31. August 2010 
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Deutsche Wohnen with a strong performance in the first half of 2010
Deutsche Wohnen concludes the first half of 2010 with earnings of €8.1 million, continuing the successful development of the first quarter of 2010.
Significant increase of the FFO
Earnings before taxes adjusted for valuation effects and special items improved by €7.9 million, compared to the same period in the previous year, to €17.9 million. Due to the continued success of our business operations and reduced interest expenses, funds from operations (FFO) grew by 41 %, from €0.22 per share to €0.31 per share.
In the first half of 2010, Deutsche Wohnen successfully continued to reduce the Group's debt, giving it a loan–to–value ratio of 60.0 % as of the reporting date. Cash and cash equivalents increased by €41.4 million to €98.5 million.
Improved earning power
NOI per square metre and month in the core portfolio grew by 4.7 % over a period of twelve months. The average in-place rent is 5.40 €/sqm as of 30 June 2010 (previous year: 5.26 €/sqm). During the same period, the vacancy rate dropped from 3.6 % to 3.0%.
"Stable rental income in combination with reduced interest expenses clearly highlights Deutsche Wohnen's improved profit ability", says Michael Zahn, CEO of Deutsche Wohnen AG. Disposals grew significantly in the first half of the year to a transaction volume of €96.0 million, compared to €41.1 million for the same period of the previous year. In addition to our strong privatisation business with its gross margin of 37 %, our efforts to reduce our properties in structurally weak regions were also continued successfully.
In the second half of 2010, Deutsche Wohnen will continue its positive development of the past months. "We are focusing on targeted investments in our core portfolio, for instance in Berlin and Hanau, and thus on a further reduction of modernisation-related vacancies", says Michael Zahn.
The target corridor for the sale of apartments by individual sales remains stable at between 500 and 550 units. In order to optimise its property portfolio, Deutsche Wohnen will continue with its successful efforts over the past months to streamline the existing portfolio. In addition, we will further pursue acquisitions between €10 million and €50 million, particularly in the core regions.
Deutsche Wohnen is increasing its FFO forecast for financial year 2010 by more than 10 % to €0.54 per share, which based on 2009 results corresponds to a 25 % increase in the FFO.
Significant increase of the FFO
Earnings before taxes adjusted for valuation effects and special items improved by €7.9 million, compared to the same period in the previous year, to €17.9 million. Due to the continued success of our business operations and reduced interest expenses, funds from operations (FFO) grew by 41 %, from €0.22 per share to €0.31 per share.
In the first half of 2010, Deutsche Wohnen successfully continued to reduce the Group's debt, giving it a loan–to–value ratio of 60.0 % as of the reporting date. Cash and cash equivalents increased by €41.4 million to €98.5 million.
Improved earning power
NOI per square metre and month in the core portfolio grew by 4.7 % over a period of twelve months. The average in-place rent is 5.40 €/sqm as of 30 June 2010 (previous year: 5.26 €/sqm). During the same period, the vacancy rate dropped from 3.6 % to 3.0%.
"Stable rental income in combination with reduced interest expenses clearly highlights Deutsche Wohnen's improved profit ability", says Michael Zahn, CEO of Deutsche Wohnen AG. Disposals grew significantly in the first half of the year to a transaction volume of €96.0 million, compared to €41.1 million for the same period of the previous year. In addition to our strong privatisation business with its gross margin of 37 %, our efforts to reduce our properties in structurally weak regions were also continued successfully.
In the second half of 2010, Deutsche Wohnen will continue its positive development of the past months. "We are focusing on targeted investments in our core portfolio, for instance in Berlin and Hanau, and thus on a further reduction of modernisation-related vacancies", says Michael Zahn.
The target corridor for the sale of apartments by individual sales remains stable at between 500 and 550 units. In order to optimise its property portfolio, Deutsche Wohnen will continue with its successful efforts over the past months to streamline the existing portfolio. In addition, we will further pursue acquisitions between €10 million and €50 million, particularly in the core regions.
Deutsche Wohnen is increasing its FFO forecast for financial year 2010 by more than 10 % to €0.54 per share, which based on 2009 results corresponds to a 25 % increase in the FFO.
