Tag Immobilien Ag · XETR:TEG
Tag Immobilien — Q2 2020 Earnings Presentation
38 slides from Tag Immobilien's earnings presentation, August 2020
Slide 1: Conference call presentation Q2 2020
Conference call presentation Q2 2020
Slide 2: Content
Content 22 I. TAG highlights H1 2020 3 II. TAG financials Q2 2020 6 III. TAG German portfolio Q2 2020 12 IV. TAG acquisitions Germany H1 2020 16 V. TAG German portfolio valuation H1 2020 18 VI. TAG Poland business update 20 VII. TAG Sustainability rating 22 VIII. TAG Guidance FY 2020 24 IX. Appendix
Slide 3: TAG highlights H1 2020
33 TAG highlights H1 2020 TAG Immobilien AG | August 2020 | 3
Slide 4: TAG highlights H1 2020
TAG highlights H1 2020 44 Q2 2020 Q1 2020 FY 2019 Q2 2019 Vacancy (residential units) 5.1% 4.9% 4.5%/ 4.6%* 5.2% Vacancy (total portfolio) 5.6% 5.3% 4.9% 5.6% Operational performance l-f-l rental growth y-o-y 1.4% 1.9% 1.9% 2.5% German portfolio l-f-l rental growth y-o-y (incl. vacancy reduc
Slide 5: TAG Covid business update
TAG Covid 19 business update 55 Voluntary waver From March until June 2020 no rent increases on the basis of adjustments to local comparative rents on rent No terminations due to loss of income caused by the Corona crisis and no evictions of inhabited apartments during this time increases until
Slide 6: TAG financials Q2 2020
66 TAG financials Q2 2020 TAG Immobilien AG | August 2020 | 6
Slide 7: TAG income statement
TAG income statement* 77 (in EURm) Q2 2020 Q1 2020 H1 2020 H1 2019 FY 2019 1 Increase in net actual rent of EUR 2.4m in H1 2020 y-o-y driven by net effect from portfolio acquisitions and from ongoing rental growth. Net actual rent** 1 80.0 79.6 159.7 157.3 315.0 2 Net rental income increased by EUR
Slide 8: TAG EBITDA, FFO and AFFO calculation
TAG EBITDA, FFO and AFFO calculation 88 (in EURm) Q2 2020 Q1 2020 H1 2020 H1 2019 FY 2019 1 For reasons of comparability to FY 2018 effects from first time Net income 180.7 32.1 212.8 233.7 456.4 application of IFRS 16 were eliminated in FFO in FY 2019. In line - Net income Poland 2.0 1.0 3.0 0.0 0.
Slide 9: TAG balance sheet
TAG balance sheet 99 (in EURm) 30 Jun-2020 31 Dec-2019 Non-current assets 5,586.2 5,301.5 1 EUR 262.3m higher investment properties is driven by EUR 172.4m total valuation Investment property 1 5,462.3 5,200.0 result, EUR 37.9m capex and first-time consolidation Vantage. Deferred tax assets 49.7 49.
Slide 10: TAG EPRA NTA calculation
TAG EPRA NTA calculation 10 10 EPRA Net Tangible Assets in EUR/share (in EURm) 30 Jun-2020 31 Dec-2019 Equity (without minorities) 2,419.4 2,342.6 + Effect from conversion of convertible bond 315.5 324.2 + Deferred taxes on investment properties and financial derivatives 543.4 492.8 + Fair value of
Slide 11: TAG financing structure
TAG financing structure 11 11 Debt structure as of 30 Jun-2020 Key financial KPIs as of 30 Jun-2020 Ø Maturity total financial debt 7.0 years 3.7% Ø Maturity bank loans 8.4 years 5.1% Ø Interest rate total financial debt 1.62% Debt volume Ø interest rate % fixed rates 9.4% Ø Interest rate bank loans
Slide 12: TAG German portfolio Q2 2020
12 12 TAG German portfolio Q2 2020 TAG Immobilien AG | August 2020 | 12
Slide 13: TAG German portfolio as of Jun-2020
TAG German portfolio as of 30 Jun-2020 13 13 Regionally focused and efficiently managed residential portfolio in Northern and Eastern Germany Portfolio as of 30 Jun-2020 31 Dec-2019 TAG is a leader in affordable housing in Northern and Eastern Number of units 85,500 84,510 Germany. Lettable area i
Slide 14: TAG German portfolio rental growth and capex allocation
TAG German portfolio rental growth and capex allocation 14 14 Rental growth achieved with moderate capex investments due to strong underlying fundamentals Rental growth achieved with moderate investments Maintenance & capex development (in EUR/sqm/year) 15.1 19.2 20.4 22.2 TAG creates attractive r
Slide 15: TAG German portfolio vacancy reduction residential units
TAG German portfolio vacancy reduction residential units 15 15 Strong track record of vacancy reduction due to TAG’s active asset management approach Acquisitions Vacancy rate 6.1% 5.9% +0.5% Acquisitions 5.7% 5.6% +0.3% 5.5% 5.3% 5.3% 5.2% 5.2% 5.2% Acquisitions +0.1% 5.1% 5.0% 4.9% 4.9% 4.8% 4.7%
Slide 16: TAG acquisitions Germany H1 2020
16 16 TAG acquisitions Germany H1 2020 TAG Immobilien AG | August 2020 | 16
Slide 17: TAG acquisitions Germany Jan–Aug 2020
TAG acquisitions Germany Jan–Aug 2020 17 17 Total* Signing 2020 Units 4,218 Bernburg Net actual rent 4.97 in EUR/sqm/month Vacancy 20.8% Purchase price in EURm 162.7 Net actual rent in EURm p.a. 11.1 Dessau Saxony, Thuringia, Saxony-Anhalt: Location Merseburg, Plauen, Gotha, Magdeburg, Dessau et.al.
