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Patrizia — PATRIZIA Immobilien — Investor Presentation (October 2015)

49 slides from Patrizia's investor presentation, October 2015

  1. Slide 1: PATRIZIA Immobilien AG – Business Model and Financials

    PATRIZIA Immobilien AG A leading real estate investment house in Europe Business Model and Financials October 2015 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

  2. Slide 2: PATRIZIA | A Leading Fund and Investment Manager

    PATRIZIA | A Leading Fund and Investment Manager PATRIZIA IS …  Rank 1 in the Feri EuroRating (Real Estate Study 2014/2015) as the asset manager with the highest market position and potential  Already one of the world's top 50 real estate investment/asset managers (Institutional Real Estate 2014)

  3. Slide 3: Agenda

    Agenda  BUSINESS MODEL  FINANCIALS  OUTLOOK 2015  PATRIZIA SHARE  FINANCIAL CALENDAR AND CONTACT DETAILS PATRIZIA Immobilien AG| © 2015 3

  4. Slide 4: Founder-Led and Independent of Banks since 1984

    PATRIZIA − Founder-led and Independent of Banks since 1984 ASSETS UNDER MANAGEMENT (IN EUR BILLION) As of 30 June 2015  Founded in 1984 by Wolfgang Egger, who still leads the company as CEO with entrepreneurial spirit 18 16.8 17 16  PATRIZIA is a real estate investment company, i.e. a real estate

  5. Slide 5: Business Model “Real Estate Investment House”

    Business Model “Real Estate Investment House“ DIRECT ACCESS TO EQUITY AND PROPERTIES SERVICE FEES REMAIN WITH PATRIZIA WITHOUT INTERMEDIARIES Advisory of reinvestment Research 189 Investors options & analysis Product develop- ment & identifying Realisation / investment targets cash inflow and invest

  6. Slide 6: Growth of PATRIZIA since 2007

    Growth of PATRIZIA since 2007 ASSETS UNDER MANAGEMENT (IN EUR BILLION) – BASIS FOR RECURRING INCOME NET GROWTH OF EUR 2.8BN IN 2014 16.8  EUR 3.4bn acquisitions ≥ 16.6  EUR 0.7bn sales 14.6  EUR 4.1bn fee generating transactions 11.8 7.9 Growth of another EUR 2bn in 2015 again (sale of SÜDEWO led

  7. Slide 7: Asset Allocation of Funds and Co-Investments

    Asset Allocation of Funds and Co-Investments Capital Commitments Investor Domicile by Equity Commitment by Investor Type in Business Volume 8% 7% 6% 36% 21% 92% 30% Pension funds National institutional investors Saving banks International institutional investors Insurances Banks, Endowments and Corp

  8. Slide 8: Asset Allocation of PATRIZIA, Funds and Co-Investments

    Asset Allocation of PATRIZIA, Funds and Co-Investments Geographical Footprint Sectors1 * of Assets1 2% 2% 1% 2% 4% 9% 10% 5% 49% 73% 5% 2% 6% 30% Germany BeNeLux Residential Logistics UK & Ireland France Office Hotel Nordics Other Retail Health GROWTH EXPECTATIONS Light Industrial Other Residential:

  9. Slide 9: German Insurances are increasing their Real Estate Quota

    German Insurances are increasing their Real Estate Quota REAL ESTATE INVESTMENTS ENSURE LONG-TERM Property share of total assets in % GUARANTEE COMMITMENTS DESPITE LOWER RATE OF RETURN ON INVESTMENTS 7.3 7.6 8.2 7.0 6.0 6.1 6.1 6.3  Real estate assets per insurance company on average  2015: EUR 2.

