Ca Immobilien Anlagen Ag · VIE:CAI
Ca Immobilien Anlagen — Investor Presentation (November 2017)
58 slides from Ca Immobilien Anlagen's investor presentation, November 2017
Slide 1: Company Presentation November 2017
COMPANY PRESENTATION November 2017
Slide 2: Company Profile
Company Profile Leading Investor and Developer of High-Quality Offices in Central Europe COMPANY PROFILE Highly stable and resilient portfolio of high-quality core offices Focus on eight core business hubs in Germany, Austria and CEE Vienna Berlin, Frankfurt, Munich Warsaw, Prague, Budapest, Buchare
Slide 3: Strategy
Strategy Strategic Framework in Exceptional Market Environment Portfolio strategy Financing strategy Core markets / assets Financing structure 1 Expansion of existing core cities Maintain conservative financing structure with healthy equity base 1 Portfolio focus on high-quality large-scale office a
Slide 4: Agenda and Targets 2017
Agenda and Targets 2017 FFO I of at least € 100 m as Key Financial Target Confirmed Investment portfolio Buy-out of of joint venture partner Union Investment in CEE portfolio Growth Expansion of CEE portfolio through property acquisition Development Buy-out of JV partner Patrizia and construction st
Slide 5: 3Q 2017 Highlights
3Q 2017 Highlights Portfolio occupancy increase Strong letting activity drives portfolio occupancy to 93.6% at reporting date 4 core markets (Austria, Germany, Czechia, Poland) currently post occupany rates > 95% Acquisition of Warsaw Spire B Prime office acquisition for around ∼ € 100 m meets major
Slide 6: 1-3Q 2017 Highlights
1-3Q 2017 Highlights Solid top line growth by 14.4% per share despite rental income losses linked to non-strategic asset sales Net rental income per share Improved operating margin at 91.3% (1-3Q 2016: 88.7%) 1.31 (1-3Q 2016: 1.14) +14% Major driver acquisition of Millennium Towers in Budapest, buy-
Slide 7: Profit and Loss
Profit and Loss All major 3Q Earnings Metrics up yoy P&L 1-3Q 1-3Q +/- 3Q 3Q +/- 3Q earnings driver 2017 2016 2017 2016 Rental income 133.5 122.6 8.9% 45.0 41.3 8.8% Rental income up 9% yoy driven by CEE portfolio expansion Net rental income 121.8 108.8 11.9% 41.7 36.7 13.7% Other property developme
Slide 8: Funds from Operations (FFO)
Funds from Operations (FFO) 1-3Q FFO I per Share at € 0.91 (+24% yoy) FFO 1-3Q 1-3Q 3Q 3Q +/- 3Q earnings driver 2017 2016 2017 2016 Net rental income Net rental income increase by 14% mainly driven by 121.8 108.8 11.9% 41.7 36.7 13.7% Result from services 7.6 9.9 -22.9% 1.8 3.7 -50.4% Portfolio exp
Slide 9: Funds from Operations (FFO I)
Funds from Operations (FFO I) FY 2017 Guidance > € 100 m 1-3Q FFO I per share (yoy) 3Q FFO I per share (yoy) FFO I 1,00 0,33 +24% 84.8 (1-3Q 2016: 69.9) 0,90 0,31 0,29 +12% 0,80 0,27 0,70 0,25 FFO I per share 0,60 0,23 0.91 (1-3Q 2016: 0.74) 0,50 0,21 0,19 0,40 0,74 0,91 0,17 0,27 0,31 0,30 0,15 1-3
Slide 10: Balance Sheet as at September 30, 2017
Balance Sheet as at September 30, 2017 Strong Equity Base Secures Growth Balance Sheet 30.09.2017 31.12.2016 +/- Investment properties Rock solid balance sheet metrics comfortably within 3,145.3 2,923.7 7.6% strategic target range despite balance sheet extension Properties under development 534.5 43
Slide 11: Net Asset Value (NAV)
Net Asset Value (NAV) NAV Up 7.8% YTD (Dividend Adjusted) Net Asset Value 30.09.2017 31.12.2016 +/- NAV per share YTD 25,0 +5.0% NAV (IFRS equity) 2,311.2 2,204.5 24,8 Exercise of options 24,6 0.0 0.0 24,4 NAV after exercise of options 2,311.2 2,204.5 4.8% 24,2 NAV per share 24.79 23.60 5.0% 24,0 Va
