News
03/27/2008
Deutsche Wohnen AG: Results for 2007 and Financial Reporting Enforcement Panel (FREP)
DGAP-Ad-hoc: Deutsche Wohnen AG: Results for 2007 and Financial Reporting Enforcement Panel (FREP)
Deutsche Wohnen AG / Final Results
Release of an Ad hoc announcement according to § 15 WpHG, transmitted by DGAP - a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.
Deutsche Wohnen AG today (March 27, 2007) announces its consolidated financial results for the full year 2007.
Following the merger with GEHAG in August 2007, the company has decided to present two sets of results, one on an actual basis which includes GEHAG for the actual five months and one on a pro forma basis. The pro forma results which are presented on the basis that GEHAG has been consolidated since January 1, 2007 show a far better underlying profit.
The result of the rental business amounted to EUR 135.4 million, with the privatisation business achieving EUR 3.4 million, both on a pro forma basis. Within the rental business Deutsche Wohnen AG managed to increase the average net cold rent by 3.6% to EUR 4.89 per m², compared to December 31, 2006 and thus total net cold rental income increased to EUR 186.3 million on a pro forma basis.
As such, rental income as well EBITDA (EUR101.2 million) and Funds from operations (EUR 10.2 million), all on a pro forma basis, achieved the estimates that were given at the end of November 2007. Net income amounted to EUR 231.4 million on a pro forma basis and to EUR 29.8 million on an actual basis.
Deutsche Wohnen has decided not to pay a dividend to its shareholders for the fiscal year 2007. As has previously been communicated by the company the new management intends to focus on achieving long-term value and therefore believe that, unlike in previous years, dividends should be paid in line with achieved profits that the company has generated.
Deutsche Wohnen AG has increased the Net Asset Value per share in 2007 by 2.4% or EUR 0.87 to EUR 37.16 per share from EUR 36.29 per share in 2006. However the NAV for 2006 has not taken the GEHAG transaction or the effects of the change from the Historic Cost valuation method to Fair Value, which was undertaken in 2007, or the new EK 02 tax subject, also undertaken in 2007, into account.
The Financial Reporting Enforcement Panel following an examination of potential infringements of financial reporting requirements according to Para. 2 part 3 Nr. 1 HGB has decided that Deutsche Wohnen AG in order to provide comparable figures for 2007 needs to adjust its reported numbers for the short fiscal year July 1 to December 31, 2006.
Cause for the examination was the initial full consolidation of the DB Real estate fund 14 Rhein-Pfalz Wohnen GmbH & Co. KG (DB14). Deutsche Wohnen AG had included in its consolidated financial statements for the short fiscal year from July 1 to December 31, 2006 the specially created company DB14 in accordance with SIC 12 and realised net income in the amount of EUR 8.8 million following the merger. According to FREP full consolidation should have taken place prior to December 31, 2006. As a result the difference should not have been presented in the net income.
The new management of Deutsche Wohnen AG has agreed to the outcome of the examination and has therefore undertaken to correct the financial statements accordingly. (for details see ‘Explanatory Notes’). Thereby the management intends to further increase the transparency within the company towards its shareholders.
