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Vonovia SE: Vonovia Has a Successful Start to the 2017 Fiscal Year (news with additional features)

DGAP-News: Vonovia SE / Key word(s): Quarter Results

24.05.2017 / 07:00
The issuer is solely responsible for the content of this announcement.

Results as of March 31, 2017
Vonovia Has a Successful Start to the 2017 Fiscal Year

- Strong operating business in the first quarter of 2017 - FFO 1 climbs by more than 17 % thanks to organic growth

- Higher earnings contribution through housing-related services - new construction and modernization still the focus

- Number of employees increased once again

- For 2017 as a whole: Forecast for FFO 1 raised to between EUR 900 million and EUR 920 million - an increase of 20 % over 2016

Bochum, Germany, May 24, 2017 - Vonovia SE ("Vonovia") has had a successful start to the 2017 fiscal year. The company has increased all key figures in the first three months of the fiscal year compared to the same quarter last year. "We started the 2017 fiscal year quite well and have complemented our properties optimally by acquiring conwert. The overall number of our apartments has remained constant. The figures, which are based on organic growth, highlight yet again how sustainable our strategy is. Today, we employ more than 8,000 people. I am pleased we are creating jobs through growth, especially in trades and in the area of residential maintenance," said CEO Rolf Buch.

Strong Operating Business in the First Quarter of 2017

In the first three months of the year, the FFO 1 (funds from operations, profit from operations after current interest and taxes), the key figure indicating the company's sustained earnings power, totaled EUR 218.2 million (Q1 2016: EUR 186.3 million), an increase of 17.1 % in comparison to the same period of 2016. This corresponds to an increase in earnings power per share of 17.5 % to EUR 0.47 (Q1 2016: EUR 0.40). The profit for the period came to EUR 130.7 million in the first quarter of 2017 (Q1 2016: EUR 79.2 million).

The EPRA NAV (net asset value, real estate assets without liabilities) came to EUR 17,548.6 million on March 31, 2017 (Dec. 31, 2016: EUR 17,047.1 million). This works out to be an EPRA NAV per share of EUR 37.43 (Dec. 31, 2016: EUR 36.58). The adjusted NAV - excluding goodwill from acquisitions - came to EUR 31.18 (Dec. 31, 2016: EUR 30.75).

The vacancy rate was 2.7 % as of March 31, 2017 (Q1 2016: 2.8 %). A key reason for the persistently high demand is the extensive investment in properties.

In the first three months of the year, rental income was around EUR 417.2 million (Q1 2016: EUR 392.0 million). The rent per square meter increased by 1.6 % compared to the same quarter last year due to the general performance of the market. A further 1.8 % was realized through property value improvements, new construction and the addition of extra stories. Consequently the monthly in-place rent at the end of the quarter was EUR 6.06 per square meter. For the first time, the quarterly financial statements also include earnings contributions from conwert Immobilien Invest SE ("conwert").

Higher Earnings Contribution From Housing-Related Services - New Construction and Modernization Remain the Focus

Housing-related services, for example, providing renters with cable television, metering services and insurance or craftsmen's services are continuing to gain importance. The adjusted EBITDA in this area rose by 160.5 % year-over-year to EUR 19.8 million (Q1 2016: EUR 7.6 million).

An investment program in the billions has been decided on for the coming years. This will focus on new construction, story additions for existing buildings and improvements to existing building stock. The new construction planned, the measures to add extra stories and the modernization initiatives began in the first quarter of 2017. Thus, Vonovia has already assigned EUR 650 million of the 2017 planned investments totaling around EUR 730 million. Vonovia plans to commission, launch or complete about 2,000 new construction projects in total in 2017.

Stable Financing, Increase of Share Price

The company significantly increased its financial result by lowering interest rates on refinancing and by repaying liabilities. This resulted in a figure of EUR -131.4 million in the first quarter of 2016, but the financial result for the first quarter of 2017 was only EUR -83.0 million.

In the first three months of 2017, Vonovia's shares gained in value by around 6.9 %, closing trading on March 31, 2017, at a closing price of EUR 33.03. In the same period, the DAX rose similarly well by 7.25 %, but the ERPA Europe only rose by 0.5 %.
Outlook for 2017: Results Lead to an Expected FFO 1 Increase Between EUR 900 Million and EUR 920 Million.

For the 2017 fiscal year, Vonovia confirmed strong operating performance. For the FFO 1, the company is forecasting an increase to between EUR 900 million and EUR 920 million including conwert. This increases the original FFO 1 forecast, which, excluding conwert, was originally between EUR 830 million and EUR 850 million. This will put the FFO 1 around 20 % above the previous year's figure (2016: EUR 760.8 million).

You can find the three-month report for 2017 at:
Further information can be found in the press section.

