Tag Immobilien Ag · XETR:TEG
Tag Immobilien — Q1 2012 Earnings Presentation
28 slides from Tag Immobilien's earnings presentation, 2012
Slide 1: TAG Immobilien AG Q1 2012
TAG Immobilien AG Q1 - 2012 Q1-Q3 2011 TAG I 1
Slide 2: Content
Content I. Highlights Q1-2012/ Guidance 2012 including DKBI page 3-6 II. TAG Portfolio Q1-2012/2011 page 7-16 III. TAG Group financials Q1-2012 page 17-19 IV. TAG Share Q1-2012 page 20 V. TAG Acquisitions 2011-2012 page 21-22 Appendix page 23 23-28 28 TAG I 2
Slide 3: Highlights Q1 2012 figures, New Guidance 2012
Highlights Q1 2012 figures New Guidance in 2012 • Rental income of EUR 34.4m EBT raised i d tto EUR 140 140m from f EUR 75 75m • Rental profit of EUR 26.1m • EBT of EUR 93.4m FFO raised to EUR 40m from EUR 27m • FFO of EUR 5.6m Ov verview • Net gains from first time consolidation DKBI EUR 83.1m • Ta
Slide 4: FFO Q1 2012
FFO Q1 - 2012 EBT 93,417 Adjustment for non‐cash items Valuation result ‐6,798 Gains from first‐time consolidation of DKBI ‐83,120 Depreciation 376 Ov p Impairment losses on receivables and inventories 1,266 , verview Non‐cash expenses 459 ‐87,817 FFO 5 600 5,600 Plus liquidity from sales 12,835 FFO
Slide 5: TAG investment case after the DKBI acquisition
TAG investment case after the DKBI acquisition I. Solid financing structure • L Loan V l 63% (former t Value to (f 59%) 59%), average loan l maturity 7 3 years (5.4) t it off 7.3 (5 4) • 10 year DKB financing of EUR 680m plus EUR 120m other debt II. Team with high expertise; low low-cost cost intern
Slide 6: Acquisition 2012 – DKBI Portfolio
Acquisition 2012 – DKBI Portfolio History of the portfolio 1995 DKB IImmobilien bili was ffounded d d 2007 DKB and GBW legally separated Saxony- Anhalt Mecklenburg- 8% Vorpommern Ov 9% Thuringia g verview 50% 85% refurbished Saxony 9% newly built 15% 6% unrefurbished 15% conventional buildings 60% p
Slide 7: Combined portfolio Q1 2012
Portfolio combined Q1-2012 Q1 2012 TAG DKBI Combined Units 32,179 25,100 57,279 Floor Area sqm 2,338,540 1,490,000 3,828,540 Real Estate Volume TEUR 2 008 880 1,052,000 2,008,880 1 052 000 2,559,000 2 559 000 Rental income in TEUR* 137.770 73,000 210,770 Vacancy % 10.9 11.3 11.0 Net Actual Rent EUR/
Slide 8: Real estate volume and rental income per segment
Portfolio combined Q1-2012 Q1 2012 Real estate volume Rental income per segment Volumen in EUR million in EUR million 210 200 3,062 73 3000 150 2500 1,052 115 1,969 2000 Po 100 109 ortfolio 1500 1,535 87 318 12.8 1,502 978 46 52 1000 770 50 479 26 452 21 500 318 499 479 475 25 26 28 28 0 0 12/31/09
Slide 9: Why we have grown: net rental profit outpacing interest costs
Whyy we have ggrown: Net rental profit p outpacing p g interest costs also resulting in higher margins • Cash flow from EUR -36m 2009: in EUR million • TAG EUR -17m17 • Colonia EUR -15m 80 • Francono EUR -4m 79 in positive territory in 2011: 70 +126% EUR +4m 60 • Portfolio growth from 2009: 4,000 un
Slide 10: TAG residential as of 12/31/2011
Portfolio TAG residential as of 12/31/2011 Po ortfolio TAG I 10
Slide 11: 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) • From Co
Slide 12: 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 g y attracting increasingly gppeople p Po ortfolio • Building substance not good as in the re
Slide 13: 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 centre as well in the outskirts as long as the relative value is right • In 2011 TAG bought for over 9% gross yield in Berlin Po ortfolio 10,000 units as of J
Slide 14: Residential by region - Saxony/Leipzig
