Deutsche Wohnen AG

» 1st Quarter 2010Conference Call, 31 May 2010

» Agenda

1. Highlights
1. Operative development
1. Financials

» Highlights¹

» Capitalizing on the completed restructuring

Adjusted earnings before tax improved 86 % to EUR 9.1 million.
Earnings after taxes turn positive from EUR -2.2 million to EUR 5.2 million.
Thanks to favourable operating activities and reduced interest expenditure, FFO increased55 % from EUR 0.11 per share to EUR 0.17 per share.
Cash and cash equivalents rose from EUR 30.4 million to EUR 87.5 million.
Thanks to further repayments of financial liabilities totalling EUR 23.3 million, our Loan-to-Value(LTV) Ratio improved to 60.3 %.
Stable Net Net Asset Value at 10.57 EUR/share

» Operative development²

» Improvement of EBITDA by 5 % YoY

E U R m	Q 1 / 2 0 1 0	Q 1 / 2 0 0 9
R e v e n u e s	8. 7 7	6 1. 5
R i d i l t t t e s e n a p r o p e r m a n a g e m e n y	4 8. 1	4 7. 9
N i d i d i l h t u r s n g a n r e s e n a c a r e o m e s	8. 1	8. 1
D i l s p o s a	2 2. 5	5. 5

S l t t e g m e n r e s u s	4 2. 0	4 1. 9
R i d i l t t t e s e n a p r o p e r m a n a g e m e n y	3 9. 2	3 9. 0
N i d i d i l h t r s n g a n r e s e n a c a r e o m e s u	2. 2	2. 3
D i l s p o s a	0. 6	0. 6

E B I T D A	3 4. 5	* 3 3. 0

The revenues of the company were able to be increased by EUR 17.2 million YoY.

* adjusted for restructuring cost EUR 4.2 m

» Increase of NOI margin to 73.6 %

E U R m	Q / 2 0 0 1 1	Q / 2 0 0 9 1
I l t n- p a c e r e n	4 8. 1	4 8. 0
N b l o n- r e c o v e r a e e x p e n s e s	-1 6	-1 7
D l i i e n q e n c e s u	-0 8	-0 4
M i t a n e n a n c e	-6 0	-6 1
O h t e r s	-0 5	-0 8
R l f i d i l t t t t e s u o r e s e n a p r o p e r y m a n a g e m e n	3 9. 2	3 9. 0
P l d l d d i i i t t e r s o n n e a n g e n e r a a n a m n s r a o n e x p e n s e s	-3 8	-4 5
O i l ( N O I ) t t p e r a v e r e s u	3 5. 4	3 4. 5
O N I i % m a r g n,	7 3. 6 %	7 1. 9 %
N O I i E U R / h ² t n m p e r m o n	3. 8 6	3. 6 2
I % n c r e a s e,	6. 6 %

The contribution margin from the residential property management increased by 6.6 % to 3.86 EUR/m².

Maintenance expenditure is 7.88 EUR/m² (annuallized) resp. approx. 12 % of rental income.

» Proven rent potential of 16 % in core portfolio

	U i t n s	A r e a	S h a r e	I l n- p a c e * t r e n	M k ** t t a r e r e n	V a c a n c y
	N b m e r u	²k m	%	E U R / ² m	E U R / ² m	%
C f l i t o r e p o r o o	3 7. 2 7 8	2. 2 4 6	1 0 0 %	5. 3 7	6. 2 6	3. 1 %
B l i e r n	2 1. 6 9 9	1. 2 9 8	5 8 %	5. 2 6	5. 9 7	1. 9 %
F k f / M i t r a n r a n u	3. 6 5 8	2 1 7	1 0 %	6. 8 5	8. 3 1	2. 4 %
R h i M i n e- a n	3. 7 4 3	2 2 4	1 0 %	5. 7 5	7. 2 6	7. 4 %
R h i l- S ü d t e n a	2. 6 8 8	1 7 0	8 %	4. 8 3	5. 0 3	3. 0 %
R h i l- N d t e n a o r	4. 3 4 6	2 6 1	1 2 %	4. 8 3	5. 0 6	5. 6 %
B d b r a n e n u r g	9 7 0	6 3	3 %	4. 8 1	5. 5 1	5. 2 %
O h t e r s	1 7 4	1 2	1 %	6. 0 2	6. 1 7	2. 4 %

The average in-place rent was increased within 12 months from EUR 5.22 EUR/m² to 5.37 EUR/m².

1,069 new contracts were concluded in the core portfolio (non-subsidized) in the first quarter 2010.
The average market rent with non-subsidized apartments is currently 6.26 EUR/m² and is consequently around 16 % above the average in-place rent.
The vacancy rate decreased from 4.1 % to 3.1 % YoY.

