Tag Immobilien Ag · XETR:TEG
Tag Immobilien — H1 2014 Earnings Presentation
29 slides from Tag Immobilien's earnings presentation, Jul 8, 2014
Slide 1: Growing Assets – H1 2014 Figures
2014 Growing Assets H1 - 2014 Figures
Slide 2: Content
Content 22 I. TAG Highlights FY 2013 / H1 2014 3 CONTENT II. TAG Strategy/ Efficiency: Growth and Margins 4 III. TAG Achievements: Vacancy reduction / rent increases 6 IV. TAG Investments: Capex – Maintenance 2012/ 2013/ H1 2014 8 V. TAG FFO / AFFO 2013 / H1 2014 / 2014e 9 VI. TAG Portfolio: Regions
Slide 3: TAG Highlights H1 2014
TAG Highlights H1 2014 33 Rental income (including commercial) Achievements 2014 EUR 130.5m (125.6m in H1 2013) Increase of exisiting EUR 200m CB by another EUR 110m OVERVIEW Rental profit (including commercial) Purchase of new portfolio in Thuringia/ Saxony with 4,000 units / EUR 78.2m,
Slide 4: TAG Growth Strategy 2009 - H1 2014
TAG Growth Strategy 2009- H1 2014 44 Real estate volume (EURm) Rental revenues (EURm) GROWTH 250.9 3,665 3,606 X5.4 x4.8 3,347 192.5 130,5 1,969 115.4 3,203 3,164 3.201 978 770 1,493 46.2 51.8 318 499 146 452 479 476 462 442 2009 2010 2011 2012 2013 H1 2014 Residential Commercial 2009 2010 2011 2012
Slide 5: TAG Efficiency 2009-H1 2014
TAG Efficiency 2009-H1 2014 55 Growth has been a strategic imperative for TAG in order to achieve economies of scale Adj. EBITDA and FFO margin (including commercial) GROWTH benefit from effects of step-fixed costs relating to administration and overhead expenses become a best in class landl
Slide 6: TAG Achievements 2013 – H1 2014
TAG Achievements 2013 – H1 2014 666 6 Vacancy reduction per region (in%)* PORTFOLIO Net actual rent per region (in EUR/ sqm)* *excluding properties for sale TAG Immobilien AG | H1 figures 2014
Slide 7: TAG Achievements H1 2014
TAG Achievements H1 2014 777 7 PORTFOLIO Rental margin pre maintenance (in%) (including commercial) TAG’s operational platform has become more efficient and more effective over the course of 2013 Operational improvements beyond pure corporate cost efficiencies due to growth strategy: Service c
Slide 8: TAG Investments H1 2014
TAG Investments H1 2014 88 Portfolio residential PORTFOLIO in EURm 45.665 19.265 Overall investments in H1 2014: 15.239 14.199 11.632 10.580 13.243 8.215 7.848 26.400 Modernisation/ investments (capitalized): 14.7m 5.985 3.881 7.859 6.823 1.552 6.663 5.647 6.699 7.391 6.340 6.420 Maintenance/ re
Slide 9: TAG FFO FY 2013 - H1 2014
TAG FFO FY 2013- H1 2014 (including commercial) 99 FFO TAG Immobilien AG | H1 figures 2014
Slide 10: TAG FFO Guidance 2014
TAG FFO Guidance 2014 10 10 FFO The interest cost savings stem from refinancing that have already been effected in 2013. The synergies are basically the management contract fees for TAG Wohnen which TAG had to pay in 2013, this contract has been cancelled with effect of year-end 2013. Furthermor
Slide 11: TAG Portfolio in total H1 2014
TAG Portfolio in total H1 2014 11 11 TAG has its focus on 5 regions in Germany Most of the portfolio is in good urban locations and growth PORTFOLIO regions, promising continued stable rental income and value creation TAG offers attractive housing at affordable prices The commercial portfoli
Slide 12: TAG Portfolio residential - Top cities H1 2014
TAG Portfolio residential - Top 20 cities H1 2014 12 12 PORTFOLIO TAG Immobilien AG | H1 figures 2014
Slide 13: TAG Portfolio residential - H1 2014 by region
TAG Portfolio residential - H1 2014 by region 13 13 13 13 PORTFOLIO *As of 30 June 2014 according to book value TAG Immobilien AG | H1 figures 2014
Slide 14: TAG Acquisitions 2013
TAG Acquisitions 2013 14 14 Chemnitz Units 219 Closing Q3 2014 ACQUISITIONS Floor area in sqm 13,271 Net rental EUR/sqm 4.60 Vacancy 6.9% Purchase price EURm (net) 7.7 Dresden Multiple 9.6x NRI yield 10.4% Eastern Germany Closing Units (thereof for sale) 2,860 (~340) Floor area
