Deutsche Annington Immobilien SE / Key word(s): Quarter Results
2015-06-01 / 07:03
1st quarter 2015: Deutsche Annington continues
- First quarterly report including GAGFAH earnings contributions from March
- Positive development in business operations after consolidation of GAGFAH
- Consolidated FFO 1 increased by 86.9% to EUR 115.7 million
- Net asset value increased by 52.6% to EUR 10.04 billion
- Vacancy rate further reduced to 3.4%
- Actual rent increased by 2.6% to EUR 5.60
- Increased investment in the real estate portfolio
- Investments of between EUR 600 and 620 million in the real estate portfolio planned
- Increase in investment for maintenance and modernisation to around EUR 31 per square metre
- Outlook 2015
- Synergy effects of EUR 130 million exceed expectations
- Positive outlook for 2015 including GAGFAH
Bochum, 1 June 2015 - For the 1st quarter of 2015, Deutsche Annington Immobilien SE ("Deutsche Annington") submitted a financial statement which, in addition to the earnings contributions from the acquisition of DeWAG and Vitus in 2014, for the first time also included earnings contributions from the merger with GAGFAH. The business figures for the 1st quarter of 2015 are therefore compared with business figures without the above mentioned acquisitions. Overall, the targeted synergy effects from the merger with the GAGFAH have been significantly exceeded. Deutsche Annington will also be able to continue its positive development in the coming quarters.
Positive development in business operations after consolidation of GAGFAH
In the 1st quarter of 2015, the business operations of Deutsche Annington developed very positively. The consolidated FFO 1 (Funds From Operations 1) - including the earnings contributions of GAGFAH for the month of March - increased compared to the previous year to EUR 115.7 million (Q1 2014: EUR 61.9 million). This corresponds to an increase of 26.8% to EUR 0.33 per share (Q1 2014: EUR 0.26). The net asset value (EPRA NAV) increased in the 1st quarter from EUR 6.58 billion to EUR 10.04 billion, which corresponds to an increase of 17.1% to EUR 28.35 per share (Q1 2014: EUR 24.22). The vacancy rate fell further to 3.4% (Q1 2014: 3.7%). The monthly actual like-for-like rent per square metre increased in the 1st quarter of 2015 to EUR 5.60 (Q1 2014: EUR 5.46), which corresponds to an increase of 2.6% in comparison with the previous year.
The market capitalisation rose - primarily due to the merger with GAGFAH - from EUR 7.7 billion to EUR 11.1 billion. The free float thereby increased to 94%. The debt ratio LTV (Loan To Value) was reduced to 56.3% on 31 March 2015. The company expects the LTV to reduce to a target value of under 50% in the medium term. The refinancing costs continued to fall from an average of 3.2% in 2014 to 2.9% in the 1st quarter of 2015.
"All financial figures confirm the operational strength and the positive business development of Deutsche Annington. We are in the midst of integration, but we can already see that the merger will be more successful than expected on the economic side. For us, this is proof that through the merger, we are really creating value for everyone involved", said Rolf Buch, Chairman of the Board of Deutsche Annington.
Significant increase in investments in the real estate portfolio
After the merger with GAGFAH, Deutsche Annington is continuing to invest comprehensively in the maintenance and modernisation of its real estate portfolio. In the current financial year, the company intends to invest between EUR 600 million and EUR 620 million in maintenance and modernisation. This corresponds to around EUR 31 (Q1 2014: EUR 29.12) per square metre. Thus Deutsche Annington is well above the level of comparable companies. The expenses for maintenance and modernisation were increased by 70.2% in the 1st quarter of 2015 and amounted to EUR 97.5 million (Q1 2014: EUR 57.3 million). Of this, around two thirds went on maintenance and one third on modernisation. Around two thirds of the total services are now provided by the company's own craftsmen organisation.
Outlook 2015 positive
In the course of 2015, Deutsche Annington Immobilien SE will be renamed Vonovia SE. The target stated at the announcement of the merger with GAGFAH of achieving synergies of
EUR 84 million will be significantly exceeded. Deutsche Annington assumes that the synergy effects will increase to approximately EUR 130 million by the end of 2017. The synergies are derived from the financial and operative areas, primarily from the management, purchasing and portfolio management, as well as residential services.
Deutsche Annington will also be able to continue the positive development in the coming quarters, whereby the forecast for the entire year 2015 includes ten months of GAGFAH. For the FFO 1 Deutsche Annington expects an increase to EUR 530 million to EUR 550 million (forecast without GAGFAH: EUR 340 million to EUR 360 million). This corresponds to a contribution of EUR 1.47 to EUR 1.53 per share. Also the EPRA NAV (net asset value) will increase significantly to around EUR 29 per share. For the monthly actual rent per square metre on a comparable basis of residential units, by the end of 2015, an increase of 2.6% to 2.8% is expected. The rental income is expected to reach EUR 1,350 to 1,370 million. At the same time, the vacancy rate is expected to continue to fall to around 3% at the end of the year.
About Deutsche Annington
Deutsche Annington has its headquarters in Bochum and is Germany's leading real estate company with European dimensions. Throughout Germany, Deutsche Annington is present with 5,700 employees and offers customer-oriented services. With the integration of the 144,000 residential units of GAGFAH, the company now owns about 350,000 residential units, which are located mainly in major German cities and the associated catchment areas. The operating subsidiaries are full service providers of a wide range of services in the area of real estate management and facility management. The portfolio is worth around 21 billion Euros. Deutsche Annington is listed on the MDAX of the German Stock Exchange. (31 March 2015)
Additional information on the shares of Deutsche Annington:
Listing: 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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