Deutsche Wohnen SE — Interim / Quarterly Report 2011

May 12, 2011

Deutsche Wohnen AG

» Q1 2011 resultsConference Call, 12 May 2011

» Summary

» Acquisitions/Sustainability

» Accretive purchase of 4,300 units within last nine months

	R i d i l t e s e n a i t n s u	A r e a	I l t n- p a c e r e n	V a c a n c y	T f f i k r a n s e r o r s s d d a n r e a r s w
	#	s q m	E U R / s q m	%
A i i i 2 0 1 0 t c q u s o n s	1, 8 0 8	9 6, 4 8 2	5. 2 4	1. 5	l i h d a c c o m p s e
A i i i t c q u s o n s 2 0 B l i 1 1 : e r n	2, 2 0 5	0, 8 1 5 5 4	5. 1 4	5. 7	h d l d f s c e u e r o m Q 2 / 2 0 d 1 1 o n w a r s
T l t o a	4, 3 2 8	2 4 7, 0 3 0	5. 1 8	4. 2

~ 2,500 residential units were purchased in April and May 2011 in the core region Berlin

• Key metrics

• •Net purchase price: EUR 104.6 m / EUR 684 per sqm
• •Annual current gross rental income: EUR 9.0 m
• •Net Initial Yield: 8.1 % related to current gross rental income
• •FFO accretion

• All purchased units are non-rent restricted

• Partly already split up for privatisation purposes hence, further privatisation potential in Berlin without exploiting core portfolio

• The 4,300 units purchased overall obtain an annual current gross rental income of about EUR 15.0 m

» Performance

» Accelerating rents and higher rent potential in core portfolio

Core portfolio1) – rent per sqm/month Core portfolio1) – rent potential

• Dynamic growth of the average new-letting rent of non-rent restricted core portfolio by EUR 0.22 per sqm toEUR 6.46 per sqm

• Berlin and Frankfurt/Main are virtually fully let with vacancy rates of 1.3 % and 1.5 %

• 2)Contractually owed rent from the rented apartments divided by the rented area

• 3) Average rent for contracts signed in the last twelve months for units not subject to rent control

¹⁾ After inclusion of DB 14 properties in core portfolio

» Strong operating performance continued

Residential property management: NOI per month per sqm1)

1) NOI: Net Operating Income of the quarter divided by months of the quarter and floor space at the end of the quarter under review

» Increasing performance and cash contribution from portfolio

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

Rental shortfalls due to disposals compensated

2)Based on average quarterly areas of the period

1)

» Proven rent potential of 17.5 % in core portfolio

Portfolio overview as of 31 March 2011

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

1)

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

2)Average rent for contracts signed in the last twelve months for units not subject to rent control

» Disposals – privatisation: increased margin of 41 %

S Q i d i 1 / 2 0 1 1 g n e n	U i T i l t t n s r a n s a c o n v o u m e		F i l a r v a u e	G r o s s m	i a r g n
	#	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	3 0 6	2 5. 3	1 8. 0	7. 3	4 1 %
I i i l l t t t n s o n a s a e s u	1, 0 3 2	3 2. 7	3 2. 6	0. 1	0 %
	1, 3 3 8	5 8. 0	5 0. 6	7. 4	1 5 %

Privatisation(i.e. sale of individual apartments):

›Increased gross margin of 41 % (Q1/2010: 35 %)

Institutional sales

›36 % of bloc sales portfolio already sold (31 Dec 2010: 31 %)

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

• Number of disposals in Q1/2011: 675

• Privatisation: 159 units

• Institutional sales: 516 units

» Improved earnings in Nursing and Assisted Living

	Q 1 / 2 0 1 1 E U R m	Q 1 / 2 0 1 0 E U R m
I n c o m e
N i u r s n g	8. 5	8. 1
L i i v n g	0. 8	0. 8
O h t e r	0. 9	0. 9
	0. 2 1	9. 8
C t o s s
N i d t u r s n g a n c o r p o r a e e x p e n s e s	-2 7	-2 8
P l e r s o n n e e x p e n s e s	-4 8	-4 8
	7. 5 -	7. 6 -
E i ( E B I T D A ) a r n n g s	2. 7	2. 2

• Improved earnings of EUR 2.7 m in Nursing and Assisted Living in the first three months of ²⁰¹¹
• Based on increased earnings due to higher capacity utilisation

» Results

» Adjusted EBT increased y-o-y to EUR 14.0 m (+ 54 %)

-22.7 -24.8

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

Non-cash interest expenses -3.5 -3.7

Financial result (net, adjusted) -22.5 -24.6

0.2 0.2

• Further reduction of interest expenses as a result of the debt structure optimisation in 2010
• Taxes mainly affected by higher deferred taxes (+ EUR 1.4 m)

Ta xe s	Q 1 / 2 0 1 1
On ing tax g o es	0. 4 -
fe De d tax rre es	5. 3 -
To l ta	5. 7 -

No h in te t e n- ca s re s xp en se s	Q 2 0 1 / 1 1
Ma in ly ls ac cr ua on :
Lo in be ing l ia b i l i ies te t t w- re s ar	2. 3 -
L ia b i l i ies fro E K t 0 2 tax m es	0. 6 -
Pe ion is ion ns p rov s	0. 5 -
D B 1 4	0. 1 -
To l ta	3. 5 -