  10. Slide 10: Portfolio Transactions > EUR 100m since 2012 – Acquisitions (I)

    Portfolio Transactions > EUR 100m since 2012 – Acquisitions (I) NAME LOCATION DESCRIPTION ASSET CLASS DEAL TYPE DEAL VOLUME EQUITY RAISED CLOSING 31,900 units in the GBW GmbH D Residential Co-Investment EUR 2.5bn EUR 1.1bn 05/2013 federal state of Bavaria Acquisition of 21,000 Süddeutsche Wohnen uni

  11. Slide 11: Portfolio Transactions > EUR 100m since 2012 – Acquisitions (II)

    Portfolio Transactions > EUR 100m since 2012 – Acquisitions (II) NAME LOCATION DESCRIPTION ASSET CLASS DEAL TYPE DEAL VOLUME EQUITY RAISED CLOSING supermarket portfolio Basket D Commercial Co-Investment EUR 286m EUR 152m 03/2015 with 107 retail properties Building with 20 high-street Galleri K DNK C

  12. Slide 12: Portfolio Transactions since 2012 – Disposals

    Portfolio Transactions since 2012 – Disposals NAME LOCATION DESCRIPTION ASSET CLASS DEAL TYPE DEAL VOLUME CLOSING Süddeutsche Wohnen Sale of 19,800 units to DE Residential Co-Investment EUR 1.9bn 07/2015 GmbH – “SÜDEWO” Deutsche Annington SE TOTAL EUR 1.9bn  Out of the sale of SÜDEWO, PATRIZIA will

  13. Slide 13: How does PATRIZIA manage the Deals?

    How does PATRIZIA manage the Deals? Single assets and portfolios can be acquired through a bidding process or an off-market deal EQUITY COMMITMENT BY THE INVESTOR Research-based concept with predefined investment criteria, usually acquisition of single assets ACQUISITION PROCESS Fund First due (Yes)

  14. Slide 14: Further Company Data

    Further Company Data ASSETS UNDER MANAGEMENT (IN EUR BILLION) EMPLOYEES 16.8  Increasing assets under management require to 14.6 11.8 4.6 strengthen local teams 3.9  800 staff (777 FTE), incl. 37 trainees 2.5 6.9  4 employees covering logistics from 09/2015 (NL) 5.2 1.7 10.7 12.2 2.7 1.5 9.3 0.1

  15. Slide 15: Income Structure – Service Business

    Income Structure – Service Business GROWING AUM REDUCE DEPENDENCY ON TRANSACTIONAL INCOME OVER TIME  Same fee basis for co-investments and funds  Management services generated revenues of EUR 54.5m in H1 2015, thereof EUR 26.2m out of co-investments and EUR 28.3m from third parties  The regular i

  16. Slide 16: Sources of Income – Service Business Revenues

    Sources of Income* – Service Business Revenues Fee structure Fee describtion Fees H1 2015 H1 2014 2014 Remuneration for Fixed percentage of the purchase costs of Acquisition Fee providing investment single assets or portfolios at the time of EUR 10.2m EUR 18.8m EUR 34.5m opportunities acquisition Re

  17. Slide 17: Service Business in Detail – How we earn Fees

    Service Business in Detail – How we earn Fees SERVICE REVENUES BY FEE STREAM SERVICE FEES BY BUSINESS UNIT  Asset- and Fund Management Fees 106.3  Co-Investments 106.3  Acquisition Fees 2.7  Third Parties  Sales Fees 10.7  Others  Performance Fees 17.7 67.8 54.5 0.6 34.5 54.5 49.0 49.0 6.9 5.

  18. Slide 18: Third Party Business – German Spezialfonds

    Third Party Business – German "Spezialfonds" INVESTMENT MANAGEMENT COMPANIES OFFER SPECIAL FUNDS  Same fee basis for co-investments and funds  Investors are savings banks, insurance companies, pension funds RESIDENTIAL: PATRIZIA WOHNINVEST KVG, AUGSBURG  Founded and built up by PATRIZIA since 200

  19. Slide 19: Third Party Business (I)

    Third Party Business (I) PATRIZIA IS DOING THE ENTIRE MANAGEMENT UK – ACQUISITION OF MADAME TUSSAUDS  Closing expected in Q3 2015  PATRIZIA acted as investment manager for Fubon Life, a Taiwanese insurance company  Purchase price: GBP 332.5m (EUR 466m) GERMANY – "HESSEN PORTFOLIO" (LEO II) GERMAN

