Tag Immobilien Ag · XETR:TEG
Tag Immobilien — Q1 2021 Earnings Presentation
35 slides from Tag Immobilien's earnings presentation, May 2021
Slide 1: Conference call presentation Q1 2021
Conference call presentation Q1 2021
Slide 2: Content
Content 22 I. TAG highlights Q1 2021 3 II. TAG German portfolio development 6 III. TAG guidance 2021 9 IV. TAG sustainability 11 V. APPENDIX 20 o Income Statement Germany and Poland o EBITDA, FFO, AFFO calculation o Balance sheet o EPRA NTA calculation o Financing structure o LTV o German portfolio
Slide 3: TAG highlights Q1 2021
33 TAG highlights Q1 2021 TAG Immobilien AG | May 2021| 3
Slide 4: TAG highlights Q1 2021
TAG highlights Q1 2021 44 Q1 2021 Q4 2020 FY 2020 Vacancy (residential units) 5.9% 4.5% 5.3%*/4.5% Vacancy (total portfolio) 6.1% 5.6% 5.6% Operational performance L-f-l rental growth y-o-y 1.4% 1.4% 1.4% German portfolio L-f-l rental growth y-o-y (incl. vacancy reduction) 1.2% 1.5% 1.5% F
Slide 5: TAG highlights Q1 2021
TAG highlights Q1 2021 55 in EURm Q1 2021 Q1 2020 Revenues from sale of properties 19.2 11.4 Results operations Poland (FFO II impact) 1.9 0.7 Operational Units handed over 198 115 performance Units sold 163 205 Poland Build to hold projects (contractually secured pipeline) c. 5,900 c. 2,300 Build t
Slide 6: TAG German portfolio development
66 TAG German portfolio development TAG Immobilien AG | May 2021| 6
Slide 7: TAG German portfolio rental growth and capex allocation
TAG German portfolio rental growth and capex allocation 77 Rental growth achieved with moderate capex investments due to strong underlying fundamentals Rental growth achieved with moderate investments Maintenance & capex development (in EUR/sqm/year) 19.2 20.4 21.6 18.7 TAG creates attractive rent
Slide 8: TAG German portfolio vacancy reduction residential units
TAG German portfolio vacancy reduction residential units 88 Strong track record of vacancy reduction; temporary increases in H1 2020 and Q1 2021 as a result of the Covid-19-pandemic Acquisitions Vacancy rate +0.5% Acquisitions 6.1% Acquisitions +0.8% 5.9% 5.7% +0.3% Acquisitions 5.9% 5.6% 5.5% +0.1%
Slide 9: TAG guidance
99 TAG guidance TAG Immobilien AG | May 2021| 9
Slide 10: TAG FFO and dividend guidance FY 2021 (unchanged)
TAG FFO and dividend guidance FY 2021 (unchanged) 10 10 for purpose of the guidance no further acquisitions/disposals in 2021 assumed FFO I +4% 178-182m (EUR) vs. 2020 FFO I guidance 2021 purely refers to German rental business as rental activities in Poland will start towards Q3/Q4 2021 (FFO I
Slide 11: TAG sustainability
11 11 TAG sustainability TAG Immobilien AG | May 2021| 11
Slide 12: TAG ESG strategy and core axes
TAG ESG strategy and core axes 12 12 Sustainability is an essential part of TAG’s corporate vision Improving energy efficiency and reducing emissions Sustainability principles and guidelines at TAG Environment Best possible cost-benefit ratio Business Anti- Anti- principles discrimination corruption
Slide 13: TAG ESG commitments
TAG ESG commitments 13 13 TAG continues to implement Sustainable Development Goals TAG’s Sustainability goals TAG’s commitment to the implementation of UNSDG Our economic goal At TAG, we take it part of Secure future viability by maintaining and expanding the value of our the corporate responsibilit
Slide 14: TAG Affordable and liveable housing
TAG Affordable and liveable housing 14 14 A social purpose as a base of TAG’s business model A business answering social needs TAG’s business is tackling social issues for affordable, liveable housing • Provide affordable housing • Core business of affordable housing • Make affordable housing • Impl
