TAG Immobilien AG · XETR:TEG
TAG Immobilien — FY2011 Earnings Presentation
35 slides from TAG Immobilien's earnings presentation, 2011
Slide 1: 2011 preliminary figures
TAG Immobilien AG 2011 preliminary figures Q1-Q3 2011 TAG I 1
Slide 2: Content
Content I. Group overview page 3-6 II. Portfolio page 7-15 III. Group financials page 16-17 IV. Financial structure page 18-19 V. Share page 20-21 VI. Acquisitions page 22-24 VII. Outlook page 25-35 2011 preliminary figures TAG I 2
Slide 3: TAG investment case
TAG investment case I. Focus: High-quality EUR 1.5bn German residential real estate in metropolitan regions such as Hamburg, Berlin, North Rhine Westphalia, Salzgitter and Leipzig II. Plus: Solid EUR 470m German commercial real estate with solvent tenants (30% Siemens) III. Solid financing structure
Slide 4: Highlights Q4 Preliminary figures 2011
Highlights Q4 Preliminary figures 2011 I. Acquisition of 3,228 units in Saxony and EBT EUR 80m Hamburg region completed on 1st Rental proft EUR 80m November financed by capital increase in NAV of EUR 8.75 per share kind, issuance of shares at EUR 8.00 • NAV & FFO enhancive II. Capital increase
Slide 5: FFO guidance 2012
FFO guidance 2012 in EUR million Reduction in 27 Sales profit 40 Reduction in maintanance Rent from vacancy costs in SZ vacancy costs 27 8 35 30 reduction Rental 1 Overview Reduction in growth corporate 2 27 overheads 3 Lower interest 20 3.5 costs 1.5 6 10 10 10 6 3.5 3 1.5 2 0 FFO Q3-2011 FFO 2012
Slide 6: Combined entity TAG - Colonia: Integration and synergies
Combined entity TAG - Colonia: Integration and synergies Old target Already achieved Visible from New target Comment General Largely already EUR 11.2 million administrative visible; the rest per year already expenses EUR 10 million EUR 11 million from Q3 2011 EUR 11 million achieved Transfer of Prop
Slide 7: Portfolio
Portfolio in total: Total Units 30,960 Floor Area sqm 2,268,562 Real Estate Volume TEUR 1,971,740 Vacancy % 11.4 Net Actual Rent EUR/sqm 5.57 • Metropolitan regions of Berlin, Hamburg, Düsseldorf and Saxony plus Salzgitter Portfolio • Strategic rationale to grow in order to benefit from operational
Slide 8: Real estate volume and rental profit per segment
Portfolio total Real estate volume Rental profit per segment Volumen in EUR million in EUR million 1,971 79 2000 80 29.5 790 1600 60 Portfolio 40.2 1200 978 34.4 35.0 804 40 26.5 770 318 716 17.3 800 15.8 12.8 479 418 452 20 400 18.6 22.2 22.9 499 23.0 386 318 465 0 0 12/31/08 12/31/09 12/31/10 12/3
Slide 9: Residential by region - Hamburg
Portfolio residential by region - Hamburg • Strong need for new residential units • Increase of single tenant and elderly people households • Homeownership 22% • Strong spillover effects into periphery / commuter towns. • Biggest vacancy upside in communter town north of Hamburg (Elmshorn) Portfolio
Slide 10: Residential by region - Berlin
Portfolio residential by region - Berlin • Increasing lack of new residential units • Average letting size 54 sqm • Strong like-for-like rental growth. • 11% homeowner ship in Berlin • Berlin is growing and Portfolio increasingly attracting people • Building substance not good as in the rest of Germ
Slide 11: Residential by region - Berlin
Portfolio residential by region - Berlin • TAG is in Berlin regions where demographics show a growing population • TAG is happy to buy in the Eberswalde centre as well in the outskirts as long as the relative value is right. • In 2011 TAG bought for over 9% Nauen gross yield in Berlin Acquisitions 1
Slide 12: Residential by region - Saxony/Leipzig
