Ca Immobilien Anlagen Ag · VIE:CAI

Ca Immobilien Anlagen — FY2016 Earnings Presentation

36 slides from Ca Immobilien Anlagen's earnings presentation, Mar 22, 2017

  1. Slide 1: FY 2016 Results – Analyst and Investor Update

    FY 2016 RESULTS ANALYST AND INVESTOR UPDATE Frank Nickel, CEO Dr. Hans Volkert Volckens, CFO March 22, 2017

  2. Slide 2: Business Year 2016 Highlights

    Business Year 2016 Highlights  Start of construction for development projects ViE (office), Laendyard Living (residential) and Accelerated crystallisation of Wohnbau Süd (residential) in Vienna, Steigenberger (hotel) in Frankfurt, Rheinallee III development pipeline values (residential/retail) in M

  3. Slide 3: Business Year 2016 Highlights

    Business Year 2016 Highlights  Solid top line growth by 12% per share despite rental income losses linked to non-strategic asset sales Net rental income per share  Acquisition of EBRD minority shares in CEE portfolio in previous year major growth driver 1.55 (2015: 1.38) +12%  Strong recurring ea

  4. Slide 4: Profit and Loss

    Profit and Loss Second Highest Net Profit in CA Immo‘s History after Record Result 2015 P&L Key Metrics FY 2016 FY 2015 +/- 4Q 2016 4Q 2015 +/- P&L Earnings Driver 2016 Rental income 165.6 154.8 7.0% 43.0 43.1 -0.4%  EBRD buy-out major rental income driver Net rental income 147.1 135.6 8.5% 38.3 37

  5. Slide 5: Revaluation Result

    Revaluation Result High-Quality Assets in Germany Driver of Valuation Surplus  Germany Revaluation result (€ m)  Strong result reflects the extremely positive market environment in most important core market 138.3 (2015: 213.8)  Booming investment activity and further yield compression continued

  6. Slide 6: Funds from Operations (FFO)

    Funds from Operations (FFO) FY 2016 FFO I per Share at € 0.97 (+18% yoy) FFO FY 2016 FY 2015 +/- 4Q 2016 4Q 2015 +/- FFO Earnings Driver 2016 Net rental income  EBRD buy-out major rental income driver 147.2 135.6 8.5% 38.3 37.5 2.2% Other operating  Other operating income decline mainly on lower i

  7. Slide 7: Strong Increase in Shareholder Value

    Strong Increase in Shareholder Value FFO I Record Result; Significant Dividend Hike per Share by 30% FFO I per share FFO per share 1.60 1.45 1.60 0.97 (2015: 0.82) +18% 1.40 1.24 1.20 1.40 1.20 1.20 FFO II per share 1.00 0.78 + 18% 1.00 0.80 0.80 1.20 (2015: 1.24 0.60 0.60 0.72 0.75 0.82 0.97 0.40 0

  8. Slide 8: Balance Sheet as at December 31, 2016

    Balance Sheet as at December 31, 2016 Strong Equity Base Secures Growth Balance Sheet 31.12.16 31.12.15 +/- Investment properties 2,923.7 2,714.3 7.7%  Rock solid balance sheet metrics comfortably within strategic target range despite balance sheet extension Properties under development 433.0 409.0

  9. Slide 9: Balance Sheet as at December 31, 2016

    Balance Sheet as at December 31, 2016 Rock Solid Ratios to be Maintained Equity ratio Equity 2,300 53% 60% 53% 51% 51.2% (2015: 53.2%) 2,200 2,100 44% 50% 40% 2,000 1,900 30% Gearing (net) 1,800 20% 1,700 53.0% (2015: 56.2%) 1,600 1,794 1,952 2,120 2,205 10% 1,500 0% 2013 2014 2015 2016 Equity (€ m)

  10. Slide 10: Financing

    Financing Declining Cost of Debt; Rising Hedging Ratio Cost of debt Average weighted cost of debt 5.5% 5.1% 5.0% 2.3% (2015: 2.9%) 4.5% 4.1% 4.0% 3.5% 2.9% Interest rate hedging ratio 3.0% 2.3% 2.5% 77% (2015: 57%) 2.0% 2Q 2014 2014 2015 2016 Debt maturities (€ m) Average debt maturity (years) 900 8

  11. Slide 11: Investment Portfolio

    Investment Portfolio Portfolio Performance Remains Strong Portfolio occupancy Occupancy rate 93% 92.4% 92.4% (2015: 90.4%) 92% 91% 90.7% 90.4% 90% 89% 88.4% Gross initial yield 88% 6.1% (2015: 6.3%) 87% 86% 85% 4Q 2013 4Q 2014 4Q 2015 4Q 2016 Like-for like rental income (€ m)* Portfolio yield 182.5