Slide 15: TAG Corporate ESG management structure
TAG Corporate ESG management structure 15 15 Integration of ESG issues in corporate decision-making processes ESG corporate structure Smooth channels for implementation and communication Decision making and tactical Yearly ESG meeting to review the ESG Approval of main pillar strategies and perf
Slide 16: TAG Developing our portfolio responsibly
TAG Developing our portfolio responsibly 16 16 TAG is committed to decarbonizing its existing portfolio; investments of more than 1 bn in highly energy efficient buildings in Poland Sustainable residential housing Case study: Buforowa 89 – development project in Wroclaw 1 2 3 Project Buforowa 89 Mai
Slide 17: TAG Our responsibility to society
TAG Our responsibility to society 17 17 TAG contributes to a more sustainable society through affordable and liveable housing Key areas of tenant support Case study: digitalisation in the city of Gera 1 2 Tenant satisfaction Liveable and progressive neighbourhoods • On-site services to satisfy tenan
Slide 18: TAG Our employees shape our future
TAG Our employees shape our future 18 18 TAG is committed to offering a fair, supportive, empowering working environment to its employees Key areas of employee empowerment TAG commitment to its employees 1 2 3 Inaugural TAG Award in 2020 We live our values Ready for the Responsibility and future wit
Slide 19: TAG ESG rating
TAG ESG rating 19 19 TAG ranks among the top ratings in the real estate sector ESG Rating and Award improvements TAG’s ESG disclosure improvement In 2020, we have placed particular emphasis on improving our ESG performance and reporting in order to better meet the expectations of Sustainalytics an
Slide 20: APPENDIX
20 20 APPENDIX TAG Immobilien AG | May 2021| 20
Slide 21: TAG income statement
TAG income statement 21 21 Germany Poland Total Germany Poland Total 1 Slight increase in net actual rent q-o-q by EUR 0.4m mainly as a result of (in EURm) Q1 2021 Q1 2021 Q1 2021 Q4 2020 Q4 2020 Q4 2020 ongoing rental growth. APPENDIX Net actual rent* 1 83.1 0.0 83.1 82.7 0.0 82.7 2 Net rental inco
Slide 22: TAG income statement details Germany and Poland
TAG income statement details Germany and Poland 22 22 Germany Poland Total Germany Poland Total Germany Poland Total (in EURm) Q1 2021 Q1 2021 Q1 2021 Q4 2020 Q4 2020 Q4 2020 FY 2020 FY 2020 FY 2020 APPENDIX Net actual rent* 83.1 0.0 83.1 82.7 0.0 82.7 322.5 0.0 322.5 Expenses from property -15.6 0.
Slide 23: TAG EBITDA, FFO and AFFO calculation
TAG EBITDA, FFO and AFFO calculation 23 23 (in EURm) Q1 2021 Q4 2020 FY 2020 1 Improved EBITDA (purely generated from German business) by EUR 2.1m q-o-q mainly stemming from higher net rental income Net income 34.5 213.5 402.6 (+EUR 1.1m) and reduced personal costs by EUR 1.2m. - Net income Poland -
Slide 24: TAG balance sheet
TAG balance sheet 24 24 (in EURm) 31 Mar-2021 31 Dec-2020 Non-current assets 6,003.3 5,949.2 APPENDIX Investment property 5,873.5 5,819.2 1 Real estate inventory refers to the largest part to build-to-sell projects in Poland (EUR 77.3m) and to a smaller extent to apartments and projects for sale in
Slide 25: TAG EPRA NTA calculation
TAG EPRA NTA calculation 25 25 EPRA Net Tangible Assets APPENDIX (in EURm) 31 Mar-2021 31 Dec-2020 Equity (without minorities) 2,628.5 2,602.6 + Effect from conversion of convertible bonds 2017/2022 25.9 25.9 + Deferred taxes on investment properties and financial derivatives 570.5 567.4 + Fair valu
