EXPLOITING OUR STRENGTHS Corporate Report 2013
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Annual Report 2013 EXPLOITING OUR STRENGTHS Corporate Report 2013 In a European context, residential real estate in Germany is an attractive market. ON SOLID GROUND > PAGE 4 At Deutsche Annington, we invest continuously in the fabric of our buildings, thus placing our success on solid foundations. CARRYING OUR Values successFULLY INTO THE FUTURE Our clear performance aspirations give us > PAGE 8 solid orientation in our daily business. OUR Focus > PAGE 2 As a service provider, we want to know what concerns our tenants so that we can swiftly respond to their needs. CLOSE TO THE custoMER > PAGE 12 We address society’s current issues and problems and deliver solutions. WE SHOW RESPONSIBILITY > PAGE 16 In the past, we have created excellent foundations on which to continue building the company’s long-term success. STRONG FOR THE FUTURE > PAGE 20 JANUARY JULY OCTOBER Deutsche Annington Immobilien SE concludes complete refinancing through successful bond issues in Europe Project kick-off Initial listing on and the USA IPO the German Stock Exchange Successful refi- nancing of GRAND securitisation. First bond issue FEBRUARY JUNE NOVEMBER Expansion of care- We join the Charta Best Vocational taker organisation der Vielfalt Training Enter- completed (Diversity Charter) prise award organisation SEPTEMBER Pars pro toto: Nine million euro investment at the Dortmund location In 2013 we achieved a lot! Thanks to the successful IPO and refi nancing and the continuing development of our operational performance we have further reinforced our leadership role on the German residential real estate market. What is more, by successfully increasing our economic room for manoeuvre and establishing a stable income base, we now have every chance of growing our business in the long term. We are exploiting these strengths for the benefit of our customers and investors alike. 2 DEUTSCHE ANNINGTON IMMOBILIEN SE CORPORATE REPORT 2013 OUR Focus More than 300,000 people live with us. We give them more than just living space. We offer them a place where they can really feel at home, every single day. Every day 2,935 employees endeavour to keep this performance promise. EXPLOITING OUR STRENGTHS 3 Proximity New ways Efficiency Service Sustainable Responsibility management 4 DEUTSCHE ANNINGTON IMMOBILIEN SE CORPORATE REPORT 2013 ON SOLID GROUND Investing money is just like building houses: solid ground ensures stability and long-term security. In a comparatively volatile and global business sector Deutsche Annington is an attractive investment segment. With 175,000 of our own apartments plus 26,000 which we manage for other owners, we are the largest housing company in Germany and one of Europe’s leaders in the field. EXPLOITING OUR STRENGTHS 5 The largest part of the Group’s portfolio is in Dortmund, in the east of the Ruhr area. 6 DEUTSCHE ANNINGTON IMMOBILIEN SE CORPORATE REPORT 2013 Top 10 locations Number of residential units DORTMUND 17,541 BERLIN 12,875 FRANKFURT 9,960 EssEN 9,491 GELSENKIRCHEN 7,642 BOCHUM Just one of the hundreds of playgrounds in our housing estates. 7,588 MUNICH GOING FOR SIZE Size and success are intimately connected for 4,616 Sometimes size really does matter. With 175,000 companies in the residential property industry. of our own residential units and 26,000 man- Our market leadership guarantees efficient HERNE aged for other owners, Deutsche Annington is property management and generates econo- 4,564 Germany’s largest housing company. The large mies of scale, for instance, in procurement. number of rental apartments and our Germany- Deutsche Annington’s operational structure is DUISBURG wide presence are unique in the German hous- unique in the housing sector and facilitates a 4,501 ing industry and form the cornerstones of our strategy which is clearly oriented towards add- strong performance. ing value. BONN 4,230 As of 31.12.2013 EXPLOITING OUR STRENGTHS 7 80% of our real estate portfolio is located in conurbations with a steadily growing demand for housing. Through active portfolio management we aim to further improve our portfolio over the coming years. BUILDING ON OUR PRESENCE continue growing both organically and as an GEARED TO GROWTH Germany is a country of tenants. Fewer Ger- active consolidator, given that our Germany- Focused specialist knowledge in one company mans own their own homes than in other Euro- wide presence offers numerous acquisition op- coupled with proximity to customers and con- pean countries, and consequently there is a portunities. tinuous investment in modernisation and higher demand for rental homes. This makes maintenance: these are the factors which will the German residential property market highly For historical reasons, almost half of Deutsche enable Deutsche Annington to continue enjoy- attractive for investors. Annington’s portfolio is located in the most ing stable growth on the German residential highly populated state of North Rhine-West- property market over the coming years. De- Unlike many other real estate companies phalia and the fashionable metropolis of Berlin. mand for affordable homes in Germany is set to Deutsche Annington owns and manages resi- Demand for affordable homes is currently par- keep on growing, with supply unable to keep dential property throughout Germany. This po- ticularly strong in the conurbation of Berlin. pace. sition enables us to create long-term value and 8 DEUTSCHE ANNINGTON IMMOBILIEN SE CORPORATE REPORT 2013 CARRYING OUR Values successFULLY INTO THE FUTURE When it comes to modernisation and maintenance we are already working today on the issues of tomorrow. Our aim: to safeguard our long-term portfolio and earnings. 