  12. Slide 12: Non-core Property Disposals Concluded

    Non-core Property Disposals Concluded Profitable Earnings Contribution in 2016  Non-strategic sales programme concluded 2012-2016 Non-core sales volume (€ bn)  Disposal volume of  € 1.0 bn since initiation in 2012 (profit margin > 10%) 1.0  2016*: Sales volume of € 336 m  positive earnings cont

  13. Slide 13: Market Environment – Germany

    Market Environment Germany Prime office yields Property boom continues 6.0%  German economy is enjoying a robust upswing 5.5%  High investment demand from domestic and international investors 5.0%  Limited availability of core properties  accelerated yield compression 4.5% 4.0%  Strong office l

  14. Slide 14: Market Environment – Eastern Europe

    Market Environment Eastern Europe  Favourable growth prospects  CEE remains among regions with highest economic growth potential in Europe Substantially improved market conditions  Market liquidity has increased across all major CEE markets  Increasing competition for core assets  Yield compres

  15. Slide 15: Market Environment – Interest Rates and ECB Policy

    Market Environment Historic Interest Rate Lows and ECB Policy Fuels Property Investments  Booming investment markets with fierce competition driving up prices Exceptional market conditions  Property yields on record low  Historically low interest rate environment  Market stimulus by European Cen

  16. Slide 16: Strategic Framework in Exceptional Market Environment

    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 of

  17. Slide 17: Development Major Competitive Advantage and Growth Driver

    Strategy Development Major Competitive Advantage and Growth Driver Prime-quality landbank with high optionality as key competitive advantage Landbank (€ 290 m)*  Major organic growth driver 36 27  Focus on prime locations German cities Munich, Frankfurt and Berlin 9% 13%  Expansion of additional

  18. Slide 18: Value Crystallisation of Development Pipeline

    Value Crystallisation of Development Pipeline Significant Embedded Value of German Landbank Development potential Germany Development potential ( € 2 bn)  € 2 bn  Existing landbank reserves in inner city prime locations offer significant value creation potential 0.4 BER 0.1 DUS  Landbank develop

  19. Slide 19: Construction Starts in 2016

    Value Crystallisation of Development Pipeline Construction Starts in 2016 Baumkirchen WA3, Munich ViE, Vienna Baumkirchen WA3, Munich Residential; € 66 m; 110 apartments ViE, Vienna Office; € 38 m; 14,700 sqm Laendyard Living, Vienna Residential; € 57 m; 500 apartments Wohnbau Süd, Vienna Residentia

  20. Slide 20: Sale of Cube Office Project in Berlin

    Value Crystallisation of Development Pipeline Sale of Cube Office Project in Berlin  Highly profitable forward sale of office property development to institutional investor Henderson Deal parameters  Trophy asset deal terms reflect booming market conditions in Berlin Throphy asset transaction  De

  21. Slide 21: Sale of Cube Office Project in Berlin

    Value Crystallisation of Development Pipeline Sale of Cube Office Project in Berlin Portfolio exposure Berlin (€ m)  Global run on trophy assets in Berlin Deal rationale  Scarcity of top products has created strong pricing momentum 588  Substantial prime yield drop in recent quarters to  3.4% 15

  22. Slide 22: Berlin Europacity Exposure

    Value Crystallisation of Development Pipeline Berlin Europacity Exposure  Europacity area around central train station has become major business hub in Berlin Sweet spot in development  Prime location in close proximity to government quarter and German Chancellery landscape Berlin  CA Immo has si

  23. Slide 23: Acquisition of Millennium Towers in Budapest

    Delivery of External Growth Target Acquisition of Millennium Towers in Budapest  Office complex Millenium Towers consists of four fully let buildings with 70,400 sqm Deal parameters  Located along the Pest riverside of the Danube with panoramic views of the Buda Hills (9th district) Core asset wit

  24. Slide 24: Acquisition of Millennium Towers in Budapest

    Delivery of External Growth Target Acquisition of Millennium Towers in Budapest Portfolio exposure Budapest (€ m)  Strong economic recovery in the past 2 years Deal rationale  Increasing occupier demand 452 12% Promising stage  Declining market vacancy rate (below 10% in 2016  lowest recorded ra