  20. Slide 20: Third Party Business (II) – PATRIZIA GrundInvest KVG

    Third Party Business (II) PATRIZIA GRUNDINVEST KVG CLOSED-END REAL ESTATE FUNDS FOR PRIVATE INVESTORS  Characteristics  Acquisition of assets with a value between EUR 50 to 150m that neither meet the requirements of the special funds nor of the co-investments  Minimum investment of EUR 15,000  E

  21. Slide 21: The Strategy of Co-Investments

    The Strategy of Co-Investments SIGNIFICANT INCREASE OF INVESTMENT VOLUME  In addition to funds in which PATRIZIA has no equity stake of its own, we offer co-investments with an own stake of up to 10% (participating interest depends on the investment and partners)  With its existing equity PATRIZIA

  22. Slide 22: PATRIZIA Capital Allocation

    PATRIZIA Capital Allocation IN EUR MILLION, AS OF 30.06.2015 ASSETS UNDER MANAGEMENT INVESTMENT CAPITAL PARTICIPATION IN % THIRD PARTIES 7,899 ‒ 0 CO-INVESTMENTS 7,697 190.2 RESIDENTIAL 5,993 148.1 GBW GmbH 2,910 55.7 5.1 Now free equity Süddeutsche Wohnen GmbH 1,610 15.0 due to sale of 2.5 WohnModu

  23. Slide 23: Co-Investments – WohnModul I

    Co-Investments – WohnModul I WOHNMODUL I SICAV-FIS RESIDENTIAL / COMMERCIAL / REAL ESTATE DEVELOPMENTS  balanced as at-equity participation Strategy  Acquisition of real estate developments and residential or commercial real estate  Asset, property and portfolio management done by PATRIZIA  Sale

  24. Slide 24: Co-Investments – WohnModul I

    Co-Investments – WohnModul I LAST DEALS DETAILS CLOSING LOCATION - Acquisition of a supermarket portfolio “Basket” - 107 retail properties located throughout Germany 03/2015 Germany - Purchase price: EUR 286m - Acquisition of new construction projects (buy to long- “Royal”, “Valby”, “Fredericiagade”

  25. Slide 25: Co-Investments Germany – Residential

    Co-Investments Germany – Residential SÜDDEUTSCHE WOHNEN GMBH GBW GMBH PATRIZIA WINS BID FOR BAYERNLB’ SHARES IN GBW SOLD TO DEUTSCHE ANNINGTON SE  Gross purchase price: EUR 2.453bn  Acquired in 03/2012 from LBBW; gross purchase  PATRIZIA holds EUR 55.7m in equity (5.1% share), price of EUR 1.4bn

  26. Slide 26: Income from Co-Investments – H1 2015 vs. FY 2014

    Income from Co-Investments – H1 2015 vs. FY 2014 THE CO-INVESTMENT BUSINESS IN THE P&L  The acquisition fee, asset management fee and “normal” performance fee is accounted in the P&L in the Revenues item  SÜDEWO, GBW and Seneca (formerly DEIKON) are accounted in the P&L item “Income from participa

  27. Slide 27: Co-Investments Germany – Commercial

    Co-Investments Germany – Commercial PATROFFICE SENECA (FORMERLY DEIKON) FIRST PATRIZIA CO-INVESTMENT ACQUISITION OF A PORTFOLIO OF 85 GERMAN RETAIL PROPERTIES  Founded in 2007  Closing of the deal in December 2013  Investment in German real estate, mixed use  Gross purchase price of EUR 189m pro

  28. Slide 28: Co-Investments UK – Commercial

    Co-Investments UK – Commercial PATRIZIA IS DOING THE ENTIRE MANAGEMENT REALISED WITH OAKTREE CAPITAL MANAGEMENT, L.P. AS PARTNER CO-INVESTMENT DETAILS CLOSING PATRIZIA‘s STAKE - Acquisition of a commercial portfolio - 24 properties located throughout the UK in the office, industry Citruz Holdings LP

