“to the best of our knowledge, and in accordance with the applicable accounting standards, the consolidated financial statements as at 31 december 2012 give a true and fair view of the net assets, financial and earnings position of the Group and the Group’s management report gives a true and fair view of the development of the business including the business result and the posi-tion of the Group and describes the main opportunities and risks associated with the Group’s expected future development.”
frankfurt/main, 25 february 2013 deutsche wohnen aG
management Board
michael zahn lars wittan
chief executive officer chief financial officer
independent auditors’ report responsibility statement
Current gross rental income
the current gross rent corresponds to the sum of the contractually agreed net cold rent payments for the areas let of the respective properties for the period under review or as of the reporting date in eur million. on a per sqm basis, this is called “in-place rent”.
D&o (directors and officers) Group insurance
personal liability insurance that provides general cover to corpo-rate bodies for damages incurred due to neglect of duty.
EBiT
earnings before interest and taxes.
EBiTDa
earning before interests, taxes, depreciation and amortisation.
EBT
earnings before taxes. the company discloses an adjusted eBt as well: eBt (as reported) is adjusted for the result of fair value adjustment of investment properties, the result of fair value adjust-ments to derivative financial instruadjust-ments and other one-off effects.
Fair value
fair value is the amount for which an asset could be exchanged between knowledgeable, willing parties in an arm’s length transaction.
FFo
funds from operations: from the company’s point of view, an essential operational figure for property companies geared towards liquidity derived from the Group’s profit and loss state-ment. Based on the net result for the period (profit/loss), adjust-ments for depreciation and amortisation, one-off effects as well as non-cash financial expenses/income and non-cash tax expenses/
income, not affecting liquidity, are made. the ffo (incl. disposals) is adjusted for the earnings from disposals to determine the ffo (without disposals).
Financial Covenants
agreements contained in some financing contracts in which the borrower promises to comply with certain key financial figures
g Glossary
in-place rent (per sqm)
contractually owed net cold rent from the rented apartments (current gross rental income) divided by the rented area.
LTV ratio
loan-to-Value ratio: Quantifies the ratio between the sum of the net financial liabilities and the value of the investment properties plus the non-current assets held for sale and the land and build-ings held for sale.
Modernisation measures
typical modernisation measures are the renovation of the bath-rooms, the installation of new in-house supply pipes and windows, the reconditioning or retrofitting of balconies, as well as the imple-mentation of energy saving measures such as the installation of insulating glass windows and thermal insulation measures.
Multiple (in-place rent)
net present value divided by the current gross rental income as at december 2012 multiplied by 12.
Multiple (market rent)
net present value divided by the market rent as at december 2012 plus vacancy loss (i.e. potential gross rental income) multiplied by 12.
NaV
net asset value: indicates the net asset value or intrinsic/inherent value of a property company. the epra naV is calculated based on equity (before minorities) adjusted for the effect of the exercise of options, convertibles and other equity interests as well as adjust-ments of the market value of derivative financial instruadjust-ments and deferred taxes (net of assets and liabilities), i. e. the adjustment of balance sheet items that have no impact on the Group’s long-term performance.
Net cold rent
contractually agreed rent payments; additional expenses (e. g.
trash collection, water, janitor) and heating costs are not included.
Net operating income (Noi)
the net operating income (noi) represents the operating earnings from residential property management after deduction of incurred personnel and G&a costs in this business segment.
New-letting rent
deutsche wohnen determines the new-letting rent by calculating the actual average agreed monthly net cold rent payments per sqm based on the new leases for units not subject to rent controls for the respective properties during the financial year.
Potential gross rental income
the potential gross rental income is the sum of current gross rental income and vacancy loss.
Vacancy loss
the vacancy loss corresponds to the sum of the respective last contractually agreed net cold rent payments for the areas that are not rented but are lettable for the review period or as of the report-ing date of the referred properties.
Vacancy rate
the vacancy rate quantifies the ratio between the vacancy loss and the potential gross rental income as of the respective reporting date.
Glossary
Profit and loss statement Q1 Q2 Q3 Q4 2012
earnings from
residential property management eur m 44.1 42.5 48.8 59.0 194.4
earnings from disposals eur m 3.8 5.3 5.5 5.3 19.9
earnings from nursing and
assisted living eur m 2.6 2.3 2.8 2.2 9.9
corporate expenses eur m – 7.7 – 8.4 – 9.1 – 15.2 – 40.4
eBitda eur m 43.1 61.1 47.4 44.9 196.5
eBt (adjusted) eur m 19.6 17.7 22.9 18.3 78.5
eBt (as reported) eur m 19.5 33.9 19.1 133.1 205.6
Group profit (after taxes) eur m 14.4 22.5 13.9 94.7 145.5
ffo (without disposals) eur m 18.4 14.4 19.6 15.8 68.2
ffo (incl. disposals) eur m 22.2 19.7 25.1 21.1 88.1
Balance sheet 31/3 30/6 30/9 31/12 31/12
investment properties eur m 2,981.0 2,983.7 4,275.0 4,614.6 4,614.6
current assets eur m 275.0 702.6 256.6 188.5 188.5
equity eur m 1,093.1 1,531.0 1,522.3 1,609.7 1,609.7
net financial liabilities eur m 1,687.8 1,219.9 2,468.5 2,678.0 2,678.0
loan-to-Value ratio (ltV) % 54.9 39.8 56.8 57.2 57.2
total assets eur m 3,338.4 3,776.7 4,632.0 4,907.9 4,907.9
net asset value (nav) 31/3 30/6 30/9 31/12 31/12
epra net asset Value eur m 1,228.3 1,677.5 1,694.1 1,824.4 1,824.4
fair values 31/3 30/6 30/9 31/12 31/12
fair Value of real estate properties1) eur m 2,954 2,922 4,204 4,320 4,320 fair Value per sqm residential
and commercial area1) eur per sqm 954 958 914 950 950
1) only comprises residential and commercial buildings