Deutsche Annington Immobilien SE / Key word(s): Quarter Results/Interim Report
06.11.2013 / 06:56
Deutsche Annington Immobilien SE further increases its earnings in the third quarter of 2013
- Improvement in all key financial and operating performance indicators
- Adjusted EBITDA grows by 3% to EUR 363.1 million
- FFO 1 increases by 41.2% to EUR 163.4 million
- Monthly in-place rent rises by 2.1% to EUR 5.37/m2
- Vacancy rate in the Rental Only portfolio reduced to 3.1%
- Reorganisation of financing structure concluded
- Definition of the 2014 investment programme successfully completed and implementation started
- Outlook for the 2013 financial year confirmed - FFO 1 expected to be at the upper end of the range from EUR 210 to EUR 220 million
Bochum, November 6, 2013 - Deutsche Annington Immobilien SE ('DA'), Germany's largest private-sector residential real estate company both in terms of portfolio value and number of housing units owned, demonstrates its financial and operational strength in the third quarter of 2013.
'Our top priority is to become better every day by increasing value provided to our customers, we continuously improve our result. The results of the third quarter confirm that this strategy is right', says Rolf Buch, CEO of Deutsche Annington.
With improving key performance indicators, Deutsche Annington continue the success of the first half-year in the third quarter. Both adjusted EBITDA and FFO 1 (result excluding sales), metrics indicating the company's operational performance, were above the level of the prior-year period. Adjusted EBITDA totalled EUR 363.1 million, an increase of 3% compared with the prior-year figure. FFO 1 rose by 41.2% to EUR 163.4 million.
Deutsche Annington increased the monthly in-place rent by 2.1% from EUR 5.26/m2 (September 30, 2012) to EUR 5.37/m2 (September 30, 2013). The vacancy rate in the entire portfolio fell by 0.5 percentage points to 3.9%; in the Rental Only portfolio, it was reduced to 3.1%.
Two important financial events occurred in the third quarter; the IPO and the issue of corporate bonds. Deutsche Annington Immobilien SE was listed on the regulated market (Prime Standard) of the Frankfurt Stock Exchange on July 11, 2013. Since then, the share price has developed positively, market capitalisation amounted to EUR 4.3 billion on the reporting date September 30, 2013.
The IPO also enables the company to profit from greater flexibility in its financing structure. 'The IPO in conjunction with our investment grade rating has put us in a position to obtain unsecured refinancing on the international capital market on attractive conditions', says Dr A. Stefan Kirsten, CFO of Deutsche Annington.
Portfolio strategy is being actively implemented
The number of apartments sold is at the prior-year level. However, sales of units in the Non-Core segment are well ahead of plan and the sale of about 4,100 units is forecast this year. The Non-Core portfolio will therefore be considerably reduced by some 28% of the value of the total property portfolio.
Deutsche Annington is continually analysing new acquisition possibilities. The flexible financing structure and the approved capital enable the company to obtain sound financing, even for larger portfolios of up to EUR 4 billion. 'We will nevertheless continue to maintain our price and management discipline in future. Despite our considerable earning power, it is not simply a matter of growth but of whether we can also transfer our efficient and price-conscious property management to a new portfolio. Furthermore, potential deals must create value for our shareholders', Buch says.
In order to further increase the quality of its housing stocks, Deutsche Annington will continue to systematically invest in its buildings, apartments and the neighbourhoods. More than EUR 800 million additional investment opportunities over next five years have been identified. Preparations for the 2014 investment programme have been successfully completed. The investment volume is EUR 150 million. 'Since the beginning of the year, we have made substantial investments in our customer service, caretaker organisation and our housing stocks. In the years to come, we will also expand energy-efficient modernisations and the senior-friendly conversion of apartments to increase the quality standard. With all these measures, we are creating appreciable value added for our tenants', Buch explains.
As regards the results for the year as a whole, Deutsche Annington confirms the forecast published at the end of the first half of the year and expects FFO 1 to be at the upper end of the range of EUR 210 million to EUR 220 million.
The company confirms its forecast that it will distribute a dividend of some 70% of FFO for the 2013 financial year.
The entire quarterly report is available at www.deutsche-annington.com. A condensed German version of the presentation of the quarterly figures to analysts can be downloaded in the press section of the company website.
About Deutsche Annington
Deutsche Annington is Germany's largest private-sector residential real estate company both in terms of portfolio value and the number of units owned. As at September 30, 2013, Deutsche Annington owned roughly 179,000 residential units worth a total of EUR 10.4 billion. The company is represented throughout Germany; most of its portfolio is located in the old West Germany and Berlin. Deutsche Annington has its headquarters in Bochum and employs some 2,670 people.
Stock exchange: Regulated market / Prime Standard, Frankfurt Stock Exchange
Common code: 094567408
Registered office of Deutsche Annington: Vogelsanger Weg 80, 40472 Düsseldorf, Germany
Business address of Deutsche Annington: Philippstrasse 3, 44803 Bochum, Germany
Investor Relations contact:
+49 234 314 1761
+49 234 314 1926