Slide 18: TAG German portfolio valuation H1 2020
18 18 TAG German portfolio valuation H1 2020 TAG Immobilien AG | August 2020 | 18
Slide 19: TAG German portfolio valuation overview
TAG German portfolio valuation overview 19 19 Portfolio valuation result Development of gross yield 8.0% 7.1% 6.7% 6.5% 7.0% 6.3% 6.1% H1 2020 vs. H2 2019 H1 2020 H2 2019 5.9% 6.0% 174.0* 202.7 5.0% in EUR m 4.0% semi-annual valuation uplift (w/o capex) 3.3% 4.2% 3.0% 2.0% thereof from yield compr
Slide 20: TAG Poland business update
20 20 TAG Poland business update TAG Immobilien AG | August 2020 | 20
Slide 21: Poland overview current and planned projects
Poland overview current and planned projects 21 21 Unlocking superior returns by addressing the growing demand of the Polish residential-for-rent market Strategic rationale Current locations Against the backdrop of its strong macroeconomic and demographic growth, Poland is experiencing a structura
Slide 22: TAG Sustainability rating
22 22 TAG Sustainability rating TAG Immobilien AG | August 2020 | 22
Slide 23: TAG environmental, social and corporate governance
TAG environmental, social and corporate governance 23 23 TAG ranks among the top 5% of Sustainalytics ESG risk ratings in the real estate sector An impressive re-rating of ESG performance at Sustainalytics* From 2,405th to 306th out of 12,000 ratings PERCENTILE DISTRIBUTION 21st 3rd 100th 1st 2nd ES
Slide 24: TAG Guidance FY 2020
24 24 TAG Guidance FY 2020 TAG Immobilien AG | August 2020 | 24
Slide 25: TAG guidance FY 2020 (unchanged)
TAG guidance FY 2020 (unchanged) 25 25 FFO I +5% based on the current portfolio 168-170m (EUR) vs. 2019 (for purpose of the guidance no further acquisitions/disposals are included) Germany FFO I/s +5% based on 146.3m outstanding shares 1.16 (EUR) vs. 2019 DPS +5% equals 75% of FFO I (EUR) 0.87
Slide 26: Appendix
26 26 APPENDIX TAG Immobilien AG | August 2020 | 26
Slide 27: TAG German portfolio details by region
TAG German portfolio details by region 27 27 Region Units Rentable IFRS BV Gross Vacancy Vacancy Net actual Re-letting l-f-l rental l-f-l rental Mainte- Capex # area EURm yield Jun- Dec- rent rent growth growth nance EUR/sqm sqm Jun- 2020 2019* EUR/ sqm EUR/ y-o-y y-o-y incl. EUR/sqm 2020 sqm vacanc
Slide 28: TAG German portfolio vacancy reduction and rental growth
TAG German portfolio vacancy reduction and rental growth 28 28 Vacancy development H1 2020* l-f-l rental growth (y-o-y) H1 2020 APPENDIX Chemnitz 1.2% 2.3% Hamburg -0.2% from 4.2% to 4.0% Hamburg 1.2% 2.1% Erfurt from 2.9% to 3.1% +0.2% Gera 1.3% 2.1% Gera from 6.8% to 7.1% +0.3% Berlin 1.7% 1.1% Sa
Slide 29: TAG German portfolio valuation details
TAG German portfolio valuation details 29 29 Share of Jun-2020 Jun-2020 Jun-2020 operational Dec-2019 Dec-2019 Dec-2019 Region Jun-2020 Share of yield Fair value Fair value Implied performance/ Fair value Fair value Implied (in EURm) Valuation result compression (IFRS) (EUR/sqm) multiple other marke
Slide 30: TAG income statement details Germany and Poland
