Patrizia Se · XETR:PAT
Patrizia — PATRIZIA Immobilien — 9M 2014 Earnings Presentation
23 slides from Patrizia's earnings presentation, Nov 11, 2014
Slide 1: Conference Call on 9M 2014
Conference Call on 9M 2014 Business Development, Financials & Outlook 2014 11 November 2014 PATRIZIA Immobilien AG PATRIZIA Bürohaus | Fuggerstrasse 26 | 86150 Augsburg | T +49 821 50910-000 | F +49 821 50910-999 | immobilien@patrizia.ag | www.patrizia.ag
Slide 2: Financial Figures 9M 2014 at a Glance
Financial Figures 9M 2014 at a Glance ASSETS UNDER MANAGEMENT (IN EUR BILLION) Assets under management rose by 14% to EUR 13.5bn (FY 2013: EUR 11.8bn) 14 13.5 Around 96% managed on behalf of third parties and co-investments 13 19% or EUR 2.6bn outside Germany 12 Operating result of EUR 26.3m
Slide 3: Highlights in Operating Business Q3 2014
Highlights in Operating Business Q3 2014 PURCHASE AGREEMENT FOR A RESIDENTIAL PORTFOLIO IN THE NETHERLANDS Acquired for the co-investment WohnModul I Biggest transaction that the Dutch market has ever seen in the housing sector: purchase price EUR 578m Portfolio comprises approx. 5,500 residen
Slide 4: Assets under Management
Assets under Management AUM AS AT 30 SEPTEMBER 2014 STOOD AT EUR 13.5BN TARGET FOR 2014 GROWTH IN AUM OF EUR 2BN WILL BE EXCEEDED Strong increase in co-investments till year-end: Closing of the Netherland portfolio (EUR 578m) and the “Aviemore JV” (UK business parks, EUR 538m) in Q4 14.0 14 13.5 1
Slide 5: Further Reduction of Own Portfolio
Further Reduction of Own Portfolio SALE TO BE FINISHED AT YEAR-END 20151 Sale of 592 units in the first nine months of 2014 (426 individual sales, 166 en bloc) Stable sales prices of EUR 2,720/sqm in residential property resale vs. EUR 1,712/sqm in block sales Average monthly rent of EUR 7.44/
Slide 6: Own Portfolio – Single Unit and Block Sales by Quarter
Own Portfolio – Single Unit and Block Sales by Quarter SALES HAVE ALWAYS PRESENTED THEMSELVES AS VOLATILE WITHIN A YEAR WITH HIGHEST NUMBERS IN H2 203 units sold in Q3 2014, 592 units in 9 months In addition, 44 new constructed units from real estate developments were sold in Q3 (Cologne) units
Slide 7: Own Portfolio – Single Unit and Block Sales by FY
Own Portfolio – Single Unit and Block Sales by FY STABLE SALE FIGURES SINCE 2010 Further 2,200 units notarised as block sales in Q4 Target 2014: sale of 1,800 units will be exceeded units 2,000 1,803 1,842 1,800 1,709 1,714 1,002 1,097 7 1,600 785 968 1,400 1,198 1,200 722 1,000 946 800 289 924
Slide 8: Overview – Co-Investments
Overview – Co-Investments INCOME FROM CO-INVESTMENTS / PARTICIPATIONS BASICS The acquisition and sales fee are accounted in the P&L in the “revenues” item Regular co-investment business (service fees) is accounted in the P&L item “revenues”, too Südewo and GBW are accounted in the P&L item “in
Slide 9: Third Party Business – German "Spezialfonds"
Third Party Business – German "Spezialfonds" TARGET 2014: GROWTH OF 1BN IN AUM (FUNDS & WOHNMODUL I) ALREADY ACHIEVED WITH EUR 1.5BN INSTITUTIONAL INVESTORS Residential: PATRIZIA WohnInvest KAG Growth in AuM in Q3 by EUR 35m, in 9 months by EUR 52m Commercial: PATRIZIA GewerbeInvest KAG Growth i
Slide 10: PATRIZIA Capital Allocation
PATRIZIA Capital Allocation ASSETS UNDER MANAGEMENT INVESTMENT CAPITAL PARTICIPATION AS OF 30 SEPTEMBER 2014 IN EUR MILLION IN EUR MILLION IN % OPERATING COMPANIES1 ‒ 39.6 100 OWN INVESTMENTS2 465 225.7 100 CO-INVESTMENTS 5,740 128.0 RESIDENTIAL 4,787 98.1 GBW AG 2,726 54.7 5.1 Süddeutsche Wohnen Gm
Slide 11: Income Structure – Service Business
Income Structure – Service Business STABLE BUSINESS MODEL DELIVERS GROWING REVENUES Increasing assets under management will generate higher service fees and increase earnings visibility 9M 2014: EUR 70.7m 2013: EUR 94.8m Services 9M 2014: EUR 37.6m (53%) Real Estate 9M 2014: EUR 33.1m (47%) 2013:
Slide 12: Key Performance Indicators