Slide 12: Optimisation of Financing Structure 1-3Q 2017
Optimisation of Financing Structure 1-3Q 2017 € 1 bn of Financing Volume In Motion FINANCING TARGETS 2017 Corporate bond (02/2017) Convertible bond (09/2017) Effective € 175 m , 7 yrs, 1.875% € 200 m , 7.5 yrs, 0.75% in 4Q 17 Capitalize on historically low interest rate environment Further CoD reduc
Slide 13: Financing
Financing Average Cost of Debt at 1.99% Exceeds 2017 Target CONTINUOUS COD OPTIMISATION CoD cut of ∼ 40 bps over last 12 months 3,00% Average financing costs stood at 1.99% (incl. 2,80% 2,80% pro rata joint venture financing) as at key date 2,60% September 30, 2017 2,37% 2,34% 2,40% 2,21% 2,18% Achi
Slide 14: Financing
Financing Substantial Decline of Financing Costs Drives FFO CONTINUOUS IMPROVEMENT Financing costs 12,0 Significant financing cost decline as a result of extensive financing structure optimisation 10,7 11,0 10,2 10,2 10,0 9,4 Corporate bond issue in February 2017 and corresponding loan repayments in
Slide 15: Financing
Financing Debt Maturity Profile LOW UPCOMING REFINANCING VOLUME Debt maturity profile by debt structure 500 Low volume of upcoming refinancings in the 450 amount of ∼ 330 m until 2020 400 350 CEE maturities until 2020 include primarily 300 properties in Warsaw 250 200 Cash and cash equivalents amoun
Slide 16: Financing
Financing Loan-to-Value (LTV) CONSERVATIVE LTV MAINTAINED Net debt vs. LTV (net) 1.300 37,1% 35,4% 37,1% 38% Group LTV (net) stands at 37% 36,4% 37% 1.250 34,6% Mid-term strategic target range of 40-45% 36% 1.200 34,2% 35% LTVs on core market level (incorporating only 1.150 34% secured debt, excl. c
Slide 17: Financing
Financing Average Debt Maturity Extension Supports Cash Flow Resilience SUBSTANTIAL INCREASE YOY Target of > 6 years reached and maintained 6,5 > 6.0 The targeted average debt maturity of > 6 years 6,0 was reached in the second quarter of 2017 (up 6,0 5,8 from 4.3 years a year earlier). 5,5 Key driv
Slide 18: Financing
Financing Hedging Ratio Up at 89% (3Q 2016: 65%) SUBSTANTIAL INCREASE YOY Hedging ratio 95% 89% of financial liabilities are hedged or fixed, 89% 89% 90% 87% which strongly increases CA Immo‘s cash flow resilience 85% 81% 80% 74% Fixed-interest bonds make up a greater part of 75% the interest rate h
Slide 19: Financing
Financing Weighted Average Cost of Debt and Maturities* ∅ CoD/Maturities Outstanding debt Swaps ∅ Cost of debt ∅ Cost of debt ∅ Debt maturity ∅ Swap maturity (nominal value) (nominal value) excl. derivatives incl. derivatives (years) (years) Austria 144 54 1.99% 2.25% 9.0 9.2 Germany 574 161 1.30% 1
Slide 20: Successful Convertible Bond Placement
Financing Successful Convertible Bond Placement of € 200 m at 0.75% Coupon STRATEGIC RATIONALE Convertible issuance close to all-time-high of the CA Immo stock The transaction allowed CA Immo to capitalize 26,0 26,0 on the share price rally of recent months and lock-in the all-time low interest leve
Slide 21: Portfolio
w= CA IMMO URBAN BENCHMARKS. PORTFOLIO
Slide 22: Property Portfolio (€ 4.1 bn)
Property Portfolio (€ 4.1 bn)* Germany Accounts for 45% of Portfolio Value PORTFOLIO STRUCTURE Portfolio split by region and country (€ m) Total property asset base of € 4.1 bn 6% Germany largest single core market 580 14% 7% 14% Income- producing investment portfolio of € 3.4 bn Austria 7% 1.678 Ge
Slide 23: Investment Portfolio
Investment Portfolio Stable Portfolio Yield, Occupancy Close to 94% Portfolio occupancy (economic) Occupancy rate (economic) 95% 93.6% (3Q 2016: 91.5%) 94% 93,6% 93% 92,4% 92,4% 92% 91,1% Gross initial yield 91% 90,7% 90,4% 6.0% (3Q 2016: 6.1%) 90% 89% 88% 4Q 2014 4Q 2015 4Q 2016 1Q 2017 2Q 2017 3Q