TAG income statement details Germany and Poland 30 30 Germany Poland Total Germany Poland Total Germany Poland Total (in EURm) Q2 2020 Q2 2020 H1 2020 Q1 2020 Q1 2020 Q1 2020 FY 2019 Q4 2019 FY 2019 APPENDIX Net actual rent* 80.0 0.0 159.7 79.7 0.0 79.6 315.0 0.0 315.0 Expenses from property -13.0 0
Slide 31: TAG EPRA NAV calculations
TAG EPRA NAV calculations 31 31 New EPRA metrics APPENDIX EPRA NAV EPRA NRV EPRA NTA EPRA NDV Net asset value Net reinstatement value Net tangible assets Net disposal value (in EURm) Q2 2020 Q2 2020 Q2 2020 Q2 2020 Equity (before minorities) 2,419.4 2,419.4 2,419.4 2,419.4 Effect from conversion of
Slide 32: TAG EPRA Earnings
TAG EPRA Earnings 32 32 (in EURm) Q2 2020 Q1 2020 H1 2020 H1 2019 FY 2019 Net income 180.7 32.1 212.8 233.7 456.4 Valuation result -173.3 0.9 -172.4 -211.4 -414.1 APPENDIX Deferred income taxes on valuation result 43.1 4.1 47.2 46.0 76.7 Net income from sales 0.0 1.4 1.4 -0.2 0.4 Cash taxes on net r
Slide 33: TAG cost of debt and LTV
TAG cost of debt and LTV 33 33 Cost of debt Ø in % LTV in % APPENDIX 3.45 3.15 62.7 57.1 2.34 1.92 52.3 47.3 1.73 1.62 44.8 44.9 31 Dec- 31 Dec- 31 Dec- 31 Dec- 31 Dec- 30 Jun- 31 Dec- 31 Dec- 31 Dec- 31 Dec- 31 Dec- 30 Jun- 2015 2016 2017 2018 2019 2020 2015 2016 2017 2018 2019 2020 Continuous re
Slide 34: TAG strong development of financing metrics
TAG strong development of financing metrics 34 34 ICR Net financial debt/ EBITDA adjusted Net financial debt in EUR/ sqm APPENDIX 475 453 460 450 445 449 5.2 13.4 4.7 12.5 3.8 11.3 11.4 3.0 11.2 10.9 2.3 1.9 2015 2016 2017 2018 2019 H1 2020 2015 2016 2017 2018 2019 H1 2020 2015 2016 2017 2018 2019 3
Slide 35: TAG LTV calculation
TAG LTV calculation 35 35 APPENDIX (in EURm) 30 Jun-2020 31 Dec-2019 31 Dec-2018 Non-current and current liabilities to banks 2,001.4 1,901.2 1,855.5 Non-current and current liabilities from corporate bonds and other loans 515.1 403.0 285.8 Non-current and current liabilities from convertible bonds
Slide 36: TAG interest coverage ratio (ICR) calculation
TAG interest coverage ratio (ICR) calculation 36 36 (in EURm) Q2 2020 Q1 2020 H1 2020 H1 2019 FY 2019 APPENDIX + Interest income 9.1 0.8 9.9 0.2 0.5 - Interest expenses -12.8 -12.8 -25.6 -32.5 -79.4 + Other financial result 1.2 0.2 1.4 0.4 1.4 = Net financial result -2.5 -11.8 -14.3 -31.9 -77.6 + Fi
Slide 37: TAG share data
TAG share data 37 37 Shareholder structure as of 30 Jun-2020 Share information as of 30 Jun-2020 APPENDIX Market cap EUR 3.1bn 9.9% MFS (Massachusetts Financial Services Company), USA NOSH issued 146.5m 9.9% 9.6% The Capital Group Companies Inc., USA NOSH outstanding 146.2m 9.6% 5.8% BlackRock Inc.,
Slide 38: TAG contacts
TAG contacts 38 38 Martin Thiel Dominique Mann TAG Immobilien AG CFO Head of Investor & Public Relations Steckelhörn 5 Phone: +49 40 380 32-305 Phone: +49 40 380 32-305 20457 Hamburg Fax: +49 40 380 32-388 Fax: +49 40 380 32-388 Phone: +49 40 380 32-0 Fax: +49 40 380 32-388 ir@tag-ag.com ir@tag-ag.c