  29. Slide 29: Bridge Investments

    Bridge Investments ACTUALLY BALANCED AS BRIDGE INVESTMENTS  “Harald”  “Manchester First Street” CHARACTERISTICS  Short-term investments on the own balance sheet  Balanced as “inventories”  PATRIZIA is responsible for accounting, controlling, etc. and takes over the “holding functions”  PATRIZI

  30. Slide 30: Bridge Investment – Manchester

    Bridge Investment – Manchester PATRIZIA’S FIRST INVESTMENT IN THE UK PRIVATE RENTAL SECTOR (‘PRS’)  Closing of the deal on 30 June 2015  Purchase price: approx. GBP 100m (EUR 140m)  80,000 sqm mixed use site with:  Melia-Innside-Hotel (208 beds), nine bar and restaurant units, 700 carpark spaces

  31. Slide 31: Bridge Investment – Harald

    Bridge Investment – Harald UNIQUE OFF-MARKET TRANSACTION  Acquisition of the Swedish real estate fund “Hyresbostäder i Sverige III Gul AB” via a voluntary public offer  Portfolio with13,600 residential units in Germany and 630 in Sweden  Gross asset value approx. EUR 900m  Sale of the whole port

  32. Slide 32: Own Portfolio

    Own Portfolio SALE OF PATRIZIA‘S OWN PORTFOLIO UNTIL YEAR-END 2015 TARGET 2015  approx. 150 units left, that implies 930 units to be sold H1 2015 ACTUAL VALUES  sale of 272 units  804 units left  sale of approx. 12,000 units from 2007-2014 UNITS UNITS REGION/ CITY 30.06.15 SHARE 31.12.07 SHARE C

  33. Slide 33: Loan Development influenced by Bridge Investments

    Loan Development influenced by Bridge Investments BANK LOANS VS. EQUITY RATIO  Financing via bank loans at property/portfolio level, bonded loans on corporate level  Free of debt in the field of financing own 100% investments till year end; liberated equity can be reinvested in new co-investments

  34. Slide 34: Net Asset Value

    Net Asset Value NAV / INVESTMENTS SEGMENT SHOULD REPRESENT ONLY 20% OF THE OPERATING RESULT FOR 2015  Investment property and inventories were sold in H1 2015 at a profit with a gross margin of 10.2% and 8.7% respectively, thus confirming the value retention of the properties  The whole service bu

  35. Slide 35: Agenda

    Agenda  BUSINESS MODEL  FINANCIALS  OUTLOOK 2015  PATRIZIA SHARE  FINANCIAL CALENDAR AND CONTACT DETAILS PATRIZIA Immobilien AG| © 2015 35

  36. Slide 36: Development of the Operating Result

    Development of the Operating Result OPERATING RESULT  IFRS EBT without valuation items  New forecast: combined operating result for 2015 and 2016 of at least EUR 200m, split into the single fiscal years will be provided on 12 November 2015 At least 50.2 200m 43.9 38.1 28.8 4.0 2.7 16.8 12.4 2008 2

  37. Slide 37: Development of IFRS Figures

    Development of IFRS Figures EBT CONSOLIDATED ANNUAL PROFIT/LOSS Earnings before income taxes: EUR 11.6m in H1 2015 Net profit for the period: EUR 10.1m in H1 2015 (H1 2014: EUR 15.2m) (H1 2014: EUR 15.3m) 39.6 42.0 37.2 35.0 10.1 8.0 11.5 28.6 11.6 25.5 19.9 6.2 13.5 -32.4 -9.5 -34.1 2008 2009 2010

  38. Slide 38: Staff Costs

    Staff Costs NUMBER OF EMPLOYEES REMAINED CONSTANT SINCE THE END OF MARCH 2015  Increase in staff costs by 22.8% to EUR 43.5m (H1 2014: EUR 35.4m) due to new appointments (+10% FTE y-o-y) and salary adjustments in line with market trends  EUR -3.2m effect from provisions for long-term variable comp

