EQS-News

Deutsche Wohnen: Stable Performance in the financial year 2023

EQS-News: Deutsche Wohnen SE / Key word(s): Annual Report/Annual Results Deutsche Wohnen: Stable Performance in the financial year 2023 20.03.2024 / 07:00 CET/CEST The issuer is solely responsible for the content of this announcement. 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.