  25. Slide 25: Agenda and Targets 2017

    Agenda and Targets 2017 FFO I of at least € 100 m as Key Financial Target  Buy-out of of joint venture partner Union Investment in CEE portfolio Investment portfolio  Expansion of CEE portfolio through property acquisition Growth  Sale of non-strategic land plots and redeployment of equity into i

  26. Slide 26: CA Immo and Immofinanz – Chronology and Status quo

    CA Immo and Immofinanz Chronology and Status quo  April 2016 Chronology  Acquisition of a 26% holding in CA Immo from O1 Group by Immofinanz at a purchase price of € 23.50 per share and announcement of the intended merger of Immofinanz and CA Immo  May 2016  CA Immo appoints JP Morgan and Ithuba

  27. Slide 27: Transaction Parameters for a Possible Merger

    CA Immo and Immofinanz Transaction Parameters for a Possible Merger  Fair and transparent process to conclude in 2018 Transaction  CA Immo shareholders will have a sound basis for making a decision on such a transaction at an Ordinary General Meeting to take parameters place in 2018 (75% approval

  28. Slide 28: Appendix

    a= CA IMMO URBAN BENCHMARKS. APPENDIX

  29. Slide 29: Property Portfolio (€ 3.8 bn)

    Property Portfolio (€ 3.8 bn)* Germany Accounts for  44% of Portfolio Value PORTFOLIO STRUCTURE PORTFOLIO SPLIT BY REGION AND COUNTRY (€ M)  Total property asset base of € 3.8 bn  Germany largest single core market 6% 584 15% 7% 15%  Income- producing investment portfolio of Austria 7% € 3.2 bn

  30. Slide 30: Investment Portfolio (€ 3.2 bn) – Portfolio Metrics

    Investment Portfolio (€ 3.2 bn) Portfolio Metrics GROSS INITIAL YIELDS* WEIGHTED AVERAGE LEASE TERM (WALT) IN YEARS BY COUNTRY 9.0% 8.0 7.8% 8.0% 7.4% 7.3% 7.0 6.7% 7.0% 6.5% 6.1% 6.0 6.0% 5.6% 4.9% 5.0 5.0% 4.0 4.0% 3.0 3.0% 2.0% 2.0 1.0% 1.0 7.1 4.3 3.1 3.0 2.5 2.4 2.3 4.3 0.0% 0.0 Romania Hungary

  31. Slide 31: Development – Investment Portfolio

    Development High-quality Development Pipeline Major Growth Driver (1) Planned Investment Oustanding Gross yield Main Pre-letting Construction INVESTMENT PORTFOLIO (€ m) rentable Share volume* investment on cost usage ratio phase area KPMG, Berlin 56 27 12,700 5.8% Office 100% 100% 4Q 15 – 2Q 18 Stei

  32. Slide 32: Development – Trading Portfolio

    Development High-quality Development Pipeline Major Growth Driver (2) Planned Investment Outstanding Main Construction TRADING PORTFOLIO (€ m)* rentable Share Status volume** investment usage phase area Cube, Berlin 98 76 17,000 Office 100% 4Q 16 – 4Q 19 Forward sale to Henderson Rieck I – Phase 1,

  33. Slide 33: Net Asset Value (NAV)

    Net Asset Value (NAV) EPRA NAV per Share € 26.74 € m (diluted = undiluted) 31.09.2016 31.12.2015 +/- NAV (IFRS equity) 2,204.4 2,120.5 Exercise of options 0.0 0.0 NAV after exercise of options 2,204.5 2,120.5 4.0% NAV per share 23.60 21.90 7.8% Value adjustment for* Own use properties 6.0 5.1 Proper

  34. Slide 34: Financing – Average Cost of Funding Further Reduced

    Financing Average Cost of Funding Further Reduced to 2.3% FINANCING SPLIT (€ M) DEBT STRUCTURE HEDGING RATIO (4Q 16) HEDGING RATIO (TARGET) Corporate bonds 5% 5% UniCredit 23% 6% 26% 26% <25% 8% Other Erste Group 52% 10% DG Hyp 25% 23% 74% Fixed >75% 17% Helaba Fixed/Hedged Fixed/Hedged Hedged Deuts

  35. Slide 35: Weighted Average Cost of Debt and Maturities

    Financing Weighted Average Cost of Debt and Maturities* Outstanding debt Nominal  Cost of debt  Cost of debt  Debt  Swap €m nominal value value swaps incl. derivatives excl. derivatives maturity maturity Austria 146.9 47.4 2.8% 2.2% 5.5 7.2 Germany 574.1 119.6 1.9% 1.4% 5.0 2.5 Czechia 116.4 51.

  36. Slide 36: 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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