Key Performance Indicators WHAT WE HAVE REACHED SO FAR Operating result 9M 2014: EUR 26.3m Equity ratio as of 30 September 2014: 48.3% Gross sales margin 9M 2014: 9.6% investment property, 22.1% inventories Operating result Equity ratio Gross sales margins 50 60% 30% 43.9 40 38.1 22.3% 22.1% 5
Slide 13: Financials 9 Months 2014
Financials 9 Months 2014 HIGHER OPERATING INCOME DRIVEN BY REALISED CHANGES IN THE VALUE OF INVESTMENT PROPERTY SELECTED P&L ITEMS EUR‘000 9 MONTHS 2014 9 MONTHS 2013 CHANGE Revenues Sales revenues 43,597 67,353 -35.3% Single unit sales 38,997 41,862 -6.8% Block sales 4,600 25,491 -82.0% Rental reve
Slide 14: Split of Revenues – 9M 2014
Split of Revenues – 9M 2014 The purchase price revenues from investment property exceed those from inventories 300 (EUR 79.3m vs. EUR 43.6m) Sale of 44 new-built units from own real estate developments generated revenues of EUR 13.4m 250 The revenues from management services rose by 27% to EUR
Slide 15: Staff Costs
Staff Costs DEVELOPMENT OF STAFF COSTS Staff costs increased by 20.5% to EUR 53.4m (9M 2013: EUR 44.3m) Driven by new appointments and salary adjustments in line with market trends Staff 9M 2014/9M 2013 in comparison: 757 vs. 689 (+10%), FTE: 735 vs. 628 (+17%) STAFF COSTS 757 65.7 712 689 51
Slide 16: Development of IFRS Figures
Development of IFRS Figures EBT Decrease by 22.5% compared with 9 months 2013 45.0 25.0 39.6 8.0 11.5 28.6 5.0 19.9 15.5 -15.0 -32.4 -35.0 2008 2009 2010 2011 2012 2013 9M 2014 CONSOLIDATED NET PROFIT/LOSS Decrease by 24.4% compared with 9 months 2013 45.0 25.0 37.2 6.2 25.5 5.0 13.5 14.9 -15.0
Slide 17: Development of the Operating Result
Development of the Operating Result OPERATING RESULT IMPROVED BY 41% COMPARED WITH 9 MONTHS 2013 Split: 45% investments, 55% management services 50 40 50.0 43.9 30 38.1 20 28.8 26.3 12.4 10 4.0 2.7 0 2008 2009 2010 2011 2012 2013 9M 2014 2014e INVESTMENTS MANAGEMENT SERVICES 100% 100% Target 2015
Slide 18: Reconciliation of the Operating Result
Reconciliation of the Operating Result NO CHANGE IN THE VALUE OF DERIVATIVES ANY MORE EUR‘000 Q3 2014 Q3 2013 9M 2014 9M 2013 FY 2013 EBT 297 2,198 15,487 19,985 39,599 + Amortisation of fund management contracts 622 649 1.863 1.791 2.566 - Unrealised changes in the value of investment property 0 0
Slide 19: Positive Development of the Financial Situation
Positive Development of the Financial Situation BANK LOANS VS. EQUITY RATIO Bank loans excluded bonded loans have been reduced by 33.2% to EUR 215m (31 Dec 2013: EUR 322m) 2014 target for indebtedness: Reduction of bank loans to EUR 100m, bonded loans stable at EUR 77m 80% 1,200 1,262 70% 1,16
Slide 20: Net Asset Value
Net Asset Value NAV / INVESTMENTS SEGMENT REPRESENTS 45% OF THE OPERATING RESULT FOR 9M 2014 Investment property and inventories were sold in 9M 2014 at a profit with a gross margin of 9.6% and 22.1% respectively, thus confirming the value retention of the properties The whole service business t
Slide 21: Outlook 2014 – Outlook confirmed
Outlook 2014 – Outlook confirmed Operating result for 2014 of at least EUR 50m confirmed, thereof at least 80% out of services Further deleveraging : Reduction of bank liabilities below EUR 100m, plus EUR 77m for two bonded loans Almost debt free until December 2015 Equity ratio of 48.3% s
Slide 22: Financial Calendar, Conferences and Roadshows
Financial Calendar, Conferences and Roadshows 2014 November 11 Interim report for the first nine months of 2014 12 Roadshow with Berenberg Bank, London 13 Commerzbank German Commercial Property Forum, London 18 Roadshow with Baader Bank, Paris 25 4th Annual Berenberg 1on1 Symposium @ the G
Slide 23: Contact Details
Contact Details ARWED FISCHER MARGIT MILLER VERENA SCHOPP DE CFO HEAD OF IR ALVARENGA MANAGER IR PATRIZIA Immobilien AG PATRIZIA Immobilien AG PATRIZIA Immobilien AG PATRIZIA Bürohaus PATRIZIA Bürohaus PATRIZIA Bürohaus Fuggerstrasse 26 Fuggerstrasse 26 Fuggerstrasse 26 86150 Augsburg 86150 Augsburg