Tag Immobilien Ag · XETR:TEG

Tag Immobilien — Q1 2015 Earnings Presentation

32 slides from Tag Immobilien's earnings presentation, Jul 5, 2015

  1. Slide 1: Company presentation Q1 2015 Figures

    Company presentation Q1 2015 Figures

  2. Slide 2: Content

    Content 22 CONTENT I. TAG highlights Q1 2015 3 II. TAG financials Q1 2015 5 III. TAG portfolio and platform 11 IV. TAG acquisitions and disposals 16 V. TAG strategy and outlook 20 VI. Appendix 23  Capex and maintenance  Valuation  Capital markets heads-up  Bonds and convertibles  Management Boa

  3. Slide 3: TAG highlights Q1 2015

    33 TAG highlights Q1 2015 TAG Immobilien AG | Q1 2015

  4. Slide 4: TAG highlights Q1 2015

    TAG highlights Q1 2015 44  Overview of financial metrics  Sales residential (Berlin signed April 2015) HIGHLIGHTS  Rental income: EUR 64.1m (EUR 64.5m in Q4 2014)  Units: approx. 970  Net rental income: EUR 52.7m (EUR 51.4m in Q4 2014)  Sales price: EUR 59.8m  FFO I: EUR 18.1m (EUR 18.2m in Q

  5. Slide 5: TAG financials Q1 2015

    55 TAG financials Q1 2015 TAG Immobilien AG | Q1 2015

  6. Slide 6: TAG income statement (IFRS)

    TAG income statement (IFRS) 66  Rental income slighlty decreased due to portfolio (in EUR millions) Q1 2015 Q4 2014 FY 2014 sales closed in Dec. 2014. New acquisitions (2,850 INCOME STATEMENT Rental income  64.1 64.5 257.4 units) only effective as of Feb. 2015 Expenses from property management -11

  7. Slide 7: TAG FFO calculation

    TAG FFO calculation 77 (in EUR millions) Q1 2015 Q4 2014 FY 2014 Net income 28.0 -34.5 29.0 FFO development Q1 2015 compared to Q4 2014: FFO + Taxes 6.3 34.7 54.1 + Net financial result 24.7 34.9 118.0 EBIT 59.0 35.2 201.1  FFO I nearly unchanged in comparison to - Net financial result (cash, after

  8. Slide 8: TAG balance sheet (IFRS)

    TAG balance sheet (IFRS) 88 (in EUR millions) 31-March-2015 31-Dec-2014 BALANCE SHEET Non-current assets 3,558.3 3,421.6  Change Q1 2015 vs. Q4 2014 refers to Investment property  3,471.3  3,331.6 acquisitions (EUR 137.4m), Capex (EUR Other financial assets 12.7 12.7 6.8m) and sales (EUR -6.1m) O

  9. Slide 9: TAG NAV calculation

    TAG NAV calculation 99 31- March- 31-Dec- (in EUR millions) 2015 2014 NAV per share development Q1 2015 compared to NAV Q4 2014: Equity (without minorities) 1,026.4 979.5 + Deferred taxes on investment properties and 217.2 211.3  Approx. EUR 0.23 increase due to net income of financial derivatives

  10. Slide 10: TAG debt financing structure

    TAG debt financing structure 10 10 Debt maturity profile as of 31-March-2015 in EUR millions Interest rates and maturities Current Average Maturity/ Average amount interest Refinancing interest rate FINANCING STRUCTURE rate in the next (refinancing 3 years in the next (in EUR millions) 3 years) In €

  11. Slide 11: TAG portfolio and platform

    11 11 TAG portfolio and platform TAG Immobilien AG | Q1 2015

  12. Slide 12: TAG portfolio in total as of 31-March-2015

    TAG portfolio in total as of 31-March-2015 12 12  Growth in recent years and disposal of commercial portfolio has PORTFOLIO / PLATFORM triggered the need for an update of geographic portfolio regions  Geographic regions in accordance with decentralized management clusters and strategic relevance 

  13. Slide 13: TAG platform efficiency

    TAG platform efficiency 13 13 TAG runs the most efficient Property and Asset Management platform in the sector, which still offers capacity for future acquisitions PORTFOLIO / PLATFORM FTE / 1,000 units  De-centralized organization  Currently, LIMs (“Leiter Immobilien-Management”/Head of Real Esta

  14. Slide 14: TAG de-centralized management structure

    TAG de-centralized management structure 14 14 Strategic PORTFOLIO / PLATFORM Portfolio Acquisitions / Central Shared Service centralized functions FM Services Management / Sales Procurement Center Marketing  Definition of portfolio, location and property management concepts and standards  Support

