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Interim Statement Q1 2020

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Business Outlook

Vonovia can report positive business development in the first three months of the 2020 fiscal year despite the coronavirus pandemic. All business segments showed positive development.

The forecast for the 2020 fiscal year was based on the accounting principles used in the consolidated financial statements and the adjustments described elsewhere in the Group management report. The forecast does not take account of any larger acquisitions of real estate portfolios.

Our forecast for the 2020 fiscal year is based on determined and updated corporate planning for the Vonovia Group as a whole, and considers current business developments, the acquisitions of Hembla and Bien-Ries, possible opportunities and risks, and the expected impacts of the coronavirus pandemic. It also includes the key overall macroeconomic developments and the economic factors that are relevant to the real estate industry and our corporate strategy. Further information is provided in the sections of the 2019 Group management report entitled “Development of the Economy and the Industry” and “Fundamental Information About the Group.” Beyond this, the Group’s further development remains exposed to general opportunities and risks.

We assume that the coronavirus pandemic will have only a limited impact on all business segments and will lead to slightly reduced growth. We therefore also assume that adjusted EBITDA total will be within the range of our most recently published guidance. We expect the volume of investments in modernization and new construction to be at the same level as the previous year due to lower investments in modernization.

We also expect that the most recently published Group FFO target will be reached. In addition, we expect the value of our company to increase further in 2020 and predict a moderate increase in Adjusted NAV per share, not taking further market-driven changes in value into account..

The following table provides an overview of our forecast and presents material and selected key figures.

 

Actual 2019

Forecast for 2020

Forecast for 2020 in the 2020 Q1 Report

*

Based on the shares carrying dividend rights on the reporting date.

**

Without possible one-time decrease pursuant to the Act on Rent Controls in the Housing Sector in Berlin (MietenWoGBln).

***

The lower end of the forecast contains a possible one-time decrease pursuant to the Act on Rent Controls in the Housing Sector in Berlin (MietenWoGBln).

 

 

 

 

Adjusted NAV per share

€ 51.93

suspended

suspended

Adjusted EBITDA Total

€ 1,760.1 million

€ 1,875–1,925 million

€ 1,875–1,925 million

Group FFO

€ 1,218.6 million

€ 1,275–1,325 million

€ 1,275–1,325 million

Group FFO per share*

€ 2.25

suspended

suspended

Customer Satisfaction Index (CSI)

Decrease of 8.0%

Up slightly year-over-year

Up slightly year-over-year

Rental income

€ 2,074.9 million

€ ~2,300 million

€ ~2,300 million

Organic rent increase

3.9%

Increase of ~4.0%**

Increase of 3.3–3.8%***

Modernization and new construction

€ 1,489.5 million

€ 1,300–1,600 million

€ 1,300–1,600 million

Number of units sold Recurring Sales

2,607

~2,500

~2,500

Step-up Recurring Sales

41.3%

~30%

~30%

Bochum, Germany, April 27, 2020

The Management Board

Adjusted EBITDA Total (Earnings Before Interest, Taxes, Depreciation and Amortization)
Adjusted EBITDA Total is the result before interest, taxes, depreciation and amortization (including income from other operational investments and intragroup profits) adjusted for effects that do not relate to the period, recur irregularly and that are atypical for business operation, and for net income from fair value adjustments to investment properties. These non-recurring items include the development of new fields of business and business processes, acquisition projects, expenses for refinancing and equity increases (where not treated as capital procurement costs), IPO preparation costs and expenses for pre-retirement part-time work arrangements and severance payments. The Adjusted EBITDA Total is derived from the sum of the Adjusted EBITDA Rental, Adjusted EBITDA Value-add, Adjusted EBITDA Recurring Sales and Adjusted EBITDA Development.
EPRA NAV/Adjusted NAV
The presentation of the NAV based on the EPRA definition aims to show the net asset value in a long-term business model. The equity attributable to Vonovia’s shareholders is adjusted to reflect deferred taxes on investment properties, the fair value of derivative financial instruments and the deferred taxes on derivative financial instruments. In order to boost transparency, an adjusted NAV, which involves eliminating goodwill in full, is also reported.
Group FFO
Group FFO reflects the recurring earnings from the operating business. In addition to the adjusted EBITDA for the Rental, Value-add, Recurring Sales and Development segments, Group FFO allows for recurring current net interest expenses from non-derivative financial instruments as well as current income taxes. This key figure is not determined on the basis of any specific international reporting standard but is to be regarded as a supplement to other performance indicators determined in accordance with IFRS.