Slide 15: TAG Acquisition 2014
TAG Acquisition 2014 15 15 Thuringia/ Saxony TOP FIVE by units Units (thereof for sale) Hermsdorf 1,483 ACQUISITIONS 3,985 (~340) Jena 525 Floor area in sqm 236,000 Weimar 436 Erfurt 314 Net rental EUR/sqm 5.24 Chemnitz 233 Vacancy 10.7% Sum 2,991 % of total Purchase price EU
Slide 16: TAG Sales 2014
TAG Sales 2014 16 16 Disposal of TAG Gewerbeimmobilien GmbH end of March 2014 Commercial Units Closing 2014/ 2015/ 2016 SALES Share deal, Closing H1 2014, TAG keeps 20% stake Cologne, Oldenburg, Cloister Approx. 270,000 sqm of the TAG commercial portfolio Munich, Hofmannstraße, St.- Ma
Slide 17: TAG Group financials (IFRS)
TAG Group financials (IFRS) 17 17 Consolidated balance sheet (in EURm) FINANCIALS 12/31/2013 06/30/2014 4000 3,763 3,763 3,686 3,686 3600 3200 3,581 1,127 3,360 1,100 2800 106 107 2400 197 435 2000 1600 2,087 1,885 1200 800 400 182 246 326 159 0 Assets Liabilities Assets Liabilities Non-current asse
Slide 18: TAG Group financials (IFRS) – Profit & loss
TAG Group financials (IFRS) 18 18 Profit & loss (in EUR m) including commercial FINANCIALS TAG Immobilien AG | H1 figures 2014
Slide 19: TAG Financial structure
TAG Financial structure 19 19 TAG has a solid financing structure and its growing scale decrease financing costs even further FINANCIING Debt maturity profile as of 12/31/2013 Debt maturity profile as of 06/30/2014* 3.70% average cost of 3.61% average cost of bank debt bank debt 9.4 years average 10
Slide 20: TAG Valuation – NAV
TAG Valuation – NAV 20 20 Dilution effects: EPRA NAV - Diluted NAV The repurchase of convertible bonds decreased the potential dilution by approx. EUR 12.3m TAG FINANCING in EUR/share shares From 2013 on the dilution effect has been reduced from EUR 0.47 to EUR 0.15 in H1 2014 TAG Immobilien A
Slide 21: TAG Valuation by CBRE 2013
TAG Valuation by CBRE 2013 21 21 Portfolio residential FINANCING 2012 2013 Assumptions/drivers 2012 2013 Fair Value per sqm EUR 760 EUR 740 Cap rate (%) 5.48 5.52 Discount rate (%) 6.18 6.16 Multiple (current rent) 14.2x 13.5x Administrative costs (EUR/unit) 201 205 Current maintenance (EUR/sqm) 7.9
Slide 22: TAG Stock market data H1 2014
TAG Stock market data H1 2014 22 22 High/Low (Jan/June 2014) EUR 9.65/ EUR 8.52 Shareholderstructure as of 06/30/2014 Number of shares SHAREHOLDER VALUE 131.312m Market capitalisation EUR 1.169.992 Stock indices MDAX/EPRA Free Float * 100% * Deutsche Börse definition including institutiona
Slide 23: TAG Outlook - Value enhancing asset management
TAG Outlook - Value enhancing asset management 23 23 Focus on residential property segment Continuously work the existing portfolio Dispose of the entirely commercial properties in Increase rents – rental growth 1% in H1 2014 OUTLOOK March 2014 – TAG still owns a 20% stake Reversionary rent po
Slide 24: TAG Outlook – Guidance 2014 - 2015
TAG Outlook – Guidance 2014 - 2015 24 24 Dividend (EUR) FFO I (EURm) OUTLOOK *estimate *estimate TAG Immobilien AG | H1 figures 2014
Slide 25: Appendix
APPENDIX 25 25 Growing Assets TAG Immobilien AG | H1 figures 2014
Slide 26: TAG Management Board
TAG Management Board 26 26 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 10 years in successive positions at Deutsche Kreditbank AG Setting up and
Slide 27: East Germany is catching up
East Germany is catching up… 27 27 …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
Slide 28: TAG Acquisitions 2011 – 2014
TAG Acquisitions 2011 – 2014 28 28 APPENDIX TAG Immobilien AG | H1 figures 2014
Slide 29: TAG Contacts
29 TAG Contacts 29 Rolf Elgeti Martin Thiel CEO CFO Fon: +49 40 380 32-202 Fon: +49 40 380 32-222 ir@tag-ag.com ir@tag-ag.com Dominique Mann TAG Immobilien AG Head of Investor & Public Relations Steckelhörn 5 Fon: +49 40 380 32-305 20457 Hamburg Fax: +49 40 380 32-388 Fon: +49 40 380 32-0 ir@tag-ag.