Portfolio residential by region – Saxony/Leipzig Po ortfolio • Average asset rent: EUR 4.47 • Very attractive concentration of B cities between Leipzig and • Number of accommodation Dresden. units: 2,497 • Good infrastructure, good demographics (again) and strong • 8% of the residential portfolio ec
Slide 15: Residential by region - Salzgitter
Portfolio residential by region - Salzgitter Vacancy reduction • Overall vacancy in Salzgitter: 10% • V Vacancy iin our portfolio tf li 21 21.7% 7% (f (from 24 24.4%) 4%) • We are in above-average location • 2,000 units are missing for elderly tenants • Chances/angles for marketing: - having h i ad
Slide 16: 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 Po ortfolio • Düsseldorf, Leverkusen • Dortmund, Köln • Siegburg, Moers
Slide 17: Group financials (IFRS): consolidated balance sheet
Group financials (IFRS) Consolidated balance sheet (in EUR m) 12/31/2011 3/31/2012 2,048 2,048 3,220 3,220 219 204 2000 3000 811 2,956 595 2500 1600 1,922 Group 1,985 2000 p finanicals 1 208 1,208 1200 1500 800 1000 400 500 264 424 245 126 0 0 Assets Liabilities Assets Liabilities Non-current assets
Slide 18: Financial structure
Financial structure Bank borrowings Loan to Value / Equity ratio in EUR m in % 1800 70 1600 1.732 60 Financiial structure 62.7 1400 50 58.5 1200 52.9 1000 40 1.017 800 30 29 9 29.9 e 600 26.7 20 400 523.5 23.8 10 200 259.6 124.1 172,6 0 0 12/31/2010 12/31/2011 03/31/2012 12/31/2010 12/31/2011 03/31/
Slide 19: Financial structure - debt maturity improved
Financial structure - debt maturity y improved p Debt structure at Q1 2012 in EUR million •EUR 2,006m 550 •28 German Banks 450 •7.3 years ø maturity 350 Financiial structure •Interest costs of 4.0% 528 250 150 150 263 216 156 180 143 130 122 50 e 56 34 15 19 -50 2012 2013 2014 2015 2016 2017 2018 20
Slide 20: Stock market data TAG as of Q1/2012
Stock market data TAG as of Q1/2012 High/Low (Q1 2012) EUR 6.99/EUR 5.77 Shareholder structure Ruffer LLP, UK* 18% Number of shares 96 428m 96.428m IP Concept, Flossbach von Storch SICAV, L* 10% Market capitalisation EUR 666m Taube Hodson Stonex, UK* 5% Stock exchange SDAX/EPRA Threadneedle, UK* 5%
Slide 21: Acquisition 2011-2012
Acquisition 2011-2012 2011 2012 Acquisitions TAG I 21
Slide 22: Acquisition 2011-2012
Acquisition 2011-2012 2011 2012 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 Acquisi
Slide 23: Appendix
Appendix Markets, Commercial TAG I
Slide 24: Markets in key Eastern German cities have improved
Markets in key y Eastern German cities have improved p • Purchase power, population and employment have Market rents (EUR per sqm) improved since 2006 4.0 7.0 Magdeburg 3.5 6.1 • Average population growth of 4.2% expected for 40 4.0 58 5.8 Dresden, Erfurt, Jena, Leipzig, Potsdam and Weimar Leipzig 3
Slide 25: Commercial
Portfolio commercial 12/31/2009 12/31/2010 12/31/2011 • sqm total 342,911 sqm 335,686 sqm 348,403 sqm • sqm rental 324,971 sqm 323,063 sqm 319,940 sqm • current rental p.a. net of charged costs (EUR m) 26.6 26,0 28.8 • current rental net of charged costs (EUR/sqm) 6.81 6.70 7.51 • vacancy 5.2% 3.8%
Slide 26: 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 27: Contacts
Contacts TAG Immobilien AG g Rolf Elgeti CEO Steckelhörn 5 Telefon: +49 40 380 32-307 20457 Hamburg Telefax: +49 40 380 32-388 ir@tag-ag.com @ g g Telefon: +49 40 380 32-0 Telefax: +49 40 380 32-388 Britta Lackenbauer/ Dominique Mann www.tag-ag.com Ap Investor & Public Relations ppendix info@tag-ag.
Slide 28: 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