2017/2018 Financial Calendar

August 2, 2017: Interim Report for the first six months of 2017
November 8, 2017: Interim Report for the first nine months of 2017
March 06, 2018
- Publication of 2017 Annual Report



in EUR million            
Key Financial Figures   3M 2017   3M 2016   Change
in %
Rental income from property management   417.2   392.0   6.4
Adjusted EBITDA Rental   285.6   269.0   6.2
Adjusted EBITDA Extension   19.8   7.6   160.5
Adjusted EBITDA Sales   19.1   35.0   -45.4
Adjusted EBITDA   319.2   311.1   2.6
FFO 1   218.2   186.3   17.1
FFO 2   226.3   195.1   16.0
FFO 1 per share in EUR   0.47   0.40   17.5
Profit for the period   130.7   79.2   65.0
Spending on maintenance and modernization   191.4   125.4   52.6
thereof maintenance expenses and capitalized maintenance   77.2   73.5   5.0
Thereof modernization (incl. new construction)   114.2   51.9   120.0
Key Non-financial Figures   3M 2017   3M 2016   Change
in %
Number of own apartments (average)   356,411   355,954   0.1
Vacancy rate in % (as of March 31)   2.7   2.8   -0.1 pp
Number of employees (as of March 31)   8,114   6,683   21.4
in EUR million                  
Key Balance Sheet Figures   Mar. 31, 2017   Mar. 31, 2016   Change
in %
  Dec. 31, 2016  
Fair value of the real estate portfolio   29,607.6   23,814.4   24.3   27,115.6  
Adjusted NAV   14,616.8   11,331.6   29.0   14,328.2  
Adjusted NAV per share in EUR   31.18   24.32   28.2   30.75  
LTV in %   44.4   45.8   -1.4 pp   41.6  
in EUR million                  
EPRA Key Figures   Mar. 31, 2017   Mar. 31, 2016   Change
in %
  Dec. 31, 2016  
EPRA NAV   17,548.6   14,048.2   24.9   17,047.1  
EPRA NAV per share in EUR   37.43   30.15   24.1   36.58  

About Vonovia

Vonovia SE is Germany's leading nationwide residential real estate company. Vonovia currently owns around 355,000 residential units in all of Germany's attractive cities and regions. Its portfolio is worth approximately EUR 29.6 billion. As a modern service company, Vonovia focuses on customer orientation and tenant satisfaction. Offering tenants affordable, attractive and livable homes is a prerequisite for the company's successful development. Accordingly, Vonovia makes long-term investments in the maintenance, modernization and senior-friendly conversion of its properties. The company will also be creating more and more new apartments by realizing infill developments and adding to existing buildings.

The company, which is based in Bochum, has been listed on the stock exchange since 2013 and on the DAX 30 since September 2015. Vonovia SE is also listed on the international indices STOXX Europe 600, MSCI Germany, MSCI Germany, GPR 250 and EPRA/NAREIT Europe. Vonovia has a workforce of approximately 8,100 employees.

Additional Information:

Approval: Regulated Market/Prime Standard, Frankfurt Stock Exchange
Common code: 094567408
Registered headquarters of Vonovia SE: Düsseldorf, Germany; Düsseldorf Local Court, HRB 68115
Business address of Vonovia SE: Philippstrasse 3, 44803 Bochum, Germany

This press release has been issued by Vonovia SE and/or its subsidiaries solely for information purposes. This press release may contain statements, assumptions, opinions and predictions about the anticipated future development of Vonovia ("forward-looking statements") that reproduce various assumptions regarding, e.g., results derived from Vonovia's current business or from publicly available sources that have not been subject to an independent audit or in-depth evaluation by Vonovia and that may turn out to be incorrect at a later stage. All forward-looking statements express current expectations based on the current business plan and various other assumptions and therefore come with risks and uncertainties that are not insignificant. All forward-looking statements should not therefore be taken as a guarantee for future performance or results and, furthermore, do not necessarily constitute exact indicators that the forecast results will be achieved. All forward-looking statements relate solely to the day on which this press release was issued to its recipients. It is the responsibility of the recipients of this press release to conduct a more detailed analysis of the validity of forward-looking statements and the underlying assumptions. Vonovia accepts no responsibility for any direct or indirect damages or losses or subsequent damages or losses, as well as penalties that the recipients may incur by using the press release, its contents and, in particular, all forward-looking statements or in any other way, as far as this is legally permissible. Vonovia does not provide any guarantees or assurances (either explicitly or implicitly) in respect of the information contained in this press release. Vonovia is not obliged to update or correct the information, forward-looking statements or conclusions drawn in this press release or to include subsequent events or circumstances or to report inaccuracies that become known after the date of this press release.

Additional features:

Document title: Vonovia Has a Successful Start to the 2017 Fiscal Year_PI_170524

24.05.2017 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.
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