Tag Immobilien Ag · XETR:TEG

Tag Immobilien — H1 2013 Earnings Presentation

36 slides from Tag Immobilien's earnings presentation, 2013

  1. Slide 1: Growing Assets

    2013 Growing Assets H1 – 2013 Q1-Q3 2011

  2. Slide 2: Content

    Content 22 I. TAG Highlights H1-2013 3 CONTENT II. TAG FFO H1-2013 / Guidance 2013 5 III. TAG Strategy / Growth and Margins 7 IV. TAG Portfolio / 5 regions 8 V. TAG Acquisitions 2011/ 2012 / Integration 18 VI. TAG Sales 2012 22 VII. TAG Financials H1-2013/ Balance sheet / Debt / Financials 24 VIII.

  3. Slide 3: TAG Highlights H1-2013

    TAG Highlights H1-2013 33  Rental income of EUR 125.6m  Achievements OVERVIEW  Rental profit of EUR 98.5m  Acquistion Chemnitz 219 Residential Units / EUR 7.7m  FFO I of EUR 31.5m  Disposal of commercial units in Hamburg, Hanover, Nuremberg, Ahrensburg / EUR 10m  FFO II including sales EUR 79

  4. Slide 4: TAG FFO FY 2012/ H1-2013

    TAG FFO FY 2012/ H1-2013 44 FFO TAG Immobilien AG | 2013 – Q2

  5. Slide 5: TAG FFO Guidance 2013

    TAG FFO Guidance 2013 55  Not including: Lower refinancing costs FFO Vacancy cost reduction Synergies from TLG acquisition TAG Immobilien AG | 2013 – Q2

  6. Slide 6: TAG's track record of growth 2012

    TAG„s track record of growth 2012 66 GROWTH Real estate volume (€m) Rental revenues (€m) €3,665m €3,557m 192.5 x4.2 x4.8 115.4 €1,969m 3.203 3.102 46.2 51.8 €978m 1.493 €770m 318 499 452 479 476 462 455 2009 2010 2011 2012 2009 2010 2011 2012 H1 2013 Residential Commercial EBT (€m) ■ TAG has followe

  7. Slide 7: TAG's profitable growth strategy

    TAG‟s profitable growth strategy 77  Growth has been a strategic imperative for TAG in order to achieve economies of scale Adj. EBITDA(1) and FFO margin(2) GROWTH benefit from effects of step-fixed costs relating to administration and overhead expenses 63,2% 64,3% 44,7% 48,8% become a best in class

  8. Slide 8: TAG Portfolio H1-2013

    TAG Portfolio H1-2013 88  TAG has its focus on 5 regions in Germany PORTFOLIO  Most of the portfolio is in good urban locations and growth regions, promising continued stable rental income and value creation  TAG offers attractive housing at affordable prices  The commercial portfolio (represent

  9. Slide 9: TAG Portfolio H1-2013

    TAG Portfolio H1-2013 99 Real estate volume Rental income by portfolio (in EUR m) (in EUR m) PORTFOLIO TAG Immobilien AG | 2013 – Q2

  10. Slide 10: TAG Portfolio residential by region H1-2013

    TAG Portfolio residential by region H1-2013 10 10 10 10 PORTFOLIO TAG Immobilien AG | 2013 – Q2

  11. Slide 11: TAG Portfolio residential vacancy reduction 2013

    TAG Portfolio residential vacancy reduction 2013 11 11 11 11 PORTFOLIO TAG Immobilien AG | 2013 – Q2

  12. Slide 12: Portfolio residential by region – Hamburg

    Portfolio residential by region – 12 12 Hamburg PORTFOLIO  Average asset rent: EUR 5.13  Number of accommodation units: 11,236  18% of the residential portfolio (by book value)  Vacancy 8.4% (end of July 2013)  Strong need for new residential units in Hamburg overall  Increase of single tenant

  13. Slide 13: Portfolio residential by region – Berlin

    Portfolio residential by region – 13 13 Berlin PORTFOLIO  Average asset rent: EUR 4.96  Number of accommodation units: 13,190  21% of the residential portfolio (by book value)  Vacancy 4.6% (end of July 2013)  Increasing lack of new residential units  Average letting size 54 sqm  Strong like-

