Deutsche Wohnen SE — Earnings Release 2011

May 12, 2011

News Details

Corporate | 12 May 2011 06:57

Deutsche Wohnen AG makes a successful start to the fiscal year 2011

Deutsche Wohnen AG / Key word(s): Quarter Results/Interim Report

12.05.2011 / 06:57

– Successful acquisition of a further 2,500 residential units in Berlin

– Increase in consolidated profit of 63% to EUR 8.5 million

– Improvement in sustainably generated FFO (without disposals) of around

19% to EUR 0.19 per share

Frankfurt/Main, Berlin, 12 May 2011. Deutsche Wohnen has made a successful

start to 2011 with a consolidated profit of EUR 8.5 million (previous year:

EUR 5.2 million), thus paving the way for the continued positive

development of its business. There was an improvement in earnings before

taxes – adjusted for special effects – of 54% to EUR 14.0 million (previous

year: EUR 9.1 million), and once again the sustainable Funds from

Operations (FFO without disposals) increased in a year-on-year comparison

by 19% to EUR 0.19 per share. The company succeeded in increasing its

intrinsic value, expressed as the EPRA NAV, in the first quarter by 1.4% to

EUR 11.94 per share. The Loan-to-Value Ratio (LTV) was reduced in the same

period to 60.1%.

Sustainable portfolio development

Consistent with its growth strategy Deutsche Wohnen was able to make

further acquisitions in April and May 2011. ‘We have purchased 2,500

residential units in Berlin. In total we have been able to acquire around

4,300 residential units in the past nine months. In doing so we are

strengthening our position in the core regions on a sustainable basis,’

explained Michael Zahn, the CEO of Deutsche Wohnen AG. In total the 4,300

residential units generate an annual current gross rental income of EUR

15.0 million.

Further improvements in operational development

Deutsche Wohnen continued to improve its operating results in the first

quarter of 2011. Despite disposals, earnings from Residential Property

Management increased slightly in comparison to the previous year from EUR

39.2 million to EUR 39.6 million. There was a clear rise in the key figure

for portfolio performance – the Net Operating Income (NOI) – of 4.4% to EUR

4.03 per sqm per month. The average in-place rent in the core portfolio

amounts to EUR 5.50 per sqm as of 31 March 2011. This represents an

increase of 2.2% in comparison to the previous year. In the first quarter

it was also possible to maintain the vacancy rate in the core portfolio at

the low level of 2.3%.

The growth in new-letting rents in the core regions of Deutsche Wohnen

demonstrates unmistakeably the dynamic nature of rental developments in

these areas. The average new-letting rent of units not subject to price

controls rose in the twelve months to 31 March by EUR 0.22 to EUR 6.46 per

sqm. This rent is significantly higher than the average in-place rent per

sqm.

It is the strategy of the company to develop its portfolio in such a way as

to create long-term growth in value. Accordingly, it intends to guarantee

that its holdings remain attractive and of high quality by means of

targeted modernisation measures and continuing maintenance. The success of

this strategy is demonstrated by the above-average rental growth potential

of currently 17.5%.

In residential privatisations in the first quarter of 2011 Deutsche Wohnen

notarised 306 units with average sales proceeds of EUR 1,237 per sqm and a

margin of 41%. At the same time 1,032 units were sold to institutional

investors with a transaction volume of EUR 32.7 million.

In the business segment Nursing and Assisted Living there was an

improvement in earnings (before interest, taxes, depreciation and

amortisation) to EUR 2.7 million (previous year: EUR 2.2 million). This is

particularly attributable to an increase in the average capacity

utilisation of the relevant properties.

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 47,536 units in total, of which

47,095 are residential units and 441 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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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

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