Interim result as at 31 March 2014
- Group profit increased by 74% to EUR 45.5 million
- FFO (without disposals) raised by 91% to EUR 59.1 million
The key performance figure Funds from Operations (FFO, without disposals) increased in comparison to the previous year by approximately 91% to EUR 59.1 million (previous year: EUR 30.9 million). The FFO per share increased by 5% to EUR 0.21, already reflecting the profitability of the GSW takeover. As at the reporting date, the Loan-to-Value Ratio (LTV) was 56.5% (31 December 2013: 57.3%). The intrinsic value of the company, measured as EPRA NAV (undiluted), rose to EUR 14.22 per share (31 December 2013: EUR 13.99 per share) in the first quarter 2014.
Convincing operational performance
Over the past twelve months Deutsche Wohnen (stand-alone) was able to achieve rental growth in its Core+ regions of 4.2% on a like-for-like basis, with a vacancy rate of just 1.6%. Rental increase in Berlin, Deutsche Wohnen’s largest location, was 4.6%, being also a result of the effects arising from the implementation of the 2013 rent index.
In addition, Deutsche Wohnen benefits from the continuing high demand for apartments as investment for owner-occupiers and investors. In the first quarter 2014 a total of 2,607 units were sold with gross margins of 49% in the case of single privatisations and 14% in the case of institutional sales.
Liquidity of the Deutsche Wohnen share continues to increase
In the first quarter the market capitalisation of Deutsche Wohnen rose further to around EUR 4.4 billion. This reinforces the strong position of the company in the sector – both nationally and internationally. At the same time, the trading volume rose, too, i.e. the liquidity of the share continues to grow. With a closing price of EUR 15.56 as at the reporting date 31 March 2014 the Deutsche Wohnen share achieved a price increase of approximately 11% in comparison to the beginning of the year. Hence the Deutsche Wohnen share performed considerably better than the MDAX, which registered a slight minus at the end of the first quarter.
FFO forecast confirmed
The integration of the GSW Group is proceeding positively and therefore well on track. This confirms the forecast of an FFO (without disposals) – without further acquisitions – of at least EUR 210 million for the financial year 2014. Taking into consideration an 8% minority stake in GSW, an FFO (without disposals) of around EUR 203 million is anticipated.
Deutsche Wohnen is one of the largest publicly listed residential property companies in Germany and Europe with a business focus on managing and developing its residential property portfolio. As at 31 December 2013 the portfolio comprises a total of 150,900 units, of which 148,800 are residential units and 2,100 are commercial properties. The company is listed in the Deutsche Börse’s MDAX and is also included in the leading indices EPRA/NAREIT and GPR 250.