DGAP-News

Deutsche Wohnen AG: Annual result as at 31 December 2014 - Portfolio strategy is paying off - Seite 2

result (Net Operating Income - NOI) of EUR 460.6 million (previous year:
EUR 264.0 million). On a like-for-like basis Deutsche Wohnen achieved
rental growth in the strategic core and growth regions of 2.5%. The vacancy
rate fell in these regions from 2.0% to 1.9%.

Against the background of the continuing high demand for home ownership,
particularly earnings from disposals rose again markedly in comparison to
the previous year by 128% to EUR 52.4 million (previous year: EUR 23.0
million). In total, 4,115 units were sold in 2014 of which 2,016 were sold
to owner-occupiers and 2,099 to institutional investors.

The higher valuation of our holdings underscores the high quality of our
portfolio

The excellent development of the Deutsche Wohnen portfolio with its clear
focus on Core+ regions is reflected in the current valuation of our
properties. The annual valuation of our portfolio shows an increase in
value of EUR 953 million. The major increases in value concerned
essentially Greater Berlin (EUR 819 million) and the Rhine-Main region (EUR
73 million).

As Michael Zahn, CEO of Deutsche Wohnen AG points out, "We see that our
consistent focus on German growth markets is bearing fruit. We are
anticipating further increases in value in these markets in future and have
designed our investment strategy accordingly. Therefore, we have decided to
implement a comprehensive modernisation programme over the next four years
amounting to EUR 280 million with a focus on our Core+ regions. This
programme will further enhance the value of our portfolio and will generate
internal growth."

Strong position on the capital market further developed

With a market capitalisation of around EUR 7 billion, Deutsche Wohnen is
one of the leading publicly listed property companies in Germany and
Europe.

"Our focused and concentrated portfolio strategy together with our
commitment to high quality has convinced the capital market. The Deutsche
Wohnen share price rose by 39.5% in the reporting year to EUR 19.58 and is
showing a significant premium," explains Chief Financial Officer (CFO)
Andreas Segal. In the first few months of 2015 the share price rose again
by 25% and was at EUR 24.44 as at the balance sheet date 3 March 2015.

As announced, Deutsche Wohnen has increased the pay-out ratio for the
dividend that is planned for 2014 from 50% to 60% of FFO I. Subject to the
approval of the Annual General Meeting, the dividend will be EUR 0.44 per