Slide 24: Investment Portfolio
Investment Portfolio Portfolio Metrics* Gross initial yields Weighted average lease term (years) 9% 8,0 7,8% 7,6% 8% 7,2% 7,0 6,9% 6,9% 7% 6,0% 6,0 5,7% 6% 4,7% 5,0 5% 4,0 4% 3,0 3% 2% 2,0 1% 1,0 6,9 4,1 3,6 3,5 2,8 2,9 2,8 4,4 0% 0,0 Romania Other** Hungary Czechia Poland Austria Germany Total Germ
Slide 25: Investment Portfolio
Investment Portfolio Top Tenants and Properties Top 15 tenants (by annualized rent)* Top 15 yielding assets (by value) 6,0% Tower 185 (DE)** 234 2,1% Skygarden (DE) 204 1,9% Millennium Towers (HU) 173 Kontorhaus (DE) 161 1,9% River Place (RO) 109 1,8% John F. Kennedy - Haus (DE) 99 1,8% Warsaw Spire
Slide 26: Investment Portfolio
Investment Portfolio Acquisition of Prime Office Building in Warsaw CEE PORTFOLIO EXPANSION Acquisition of the 21,600 sqm Frontex office building (Warsaw Spire Building B) for around € 100 m Prime office building located in the Wola district 100% occupied by a European Union Agency as anchor tenant
Slide 27: Development
w= CA IMMO URBAN BENCHMARKS. DEVELOPMENT
Slide 28: Development
Development Significant Organic Growth Potential Decoupled from Investment Market Tower 185, Frankfurt Tour Total, Berlin STRONG VALUE CREATION TRACK RECORD Among leading office developers in Germany Strong track record of blue chip tenant projects Highly valuable land reserves in inner-city locatio
Slide 29: Development
Development Excellent Market Position to Fully Capture Strong Cycle in Germany Development anchor tenants Development track record (completed volume of ∼ € 1.7 bn over last seven years) Completed… 196 Volume per year 68 542 527 € 1.7 bn 208 98 102 2009 2010 2011 2012 2013 2014 2015 Total All figures
Slide 30: Development Pipeline Potential
Development Pipeline Potential* Review in progress Total Development Volume by Segment (2017 – 2025) EXPANDED POTENTIAL VS INITIAL € 2 BN PIPELINE ∼ € 4 bn (2016: € 2.1 bn) 4,5 Inclusion and realisation of land plots previously earmarked for 4,0 sale 3,5 Full realisation of all land plots in core ci
Slide 31: Development Strategy
Development Strategy Monetization of Development Pipeline Prime-quality landbank Development volume* (∼ ∼ € 300 m book value, ∼ 90% located in Germany) (∼ ∼ € 4 bn, 2017 – 2025) Office / Hotel (Core strategy: Develop to own) Residential (Core strategy: Develop to sell) Core asset in core investment
Slide 32: Development Strategy
Development Strategy Extension of Development Value Chain by Residential Segment Baumkirchen, Munich NEO, Munich RESIDENTIAL PROJECTS Strategic decision to develop land earmarked for residential construction Significant residential share (> 25%) of total development volume (∼ € 4 bn) between 2017 an
Slide 33: Investment Portfolio Strategy
Investment Portfolio Strategy Europaviertel, Frankfurt ONE – START OF CONSTRUCTION TOWER 185 – START OF SALES PROCESS Mixed use hotel/office high-rise ( ∼ 85,000 sqm GFA) Office high-rise ( ∼ 100,000 sqm GFA) CA Immo holding 100% CA Immo holding 1/3 Construction start in 2Q 2017 Sales process initia
Slide 34: ONE, Frankfurt
Development ONE, Frankfurt PROJECT UNDER CONSTRUCTION Mixed use hotel/office high-rise (190 m, 49 floors) Lettable area 63,400 sqm (∼ 85,000 sqm GFA) Investment volume ∼ € 332 m (incl. plot) Outstanding investment ∼ € 291 m Expected yield on cost ∼ 5.4% Construction phase 2Q 2017 – 4Q 2020 NH Hotel
Slide 35: Steigenberger, Frankfurt
