News
08/16/2011
Deutsche Wohnen increases its forecast for the fiscal year 2011
DGAP-News: Deutsche Wohnen increases its forecast for the fiscal year 2011
Deutsche Wohnen AG / Key word(s): Half Year Results
16.08.2011 / 06:59
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- Successful acquisitions of 5,300 residential units in total since July 2010
- Consolidated profit more than doubled to EUR 16.9 million
- Recurring FFO (without disposals) improved by 40% to EUR 0.35 per share
Frankfurt/Main and Berlin, 16 August 2011. Deutsche Wohnen closed the first half-year of 2011 with a clear increase in earnings. It succeeded in more than doubling its consolidated profit from EUR 8.1 million in the previous year to EUR 16.9 million. There was an increase in adjusted earnings before taxes of around 50% to EUR 26.9 million (previous year: EUR 17.9 million). Recurring Funds from Operations (FFO, without disposals) also improved significantly by 40% from EUR 0.25 to EUR 0.35 per share. At 60.7% the Loan-to-Value Ratio is virtually at the same level as in the previous year in spite of net acquisitions and unchanged valuation parameter. Although the dividend for 2010 of EUR 0.20 per share was paid out in the second quarter of 2011, it was possible to increase the EPRA NAV, which reflects the intrinsic value of the company, by 1.2% to EUR 11.92 per share.
'Because of the very good course of business in the first six months of 2011 we have raised our full-year forecast for recurring FFO from the previous figure of EUR 0.48 to EUR 0.50 per share by around 10% to EUR 0.55 per share,' explained Michael Zahn, the CEO of Deutsche Wohnen AG.
Strengthening the core regions
Deutsche Wohnen continues to implement its plans for growth. Since the second half-year of 2010 the company has invested around EUR 240 million (net) in acquisitions of a total of 5,300 residential units. 'With the acquisitions of the past few months we were able to strengthen our portfolio, especially in the core regions of Berlin, Rhine-Main and Rhine Valley South. Here we can observe a positive development in the market and, as a result, we can see high potential for lettings but also disposals,' said Michael Zahn. Today most of the Deutsche Wohnen portfolio (around 90%) is located in prospering metropolitan regions.
Successful letting business
In addition to lower interest rate charges and further acquisitions, the primary reason for the positive development in earnings of Deutsche Wohnen is its very good performance in property management. Here it was possible to increase earnings by EUR 3.4 million to EUR 79.6 million in comparison to the previous year. The operating result (Net Operating Income - NOI) increased by 6.7% to EUR 3.99 per sqm and month.
The average in-place rent in the letting portfolio of the core regions rose, in comparison to the previous year, by 2% to EUR 5.53 per sqm. At the same time, it was possible to reduce the vacancy rate once again from 2.8% to 1.8%. In these same regions it was also possible to increase the average new-letting rent in residential holdings not subject to price control by EUR 0.20 per sqm to EUR 6.53 per sqm. Accordingly, the average new-letting rent is significantly higher than the average in-place rent. This shows a high rent potential in the letting portfolio of more than 18% in the core regions of Deutsche Wohnen.
Consistent with a portfolio strategy that is geared to value retention Deutsche Wohnen further increased investments in its holdings. In the first half-year of 2011 a total of EUR 19.8 million (EUR 6.65 per sqm) was spent on maintenance and modernisation work (previous year: EUR 18.1 million or EUR 5.97 per sqm.
In privatisations of residential units it was possible to increase the volume of disposals by around 22% in a year-on-year comparison. The sale of 623 residential units for EUR 49.4 million with an average margin of 38% had been notarised as at 30 June 2011. In addition, 1,269 units were sold to institutional investors with a transaction volume of EUR 38.3 million.
In the segment Nursing and Assisted Living it was possible to achieve earnings (before taxes, interest, depreciation and amortisation) of EUR 5.0 million (previous year: EUR 4.6 million). This is particularly attributable to an improved capacity utilisation of the relevant properties.
Deutsche Wohnen
Deutsche Wohnen is one of the largest listed residential property companies in Germany with a business focus on managing and developing its residential property portfolio. The portfolio comprises 48,653 units in total, of which 48,206 are residential units and 447 are commercial properties. The Company has 81.84 million shares listed in the Deutsche Börse's MDAX and is also included in the leading indices EPRA/NAREIT and GPR 250.
