Result from nursing and residential care homes

The segment Nursing and residential care homes is operated by the KATHARINENHOF® Group. The company is concentrated primarily on the operation of high-quality housing and care facilities in the five Länder Berlin, Brandenburg, Saxony, Lower Saxony, and Rhineland-Palatinate. The senior residences are predominantly owned by the Deutsche Wohnen Group. Overall, KATHARINENHOF® operates 1,125 beds and 229 apartments in the area Residential care homes. The fair value of the property utilised by the KATHARINENHOF® Group amounts to EUR 78.4 million.

Altogether the KATHARINENHOF® Group was able to increase the EBITDA 2009 compared to the previous year, in spite of more intense socio-political and market-related general conditions.

  2009 2008
  EUR m EUR m
Revenue    
Nursing 32.2 32.2
Residential property 2.9 2.8
Others 3.7 3.6
  38.8 38.6
Expenses    
Nursing and corporate expenses 11.2 11.6
Personnel expenses 18.5 18.3
  29.7 29.9
Result (EBITDA) 9.1 8.7

We were able to increase the EBITDA return from 10.8 % to 11.2 % compared to the previous year by increasing the occupancy rate from 90.1 % in 2008 to 93.7 % in 2009 and by optimising the care level management. Taking into account the debt position in the amount of EUR 63.7 million, the returns on equity rose from 33.5 % to 38.2 %.

The competition and the demand in the care division were influenced significantly by the introduction of annual, external quality controls, starting in the beginning of 2009. The results of the legally regulated controls are published on the website of the leading association of the statutory health insurances. The quality grades (from 1 - excellent to 6 - fail) are therefore turning into an important marketing element. The KATHARINENHOF® Group was, over lengthy period, able to successfully prepare for these strategically important quality controls. By the end of 2009, seven KATHARINENHOF® facilities had been audited by the responsible external authority. In this process, they received quality grades between 1.1 and 1.5; one facility received 2.3 - overall all far better than the national average.

We will be able to generate internal growth also in the future in the segment of senior residences and care facilities, above all through the value motors rent increase and reduction of vacancy rate / new leases (in the area of residential care homes) as well as by increasing the accommodation and treatment charges and the occupancy rate (in the area of in-patient care facilities). Rents and care payments in all KATHARINENHOF® facilities range in the upper third of the regional market average.

My Annual Report

Management costs: EUR 9.74 per m2