Deutsche Annington Immobilien SE / Key word(s): 9-month figures/Real Estate
30.10.2014 / 07:00
Nine-month figures: Deutsche Annington continues period of dynamic growth and confirms forecast for 2015
- Strong development of operating KPIs
- FFO 1 up 25.5 % to EUR 205.0 million year on year
- Proposed dividend increases by 11.4 % to EUR 0.78 per share, representing 70 % of the FFO 1
- Admission to the MDAX
- Deutsche Börse includes stock in second-highest stock exchange segment
- With a market capitalisation of EUR 5.5 billion, already in the upper quartile of the index
- Successful growth strategy
- Continuation of acquisition of 5,000 residential units with a focus on Berlin
- Acquisition of Vitus completed; resale of a sub-portfolio implemented
- Volume of maintenance and investments at record level
- Modernisation volume for 2015 increased to more than EUR 200 million
- Forecast for 2014 confirmed
- Outlook for 2015 points to sustained profitable growth; increase of NAV per share to between EUR 24 - 25 expected
Bochum, October 30, 2014 - The Deutsche Annington Immobilien Group (Deutsche Annington) continues its dynamic growth in the third quarter. Record expenditure on investment and maintenance will deliver long-term improvements in the quality of its housing stock. At the same time, the purchase of 5,000 residential units in Berlin as well as in major cities in eastern Germany has expanded the portfolio. The company is also on track for a successful performance in the final quarter of the year.
Strong development of operating KPIs
The operating KPIs also confirm a high level of performance in the third quarter: The like-for-like increase in actual monthly rents (on the basis of a comparable volume of residential units) has picked up further in comparison with the first half of the year and now amounts to 2.3 %. The vacancy rate once again fell in comparison with the reporting date for the prior period, declining by 0.3 percentage points to 3.6 %. FFO 1 (funds from operations) rose by 25.5 % to EUR 205.0 million in comparison with the same period in the previous year. As at the reporting date, the net asset value (NAV) had increased by 6.5 % to EUR 5,094.8 million in comparison with the year-end figure. Due to this strong result, the company envisages an FFO 1 for 2014 of between EUR 280 million and EUR 285 million, i.e. at the upper end of its guidance. Should the business situation remain stable until the end of the year, the Management Board will suggest a dividend payment of EUR 0.78 per share at the Annual General Meeting, representing an increase of 11.4 % in comparison with the previous year's figure and around 70 % of the FFO 1.
"We have developed extremely positively over the last 18 months and are a reliable partner for our investors and for our customers. We have established ourselves on the capital market and offer our tenants an ever improving service," says Rolf Buch, CEO of Deutsche Annington.
Admission to the MDAX
Since September 22, the Deutsche Annington share has been traded on the MDAX. This predominately reflects the significant increase in the fleet float and the trading volume. With a market capitalisation of EUR 5.5 billion as at the reporting date, the company is already in the upper quartile of the second-highest stock exchange segment.
Successful growth strategy
In September, Deutsche Annington announced the purchase of more than 5,000 residential units following the acquisitions of the Vitus and DeWAG stocks with around 41,000 units. This portfolio, whose integration is planned from the first quarter of 2015, spans the Berlin metropolitan area, as well as the cities of Dresden, Leipzig and Erfurt. With the acquired units in the metropolitan areas of eastern Germany, the housing company has increased its presence throughout Germany.
Deutsche Annington completed the Vitus transaction at the start of the fourth quarter. In October, Deutsche Annington also sold approximately 9,600 units in this portfolio to LEG. "We are continuing to actively develop our housing stocks. Thanks to our professional management approach, we have a balanced portfolio mix and are able to manage our residential units highly efficiently. This is an enormous advantage, both for investors and for tenants," says Buch.
Deutsche Annington focuses on continuously and sustainably improving its stocks. The EUR 160 million modernisation programme for 2014 is almost complete. As part of this programme, around 10,000 residential units are to undergo energy efficiency improvements, while a further approximately 3,000 units will be converted in order to meet the needs of older people. In the current financial year, the Group has thus increased the volume of its energy-efficient units to more than 3.0 % of its stocks, which greatly exceeds the German average of around 1 %.
Overall in 2014, the company will dedicate approximately EUR 330 million to maintenance and investments in its stocks. This puts Deutsche Annington at the pinnacle of housing companies. "We pursue a sustainable investment strategy which corresponds to the long-term goals of our investors," says Buch.
To achieve yet further improvements in the quality of its housing stocks, Deutsche Annington will continue to consistently invest in its buildings and its residential units, as well as in the residential environment as a whole. The company has successfully completed its preparations for its 2015 investment programme with a volume in excess of EUR 200 million.
Considering the results for the year as a whole, Deutsche Annington confirms the forecast which it had revised upwards following the first half of the year, and expects an FFO 1 at the upper end of the range between EUR 280 million and EUR 285 million. Assuming a stable business situation until the end of the year, the company will suggest a dividend of EUR 0.78 per share for the year 2014 at the Annual General Meeting, which represents around 70 % of the FFO 1.
Deutsche Annington expects a significant improvement of the FFO 1 to between EUR 340 million and EUR 360 million for 2015. The NAV per share will rise to EUR 24 - 25.
Deutsche Annington remains committed to its goal of distributing around 70 % of this FFO 1 as dividends to the shareholders. In addition, the company will also further optimise the capital structure and leverage in the medium term.
The complete quarterly report is available from www.deutsche-annington.com. A brief German-language version of the analysts' presentation on the Nine-month figures is available to download from the Press section of the company's website.
About Deutsche Annington
Deutsche Annington is Germany's leading private-sector residential real estate company both in terms of portfolio value and the number of units owned. As at September 30, 2014, Deutsche Annington owned some 184,000 residential units worth a total of EUR 11.4 billion. The company is present throughout Germany. Deutsche Annington has its headquarters in Düsseldorf and employs more than 3,400 people.
Approval: Regulated Market / Prime Standard, Frankfurt Stock Exchange
Common code 094567408
Registered office of Deutsche Annington: Münsterstrasse 248, 40470 Düsseldorf, Germany
Business address of Deutsche Annington: Philippstrasse 3, 44803 Bochum, Germany
Head of Corporate Communications
Phone: +49 234 314-1149
Head of Investor Relations
Phone: + 49 234 314-2384