Contact:
+49 (0)30 / 89786 - 551
End of Corporate News
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16.08.2011 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 Germany 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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16.08.2011 / 06:59
---------------------------------------------------------------------
- Successful acquisitions of 5,300 residential units in total since July 2010
- Consolidated profit more than doubled to EUR 16.9 million
- Recurring FFO (without disposals) improved by 40% to EUR 0.35 per share
Frankfurt/Main and Berlin, 16 August 2011. Deutsche Wohnen closed the first half-year of 2011 with a clear increase in earnings. It succeeded in more than doubling its consolidated profit from EUR 8.1 million in the previous year to EUR 16.9 million. There was an increase in adjusted earnings before taxes of around 50% to EUR 26.9 million (previous year: EUR 17.9 million). Recurring Funds from Operations (FFO, without disposals) also improved significantly by 40% from EUR 0.25 to EUR 0.35 per share. At 60.7% the Loan-to-Value Ratio is virtually at the same level as in the previous year in spite of net acquisitions and unchanged valuation parameter. Although the dividend for 2010 of EUR 0.20 per share was paid out in the second quarter of 2011, it was possible to increase the EPRA NAV, which reflects the intrinsic value of the company, by 1.2% to EUR 11.92 per share.
'Because of the very good course of business in the first six months of 2011 we have raised our full-year forecast for recurring FFO from the previous figure of EUR 0.48 to EUR 0.50 per share by around 10% to EUR 0.55 per share,' explained Michael Zahn, the CEO of Deutsche Wohnen AG.
Strengthening the core regions
Deutsche Wohnen continues to implement its plans for growth. Since the second half-year of 2010 the company has invested around EUR 240 million (net) in acquisitions of a total of 5,300 residential units. 'With the acquisitions of the past few months we were able to strengthen our portfolio, especially in the core regions of Berlin, Rhine-Main and Rhine Valley South. Here we can observe a positive development in the market and, as a result, we can see high potential for lettings but also disposals,' said Michael Zahn. Today most of the Deutsche Wohnen portfolio (around 90%) is located in prospering metropolitan regions.
Successful letting business
In addition to lower interest rate charges and further acquisitions, the primary reason for the positive development in earnings of Deutsche Wohnen is its very good performance in property management. Here it was possible to increase earnings by EUR 3.4 million to EUR 79.6 million in comparison to the previous year. The operating result (Net Operating Income - NOI) increased by 6.7% to EUR 3.99 per sqm and month.
The average in-place rent in the letting portfolio of the core regions rose, in comparison to the previous year, by 2% to EUR 5.53 per sqm. At the same time, it was possible to reduce the vacancy rate once again from 2.8% to 1.8%. In these same regions it was also possible to increase the average new-letting rent in residential holdings not subject to price control by EUR 0.20 per sqm to EUR 6.53 per sqm. Accordingly, the average new-letting rent is significantly higher than the average in-place rent. This shows a high rent potential in the letting portfolio of more than 18% in the core regions of Deutsche Wohnen.
Consistent with a portfolio strategy that is geared to value retention Deutsche Wohnen further increased investments in its holdings. In the first half-year of 2011 a total of EUR 19.8 million (EUR 6.65 per sqm) was spent on maintenance and modernisation work (previous year: EUR 18.1 million or EUR 5.97 per sqm.
In privatisations of residential units it was possible to increase the volume of disposals by around 22% in a year-on-year comparison. The sale of 623 residential units for EUR 49.4 million with an average margin of 38% had been notarised as at 30 June 2011. In addition, 1,269 units were sold to institutional investors with a transaction volume of EUR 38.3 million.
In the segment Nursing and Assisted Living it was possible to achieve earnings (before taxes, interest, depreciation and amortisation) of EUR 5.0 million (previous year: EUR 4.6 million). This is particularly attributable to an improved capacity utilisation of the relevant properties.
Deutsche Wohnen
Deutsche Wohnen is one of the largest listed residential property companies in Germany with a business focus on managing and developing its residential property portfolio. The portfolio comprises 48,653 units in total, of which 48,206 are residential units and 447 are commercial properties. The Company has 81.84 million shares listed in the Deutsche Börse's MDAX and is also included in the leading indices EPRA/NAREIT and GPR 250.
Contact:
+49 (0)30 / 89786 - 551
End of Corporate News
---------------------------------------------------------------------
16.08.2011 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 Germany 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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