Development Steigenberger, Frankfurt PROJECT UNDER CONSTRUCTION Main usage hotel Total investment volume (incl. plot) € 58 m Outstanding construction costs ∼ € 36 m Planned lettable area 17,300 sqm Yield on cost ∼ 6.2% Pre-letting-ratio 99% Construction phase 3Q 2016 – 1Q 2019 All figures (€) as at
Slide 36: Zollhafen, Mainz
Development Zollhafen, Mainz Rheinallee III PROJECT UNDER CONSTRUCTION Joint venture with Stadtwerke Mainz Mixed/use development site of around 30 ha (realisation of approx. 355,000 sqm GFA in several phases Rheinallee III (under construction) Forward sale to Aberdeen Asset Management (€ 66 m) Renta
Slide 37: MY.O, Munich
Development MY.O, Munich PROJECT UNDER CONSTRUCTION Lettable area ∼ 26,100 sqm Investment volume ∼ € 96 m (incl. plot) Outstanding investment ∼ € 75 m Expected yield on cost ∼ 6.1% Construction phase 2Q 2017 – 4Q 2019 Pre-lets ∼ 27% ∼ 5,000 sqm signed with consultancy in 2Q All figures (€) as at 30
Slide 38: NEO, Munich
Development NEO, Munich PROJECT UNDER CONSTRUCTION Mixed use Office (8,5000 sqm), hotel with 143 rooms 55 apartments (for sale) Investment volume ∼ € 64 m (incl. plot) Outstanding investment ∼ € 47 m Expected yield on cost ∼ 4.9% Construction phase 1Q 2017 – 3Q 2019 Hotel tenant signed All figures (
Slide 39: Development Berlin - Europacity
Development Berlin - Europacity 39
Slide 40: Europacity Berlin
Development Pipeline Potential Europacity Berlin – CA Immo is Shaping a Prime Office Location 40
Slide 41: KPMG, Berlin
Development KPMG, Berlin PROJECT UNDER CONSTRUCTION PHASE 2 Phase 1 (100% pre-let to KPMG) Planned lettable area 12,700 sqm Total investment volume (incl. plot) € 57 m Outstanding construction costs ∼ € 17 m Expected yield on cost ∼ 5.7% Construction phase 4Q 2015 - 2Q 2018 Phase 2 (high-rise office
Slide 42: Cube, Berlin
Development Cube, Berlin PROJECT UNDER CONSTRUCTION Highly profitable forward sale of office property development ⇒ Trophy Asset deal terms reflect booming market conditions in Berlin Development and initial letting by CA Immo on behalf of buyer ∼ 17,000 sqm gross floor area Total investment volume
Slide 43: Orhideea Towers, Bucharest
Development Orhideea Towers, Bucharest PROJECT UNDER CONSTRUCTION Lettable area 36,900 sqm Investment volume ∼ € 74 m (incl. plot) Outstanding investment ∼ € 50 m Expected yield on cost ∼ 8.5% Construction phase 4Q 2015 – 2Q 2018 Pre-lets ∼ 65% Misys ∼ 8,000 sqm Bitdefender ∼ 9,300 sqm (signed in 2Q
Slide 44: ViE, Vienna
Development ViE, Vienna PROJECT UNDER CONSTRUCTION Lettable area 14,700 sqm Investment volume ∼ € 38 m (incl. plot) Outstanding investment ∼ € 24 m Expected yield on cost ∼ 6.3% Construction phase 3Q 2016 – 3Q 2018 Excellent location between airport and city center Negotiatons with potential anchor
Slide 45: Lände Residential Projects, Vienna
Development Lände 3 Residential Projects, Vienna Laendyard Living Laendyard Living PROJECT UNDER CONSTRUCTION Laendyard Living (∼ ∼ 18,400 sqm) 50/50 joint venture with Austrian residential expert JP Immobilien Investment volume ∼ € 29 (CA Immo 50% share) m; 270 apartments Construction phase 3Q 2016
Slide 46: Projects under Construction for Own Balance Sheet
Development Projects under Construction for Own Balance Sheet Investment portfolio Investment Outstanding Planned Gross yield Main usage Share Pre-letting Construction projects volume* investment rentable on cost ratio phase area ViE (Vienna) 38 24 14.700 6.3 Office 100% 6% 3Q 16 – 3Q 18 MY.O (Munic
Slide 47: Projects under Construction for Sale