Slide 26: TAG financing structure
TAG financing structure 26 26 Debt structure as of 31 Mar-2021 Key financial KPIs as of 31 Mar-2021 Ø Maturity total financial debt 6.5 years APPENDIX 2% Ø Maturity bank loans 7.8 years 6% Ø Interest rate total financial debt 1.43% Debt volume Ø interest rate % fixed rates 8% Ø Interest rate bank lo
Slide 27: TAG LTV calculation
TAG LTV calculation 27 27 APPENDIX (in EURm) 31 Mar-2021 31 Dec-2020 31 Dec-2019 Non-current and current liabilities to banks 2,041.0 1,977.9 1,901.2 Non-current and current liabilities from corporate bonds and other loans 597.7 495.9 403.0 Non-current and current liabilities from convertible bonds
Slide 28: TAG German portfolio details by region
TAG German portfolio details by region 28 28 Region Units Rentable IFRS BV Gross Vacancy Vacancy Net actual Re-letting l-f-l rental l-f-l rental Mainte- Capex # area EURm yield Mar- Dec- rent rent growth growth nance EUR/sqm sqm Mar- 2021 2020* EUR/ sqm EUR/ y-o-y y-o-y incl. EUR/sqm 2020 sqm vacanc
Slide 29: TAG German portfolio vacancy reduction and rental growth
TAG German portfolio vacancy reduction and rental growth 29 29 Vacancy development 3M 2021* l-f-l rental growth (y-o-y) 3M 2021 APPENDIX Berlin from 3.9% to 3.9% Hamburg 2.2% +/-0% 2.1% Erfurt from 2.5% to 2.8% Erfurt 2.1% +0.3% 1.5% From 2.0% to 2.3% Rhine-Ruhr 1.8% Dresden +0.3% 1.9% Chemnitz 1.7%
Slide 30: TAG German portfolio valuation details
TAG German portfolio valuation details 30 30 Share of Mar-2021 Mar-2021 Mar-2021 operational Dec-2019 Dec-2019 Dec-2019 Region YTD-2021 Share of yield Fair value Fair value Implied performance/ Fair value Fair value Implied (in EURm) Valuation result compression (IFRS) (EUR/sqm) mult iple other mark
Slide 31: Poland overview current and planned projects
Poland overview current and planned projects 31 31 Unlocking superior returns by addressing the growing demand of the Polish residential-for-rent market Strategic rationale Current locations and projects APPENDIX Against the backdrop of its strong macroeconomic and demographic growth, Poland is ex
Slide 32: Poland build-to-hold pipeline
Poland build-to-hold pipeline 32 32 Polish build-to-hold projects currently concentrated in growth regions of Wroclaw and Poznan Build-to-hold projects overview Build-to-hold pipeline locations APPENDIX Pipeline locations Wroclaw Poznan Lodz Total Total number of projects 11 12 6 29 Total number of
Slide 33: Poland build-to-sell pipeline
Poland build-to-sell pipeline 33 33 Attractive build-to-sell projects in Wroclaw offering strong cashflows and significant support to FFO II Build-to-sell projects overview Build-to-sell pipeline locations Pipeline location Wroclaw APPENDIX Total number of projects 9 Total number of project stages 2
Slide 34: TAG share data
TAG share data 34 34 Shareholder structure as of 31 Mar-2021 Share information as of 31 Mar-2021 APPENDIX Market cap EUR 3.6bn 9.9% MFS (Massachusetts Financial Services Company), USA NOSH issued 146.5m 9.9% 7.7% The Capital Group Companies Inc., USA NOSH outstanding 146.4m 7.7% 7.4% BlackRock Inc.,
Slide 35: TAG contacts
TAG contacts 35 35 Martin Thiel Dominique Mann TAG Immobilien AG CFO Head of Investor & Public Relations Steckelhörn 5 Phone: +49 40 380 32-305 Phone: +49 40 380 32-305 20457 Hamburg Fax: +49 40 380 32-388 Fax: +49 40 380 32-388 Phone: +49 40 380 32-0 Fax: +49 40 380 32-388 ir@tag-ag.com ir@tag-ag.c