Portfolio residential by region – Saxony/Leipzig Portfolio • Average asset rent: EUR 4.48 • Very attractive concentration of B cities between Leipzig and • Number of accommodation Dresden. units: 2,897 • Good infrastructure, good demographics (again) and strong • 9% of the residential portfolio econ
Slide 13: Residential by region - Salzgitter
Portfolio residential by region - Salzgitter Vacancy reduction • Overall vacancy in Salzgitter: 10% • Vacancy in our portfolio 21.7% (from 24.4%) • We are in above-average location • 2,000 units are missing for elderly tenants • Chances/angles for marketing: - having a decent product - take tenants
Slide 14: Residential by region - North Rhine Westphalia
Portfolio residential by region – North Rhine Westphalia • Agglomeration of at least 30 cities (29 of 80 metropolises in Germany) • 22% of the German GDP (BIP) • Centres of economic growth • Homeownership 39% Portfolio of TAG in Portfolio • Düsseldorf, Leverkusen • Dortmund, Köln • Siegburg, Moers •
Slide 15: Vacancy rate reduction - residential
Portfolio – vacancy rate reduction – residential Portfolio Proven track record of reducing vacancies rapidly and steadily in new acquisitions 2011 preliminary figures TAG I 15
Slide 16: Group financials (IFRS): consolidated balance sheet
Group financials (IFRS) Consolidated balance sheet (in EUR m) 12/31/2010 12/31/2011 2,070 2,070 219 204 2000 2000 600 1600 1600 1,945 Group finanicals 1,191 1,191 1200 1200 365 1,230 918 800 800 658 400 400 273 240 168 125 0 0 Assets Liabilities Assets Liabilities Non-current assets Equity Current a
Slide 17: Group financials (IFRS): TAG rental financial result
Group financials (IFRS) TAG rental financial result 81 71 79 61 Group finanicals 51 41 50 31 40.2 • Vacancy reduction 35.0 • Better cost structure 29 21 23.7 26.3 • Carry after interest shows 11 that growth is profitable 13.9 11.3 1 2009 2010 2011 Net rental profit Interest on property financing Net
Slide 18: Financial structure
Financial structure Bank borrowings Loan to Value / Equity ratio in EUR m in % 1000 70 1,021 67.4 60 Financial structure 800 59.0 50 53.0 600 40 523.5 30 400 29.9 400.9 20 26 24.5 200 10 124.9 124.1 168 0 0 12/31/2009 12/31/2010 12/31/2011 12/31/2009 12/31/2010 12/31/2011 Current liabilities LTV Non
Slide 19: Financial structure: credit maturities
Financial structure • ø credit loan maturity 5.4 years • Lenders: 28 German banks TAG Credit periods in EUR m: • Interest rate 4.2% 351 301 29% Financial structure 251 23% 201 17% TAG credit in 151 total until 2030: 14% 101 1,090 EUR/m: 10% 51 5% 1 2012 2013 2014 2015 2016 > 5 years 2011 preliminary
Slide 20: Stock market data TAG as of 12/31/2011
Stock market data TAG as of 12/31/2011 Shareholder structure High/Low (Q1-Q4 2011) EUR 7.39/EUR 5.70 Ruffer LLP, UK* 18% Number of shares 74.905m IP Concept, FvS Strategie SICAV, L* 10% Market capitalisation EUR 461m Taube Hodson Stonex, UK* 5% Stock exchange SDAX/EPRA Threadneedle, UK* 5% Free Floa
Slide 21: Stock market data: dividend and EPS
Stock market data Dividend EPS in EUR in EUR 50 100 80 40 Dividend yield: 3.3% 60 1.02 Share 40 0.48 30 20 0 20 -20 - 0.9 0.20 -40 10 -60 0.10 -80 0 -100 2007 2008-2010 2011(e) 12/31/2009 12/31/2010 12/31/2011 (e) 2011 preliminary figures TAG I 21
Slide 22: Acquisition targets
Acquisition targets I. NAV & Cash flow & FFO enhancive II. Portfolio at existing TAG locations – with focus on Berlin, Hamburg • Low marginal costs for Asset and Property Management, scale economies III. Deal size • < EUR 30m – too big for retail investors, too small for familiy offices, below the r
Slide 23: Acquisitions 2010