*Contractually owed rent from the rented apartments divided by the rented area

**Current achievable contracted rent

» No structural vacancy in the core portfolio

	V a c a n c y	A l d r e a y d t r e n e	D t e o u f l i t t u c u a o n s	O f h i h w c 2 h 1 t m o n s >	D t e o u i t t n v e s m e n s
C f l i t o r e p o r o o	1. 3 1 9	3 3 7	6 4 2	1 1 5	3 4 0
B l i e r n	4 3 2	1 6 3	1 5 8	1 1	1 1 1
F k f / M i t r a n u r a n	1 1 2	3 5	7 7	6	0
R h i M i n e- a n	3 3 5	5 4	1 5 4	4 5	1 2 7
S R h i l- ü d t e n a	2 6 4	5 0	1 5 5	3 2	5 9
R h i l- N d t e n a o r	1 1 1	2 8	4 5	6	3 8
B d b r a n e n u r g	6 0	5	5 0	1 5	5
O h t e r s	5	2	3	0	0

For 26 % of the total vacancy, new leases have been entered into since the reporting date, yet no handover of the apartments has occurred.
Frequency of termination notices (943) on similar level YoY (967).
Only 115 residential units (0.3 %) in the core portfoliohave remained vacant for longer than 12 months.
Approx. 24 % of the vacancy relates to residential estates designated for comprehensive modernisationworks and which have consequently been vacated on purpose. The rental potential post-modernisationfor these properties amounts to 35% on average.

» Increased disposal transaction volume

	U i t n s	S l l a e s v o u m e	F i l a r v a u e	M a r g	i n
	N b u m e r	E U R m	E U R m	E U R m	%
P i i i t t r v a s a o n	2 5 3	2 1. 4	1 5. 8	5. 6	3 5 %
I i i l l t t t n s o n a s a e u	7 9 8	3 3. 8	3 2. 5	1. 3	4 %
	1, 0 5 1	5 5. 2	4 8. 3	6. 9	1 4

The sales performance in the disposals segment was increased from EUR 31.8 million to EUR 55.2 million YoY.
In residential privatisation (i.e. sale of individual apartments) significant book profits were achieved with gross margins of 35 %, as in the previous years. 51 % of the annual targeted sales (500 units) were already achieved as per the reporting date.
In institutional sales the transaction volume was around EUR 33.3 million with a gross margin of 4 %. Focus was to streamline the portfolio in structurally weaker regions.

Overview Disposal

	Q / 2 0 0 1 1	Q / 2 0 0 9 1
S l d a e s p r o c e e s	2 2. 5	5. 5
C f l t o s o s a e s	-0 9	-0 8
N l d t e s a e s p r o c e e s	2 1. 6	4. 7
F i l a r v a u e	-2 1. 0	-4 1
R l f d i l t e s u o s p o s a	0. 6	0. 6

Of 1,051 notarised units 486 units were taken into account on the balance sheet as per 31st March 2010.

» Financials³

» Positive Q1 result

E U R m	Q 2 0 0 1 / 1	Q 2 0 0 9 1 /
E B I T D A d j d t a u s e	3 4. 5	3 3. 0
D i i t e p r e c a o n	-0 7	-0 5
F i i l l ( ) t t n a n c a r e s n e u	-2 4. 6	-2 7. 6
E B T d j d t a s e u	9. 1	4. 9
R i t t e s r u c u r n g	0. 0	-4 2
V l i S W A P t a u a o n	-0 4	0. 0
E B T	8. 8	0. 7
T a x e s	-3 6	-2 9
N f i t t e p r o	2 5.	2. 2 -
E i h a r n n g s p e r s a r e	0. 0 6	-0 0 8

E U R m	Q / 2 0 0 1 1	Q / 2 0 0 9 1
I t t n e r e s e x p e n s e s	-2 1. 1	-2 4. 2
N h f i i l o n- c a s n a n c a e x p e n s e s	-3 7	-3 7
	-2 4. 8	-2 7. 9
I i t t n e r e s n c o m e	0. 2	0. 3
F i i l l ( ) t t n a n c a r e s u n e	2 4. 6 -	2 7. 6 -

+++Significant increase in earnings after taxesof EUR -2.2 million to EUR 5.2 million

++ The turnaround is complete:

Through the omission of one-offs relatingto the restructuring in context of theGEHAG takeover, the company is now in a position to present a positive result.

++ Substantial reduction of interest expense as a result of the progressingdeleveraging.
High share of interest hedges and fixedrates (97 %) prevent to benefit from thecurrent low interest environment.

