Northwest Oil & Gas Trading Inc : Deutsche Annington delivers strong results for 2013 - expansion of more than 41,000 units in 2014

PRESS RELEASE

Deutsche Annington delivers strong results for 2013 - expansion of more than 41,000 units in 2014

- All important KPIs improved: FFO I up by 31.5%; NAV up by 38.7%

- Dividend distribution of 70 cents per share planned

- Systematic implementation of the programme for energy-efficient refurbishment and senior-friendly apartment conversions

- Services increased - cost efficiency increased

- New financing structure implemented after successful IPO

- Contemplated transactions will substantially expand housing portfolio

Bochum - February 28, 2014. Deutsche Annington Immobilien SE, Germany's largest private-sector residential real estate company, can look back on a successful financial year. Two landmarks were achieved: the IPO, which took place in July 2013, and the establishment of an internationally innovative and flexible financing structure with an investment grade rating (BBB). The development of business operations was also positive. All primary KPIs were improved. Operating profit, FFO I, increased year on year by 31.5% from EUR 169.9 million to EUR 223.5 million. Net asset value (NAV) rose by 38.7% from EUR 3,448.9 million to EUR 4,782.2 million. It is planned to distribute a dividend of 70 cents per share.

Thanks to customer focus and improved service the vacancy rate fell again by 0.4 percentage points to 3.5% at the end of the year and the average rent increased by 1.9% to EUR 5.40. This positive progress made last year is supported by the systematic roll-out across Germany of the company's own craftsmen's organisation (DTGS). It has now more than 1,000 employees who serve the tenants on the spot as well-trained craftsmen. In DTGS, Deutsche Annington has an extremely flexible service organisation which makes an important contribution to customer satisfaction.

"We are very satisfied with the progress made last year. In 2013, we concentrated even more on our customers and achieved appreciable improvements in both service and property management. That is paying off - in greater customer satisfaction and in the result", says Rolf Buch, CEO of Deutsche Annington.

Investment programme progresses to schedule

In 2013, a total of EUR 224 million was invested in the housing stocks, including EUR 70.8 million specifically for modernisation, which focused on energy-efficient refurbishment and senior-friendly conversions. As a result of this work, Deutsche Annington is achieving a considerable increase in the quality of its housing and, at the same time, offering solutions for two urgent societal challenges - the energy transition and the demographic change. Deutsche Annington has earmarked a total investment volume of EUR 800 million up to 2018 for this work.

Rolf Buch: "As Germany's largest private-sector housing company, we see it as our responsibility to develop viable housing solutions. We regard ourselves as partners of political decision-makers for these societal challenges that can only be mastered together. We have the know-how, experience and the economic strength to meet the housing requirements of tomorrow."

Successful IPO as the catalyst for further business development

The Deutsche Annington share was first listed on the Frankfurt Stock Exchange on July 11, 2013. Furthermore, Deutsche Annington succeeded in creating an internationally innovative and flexible financing structure. The liabilities from the GRAND securitisation were repaid in full ahead of maturity. At the same time, Deutsche Annington is currently the only German real estate company with an investment grade rating (BBB) and therefore able to obtain unsecured refinancing on attractive conditions. In 2013, five bonds were successfully issued in Europe and the USA in less than three months.

The loan-to-value ratio fell from 59% to 50%, the maturity of the financial liabilities increased to about 8.4 years and refinancing costs fell from 4.4% to 3.3%.

Deutsche Annington increases portfolio by more than 41,000 residential units

Deutsche Annington Immobilien SE ("Deutsche Annington") today resolved on the acquisition of around 11,500 residential units managed by DeWAG and on the integration of a combined portfolio owned by Vitus group of around 30,000 residential units. (For more information please refer to the press release "Deutsche Annington increases portfolio by more than 41,000 residential units".)

Buch explains: "The planned addition of this residential portfolio spread throughout Germany offers us, owing to its size and structure, excellent opportunities to fully utilise the strengths of our company. The tenants benefit from improved services and product offerings and, at the same time, we can generate substantial cost advantages through the efficient use of our infrastructure."

Positive outlook for 2014

Deutsche Annington is aiming to continue improving customer satisfaction in the current financial year. In addition to expanding its housing-related services, Deutsche Annington will be making more substantial investments in its housing stock. At EUR 160 million, maintenance expenses will remain at the high level of the prior year; expenditure on modernising apartments and buildings will be roughly doubled to EUR 150 million.

About Deutsche Annington

The Deutsche Annington Immobilien Group is Germany's largest residential real estate company with some 175,250 residential units of its own and 30,000 apartments managed for other owners as well as about 2,935 employees. Deutsche Annington operates throughout Germany at about 550 locations and offers customer-focused services (as at December 31, 2013).

This press release was prepared by Deutsche Annington Immobilien SE and/or its subsidiaries (together "DAIG") for information purposes only.

This press release may contain statements, estimates, opinions and projections about the expected future development of DAIG ("forward-looking statements"), which reflect various assumptions relating, for example, to results which have been derived from the latest DAIG business or from public sources which have not been subjected to an independent examination or assessed thoroughly by DAIG and which could later prove to be incorrect. Any forward-looking statements reflect current expectations based on the present business plan and various other assumptions and therefore contain not insignificant risks and uncertainties. Any forward-looking statement should therefore not be understood as a guarantee for future performance or results and, moreover, do not necessarily constitute accurate indications that the expected results will also be achieved. Any forward-looking statements only relate to the date when this press release was handed over to the recipients. It is up to the recipients of this press release to make their own more detailed evaluations of the informative value of any forward-looking statements and the assumptions on which they were based.

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DAIG has no obligation to update or correct the information, any forward-looking statements or conclusions in this press release or to include subsequent events or circumstances or to correct inaccuracies which become known after the date of this press release.

Additional information:
Stock exchange: Regulated Market (Prime Standard), Frankfurt Stock Exchange
ISIN: DE000A1ML7J1
WKN: A1ML7J
Common Code : 094567408
Registered office of Deutsche Annington: Vogelsanger Weg 80, 40472 Dusseldorf, Germany
Business address of Deutsche Annington: Philippstrasse 3, 44803 Bochum, Germany

Contacts:
Deutsche Annington Immobilien SE
Thomas Eisenlohr
Head of Investor Relations
Telephone: +49(0)234-314-2384
Thomas.Eisenlohr@deutsche-annington.com

Deutsche Annington Immobilien SE
Klaus Markus
Head of Corporate Communications
Telephone +49(0)234 314 - 1149
Klaus.markus@deutsche-annington.com