For the full year 2007 and the ensuing years this presents no material changes in the profit, and cash flow development of Deutsche Wohnen AG:
Information and Explaination of the Issuer to this News:
1) Key financials 2007:
The following table presents an overview of the key financial figures for 2007:
EUR million. Pro GEHAG 5 Forma Months Total revenue 311.5 204,4 - of which net cold rental income 186.3 132.0 - of which sales 3.4 0.3 EBITDA 101.2 62.2 EBIT 410.4 91.4 Net income 231.4 29.8 Gross cash flow (funds from operations, FFO) incl. 10.2 0.7 privatisations
FFO excluding privatisations 6.8 0.5
Rental business 2007 Average monthly net cold rent € 4.89 per m² Total net cold rental income € 186.3 million Vacancy rate 6.4% Ongoing maintenance (P&L; Pro Forma) € 11.68 pro m² Segment result (Pro Forma) € 135.4 million
Privatisations 2007 Total sales 883 Average sales price tenant privatization € 1,332 per m² Total sales revenue (Pro Forma) € 70.5 million Cost of sales (Pro Forma) € 5.2 million Book value (Pro Forma) € 61.9 million Segment result (Pro Forma) € 3.4 million
Residential portfolio Dec 31, 2007 Number of units 51.127 Total rental space 3.3 million m² Market value (Fair Value) Portfolio € 3.3 billion
2) Consolidated financial statements - adjustment of comparable numbers
In the consolidated financial statements 2007 the comparable numbers for the short fiscal year July 1, to December 31, 2006 have been corrected as follows:
Net income for the short fiscal year 2006 has been reduced by EUR 8.8 million to EUR 20.6 million. Furthermore all revenues and costs which are part of the profit and loss of DB 14 between July 1, to December 31, 2006 are to be included, although these do not have a material impact on the net result. Following the initial consolidation of DB 14 as at June 30, 2006, retained income was increased by EUR 8.8 million while the net income line was reduced by EUR 8.8 million. There has been no impact on the other amounts stated. Material changes in the cash flow statement affect cash flow from investments, which is reduced by EUR 11.1 million and cash flow from investing activities which is reduced by EUR 1.5 million. Cash and cash equivalents at the end of the fiscal year 2006 remain unchanged at EUR 33.5 million.
Analyst & Investor Conference:
March 27, 2008, 3.00 pm CET, Hilton Frankfurt (Hochstraße 3, Frankfurt)
Conference call:
March 27, 2008, 3.00 pm CET, Livestream on http://www.deutsche-wohnen.de
Hubert Bonn
Head of Investor Relations
Phone: +49 (0)6131 4800 262
email: hubert.bonn@deuwo.com
27.03.2008 Financial News transmitted by DGAP
Language: English
Issuer: Deutsche Wohnen AG
Pfaffenwiese 300
65929 Frankfurt am Main
Deutschland
Phone: +49 (0)6131 4800 262
Fax: +49 (0)6131 4800 4441
E-mail: hubert.bonn@deuwo.com
Internet: www.deutsche-wohnen.de
ISIN: DE000A0HN5C6, DE0006283302
WKN: A0HN5C, 628330
Indices: SDAX
Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin, Hamburg, Düsseldorf, München, Stuttgart
End of News DGAP News-Service
Deutsche Wohnen AG / Final Results
Release of an Ad hoc announcement according to § 15 WpHG, transmitted by DGAP - a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.
Deutsche Wohnen AG today (March 27, 2007) announces its consolidated financial results for the full year 2007.
Following the merger with GEHAG in August 2007, the company has decided to present two sets of results, one on an actual basis which includes GEHAG for the actual five months and one on a pro forma basis. The pro forma results which are presented on the basis that GEHAG has been consolidated since January 1, 2007 show a far better underlying profit.
The result of the rental business amounted to EUR 135.4 million, with the privatisation business achieving EUR 3.4 million, both on a pro forma basis. Within the rental business Deutsche Wohnen AG managed to increase the average net cold rent by 3.6% to EUR 4.89 per m², compared to December 31, 2006 and thus total net cold rental income increased to EUR 186.3 million on a pro forma basis.
As such, rental income as well EBITDA (EUR101.2 million) and Funds from operations (EUR 10.2 million), all on a pro forma basis, achieved the estimates that were given at the end of November 2007. Net income amounted to EUR 231.4 million on a pro forma basis and to EUR 29.8 million on an actual basis.
Deutsche Wohnen has decided not to pay a dividend to its shareholders for the fiscal year 2007. As has previously been communicated by the company the new management intends to focus on achieving long-term value and therefore believe that, unlike in previous years, dividends should be paid in line with achieved profits that the company has generated.
Deutsche Wohnen AG has increased the Net Asset Value per share in 2007 by 2.4% or EUR 0.87 to EUR 37.16 per share from EUR 36.29 per share in 2006. However the NAV for 2006 has not taken the GEHAG transaction or the effects of the change from the Historic Cost valuation method to Fair Value, which was undertaken in 2007, or the new EK 02 tax subject, also undertaken in 2007, into account.
