German real estate firm Deutsche Wohnen AG (DWHHF.PK) Tuesday reported about 44 percent increase in funds from operations, or FFO, excluding disposals, for the full year 2012, benefited mainly from higher earnings from residential property management. The firm sees higher FFO in 2013.
The company's key earnings figure FFO, excluding disposals, surged to 68.2 million euros from 47.5 million euros in the previous year.
Profit before taxes, adjusted for one-off items and valuation effects, was 78.5 million euros, while the company posted 46.0 million euros in the prior year. For the full year, consolidated profit was 145.5 million euros, compared with 50.6 million euros a year ago.
The company attributed the increase in earnings to higher earnings from Residential Property Management, rise in earnings from disposals, and a "disproportionately" low increase in corporate expenses.
Net asset value increased to 12.48 euros per share from 11.50 euros per share a year earlier.
Michael Zahn, chief executive officer of the company said, "In 2012, we completed the best financial year in the history of Deutsche Wohnen....With around 83,500 units now we have broken through to a new dimension."
In 2012, Deutsche Wohnen acquired about 35,000 new residential units for around 1.8 billion euros, including purchase of BauBeCon Group with around 23,400 residential units.
For full-year 2013, Deutsche Wohnen expects FFO, without disposals, of around 100 million euros. FFO, including disposals, is expected to be around 114 million euros in the year.
In addition, the company stated that its board will propose to the Annual General Meeting that once again 50 percent of the recurring FFO, without disposals, should be paid out as a dividend for the financial year 2012.
On Frankfurt's Xetra, Deutsche Wohnen shares closed Monday's regular trading at 14.61 euros, down 1.71 percent.
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