language: English Company: Deutsche Wohnen AG Pfaffenwiese 300 65929 Frankfurt Deutschland Phone: +49 (0)30 89786-0 Fax: +49 (0)30 89786-507 E-mail: ir@deutsche-wohnen.com Internet: http://www.deutsche-wohnen.com ISIN: DE000A0HN5C6, DE0006283302 WKN: A0HN5C, 628330 Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin, Düsseldorf, Hamburg, München, Stuttgart
End of News DGAP News-Service
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Deutsche Wohnen AG / Key word(s): Final Results
29.03.2011 / 07:18
- Consolidated profit of EUR 23.8 million
- FFO up 30% to EUR 0.56 per share
- Intrinsic value increased by 5.4%
Frankfurt am Main / Berlin, 29 March 2011. Deutsche Wohnen successfully closed the 2010 financial year with a consolidated profit of EUR 23.8 million (previous year: EUR -13.3 million). After adjustment of non-recurring items, earnings before taxes nearly doubled from EUR 18.6 million to EUR 33.7 million. Funds from Operations (FFO), which reflect the sustainable operating result as well as the result from disposals, rose by 30 % year on year to EUR 0.56 per share. The intrinsic value, calculated on the basis of the long-term fair value of equity (EPRA NAV), went up by 5.4 % to EUR 11.78 per share.
'We further developed Deutsche Wohnen in a good way in 2010. Strong operating results, early refinancing, increase in share price, MDAX listing - all these are important milestones in the Company's development. Strategically and operationally, we are well set up for the future in every respect,' declared Michael Zahn, Chief Executive Officer of Deutsche Wohnen AG.
Sound operative growth
Thanks to increasing rental income and lower vacancy rates, rental earnings - defined as Net Operating Income (NOI) - rose by 6.3% year on year per square metre and month.
The vacancy rate for the core portfolio fell sharply to 2.3 % compared to the previous year. In the main markets Berlin and Frankfurt/Main, the vacancy rate is down to 1.3 % and 1.5 % respectively, which is virtually fully let. Here the Company particularly benefits from the increasing attractiveness of urban areas and the growing number of households. Overall, cash from the sustainable business - FFO without disposals - improved by 29 % to EUR 0.40 per share.
The Company attaches great importance to maintaining and improving the properties, and the earnings improvement was therefore not achieved by cutting back on investment in the properties. On the contrary: expenses for modernisation (EUR 17.6 million) and maintenance (EUR 28.0 million) rose to a total of EUR 45.6 million. This is equivalent to average total spending of EUR 15.65 per square metre, which is around EUR 1.50 per square metre more than in 2009.
The disposals segment doubled its transaction volume compared to the previous year (EUR 85.7 million) to EUR 171.7 million. In the privatisation business Deutsche Wohnen again beat its target for the full year, earning average margins of approximately 34 %. The disposal ratio improved from around 13 % to around 31 % in the course of streamlining the portfolio. Portfolio management and valuation
The strong operative growth in terms of rents and vacancy rates is also reflected in the valuation as of 31 December 2010. Higher new-letting rents in particular had a positive effect on the valuation. Deutsche Wohnen accordingly positively revalued its portfolio by EUR +47 million or +1.8 %. As a result, the Company's total portfolio is valued at an average of EUR 926 per square metre, or a multiple of 14.4 times the current gross rental income.
The acquisition of 1,808 residential units in Mainz, Berlin and Potsdam further enhanced the quality of the portfolio. The newly purchased residential units have a rent development potential of 32 %.
Debt capital structure optimised
Deutsche Wohnen took advantage of the attractive interest rate environment last year to improve its debt capital structure. Loans totalling EUR 516 million were refinanced in 2010, and additional long-term loan funds of EUR 94 million were concluded. Almost all large loan obligations until the end of 2015 have therefore now been refinanced prematurely. The Loan-to-Value Ratio is relatively low compared with competitors, at 60.6 %.
Successful share price performance
Deutsche Wohnen's strong operating performance was also acknowledged by the capital markets. 'The share price rose by over 56 % in 2010, taking the market capitalisation to EUR 859 million. The changes to the shareholder structure also increased the free float, simultaniouesly the liquidity of our share improved,' commented Helmut Ullrich, Chief Financial Officer of Deutsche Wohnen AG. In December 2010 the Company was included in Deutsche Börse's MDAX index. A dividend distribution of EUR 0.20 per share for the financial year 2010 is proposed to the Annual General Meeting.
Outlook
The acquisition of residential units for the core portfolios is to be accelerated in future, to continue scaling up Deutsche Wohnen's business model. In addition, strategic market opportunities are to be exploited in conjunction with a capital increase. The Company is now well positioned to do this.
'We expect a significant increase in FFO without disposals in 2011, from EUR 0.40 per share to about EUR 0.48 to 0.50 per share. Acquisitions could also generate further positive developments,' said Michael Zahn. The Loan-to-Value Ratio should also stabilise over the long term at today's level of around 60 %.
Deutsche Wohnen
Deutsche Wohnen is Germany's second-largest listed residential property company with a business focus on managing and developing its residential property portfolio. The portfolio comprises 48,131 units in total, of which 47,688 are residential units and 443 are commercial properties. The Company has 81.84 million shares listed in the Deutsche Börse's MDAX from December 2010 and is also included in the leading indices EPRA/NAREIT and GPR 250.
Contact:
+49 (0)30 / 89786 - 551
End of Corporate News
---------------------------------------------------------------------
29.03.2011 Dissemination of a Corporate News, transmitted by DGAP - a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.
DGAP's Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases.
Media archive at www.dgap-medientreff.de and www.dgap.de
---------------------------------------------------------------------
Language: English Company: Deutsche Wohnen AG Pfaffenwiese 300 65929 Frankfurt Deutschland Phone: +49 (0)30 89786-0 Fax: +49 (0)30 89786-507 E-mail: ir@deutsche-wohnen.com Internet: http://www.deutsche-wohnen.com ISIN: DE000A0HN5C6, DE0006283302 WKN: A0HN5C, 628330 Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin, Düsseldorf, Hamburg, München, Stuttgart
End of News DGAP News-Service
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