  39. Slide 39: P&L

    P&L EUR'000 Q2 2015 Q2 2014 H1 2015 H1 2014 Revenues 55,525 37,601 102,807 84,649 Income from the sale of investment property 1,383 2,067 2,969 5,512 Changes in inventories -14,540 1,494 -22,219 5,178 Other operating income 5,945 2,636 7,079 3,860 Income from the deconsolidation of subsidiaries 5,27

  40. Slide 40: Balance Sheet

    Balance Sheet ASSETS EQUITY AND LIABILITIES EUR'000 30.06.2015 31.12.2014 EUR'000 30.06.2015 31.12.2014 A. Non-current assets A. Equity Goodwill 610 610 Share capital 69,385 69,385 Other intangible assets 38,417 39,407 Capital reserve 198,576 198,576 Software 10,229 10,795 Retained earnings Investme

  41. Slide 41: Agenda

    Agenda  BUSINESS MODEL  FINANCIALS  OUTLOOK 2015  PATRIZIA SHARE  FINANCIAL CALENDAR AND CONTACT DETAILS PATRIZIA Immobilien AG| © 2015 41

  42. Slide 42: Outlook 2015

    Outlook 2015 UPDATE ON THE EXPECTED DEVELOPMENTS – WE ARE FULLY ON TRACK TARGETS 2015 new forecast: combined operating result for 2015 and 2016 OPERATING RESULT of at least EUR 200m  Split will be specified with the Q3/2015 figures growth of EUR 2bn remains valid, despite the sale of ASSETS UNDER M

  43. Slide 43: Agenda

    Agenda  BUSINESS MODEL  FINANCIALS  OUTLOOK 2015  PATRIZIA SHARE  FINANCIAL CALENDAR AND CONTACT DETAILS PATRIZIA Immobilien AG| © 2015 43

  44. Slide 44: PATRIZIA Share

    PATRIZIA Share PATRIZIA SHARE AT A GLANCE SHARE PRICE JAN-AUG 2015: +72%* DE000PAT1AG3, ISIN, SIN (Security Identification Number) PAT1AG 24 € Code P1Z 22 € No. of shares in issue (since 19 August) 76,323,533 20 € H1 2015 high*/ low* EUR 22.41 / EUR 12.48 18 € Closing price as at 30 June 2015* EUR 2

  45. Slide 45: Top Holders by Position

    Top Holders by Position SOURCE: BLOOMBERG, AUGUST 2015 5% 10% 1% Country Holder Name Position Percent Outstanding Germany First Capital Partner (Wolfgang Egger, CEO) 35,813,177 51.62 Germany Union Investment 2,130,120 3.07 10% USA WA Holdings, Inc., USA (Wasatch) 2,109,409 3.04 Sweden SEB 1,732,993

  46. Slide 46: PATRIZIA Market Capitalisation

    PATRIZIA Market Capitalisation PROPER BALANCE BETWEEN FINANCIAL SOUNDNESS AND SHAREHOLDER REQUIREMENTS  No dividend payment: cash stays within the company for new investments  Issue of bonus shares in 2012, 2013, 2014, and 2015, each with a capital increase of 10% from company funds (i.e. without

  47. Slide 47: Agenda

    Agenda  BUSINESS MODEL  FINANCIALS  OUTLOOK 2015  PATRIZIA SHARE  FINANCIAL CALENDAR AND CONTACT DETAILS PATRIZIA Immobilien AG| © 2015 47

  48. Slide 48: Financial Calendar, Conferences and Roadshows

    Financial Calendar, Conferences and Roadshows 2015 November 12  Interim report for the first nine months of 2015 17-19  Roadshow with Berenberg Bank, Amsterdam, Brussels and Paris 24  Commerzbank German Commercial Property Forum, London 30  13th Berenberg European Conference, London 2016 March 1

  49. Slide 49: 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

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