Deutsche Annington Immobilien SE / Key word(s): Real Estate/Interim Report
30.04.2014 / 06:56
Deutsche Annington continues its successful development in the first quarter of 2014 - focus on acquisitions and modernisation
- Key figures confirm operational strength
- FFO 1 increases by 25.6 % to EUR 61.9 million compared with the previous year
- EPRA NAV increases by 7.0 % to EUR 5,118.8 million in the first quarter
- Extension of market leadership through acquisitions
- Transactions extend market leadership to c. 215,000 own apartments
- Capital increase and hybrid bond issue confirm financing strategy
- Maintenance and modernisation programme for 2014 on track
- Total investments of more than EUR 300 million in the housing stock
- Start of energy-efficient modernisation of c. 2,500 apartments to KfW standard
Bochum, April 30, 2014 - The Deutsche Annington Immobilien Group ("Deutsche Annington") built on the positive developments of the previous year in the first quarter of 2014. All relevant key figures confirm the company's operational strength. Moreover, the announcement of two acquisitions, their financing and the implementation of the comprehensive modernisation programme were key to the successful first three months of the year.
At EUR 61.9 million in the first quarter, FFO 1, the key indicator of operational performance, was well above the level of the prior-year period. The net asset value (EPRA NAV) increased by 7.0 % to EUR 5,118.8 million on the reporting date compared with the year-end figure. In-place rents rose by 1.9 % in a year-on-year comparison while the vacancy rate fell by 0.3 percentage points.
"After a successful year in 2013, we were able to sustain our positive momentum in business development in the first quarter of 2014. In all strategic decisions, our top priority is customer satisfaction. The expansion of our core business through improved on-site support and targeted services is paying off and progress against our key performance indicators confirms that we are on the right track", says Rolf Buch, CEO of Deutsche Annington.
Acquisitions: implementation of efficient financing strategy
The Company announced the acquisition of c. 41,000 apartments at the end of February. It acquired c. 11,500 units, concentrated in metropolises such as Munich, Frankfurt am Main and Hamburg, from the DeWAG Group. The transaction was closed as planned on April 1, 2014.
The other c. 30,000 apartments, whose legal transfer is scheduled for October 1, 2014, come from the Vitus Group. This transaction was signed on April 17, 2014. With the integration of these units, the company will extend its presence in North Germany and will enlarge its housing stock in North Rhine-Westphalia.
Deutsche Annington is spending c. EUR 2.4 billion on these acquisitions. Two important steps in the financing of these transactions have already been taken: firstly, the company performed a capital increase by issuing 16 million shares at a price of EUR 19 on March 5, 2014. This represents gross proceeds of EUR 304 million.
Secondly, on April 1, 2014, the Group proved again its innovative financing capacity by issuing a hybrid bond with a volume of EUR 700 million on attractive conditions, which does not dilute earnings per share.
With these acquisitions, the housing stock will grow over the course of the year to c. 215,000 rental apartments, therefore expanding the company's market leadership both in terms of portfolio value and the number of apartments.
Maintenance and modernisation programme successfully started
Implementation of the EUR 150 million modernisation programme got off to a successful start in the first quarter: work commenced on the energy-efficient refurbishment of more than 2,500 apartments. The Group is therefore increasing the energy-efficient refurbishment rate to over 3 % in the current financial year, which is well above the German average of around 1 %.
With an additional volume of c. EUR 160 million for maintenance, the company will therefore invest a total of more than EUR 300 million in its housing stock in 2014. This continuous and sustained expenditure underpins Deutsche Annington's strategy for meeting the societal challenges presented by the energy transition and demographic change.
Considering the results for the year as a whole, Deutsche Annington confirms its forecast made at the end of February (excluding any acquisitions): if general conditions remain stable, FFO 1 is expected to be between EUR 250 and EUR 265 million. The monthly in-place rent per square metre based on the same number of apartments should increase by 2.3 % to 2.6 %. The vacancy rate will be more or less at the prior-year level of 3.5 %. Deutsche Annington plans to distribute a dividend of about 70 % of FFO 1 provided business continues in the same vein over the year as a whole.
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 March 31, 2014, Deutsche Annington owned c. 174,300 residential units worth a total of EUR 10.3 billion. The company is represented throughout Germany. Deutsche Annington has its headquarters in Bochum and employs some 3,000 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
Head of Investor Relations
Head of Corporate Communications
Telephone +49(0)234 314 - 1149