  14. Slide 14: Portfolio residential – Berlin

    Portfolio residential – 14 14 Berlin PORTFOLIO  TAG is in Berlin regions where demographics Existing show a growing population TAG Portfolio  TAG is happy to buy in the centre as well in New Acquisitions in 2011/2012 the outskirts as long as the relative value is right TAG Potsdam (DKBI) Portfolio

  15. Slide 15: Portfolio residential by region – Thuringia/Saxony

    Portfolio residential by region – 15 15 Thuringia/ Saxony PORTFOLIO  Average asset rent: EUR 4.84  Number of accommodation units: 29,715  42% of the residential portfolio (by book value)  Vacancy 8.7% (end of July 2013)  Very attractive concentration of B cities between Erfurt, Leipzig, Gera an

  16. Slide 16: Portfolio residential by region – North Rhine Westphalia

    Portfolio residential by region – 16 16 North Rhine Westphalia PORTFOLIO  Average asset rent: EUR 5.54  Number of accommodation units: 3,822  8% of the residential portfolio (by book value)  Vacancy 4.9% (end of July 2013)  Portfolio of TAG in Dusseldorf, Leverkusen Dortmund, Cologne Siegburg,

  17. Slide 17: Portfolio residential by region – Salzgitter

    Portfolio residential by region – 17 17 Salzgitter PORTFOLIO  Average asset rent: EUR 5.13  Number of accommodation Units: 9,203  11% of the residential portfolio (by book value)  Vacancy 19.9% (end of July 2013)  Vacancy reduction Overall vacancy in Salzgitter: 10% Vacancy in our portfolio 19.

  18. Slide 18: TAG Acquisition principles

    TAG Acquisition principles 18 18 I. NAV & Cash flow & FFO enhancive ACQUISITIONS II. Portfolio at existing TAG locations – with focus on TAG 5 regions Low marginal costs for Asset and Property Management Scale economies III. Deal size < EUR 30m – too big for retail investors, too small for family of

  19. Slide 19: TAG Acquisition 2011 North Germany/Saxony

    TAG Acquisition 2011 North Germany/Saxony 19 19  Units residential 3,267 Colonia  Units commercial 76  Units residential ACQUISITIONS 18,888  Floor area in sqm 208,757  Floor area in sqm 1,162,749  Net rental EUR/sqm 5.44  Net rental EUR/sqm 4.72  Vacancy 6.2%  Vacancy 16.0%  Purchase pric

  20. Slide 20: TAG Acquisitions 2012

    TAG Acquisitions 2012 20 20 DKBI/ TAG Potsdam  Units ACQUISITIONS 25,000  Floor area in sqm 1,500,000  Net rental EUR/sqm 4.60  Vacancy 10.9%  Purchase price EURm 960 (including debt financing) TLG Wohnen/ TAG Wohnen TOP TEN by units  Units 11,350  Dresden 2,299  Merseburg 1,426  Floor area

  21. Slide 21: TAG Acquisition 2012 – DKBI

    TAG Acquisition 2012 – DKBI 21 21 History of the portfolio  1995 ACQUISITIONS DKB Immobilien was founded  2007 DKBI and GBW legally separated Quality  85% refurbished  19% rental upside to local market  9% newly built  6% unrefurbished  Capex EUR 18/sqm EUR 185m over the last 5 y  15% conven

  22. Slide 22: TLG Wohnen acquisition and integration

    TLG Wohnen acquisition and integration 22 22  Seller Federal Republic of Germany  Closing December 2012 ACQUISITIONS  Purchase price EUR 471m  Multiple 11.1, NRI yield of 9%  Number of units: 11,500  Vacancy 4.8%  Rental income EUR 42m p.a.  Gains from first time consolidation EUR 49m  Inte

  23. Slide 23: TAG Integration track record 2012

    TAG Integration track record 2012 23 23  DKBI Integration of all central functions completed ACQUISITIONS Start of integration of (de- Closure of headquarter in Progress in operating terms: Control over board of centralized) operational units Potsdam and merger with vacancy down, directors and mana

  24. Slide 24: TAG Sales 2012/ 2013

    TAG Sales 2012/ 2013 24 24  Residential Units in Berlin 1,384  Commercial Units  Price in EUR/m  Hamburg, Nuremberg, Ahrensburg, SALES 87 Hannover  Pre tax earnings EUR/m 12  Price in EUR/m 10  Equity inflow in EUR/m 40  Buyer: diverse  Buyer: Union Investment Institutional Property GmbH 