Interest income

» FFO (w/o sales) almost doubled in the last two years

FFO1) FFO-calculation

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

1)Based on 81.84 m shares outstanding

» Balance sheet – assets

E U R m	3 1 / 0 3 / 2 0 1 1	3 1 / 1 2 / 2 0 1 0
I i t t t n e s m e n p r o p e r e s v	2, 8 0 6. 7	2, 8 2 1. 0	Un ha d v lua ion ix t tr c ng e a m a
O h t t t e r n o n c u r r e n a s s e s	2 0. 3	2 0. 5
D i i t e r v a v e s	1 2. 1	9. 2
D f d t t e e r r e a x a s s e s	6 7. 2	7 8. 7
N t t o n c r r e n a s s e s u	2, 9 0 6. 3	2, 9 2 9. 4
			T he f fro 3 0 3 2 0 1 / / 1 1 re o m Re l bu ine E U R 3. 2m ta n s ss
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 4. 8	1 5. 2	D isp ls E U R 0. 5m os a O he E U R t 0. 7m r
T d i b l r a e r e c e v a e s	4. 4	6. 7
O h t t t e r c u r r e n a s s e s	3 5. 6	4 0. 9	O he ise 3 1 / 0 3 / 2 0 1 1 t t a ts r c ur re n ss e c om p r No t a ts n c ur re n ss e
C h d h i l t a s a n c a s e q u v a e n s	4 2. 4	4 6. 0	he l d fo le E U R 2 9. 3m r s a Inc iva b les E U R 2. 4m tax om e re ce
C t t u r r e n a s s e s	9 7. 2	1 0 8. 8	O he inv ies E U R 1. 9m t to r en r O he E U R 2. 1m t ts r a ss e
T l t t o a a s s e s	3, 0 0 3. 5	3, 0 3 8. 2

» Balance sheet – equity and liabilities

E U R m	3 1 / 0 3 / 2 0 1 1	3 1 / 1 2 / 2 0 1 0	Pr f i t: o + Ca h f low he dg s e +	E U R 8. 5m E U R -1 9. 0m
T l i t t o a e q u y	9 1 7. 3	8 8 9. 9
F i i l l i b i l i i t n a n c a a e s	1, 7 5 6. 5	1, 7 8 4. 5	f Im L T V 6 0. 1 % t o to p rov em en
T l i b i l i i t a a e s x	6 5. 2	6 3. 9	Inc lu d ing E K E U R 0 2: 5 8. 4m
D f d l i b i l i i t t e e r r e a a e s x	9 4. 4	9 2. 0
D i i t e r v a v e s	4 5. 3	7 0. 3	Ne de l f fe ( de iv. l ia b. ) = t ta t ts e c r a ss e +	E U R -2 7. 9m
O h l i b i l i i t t e r a e s	1 2 4. 8	1 3 7. 6	O he l ia b i l i ies in ly ise t t r m a co mp r
T l i d l i b i l i i t t t o a e q u y a n a e s	3, 0 0 3. 5	3, 0 3 8. 2	Tr de l ia b i l i ies t a D B 1 4 Pe ion ns s	E U R 3 2. 3m E U R 1 5. 5m E U R 4 4. 6m
			O he l ia b i l i ies t t r Pr is ion ov s	E U R 1 9. 3m E U R 1 3. 1m
E U R m	3 0 3 2 0 1 / / 1 1	3 2 2 0 0 1 / 1 / 1
E P R A N A V	9 7 7. 5	9 6 4. 0	Inc f E P R A N A V by E U R 0. 1 6 p re as e o er	ha d t- s re y-
E P R A N A V h i E U R p e r s a r e n	1 1. 9 4	1 1. 7 8

» LTV at 60.1 %, average interest rate at 4.0 %

	F i i l l i b i l i i i E U R t n a n c a a e s n m	D W d l t s a n a o n e	D B 1 4	T l t o a
	M k- k t t a r o- m a r e	1, 6 5 3	1 0 4	1, 7 5 7
L T V ( ) D b % t t t e s r u c u r e		6 0. 1	6 1. 2	6 0. 1
	N i l l o m n a a e v u	1, 7 0 9	1 5 5	1, 8 6 4
	L T V ( ) %	6 2. 2	9 1. 1	6 3. 9
	A i t t t v e r a g e n e r e s r a e :	4. 0 % ~
D b i t e s e r v c e	A d d i t t e r a g e m a n a o r r e e m p o n p. a. v y :	1. 6 % ~
	I f i d h d d t t t n e r e s r a e s x e o r e g e :	7 8 % ~
L t o n g e r m - i i f i l t t m a u r e s p r o e		E i l l t s s e n a n y > d f 2 0 1 5 e n o	j l o m a o r o a n s	d b f e e o r e u

» Appendix

» EBITDA increased by 8.1 % y-o-y

E U R m	Q 1 / 2 0 1 1	Q 1 / 2 0 1 0
E i f R i d i l P M t t t a r n n g s r o m e s e n a r o p e r y a n a g e m e n	3 9. 6	3 9. 2
E i f D i l a r n n g s r o m s p o s a s	2. 7	0. 6
E i f N i d A i d L i i t a r n n g s r o m u r s n g a n s s s e v n g	2. 7	2. 2
S i b i i t t t e g m e n c o n r u o n m a r g n	0 4 5.	2. 0 4
C t o r p o r a e e x p e n s e s	-7 6	-7 4
O h i / i t t e r o p e r a n g e x p e n s e s n c o m e	-0 1	-0 1
E B I T D A	3 3 7.	3 4. 5

» 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.

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