The Financial Reporting Enforcement Panel following an examination of potential infringements of financial reporting requirements according to Para. 2 part 3 Nr. 1 HGB has decided that Deutsche Wohnen AG in order to provide comparable figures for 2007 needs to adjust its reported numbers for the short fiscal year July 1 to December 31, 2006.
Cause for the examination was the initial full consolidation of the DB Real estate fund 14 Rhein-Pfalz Wohnen GmbH & Co. KG (DB14). Deutsche Wohnen AG had included in its consolidated financial statements for the short fiscal year from July 1 to December 31, 2006 the specially created company DB14 in accordance with SIC 12 and realised net income in the amount of EUR 8.8 million following the merger. According to FREP full consolidation should have taken place prior to December 31, 2006. As a result the difference should not have been presented in the net income.
The new management of Deutsche Wohnen AG has agreed to the outcome of the examination and has therefore undertaken to correct the financial statements accordingly. (for details see ‘Explanatory Notes’). Thereby the management intends to further increase the transparency within the company towards its shareholders.
For the full year 2007 and the ensuing years this presents no material changes in the profit, and cash flow development of Deutsche Wohnen AG:
Information and Explaination of the Issuer to this News:
1) Key financials 2007:
The following table presents an overview of the key financial figures for 2007:
EUR million. Pro GEHAG 5 Forma Months Total revenue 311.5 204,4 - of which net cold rental income 186.3 132.0 - of which sales 3.4 0.3 EBITDA 101.2 62.2 EBIT 410.4 91.4 Net income 231.4 29.8 Gross cash flow (funds from operations, FFO) incl. 10.2 0.7 privatisations
FFO excluding privatisations 6.8 0.5
Rental business 2007 Average monthly net cold rent € 4.89 per m² Total net cold rental income € 186.3 million Vacancy rate 6.4% Ongoing maintenance (P&L; Pro Forma) € 11.68 pro m² Segment result (Pro Forma) € 135.4 million
Privatisations 2007 Total sales 883 Average sales price tenant privatization € 1,332 per m² Total sales revenue (Pro Forma) € 70.5 million Cost of sales (Pro Forma) € 5.2 million Book value (Pro Forma) € 61.9 million Segment result (Pro Forma) € 3.4 million
Residential portfolio Dec 31, 2007 Number of units 51.127 Total rental space 3.3 million m² Market value (Fair Value) Portfolio € 3.3 billion
2) Consolidated financial statements - adjustment of comparable numbers
In the consolidated financial statements 2007 the comparable numbers for the short fiscal year July 1, to December 31, 2006 have been corrected as follows:
Net income for the short fiscal year 2006 has been reduced by EUR 8.8 million to EUR 20.6 million. Furthermore all revenues and costs which are part of the profit and loss of DB 14 between July 1, to December 31, 2006 are to be included, although these do not have a material impact on the net result. Following the initial consolidation of DB 14 as at June 30, 2006, retained income was increased by EUR 8.8 million while the net income line was reduced by EUR 8.8 million. There has been no impact on the other amounts stated. Material changes in the cash flow statement affect cash flow from investments, which is reduced by EUR 11.1 million and cash flow from investing activities which is reduced by EUR 1.5 million. Cash and cash equivalents at the end of the fiscal year 2006 remain unchanged at EUR 33.5 million.
Analyst & Investor Conference:
March 27, 2008, 3.00 pm CET, Hilton Frankfurt (Hochstraße 3, Frankfurt)
Conference call:
March 27, 2008, 3.00 pm CET, Livestream on http://www.deutsche-wohnen.de
Hubert Bonn
Head of Investor Relations
Phone: +49 (0)6131 4800 262
email: hubert.bonn@deuwo.com
27.03.2008 Financial News transmitted by DGAP
Language: English
Issuer: Deutsche Wohnen AG
Pfaffenwiese 300
65929 Frankfurt am Main
Deutschland
Phone: +49 (0)6131 4800 262
Fax: +49 (0)6131 4800 4441
E-mail: hubert.bonn@deuwo.com
Internet: www.deutsche-wohnen.de
ISIN: DE000A0HN5C6, DE0006283302
WKN: A0HN5C, 628330
Indices: SDAX
Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin, Hamburg, Düsseldorf, München, Stuttgart
End of News DGAP News-Service