Deutsche Wohnen (DWNI) Q3 2024 earnings summary

Executive summary

• Real estate values are stabilizing, with positive rent trends and high occupancy in the core rental business.

• Higher transaction volumes in Q3, with significant property and development project sales completed.

• A control and profit and loss transfer agreement with Vonovia SE is being initiated, with shareholder meetings planned for January 2025.

• The sale of the Care segment is underway, with contracts for 27 nursing care properties and the Katharinenhof business signed.

Financial highlights

• Adjusted EBITDA Total (continuing operations) for 9M 2024 was €489.2 million, down 1.5% year-over-year.

• Adjusted EBT (continuing operations) fell 10.4% to €384.1 million; profit for the period improved to €-255.5 million from €-1,300.5 million.

• Operating free cash flow rose 59.4% to €386.6 million; cash flow from operating activities increased 51.7% to €505.7 million.

• NAV per share decreased 2.2% to €41.84; LTV improved to 29.5%.

• Dividend of €0.04 per share paid for FY 2023.

Outlook and guidance

• Adjusted EBITDA Total for 2024 expected to be on par with the previous year; Adjusted EBT forecast moderately below prior year due to higher borrowing costs and impairments.

• Slight increase in NAV per share anticipated, excluding further market-related property value changes.

• CO2 intensity of the portfolio expected to decline slightly year-over-year.