Development Projects under Construction for Sale Trading portfolio projects Investment Outstanding Planned Main usage Share** Utilisation Construction volume* investment rentable area rate phase Cube (Berlin) 99 65 17,000 Office 100% 100% 4Q 16 – 4Q 19 Rieck I/ABDA (Berlin) 31 24 5,200 Office 100% 1
Slide 48: Share Buy-Back Programme
Share Buy-Back Programme Programme 2016/2017 to Continue SHARE BUY-BACK PROGRAMME 2015 SHARE BUY-BACK PROGRAMME 2016 (1Q) SHARE BUY-BACK PROGRAMME 2016 (2Q/3Q) May 2015 – Dezember 2015 January 2016 – February 2016 April 2016 – September 2016 2,000,000 shares repurchased 1,000,000 shares repurchased
Slide 49: Appendix
w= CA IMMO URBAN BENCHMARKS. APPENDIX
Slide 50: Core Markets: Vienna
Core Markets Vienna azz CA IMMO a SeNoake RN CA IMMO-Projects under construction / in preparation VIE Laendyard Districts Innere Stadt Wien (City Center) Leopoldstadt LandstraBe Wien Wieden Margareten Mariahilf Neubau Josefstadt Alsergrund Favoriten Simmering Meidling Hietzing Penzing Rudolfsheim-Fi
Slide 51: Core Markets: Munich
Core Markets ze CA IMMO Munich CA IMMO-Projects under construction / HE CA IMMO Investment Properties in preparation Ei Ambigon i Landmarks Hi My.o Kontorhaus Central Station @ i NEO Skygarden | BY Karlsplatz (Stachus) | 3 | Sea aca @ Marienplatz aumkirchen Mitte ] DB) Sendlinger Tor Feldmoching - f
Slide 52: Core Markets: Berlin
Core Markets ze CA IMMO Berlin BEEESHE FNHAHAOS N Europacity Landmarks Central Station @ Reichstag, Kanzleramt Brandenburger ‘Tor Tim Potsdamer Platz | Reinickendorf Pankow Alexanderplatz _ Airport Tegel 2 Airport Schénefeld 3 Mitte Spandau CA IMMO Investment Properties Q Richtee ey berg Marzahn- Ki
Slide 53: Core Markets: Frankfurt
Core Markets azz CA IMMO Frankfurt i CA IMMO Investment Properties Landmarks Meininger Hotel Messe Frankfurt (Fair) El Skyline Plaza Central Station Ed Tower 185 @ Financial district DD) Hauptwache i Dom/ Romer 4 @ CA IMMO-Projects under construction / in preparation Mannheimer StraBe Tower ONE Bi A
Slide 54: Core Markets: Budapest
Core Markets Budapest ze CA IMMO BORHE HOES ff Landmarks Central Station @ St.-Stephans-Basilika bt Parliament building 4 Hero Square Airport x CA IMMO Investment Properties TP West Infopark A Bartok Haz City Gate Millennium Towers R 70 Office Complex Vizivaros Office Center Canada Square Capital Sq
Slide 55: Core Markets: Warsaw
Core Markets azz CA IMMO Warsaw @ Landmarks i CA IMMO Investment Properties Central Station @ El Saski Point B} Palace of Culture & Science A Bi Saski Crescent Royal Castle pa Ei Sienna Center BD) Mermaid of Warsaw i Warsaw Towers Bi Airport 3¢ Wspolna @ Bitwy Warzawskiej \ Districts 1 «=Bielany ‘2
Slide 56: Core Markets: Prague
Core Markets Prague ze CA IMMO BEEBE SHG Landmarks Central Station @ Dancing House National Museum f@ Charles Bridge b+ Prague Castle id Airport x CA IMMO Investment Properties Kavci Hory Office Park Danube House Nile House Amazon Court CA IMMO Land reserve Plot River City Districts (1. — 22. Distri
Slide 57: Core Markets: Bucharest
Core Markets azz CA IMMO Bucharest Wi Landmarks Central Station @ © Tiumphal Arch A Palace of the Parliament Pai Airport x CA IMMO Investment Properties River Place Opera Center 1 Opera Center 2 Europehouse Bucharest Business Park CA IMMO-Projects under construction / in preparation Orhideea "Sector
Slide 58: Investor Relations
Investor Relations Contact Details Christoph Thurnberger Claudia Höbart Head of Capital Markets Investor Relations / Capital Markets Tel.: +43 (1) 532 59 07 504 Tel.: +43 (1) 532 59 07 502 E-Mail: christoph.thurnberger@caimmo.com E-Mail: claudia.hoebart@caimmo.com www.caimmo.com/investor_relations/
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