Q1 Results Conference Call May 29, 2008

Transcription

1 Q1 Results 2008 Conference Call May 29, 2008

2 Agenda Operational Update Financial Highlights Outlook 2

3 Agenda Operational Update Financial Highlights Outlook 3

4 Portfolio Overview Deutsche Wohnen Group Residential Commercial Parking as of March 31, 2008 Units Area Rent Vacancy Units Area Units # T sqm /sqm % # T sqm # Core Portfolio 33,849 2, % ,992 Berlin 22,814 1, % ,858 Frankfurt/Main 3, % ,788 Rhein-Main 3, % ,935 Rheintal-Süd 4, % 6 1 2,411 Sales Portfolio 15, % ,903 Single Privatization 5, % ,935 Bloc Sales 10, % ,968 Sub-total 1) 49,322 3, % ,895 DB 14 2, % ,625 Total 51,943 3, % ,520 Note 1. Excluding North Hessian portfolio 4

5 Rent Development: 55% of 2008 Target already Realized Q1 Letting Performance 1) (excl. DB 14; per sqm) Plan 2008: +4.5% Q % Note 1. Including small DW acquisitions Dec 31, 2007 Mar 31, 2008 Dec 31, 2008E 5

6 Letting: 1,346 new Leases Signed; 15% Rent Increase Q1 Letting Performance (Unrestricted Units; per sqm) +8% +17% +15% West Germany Berlin DW Group Average old rent Average rent of new leases 6

7 Over 14% Rent Increase Potential in Core Portfolio Rent Market Vacancy Rate Units Area Q Dec 2007 Increase Rent Upside Q Dec 2007 # T sqm /sqm /sqm % /sqm % % % Core Portfolio 33,849 2, % % 4.7% 4.8% Cluster A 29,259 1, % % 4.1% 4.2% Berlin 19,970 1, % % 3.9% 4.2% Frankfurt/Main 3, % % 3.3% 2.8% Rhein-Main 2, % % 7.2% 7.4% Rheintal-Süd 2, % % 3.0% 2.8% Cluster B 4, % % 9.1% 9.3% Berlin 2, % % 9.7% 10.1% Rhein-Main % % 8.9% 8.5% Rheintal-Süd 1, % % 7.7% 7.7% Cluster A: 11% below market rent immediate monetization of rent potential through fluctuation (re-letting) and over time through rent table adjustments ( 558 BGB) Cluster B: 34% below market rent immediate monetization of rent potential through strategic capex measures ( 559 BGB); over-concentrated vacancy will result in immediate monetization of market rent upon completion of modernization projects 7

8 Impact of Strategic Capex on Rents and Vacancy Rate Overview of Rent Development /sqm 6,50 6,00 Rent /sqm Vacancy Rate Vacancy Rate 20% 18% 16% 14% 5,50 12% 10% 5,00 8% 6% 4,50 4% 2% 4,00 Time 0% 8

9 Privatization: 33% above Fair Value Privatizations Q Sold Notarized Total '000 /sqm '000 /sqm '000 /sqm Gross Sales Proceeds 6,341 1,291 12,455 1,408 18,796 1,366 Disposal Costs (568) (116) Net Sales Proceeds 5,773 1,176 Fair Value (4,892) (996) (9,230) (1,043) (14,122) (1,027) Net Profit of Sales Units Area (sqm) 4,911 8,846 13,757 YTD 189 units sold 38% of 2008 target already realized YTD average sales price of 1,366 /sqm 33% above Fair Value 9

10 Update Cost Reduction and Corporate Restructuring Merger-to-date labor cost reduction of 5.5 million p.a. already implemented 88 employees have already agreed to leave the company Union agreements have been reached and will be implemented until June 30, 2008; by than all remaining employees will be let go The cost occurred implementing the newly signed Union agreements will be specified in Q2 Corporate reorganization completed 10

11 Corporate Reorganization Completed Overview of New Corporate Structure Holding DWM Centralized Asset Management DWV Distribution/ Markets Letting Privatization DWT Technical Department DWK Property Management Service Driven Operating Companies GEHAG ESG RMW RNW RPW Property Companies 11

12 Agenda Operational Update Financial Highlights Outlook 12

13 Q1 Financial Result million Q Result from Rental Business Result from Privatization Business Corporate Expenses (10.6) Non-core Businesses 3.3 EBITDA EBIT Financial Result (54.5) Thereof: SWAP Revaluation (24.0) One-offs (1.3) Taxes 0.6 Net Income (22.7) 13

14 One-offs One-offs of 1.3 million are restructuring related Financial expenses of 54.5 million include non-cash impact of market revaluation of SWAPS of approx million SWAPS are hedging related and not speculative million Q Change Dec 2007 SWAP Assets 16.1 (16.1) 32.2 SWAP Liabilities (11.6) (7.8) (3.8) Net Market Value of SWAPS 4.5 (24.0)

15 FFO Calculation million EBITDA Interest Income Cash Interest expenses Taxes on Income Q (27.3) (0) Q Pro-Forma (24.9) (0.1) FFO incl. Privatization FFO per Share Privatization Result 0.8 (0.3) FFO excl. Privatization

16 Key Balance Sheet Items million Q Dec 2007 Investment Properties 3,265 3,271 Total Assets 3,500 3,520 Equity Financial Liabilities 2,201 2,204 Loan-to-Value Ratio 67.4% 67.4% NAV NAV per Share Financial debt as of March 31, 2008: 2.2 billion, thereof 14% subsidized Average interest rate: 4.77% p.a. 91% hedged Duration: > 7 years 16

17 Agenda Operational Update Financial Highlights Outlook 17

18 Outlook Deutsche Wohnen GEHAG merger integration is proceeding well New organization structure has been completed Over 50% of targeted labor cost savings already implemented Enhanced asset management will be key driver of future growth Overall focus is to grow free cash by means of cost cutting, ongoing rental growth and sound privatization business despite of disposal of nonstrategic locations German Residential Market Germany did not experience global price increases Overall economy still robust despite high energy costs and strong Euro Number of new households increasing Average wage increase in excess of 4% in 2008 Ongoing ownership transition and need for consolidation Market is more realistic about asset quality and business plan assumptions 18

19 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, non 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. 19