DGAP-News: Vonovia SE / Key word(s): 9-month figures
2015-11-03 / 07:03
November 3, 2015
Vonovia SE: successful business development in the first nine months of 2015 - forecast upwardly adjusted
Forecast for the financial year 2015 improved thanks to successful development and rapid integration of acquisitions
- FFO I per share in range from EUR 1.27-EUR 1.29 (+ 28 %)
- FFO I of between EUR 590 million-EUR 600 million
- Net asset value (EPRA NAV) per share EUR 29-EUR 30 (+ 28 %)
Debt will continue to fall up to the end of the year, to 46 %
- Sale of 20,000 apartments and increases in value are expected to result in a considerable reduction in debt
- Improvement of the overall portfolio
Further improvement in operating performance in the first nine months of the year - operating profit (FFO I) more than doubled
- FFO I of EUR 0.93 per share (prior year: EUR 0.81)
- FFO I up 111 % to EUR 432 million
- EPRA-NAV per share increased by 18 % to EUR 27.17
Investments increase quality of property portfolios
- Investments boosted by 92 % to EUR 468 million
- Expenses per m2/year set to increase to EUR 31-EUR 32
Further significant improvement in business development expected in 2016
- FFO I increase of approximately EUR 100 million to EUR 690-710 million; synergies with GAGFAH fully paying off
- Modernisations with a volume of approximately EUR 430-EUR 500 million planned (+ 38 %)
Bochum, November 3, 2015 - Vonovia SE ("Vonovia") has achieved a successful business development trend in the first three quarters of 2015. The company was able to significantly improve all of its key financial indicators in the reporting period. As well as its favourable general business development, the fast pace of GAGFAH's integration in particular significantly improved Vonovia's operating performance.
"Following a strong first half of the year, the third quarter was also highly positive for our company. We are ahead of schedule in our integration of GAGFAH. We will have completed the incorporation of this company within our corporate group by the end of 2015. This will enable us to exploit synergies more rapidly than expected," says Rolf Buch, CEO.
Outlook for 2015 - Management Board increases forecast
Vonovia has once again raised its forecast for the year as a whole. It now envisages an FFO I (Funds from Operations) of between EUR 590 million and EUR 600 million (forecast for H1 2015: EUR 560 million to EUR 580 million). This represents a 28 % increase in our FFO I per share to between EUR 1.27 and EUR 1.29 (forecast for H1 2015: EUR 1.20 to EUR 1.24). The EPRA NAV (net asset value; real estate assets without liabilities) per share is likewise expected to increase by 28 % to between EUR 29 and EUR 30. The dividend proposal for the year is unchanged at EUR 0.94 per share. This represents a 27 % increase on the previous year.
The vacancy rate will continue to fall, to approximately 3 %, while rent growth (like-for-like) will amount to between 2.8 % and 2.9 %. Rental income is expected to increase to between approximately EUR 1,400 and EUR 1,420 million in 2015 (2014: EUR 789 million).
For 2016, Vonovia predicts a further improvement in its business development. Its FFO I figure is expected to increase by approximately 18 % to between EUR 690 million and EUR 710 million. To achieve yet further improvements in the quality of its housing stocks, Vonovia will continue to consistently invest in its buildings and its residential units, as well as in the residential environment as a whole. In the next year, funds for modernisations are expected to grow considerably, by approximately 38 % to between EUR 430 million and EUR 500 million. As well as energy-efficient building refurbishments and senior-friendly conversions of the apartments, new buildings in the form of attic conversions and infill developments will increasingly play a role.
Operating profit more than doubled during the nine-month period thanks to increased portfolio volume and synergy effects
With a significantly increased portfolio volume, in the first three quarters of the financial year 2015, Vonovia more than doubled its key performance indicator, FFO I. FFO I corresponds to the operating result after interest and taxes. It thus increased by 111 % to EUR 432 million (prior year: EUR 205 million).
This represents earnings per share of EUR 0.93 (prior year: EUR 0.81).
In the first nine months of the year, the company increased its EPRA NAV by 18 % to EUR 27.17 per share by comparison with December 31, 2014. The vacancy rate fell by 0.2 percentage points in comparison with the reporting date for the prior period and was at a very low level of 3.4 % on September 30, 2015. Due to the company's acquisitions, rental income increased considerably by comparison with the first nine months of 2014, by 78 % to EUR 1,019 million.
The monthly in-place rent per square metre (like-for-like) rose to EUR 5.77 (September 30, 2014: EUR 5.61), which corresponds to an increase of 2.9 %. Like-for-like means that the comparison refers to the same housing stocks and is an objective performance indicator in the context of extensive portfolio growth.
The company's financial statements as of September 30, 2015 include the earnings contributions provided by its merger with GAGFAH from March 2015 and those provided by Franconia from April 2015. Since July 1, 2015, the earnings contribution provided by the SÜDEWO Group, which is based in the German federal state of Baden-Württemberg and has almost 20,000 residential units in its portfolio, has likewise been consolidated in the company's financial statements. This acquisition has significantly increased our company's portfolio in strategically important regions with above-average development potential. Overall, as of September 30, 2015 Vonovia managed a portfolio with a value of EUR 23.1 billion (prior year: EUR 12.8 billion).