  25. Slide 25: TAG Group financials (IFRS)

    TAG Group financials (IFRS) 25 25 Consolidated balance sheet (in EUR m) GROUP FINANCIALS 12/31/2012 6/30/2013 4000 3,800 3,800 4000 3,692 3,692 3600 3600 3200 3,495 1,156 3200 3,497 1,155 2800 2800 2400 2400 2000 2000 1600 2,134 1600 1,934 1200 1200 800 800 400 400 305 510 603 195 0 0 Assets Liabili

  26. Slide 26: TAG Group financials H1-2013 (IFRS)

    TAG Group financials H1-2013(IFRS) 26 26 Profit & loss (in EUR m) GROUP FINANCIALS TAG Immobilien AG | 2013 – Q2

  27. Slide 27: TAG Solid financing structure

    TAG Solid financing structure 27 27 TAG has a solid financing structure and its growing scale decrease financing costs even further GROUP FINANCIALS Debt maturity profile Optimization potential 4.11% average cost of • Diversified pool of approx. 50 lending banks including several debt 8.7 years aver

  28. Slide 28: TAG Financial structure – Convertible Bonds

    TAG Financial structure – Convertible Bonds 28 28  all outstanding Convertibles trade in or close to the in EUR million TAG share price money EUR 8.90 as of 7/31/2013 GROUP FINANCIALS  the first has been converted in July 2012 ahead of EUR 8.51 maturity EUR 6.93 5.5%  Convertibles have enabled TA

  29. Slide 29: TAG Stock market data H1-2013

    TAG Stock market data H1-2013 29 29  High/Low (Jan/June 2013) EUR 9.65/ EUR 8.17 Shareholder structure acc. to the notifications to the company  Number of shares SHAREHOLDER VALUE 130.738m  Ruffer LLP, UK* 15%  Market capitalisation 1,068,131 EUR  Flossbach von Storch SICAV., L* 12%  Stock ind

  30. Slide 30: TAG - The way forward: value enhancing asset management

    TAG - The way forward: 30 30 value enhancing asset management OUTLOOK Focus on residential property segment Continuously work the existing portfolio  Dispose of commercial properties in value Increase rents – lfl rental growth 3.2% in 2012 maximizing manner over time Reversionary rent potential vs

  31. Slide 31: Appendix

    APPENDIX 31 31 Growing Assets TAG Immobilien AG | 2013 – Q1

  32. Slide 32: TAG Management Board

    TAG Management Board 32 32 Rolf Elgeti, CEO Claudia Hoyer, COO from July 2012 onwards  TAG Immobilien AG, Management Board (since July 2009),  DKBI Management Board (since July 2010) APPENDIX Supervisory Board from 2008 onwards  10 years in successive positions at ​Deutsche Kreditbank AG  Settin

  33. Slide 33: TAG Portfolio commercial H1-2013

    TAG Portfolio commercial H1-2013 33 33 APPENDIX TAG Immobilien AG | 2013 – Q2

  34. Slide 34: East Germany is catching up

    East Germany is catching up… 34 34 …making it an attractive investment region for TAG APPENDIX GDP growth per employee (1991-2009) Disposable income growth per Residential market rents household (1991-2008) (€ per sqm per month) 4,4 8,2 Berlin 3,6 6,6 4,2 8,0 Leipzig 4,0 6,7 5,0 7,8 Dresden 4,4 6,3

  35. Slide 35: Top Cities of TAG residential portfolio

    Top 20 Cities of TAG residential portfolio 35 35 Recent lettings in €/sqm IFRS Book Value (1) Book Value Net actual rent in €/sqm Top-20(1) City Region Units €T €/sqm APPENDIX 1 Berlin (City) Greater Berlin 6,947 405,403 962 4.78 10.50 5.15 2 Salzgitter Salzgitter 8,741 306,411 574 4.50 6.79 4.76 3

  36. Slide 36: TAG Contacts

    36 36 TAG Contacts Dominique Mann Rolf Elgeti TAG Immobilien AG Head of Investor & Public Relations CEO Steckelhörn 5 Telefon: +49 40 380 32-305 Telefon: +49 40 380 32-307 20457 Hamburg Telefax: +49 40 380 32-388 Telefax: +49 40 380 32-388 Telefon: +49 40 380 32-0 ir@tag-ag.com ir@tag-ag.com Telefax

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