147,4242 m of living area in our portfolio was modernised in 2013. EXPLOITING OUR STRENGTHS 9 We safeguard the long-term value of our portfolio through regular modernisation and maintenance. 10 DEUTSCHE ANNINGTON IMMOBILIEN SE CORPORATE REPORT 2013 Really thorough refurbishment extends from dry foundations to a well-insulated roof. FOR US SUCCEss MEANS NEVER STANDING ernisation work alone. And that is just the start: their own familiar four walls to an advanced STILL over the coming years we plan to invest three age. We are working on making that happen for Our work is founded not on the past but on the times that amount. as many of our tenants as possible, continu- future. That is why we are currently addressing ously building suitably senior-friendly, high ac- the question ‘what will be important tomor- FINDING TOMORROw’S ANSWERS TODAY cessibility homes. row?’. Sustainable and long-term thinking and Pondering the question ‘what will be important action are vital cornerstones of Deutsche tomorrow?’ has led us to address two central is- The conversion work includes such features as Annington’s corporate strategy. sues: demographic change and the energy tran- anti-slip flooring, flat shower trays, raised WCs, sition. Both issues have significantly affected hand rails throughout the home, seating oppor- And this is why maintenance and modernisa- not only our corporate strategy but also our tunities and high accessibility house entrances, tion are tasks that we continually set ourselves. 2013 investment programme, and they will con- measures whose importance only becomes ap- Both activities serve to maintain the value and tinue to do so over the coming years. parent when even simple everyday tasks be- quality of our housing for our customers, there- come increasingly difficult with advancing age. by generating the corporate success of the fu- MAKING AGE-APPROPRIATE HOUSING ture. In 2013, Deutsche Annington embarked on PossIBLE MEETING THE CHALLENGES OF THE ENERGY a comprehensive modernisation and mainte- Creating age-appropriate housing is a task TRANSITION nance programme. This involved a nationwide which we are taking very seriously. The popula- A further central pillar of our investment pro- investment in our portfolio of over € 228.4 mil- tion is getting ever older. This demographic de- gramme is energy-efficient modernisation of lion, of which € 70.8 million was spent on mod- velopment poses great challenges for many sec- our residential units. Efficient building insula- tions of society, and the housing market is no exception. Many people naturally want to live in EXPLOITING OUR STRENGTHS 11 ‘ Over the coming five years, we will be investing €800 million in energy-efficient refurbishments and senior-friendly con- versions.’ Rolf Buch, Chairman of the Management Board Today, high accessibility is an important criterion for elderly people when it comes to selecting an apartment. tion is one of the keys to the success of the en- APPEARANCES ALSO COUNT ergy transition. Few if any ways of reducing CO2 Housing quality depends on many other fac- emissions are more effective than targeted en- tors, though, which is why minor cosmetic re- ergy-saving measures. Indeed, in 2013 Deutsche pairs also formed part of our 2013 modernisa- Annington’s modernisation projects achieved tion programme. Thus many apartments had cuts in CO2 emissions of some 5,000 tonnes, balconies fitted for the first time last year, while representing a reduction of almost 50% in just in others old balconies were replaced with new one year. ones. Elsewhere, garages were built and façades received colourful upgrades. In Dortmund, Through these energy modernisation measures Deutsche Annington even received an award in Deutsche Annington is living up to its responsi- the ‘Colourful Façades – Friendly Environment – bility as Germany’s largest landlord. We also More Beautiful Dortmund’ competition. aim to make our modernisation activities so ef- fective and efficient that the energy transition remains affordable for Deutsche Annington ten- ants. On top of this, these measures improve the housing quality for our tenants while cut- ting energy costs in the long term. 12 DEUTSCHE ANNINGTON IMMOBILIEN SE CORPORATE REPORT 2013 CLOSE TO THE CUSTOMER Service providers, on-site caretakers and our own craftsmen’s organisation ensure that the needs of our tenants are met with a prompt, uncomplicated and reliable response.