Sales and increases in value ensure lower volume of debt
Vonovia guarantees a stable, flexible financing structure. As of September 30, 2015, its loan-to-value (LTV) ratio amounted to 50 %. In early October, Vonovia also hedged existing interest rate risks resulting from its merger with GAGFAH. Vonovia has thus already secured in advance approximately 86 % of the financing synergies envisaged through its acquisition of GAGFAH and has reduced its average financing costs to approximately 2.3 % from 2017.
On the sales side, the company has sold 5,322 apartments through privatisations and sales of Non-core stocks (units which are not included among core business). This is twice as many units as in the previous year. Non-core stocks mainly comprise apartments which cannot be optimally managed within our company's structure. At the beginning of November, our company signed letters of intent for the sale of two large residential portfolios in North Rhine-Westphalia and in northern Germany with LEG Immobilien AG and an additional buyer. The sale of a total of approximately 20,000 units will further improve the quality of our portfolio as a whole. Thorough these sales and also increases in value, Vonovia's debt is expected to fall to 46 % on a pro forma basis by the end of the year.
Further increase in investments in existing properties
Investments in maintenance and modernisation have been stepped up again in the reporting period. Consolidated expenses for maintenance have increased to EUR 249 million (first nine months of 2014: EUR 123 million), while those for modernisation have risen by 83 % to EUR 219 million. Overall, Vonovia's expenses amount to EUR 468 million (first nine months of 2014: EUR 243 million), an increase of 92 %.
With a volume of EUR 660 million to EUR 680 million, its 2015 investment programme is thus well on track. Overall, this represents estimated investments of between EUR 31 and EUR 32 per square metre for 2015 as a whole. This once again underlines the company's goal of a further improvement in the quality of its housing stocks. The rapid completion of this work mainly reflects the pooling of responsibility with the company's own craftsmen's organisation, Deutsche TGS.
Inclusion in the DAX under the company's new name
At the beginning of September, Deutsche Annington Immobilien SE was renamed Vonovia SE. This new name reflects the company's long-term strategic focus and is a result of the merger of Deutsche Annington and GAGFAH.
Vonovia's shares have been traded on the DAX since September 21, 2015. This marks the first time that a real estate company has been represented in Germany's benchmark index. Based on the German stock exchange's definition, as of the reporting date September 30, 2015 approximately 95 % of the company's shares were in free float, while its market capitalisation amounted to approximately EUR 13.4 billion.
The quarterly report is available from www.vonovia.de. The short version of the analysts' presentation is available to download from the Press section of the company's website.
2016 Financial Calendar
March 3, 2016: Publication of 2015 Annual Report
May 12, 2016: Annual General Meeting in Düsseldorf
Interim report Q1 2016
August 2, 2016: Interim report H1 2016
November 3, 2016: Interim report Q3 2016
Head of Corporate Communications
T +49 234 / 314 - 1149
Head of Investor Relations
T +49 234 / 314 - 2384
Vonovia SE is Germany's leading residential real estate company. Vonovia currently owns and manages some 367,000 residential units in all of Germany's attractive cities and regions. Its portfolio is worth approximately EUR 23 billion. As a modern service company, Vonovia focuses on customer orientation and tenant satisfaction. Offering tenants affordable, attractive and liveable homes is a prerequisite for the company's continued successful development. Accordingly, Vonovia makes long-term investments in the maintenance, modernisation and senior-friendly conversion of its buildings.
The company, which is based in Bochum, has been listed on the stock exchange since 2013 and on the DAX 30 since September 2015. Vonovia SE is also listed in the international indices STOXX Europe 600, MSCI Germany, GPR 250 and EPRA/NAREIT Europe. Vonovia has a workforce of approximately 6,100 employees.
Approval: Regulated Market / Prime Standard, Frankfurt Stock Exchange
Common code 094567408
Registered office of Vonovia SE: Münsterstrasse 248, 40470 Düsseldorf, Germany
Business address of Vonovia SE: Philippstrasse 3, 44803 Bochum, Germany
This press release has been issued by Vonovia SE and/or its subsidiaries solely for information purposes. This press release may contain statements, assumptions, opinions and predictions about the anticipated future development of Vonovia ("forward-looking statements") that reproduce various assumptions regarding results derived from Vonovia's current business or from publicly available sources that have not been subject to an independent audit or in-depth evaluation by Vonovia and that may turn out to be incorrect at a later stage. All forward-looking statements express current expectations based on the current business plan and various other assumptions and therefore come with risks and uncertainties that are not insignificant. All forward-looking statements should not therefore be taken as a guarantee for future performance or results and, furthermore, do not necessarily constitute appropriate indicators that the forecast results will be achieved. All forward-looking statements relate solely to the day on which this press release was issued to its recipients. It is the responsibility of the recipients of this press release to conduct a more detailed analysis of the validity of forward-looking statements and the underlying assumptions. Vonovia accepts no responsibility for any direct or indirect damages or losses or subsequent damages or losses, as well as penalties that the recipients may incur by using the press release, its contents and, in particular, all forward-looking statements or in any other way, as far as this is legally permissible. Vonovia does not provide any guarantees or assurances (either explicitly or implicitly) in respect of the information contained in this press release. Vonovia is not obliged to update or correct the information, forward-looking statements or conclusions drawn in this press release or to include subsequent events or circumstances or to report inaccuracies that become known after the date of this press release.