News

Deutsche Wohnen raises earnings for 2015 by about 38 per cent

• Increase of FFO I by 38 per cent to about EUR 300 million or EUR 0.94 per share
• Portfolio appreciation by around EUR 1.7 billion and increase in EPRA NAV by 27 per cent to approx. EUR 23 per share
• Substantial reduction of leverage ratio to around 38 per cent
• Further increase of FFO I by around 20 per cent to at least EUR 360 million expected for 2016
• Raise of payout ratio to 65 per cent of FFO I from financial year 2016 onwards

Frankfurt/Main and Berlin, 11 January 2016. For the financial year ending 31 December 2015, Deutsche Wohnen expects FFO I to come in above the latest forecast at around EUR 300 million (previous year: EUR 217.6 million). This represents an increase of 38 per cent on the previous year. FFO I per share is set to improve by some 24 per cent to around EUR 0.94 (previous year: EUR 0.76).

Deutsche Wohnen benefited repeatedly from a dynamic market environment in the 2015 financial year, particularly in the Core⁺ and Core regions. Thus, Deutsche Wohnen will increase its EPRA NAV per share by presumably 27 per cent, reaching a level of EUR 23 per share (previous year: EUR 18.10 per share). Overall, the value of the portfolio is expected to increase by EUR 1.7 billion in the financial year 2015 compared with that of the 31 December 2014 reporting date. This corresponds to an in-place rents multiplier of around 18.2x (previous year: 15.5x) for the entire portfolio and around 19.4x (previous year: 16.1x) for Berlin.

The leverage ratio will expectedly be around 38 per cent as of 31 December 2015. The company aims to maintain its conservative financing policy within the current market environment.

For the 2016 financial year, Deutsche Wohnen is forecasting a further increase in FFO I of some 20 per cent against the past financial year to at least EUR 360 million. The basis for this forecast is the FFO contribution made by the previously announced additions to the portfolio, the successfully concluded refinancing measures as well as the positive development throughout the 2015 financial year, which the Management Board expects to continue in 2016. The forecast relates to the current portfolio stock as well as acquisitions that have already been announced; further potential acquisitions are not included in the forecast.

Deutsche Wohnen expects the market development in its strategic core and growth regions to remain positive. Based on a forecast like-for-like rent increase of around 3 per cent on average for the years ahead, and provided that conditions remain largely unchanged, the Management Board sees further potential for value adjustment within the portfolio. As of the end of the financial year 2016, Deutsche Wohnen anticipates an EPRA NAV of EUR 25 to EUR 26 per share.

Against the background of the continuously positive business development, the Management Board has decided to increase the dividend payout ratio for the financial year 2016 to 65 per cent of FFO I.

"Deutsche Wohnen achieved a record result in 2015. We exceeded our targets and we see ourselves in an excellent position for 2016. In view of this potential, we are raising our forecast for 2016 and let our shareholders increasingly participate in this success via the increase in the dividend payout ratio. We are thereby demonstrating once again the sustainability and strength of our business model," said Michael Zahn, Chief Executive Officer of Deutsche Wohnen.

Deutsche Wohnen

Deutsche Wohnen is one of the largest publicly listed real estate companies in Germany and Europe with a business focus on managing and developing its portfolio, which focuses on residential properties. As at 31 September 2015 the portfolio comprised a total of 149,201 units, of which 146,999 are residential units and 2,202 commercial properties. Deutsche Wohnen is listed in the Deutsche Börse's MDAX and is also included in the leading indices EPRA/NAREIT and GPR 100.

Important Note

This publication constitutes neither an offer to sell nor an invitation to purchase securities.

Insofar as this document contains forward-looking statements, these statements do not represent any facts and are identified by the words "become", "expect", "believe", "estimate", "intend", "strive", "assume" and similar phrases. Such statements express the intentions, opinions or current expectations or assumptions of Deutsche Wohnen and of the persons acting in concert with it. The forward-looking statements are based on current plans, estimates and forecasts which Deutsche Wohnen and the persons acting in cooperation with it have made to the best of their knowledge, but which do not claim to be correct in the future. Forward-looking statements are subject to risks and uncertainties, which are often very difficult to predict and usually do not lie within the sphere of influence of Deutsche Wohnen or the persons acting in concert with the company. It should be taken into account that actual results or performance to differ materially from those expressed or implied by the forward-looking statements.