Acquisitions 2010 TAG Nordimmobilien Berlin Properties 37 Units 789 Floor area in sqm 51,300 Net rental EUR/sqm 5.05 Vacancy from 14.0% to 6.2% Purchase price EUR/m 43 TAG Sachsenimmobilien GmbH Units 436 Floor area in sqm 29,104 Vacancy from 9.6% to 7.2% Acquisitions FranconoWest AG Region Saxony U
Slide 24: Acquisition 2011
Acquisition 2011 Acquisitions 2011 preliminary figures TAG I 24
Slide 25: Acquisition 2011
Acquisition 2011 Marzahn/DOM Portfolio Chemnitz Units 612 Units residential 420 Floor area in sqm 43,591 Floor area in sqm 32,000 Net rental EUR/sqm 4.29 Net rental EUR/sqm 5.55 Vacancy 1.47% Vacancy 4.0% Purchase price EUR/m 25.2 Purchase price EUR/m 23.75 Hellersdorf/Marzahn Acquisitions Units 461
Slide 26: Appendix
TAG TAG Immobilien AG Appendix see
Slide 27: Trend single tenant households 2005 - 2025
Trend single tenant households 2005 - 2025 < 35 year olds > 55 year olds Appendix >-30% -30/-10% <10% -10/+10% 10-20% 10 - 30% 20-30% >30% 30-40% >40% Source: Prognos, Spiegel Online, March 2010 2011 preliminary figures TAG I 27
Slide 28: Salzgitter
Portfolio Salzgitter Portfolio Units Lebenstedt 6,267 Fredenberg 2,082 Hallendorf 365 Fredenberg • Inhabitants in these districts 41,000 (40%) • ø vacancy rate in SZ 10% Portfolio 2011 preliminary figures TAG I 28
Slide 29: Salzgitter - success in letting
Portfolio Salzgitter - success in letting • Re-letting shows big success since TAG took over the asset and property management • At the same time cancellations decreased • Net absorption: annualised on track for single-digit vacancy in 2014 40 Delta between 36 35 new contracts and cancellation for r
Slide 30: Salzgitter - rents and tenant mix
Portfolio Salzgitter – rents and tenant mix • Rents per sqm and month for new lettings since TAG took over the property management 4.91 4.85 5,00 4.84 4.78 4.82 4.72 4,50 4.41 4.41 Appendix 4,00 Jan 11 Jun 11 Sep 11 Dec 11 • New tenants who are financed by social security payments (Hartz IV) in % of
Slide 31: Salzgitter - maintenance
Portfolio Salzgitter - maintenance Maintenance p.a. in EUR m • Maintenance costs can be optimised: 4,0 – Central management – Public tender for smaller 3,5 packages 3,0 3.5 • From 4 Oct 2011 onwards: Appendix 2,5 – General contractor 2.8 2.5 – At fixed price 2,0 – With direct and thus improved 1,5 s
Slide 32: Portfolio commercial
Portfolio commercial 12/31/2009 12/31/2010 09/30/2011 12/31/2011 • sqm total 342,911 sqm 335,686 sqm 323,902 sqm 348,403 sqm • sqm rental 324,971 sqm 323,063 sqm 298,944 sqm 319,940 sqm • current rental p.a. net of charged costs (EUR m) 26.6 26,0 25.9 28.8 • current rental net of charged costs (EUR/
Slide 33: Management Board
Management Board Rolf Elgeti, CEO Colonia Real Estate AG, Management Board since February 2011 TAG Immobilien AG, Management Board (since July 2009), Supervisory Board from 2008 onwards Bau-Verein zu Hamburg AG, Management Board (since July 2009) Founder of Elgeti Ashdown Advisors Ltd. (2007
Slide 34: Contacts
Contacts TAG Immobilien AG Rolf Elgeti CEO Steckelhörn 5 Telefon: +49 40 380 32-307 20457 Hamburg Telefax: +49 40 380 32-388 ir@tag-ag.com Telefon: +49 40 380 32-0 Telefax: +49 40 380 32-388 Britta Lackenbauer/ Dominique Mann www.tag-ag.com Appendix Investor & Public Relations info@tag-ag.com Telefo
Slide 35: Disclaimer
Disclaimer Disclaimer and Copyright This document (presentation) does not constitute an offer or invitation or form part of an offer or invitation to subscribe for or purchase any securities and, neither this document or anything contained herein shall form the basis of any contract of commitment wh