Acquisition Strategy

Our Group has been growing in recent years thanks to a large number of acquisitions. Our scalable operational management system allows us to generate economies of scale from the full and swift integration of newly acquired companies and portfolios. Over the past few years, we have been able to prove, time and again, that this strategy pays off.

Making the most of this competitive advantage and using the expertise that has been built up within our organization over time, we are constantly analyzing portfolios that could constitute potential takeover targets. In accordance with our portfolio management strategy and our extension strategy, we do not consider acquisitions to be the only way in which to achieve growth, but rather see them as a fifth, lever that helps to strengthen the impact of the first four.

We pursue our acquisitions as and when opportunities present themselves. Acquisitions have to be expected to increase value before they are conducted. Such increases in value are generally assessed in terms of strategic suitability, increases in and a neutral impact on the NAV per share. Furthermore, an acquisition must not pose any risk to the company’s stable ‘BBB+’ long-term corporate credit .

We identified around 136,000 units in 2016. Out of these units, we

  1. analyzed around 71,000, or 52%, more closely,
  2. performed, or are still in the process of performing, a due diligence assessment for around 69,000 or 51% and
  3. submitted bids for around 37,000 or 27%.

This process resulted in us acquiring around 25,000 apartments, or 18 %. The successful offer made to the shareholders of conwert Immobilien Invest SE, with a portfolio of around 24,500 apartments, clearly stands out in this context.

Strategic
The “Strategic” subportfolio contains locations that offer development potential that is above average and for which we are pursuing a value-enhancing property management strategy.
FFO 1
The profit or loss for the period to reflect the adjusted profit or loss from sales; period adjustments from assets held for sale; specific effects that do not relate to the period, are non-recurring or do not relate to the objective of the company; the net income from fair value adjustments of investment properties; depreciation and amortization; deferred and prior-year current taxes (tax expenses/income); transaction costs; prepayment penalties and commitment interest; valuation effects on financial instruments; the unwinding of discounting for provisions, particularly provisions for pensions, and other prior-year interest expenses and income that are not of a long-term nature.
Rating
Classification of debtors or securities with regard to their creditworthiness or credit quality according to credit ratings. The classification is generally performed by rating agencies.