Results Full Year 2023

Deutsche Wohnen: Stable Performance in the financial year 2023

• Group FFO of €521.8 million (€1.31 per share)
• NAV decreased to €16,976.6 million (€42.77 per share)
• Vacancy rate remains at very low level

Berlin, March 20, 2024. In a challenging environment for the real estate industry, Deutsche Wohnen SE delivered a stable operating performance in the financial year 2023.

The Adjusted EBITDA Rental was €638.1 million (+6.3%). The in-place rent per square meter was €7.72 (+3.2%). The vacancy rate remained at a very low level of 1.5%.

The Deutsche Wohnen Management Board subjected the nursing care activities to a strategic review. The outcome of this process is that the nursing care activities will no longer form part of the corporate strategy going forward and are to be sold. Towards the end of the 2023 fiscal year, the nursing care activities were subjected to a market test and were then reported from the fourth quarter of 2023 onwards as discontinued operations for the purposes of Group reporting. This means that the Care management segment has been abolished.

Going forward, Deutsche Wohnen will be making a clearer distinction in the management system between earnings orientation and liquidity orientation. This is the way of reflecting the current market environment and the resulting need to manage the liquidity. Taking into account what is currently a much more relevant sale segment, Group FFO does not allow Deutsche Wohnen to make a sufficient distinction in this regard. While it reflects the earnings contributions made by disposals, it does not capture the liquidity inflows they generate in full. In this respect, Group FFO is a mixture of earnings and cash flow, meaning that it is not a clear performance indicator. Going forward, Deutsche Wohnen will reconcile EBITDA to earnings before taxes (EBT), establishing this as the central measure of earnings. EBT is a standard performance indicator for companies; as such, it offers high levels of transparency and allows for comparisons to be drawn with other industries. Like our existing Adjusted EBITDA, Adjusted EBT is adjusted to reflect effects that do not relate to the period, recur irregularly or are atypical for business operation. Unlike Group FFO, this Adjusted EBT includes depreciation and amortization, but does not include current income taxes, as these are not part of operating value creation. As the leading indicator of internal financing and, as a result, liquidity management, Deutsche Wohnen will also be reporting its Operating Free Cash-Flow (OFCF) in the future.

Other relevant KPIs also saw a stable development. The Group FFO of the continued operations was €521.8 million, which was slightly below the prior-year level. On a per-share basis, the Group FFO for the continued operations came to €1.31. The NAV (formerly EPRA NTA) declined by 16.6% since year-end 2022 to €16.976.6 million or €42.77 per share. The LTV was stable at 30.4%.

Key numbers

Financial KPIs		FY 2022	FY 2023	Delta
Adjusted EBITDA Rental	€ million	600.1	638.1	+6.3%
Adjusted EBITDA Value-add	€ million	14.1	10.6	-24.8%
Adjusted EBITDA Recurring Sales	€ million	14.6	1.3	-91.1%
Adjusted EBITDA Development	€ million	-0.3	-15.2	>100%
Adjusted EBITDA Total (of continued operations)*	€ million	628.5	634.8	+1.0%
Adjusted EBITDA Total (discontiued operations)*	€ million	73.3	44.6	-39.2%
Adjusted EBT	€ million	538.7	546.1	1.4%
Operating Free Cash-Flow (OFCF)	€ million	356.7	267.2	-25.1%
Group FFO (of continued operations)*	€ million	539.6	521.8	-3.3%
Group FFO (of discontinued operations)*	€ million	53.9	42.9	-20.4%
Group FFO (of continued operations) per share	€	1.36	1.31	-3.3%
Profit for the period	€ million	-445.7	-2,761.1	>100%
Balance Sheet		Dec. 31, 2022	Dec. 31,2023	Delta
Investment Properties	€ million	27,301.9	23,021.5	-15.7%
Equity	€ million	16,775.1	13,998.2	-16.6%
Loan-to-Value Ratio (LTV)	%	28.1	30.4	+2.3pp
NAV	€ million	20,361.0	16,976.6	-16.6%
NAV per share	€	51.30	42.77	-16.6%
Non-financial KPIs		Dec. 31, 2022	Dec. 31, 2023	Delta
Number of owned residential units		140.286	139.847	-0.3%
In-place rent (residential)	€ per m²	7.48	7.72	+3.2%
Vacancy rate (residential)	%	1.9%	1.5%	-0.4pp

* Previous year's figures (2022) comparable according to current key figure and segment definition 2023. Please see chapter [A2] Adjustment to Prior-year Figures of the Deutsche Wohnen 2023 Annual Report.

About Deutsche Wohnen

Deutsche Wohnen is one of the leading publicly listed property companies in Europe and is part of the Vonovia Group. The business focus of the company is on managing its own portfolio of residential properties in dynamic metropolitan regions and conurbations in Germany. Deutsche Wohnen sees itself as having both a social responsibility and a duty to maintain and newly develop good-quality and affordable housing in vibrant residential neighbourhoods. As of 31 December 2023. the portfolio comprised a total of around 140.000 residential units.

Important note

This publication is neither an offer to sell nor a solicitation to buy securities.

To the extent that this document contains forward-looking statements. these are not facts and are recognisable by such words as ‘will’. ‘expect’. ‘believe’. ‘estimate’. ‘intend’. ‘endeavour’. ‘assume’ and similar expressions. These statements express the intentions. opinions or current expectations and assumptions of Deutsche Wohnen and the individuals acting in concert with it. The forward-looking statements are based on current plans. estimates and forecasts that Deutsche Wohnen and the individuals acting in concert with it have made to the best of their knowledge. but do not make any claims as to their future accuracy. Forward-looking statements are subject to risks and uncertainties that are generally difficult to predict and are usually not within the control of Deutsche Wohnen or the individuals acting in concert with it. It should be remembered that the actual results or consequences may differ considerably from those mentioned or contained in the forward-looking statements.

Contact:

Phone +49 (0)30 897 86-5413
Fax +49 (0)30 897 86-5419
ir@deutsche-wohnen.com