» Funds from Operations

E U R m	Q 1 / 2 0 1 0	Q 1 / 2 0 0 9
N f i t t e p r o	2 5.	2. 2 -

D i i t e p r e c a o n	0. 7	0. 5
V l i S W A P t a u a o n	0. 4	0. 0
N h f i i l o n- c a s n a n c a e x p e n s e s	3. 7	3. 7
D f d t e e r r e a x e s	3. 9	2. 9
R i t t e s r c r n g u u	0. 0	4. 2

F F O	1 3. 7	9. 0
O F F h ( 2 6. 4 i l l i p e r s a r e m o n
h ) s a r e s	0. 5 2	0. 3 4
F F O h ( i l l i 8 1. 8 p e r s a r e m o n h
) s a r e s	0. 1 7	0. 1 1

FFO increased by 55 % to EUR 0.17 per share YoY
As early as the first quarter of 2010 theforecast FFO increase of EUR 0.05 was consequently achieved.
There is further potential here with ^a progressing development.

» Strong cash position

E U R m	3 0 3 2 0 0 1 / / 1	3 2 2 0 0 9 1 / 1 /
I i t t t n v e s m e n p r o p e r e s	2, 8 1 1. 0	2, 8 3 5. 5
O h t t t e r n o n c u r r e n a s s e s	2 1. 8	2 2. 4
D f d t t e e r r e a x a s s e s	1 0 1. 5	9 8. 4
N t t o n c u r r e n a s s e s	2, 9 3 4. 3	2, 9 5 6. 3

L d d b i l d i h l d f l a n a n n g e o r s a e u	1 7. 9	1 8. 4
R i b l f d d i e c e v a e s r o m g o o s a n s e r v c e s	5. 3	1 4. 5
O h t t t e r c u r r e n a s s e s	3 4. 1	3 3. 0
C h a s	8 7. 5	5 7. 1
C t t u r r e n a s s e s	8 1 4 4.	2 3. 0 1
T l t t o a a s s e s	3, 0 7 9. 1	3, 0 7 9. 3

Unchanged valuation matrix:

896 EUR/m²
14.2 times on in-place rent

Strong liquidity position:

Cash of EUR 87 million
Credit lines of EUR 128 million

» Stable equity position due net profit

E U R m	3 0 3 2 0 0 1 / / 1	3 2 2 0 0 9 1 / 1 /
T l i t t o a e q u y	8 5 2. 5	8 6 2. 0
F i i l l i b i l i i t n a n c a a e s	1, 7 8 3. 3	1, 8 0 2. 7	R d i f L T V 6 0. 3 % t t e u c o n o o
T l i b i l i i t a x a e s	8 0. 7	8 4. 1	E d E K E U R i l l i 0 2 2 0 1 0 2 1 t t p e c e p a m e n s m o n x y :
D f d l i b i l i i t t e e r r e a x a e s	8 1. 7	8 1. 4
D i i t e r v a v e s	9 2. 1	7 0. 5	I h h d d k i t t t t t n c r e a s e r o g r e c e m a r e n e r e s r a e s u u
O h l i b i l i i t t e r a e s	1 8 8. 5	1 7 8. 6
T l l i b i l i i t t o a a e s	3, 0 9. 7 1	3, 0 9. 3 7

E U R m	3 1 / 0 3 / 2 0 1 0	3 1 / 1 2 / 2 0 0 9
N N A V	8 6 4. 8	8 7 0. 3
N N A V h p e r s a r e	1 0. 5 7	1 0. 6 3

Reduced NNAV as a result of SWAP assessment (EUR 16 million)

» Reduction of LTV to 60,3 %

» Disclaimer

This presentation contains forward-looking statements including assumptions, opinions and views of Deutsche Wohnen or quoted from third party sources. Various known and unknown risks, uncertainties and other factors could cause actual results, financial positions, development or performance of the company to differ materially from the estimations expressed or implied herein. The company does not guarantee that the assumptions underlying such forward-looking statements are free from errors nor do they accept any responsibility for the future accuracy of the opinions expressed in this presentation or the actual occurrence of the forecasted developments. No representation or warranty (expressed or implied) is made as to, and no reliance should be placed on, any information, including projections, estimates, targets and opinions, contained herein, and no liability whatsoever is accepted as to any errors, omissions or misstatements contained herein, and accordingly, none of the company or any of its parent or subsidiary undertakings or any of such person's officers, directors or employees accepts any liability whatsoever arising directly or indirectly from the use of this document. Deutsche Wohnen does not undertake any obligation to publicly release any revisions to these forward-looking statements to reflect events or circumstances after the date of this presentation.