Deutsche Annington Immobilien SE / Key word(s): Final Results/Real Estate
2015-03-05 / 07:07
INFORMATION TO THE MEDIA
The operational strength of Deutsche Annington is evident in its annual financial statements. Furthermore, the company is investing in housing stocks at record levels
Record high in operating activity
- Improvements in all KPIs: FFO I up by 28.2 % to EUR 286.6 million; NAV rises by 28.4 % to EUR 6.58 billion
- Proposed dividend for 2014 at EUR 0.78 a share, an increase of 11.4 % percent over the previous year
- 2015 outlook for Deutsche Annington (without GAGFAH) confirmed
Modernisation and maintenance volume reaches all-time high
- Around EUR 346 million invested in residential units, EUR 172 million of which in modernisation
- Increase of 50 % compared to 2013
- Investment per square metre at EUR 29, well above the industry average
Portfolio strengthened by successful acquisitions
- Integration of both DeWAG and Vitus successfully completed well ahead of schedule
- The result is a strong foundation for the combination with GAGFAH
Bochum, March 5, 2015 - 2014 saw Deutsche Annington Immobilien SE ("Deutsche Annington") set new records in terms of operating activity and considerably increase the quality of its housing stocks by means of targeted investments. Furthermore, the company managed to build on its market leadership. With the successful acquisitions of DeWAG and Vitus as well as the merger with GAGFAH, which looks set to be completed in March of this year, the portfolio will boast some 350,000 apartments.
"This makes us responsible for almost one million tenants. Based on these figures, we can confidently say that we 'are at home in Germany'. We have no intention of resting on our laurels, however, and will instead be keeping up our momentum. As we continue to grow, we pay very close attention to ensure that we are creating sustainable value for our tenants and investors - something that is underscored by the high degree of investment in our apartments and the targeted expansion of our portfolio in 2014," says Rolf Buch, Chairman of the Management Board of Deutsche Annington.
Deutsche Annington performed exceptionally well in terms of operating activity in 2014. FFO I (funds from operations) was up by 28.2 % on the previous year to reach EUR 286.6 million and therefore EUR 1.06 (2013: EUR 1.0) per share. NAV (net asset value) rose by 28.4 % to EUR 6.58 billion, thus increasing to EUR 24.22 (2013: EUR 22.85) per share. The vacancy rate improved slightly to 3.4 % (2013: 3.5 %) and therefore remains low. The monthly in-place rent like-for-like per square metre stood at 5.55 EUR (2013: 5.41 EUR) at the end of 2014, which represents an increase of 2.5 % against the previous year.
On the basis of this strong result, the Management Board of Deutsche Annington will propose a dividend of EUR 0.78 per share (up by 11.4 %) to the Annual General Meeting.
The positive development at the company was also rewarded by the capital market in 2014, a fact that was reflected in the strong progress of the share price, which rose by 56.2 %. At the same time, the market capitalisation of Deutsche Annington increased considerably to EUR 7.7 billion. This excellent performance and the increased tradability of the share resulted in the share being admitted to the MDAX in September 2014 and the MSCI Germany index in November 2014.
The capital structure of Deutsche Annington remains comfortable. The maturity of the company's financial liabilities as at the balance sheet date of December 31, 2014, stands at around eight years, and refinancing costs fell from 3.3 % to 3.2 %. Moreover, leading rating agency Standard and Poor's raised the prospect of the credit rating being upgraded from BBB to BBB+ in December 2014 in the event of the merger between Deutsche Annington and GAGFAH being completed successfully.
Investments in housing stocks remain high
In the year under review, Deutsche Annington invested a total of around EUR 346 million (2013: EUR 228.4 million) in its housing stocks, around EUR 172 million (2013: EUR 70.8 million) of which in modernisation measures. This translates into expenditure per square metre of EUR 29.12 (2013: EUR 20). In total, more than 10,000 apartments underwent energy efficiency improvements, while approximately 3,000 further units were converted in order to meet the needs of older people and to reach higher standards. This increased the volume of our energy-efficient units to more than 3 %, which greatly exceeds the German average of around 1 %. Deutsche Annington is thus providing answers to the challenges facing society as a whole as a result of the energy transition and demographic change. The energy efficiency improvements enable a reduction in energy consumption of up to 30 %; the conversions allow older people to stay in their own homes for longer.
Deutsche Annington also further improved its customer service during the course of 2014. Our own Germany-wide craftspersons' organisation (DTGS) and the nationwide support provided by our own caretakers played a key role in this regard. Overall tenant satisfaction once again increased. This was reflected in the Customer Satisfaction Index (CSI), which was 5.7 % up on the previous year. With this in mind, and taking into account acquisitions, Deutsche Annington Immobilien Group increased its number of employees to 3,850 in 2014 (2013: 2,935).
"We have put our tenants at the heart of what we do and are pursuing a long-term, sustainable property management strategy. We are therefore delighted that our tenants rate us ever more highly for our service and customer focus, both of which we will continue to work on. We want to continue offering our tenants attractive and affordable housing where they can feel at home," remarks Rolf Buch.
The DeWAG and Vitus portfolios, which were acquired in 2014, were successfully integrated well ahead of schedule. Deutsche Annington is therefore ideally prepared for the upcoming combination with GAGFAH. With the number of apartments set to rise above 350,000 and with combined portfolio value set to reach approximately EUR 21 billion, Deutsche Annington will establish itself as a national champion that is simultaneously the second largest listed property company in continental Europe.
Outlook for 2015 confirmed
Deutsche Annington confirms its outlook for 2015, without taking GAGFAH into account, and intends to once again build on its leading position in the German housing market in the coming financial year. The company will therefore continue to systematically invest in the quality of its buildings and apartments, as well the neighbourhoods surrounding them, in the ongoing year. In total, the company plans to invest more than EUR 400 million, respectively more than EUR 31 per square metre, in its housing stocks in 2015. In terms of monthly in-place rents like-for-like per square metre, the forecast is for a comparable increase of between 2.6 % and 2.8 % in the coming financial year. All in all, Deutsche Annington predicts that its rental income will increase from 789.3 Mio. EUR in 2014 to between EUR 880 and EUR 900 million.
For 2015, Deutsche Annington expects FFO I to increase from EUR 286.6 Mio. in 2014 to between EUR 340 and EUR 360 million, and NAV to increase by up to 4 % to between EUR 24 and EUR 25 per share. The company is sticking to its dividend policy in 2015 and will pay out approximately 70 % of FFO I to its shareholders.
These forecast figures take into account the acquisitions of DeWAG, Vitus and Franconia but not the merger with GAGFAH.
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 December 31, 2014, Deutsche Annington owned some 203,000 residential units worth a total of EUR 12.8 billion. The company is present throughout Germany. Deutsche Annington has its headquarters in Düsseldorf and employs more than 3,850 people.
More information about Deutsche Annington shares:
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
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