  15. Slide 15: TAG portfolio in total – Q1 2015 by region

    TAG portfolio in total – Q1 2015 by region 15 15 Region Units IFRS BV In-place Vacancy Vacancy Vacancy Net in- Net in- Net in- Re- L-f-l Mainte- Capex Comments yield 2014 place place place letting rental nance incl. rent rent rent rent growth Q1 2015 Acqui- 2014 EUR / 2014 2014 EUR / y-o-y EUR / EUR

  16. Slide 16: TAG acquisitions and disposals

    16 16 TAG acquisitions and disposals TAG Immobilien AG | Q1 2015

  17. Slide 17: TAG acquisitions 2014

    TAG acquisitions 2014 17 17 Thuringia Saxony North/East Others Total Signing Feb. 2014 Sep. 2014 Germany Aug./Nov. 2014 Nov. 2014 2014 DISPOSALS & ACQUISITIONS Units 4,000 1,500 2,300 1,100 8,900 Floor area in sqm 236,000 85,400 150,200 68,500 540,100 Net rental 5.24 5.20 5.22 --- --- EUR/sqm/month

  18. Slide 18: TAG disposals 2014/2015

    TAG disposals 2014/2015 18 18 Berlin Berlin Others Total Berlin (Marzahn) (Staaken et al.) 2014 2014 Apr. 2015 DISPOSALS & ACQUISITIONS Nov. 2014 Dec. 2014 Units 2,600 900 600 4,100 970 Net rental 4.89 4.97-7.53 --- --- 5.26 EUR/sqm/month Net actual rent p.a. 9.4 4.1 0.9 14.4 3.5 EURm Berlin (Staake

  19. Slide 19: TAG capital recycling in 2014

    TAG capital recycling in 2014 19 19 TAG constantly analyzes regional markets and its portfolio to determine the best point in time to realize highest value by targeted disposals disposals acquisitions Sale of residential portfolios  High priced markets  Stable markets with Investments in residenti

  20. Slide 20: TAG strategy and outlook

    20 20 TAG strategy and outlook TAG Immobilien AG | Q1 2015

  21. Slide 21: TAG strategy

    TAG strategy 21 21 The three pillar TAG investment case and strategy framework STRATEGY&OUTLOOK  “High Yield” investment profile  Highest FFO and dividend yield profile amongst peer group  Total return focus on distributions to shareholders rather than un-crystalized NAV growth  Anti-cyclical in

  22. Slide 22: TAG outlook

    TAG outlook 22 22 GUIDANCE (in EUR) 2014 2015E FFO I per share (based on outstanding shares as of 12/31/2014, i.e. without conversions) 0.63 0.67 - 0.69 Dividend per share 0.50 0.55 FFO I per share in EUR Dividend per share in EUR TAG Immobilien AG | Q1 2015

  23. Slide 23: Appendix

    23 23 APPENDIX TAG APPENDIX TAG Immobilien AG | April 2015

  24. Slide 24: TAG capex and maintenance

    TAG capex and maintenance 24 24 APPENDIX 2014 2015 in EUR millions Q1 Q2 Q3 Q4 Total Q1 Maintenance Residential 5.75 5.89 6.05 6.23 23.92 6.45 Commercial 0.59 0.53 0.06 0.15 1.33 0.14 Capex Residential 7.73 6.55 6.98 9.83 31.09 6.80 Commercial 0.13 0.28 0.06 0.10 0.56 0.00 TAG Immobilien AG | Q1 201

  25. Slide 25: TAG portfolio valuation 30-Sep./31-Dec-2014

    TAG portfolio valuation 30-Sep./ 31-Dec-2014 25 25 Region 2014 Fair 2014 Fair 2014 Implied Revaluation Capex Net 2013 Fair 2013 Fair 2013 Implied Value (IFRS) Value / sqm multiple gain / loss acquisitions Value (IFRS) Value / sqm multiple (in EUR millions) and other APPENDIX movements Berlin 464.9 8

  26. Slide 26: TAG annual valuation by CBRE 30-Sept-2014

    TAG annual valuation by CBRE 30-Sept-2014 26 26  Details on asset vs. share deals APPENDIX 30- Sep. 30- Sep.  For valuation purposes TAG divides its regions in two Assumptions / drivers 2014 2013 markets: assets deal markets and share deal markets, Cap rate (%) 5.56 5.52 determined on public avail

  27. Slide 27: TAG capital markets heads-up

    TAG capital markets heads-up 27 27 Institution Analyst Recommen- Target Date  High/Low (Q1 2015) EUR 13.05 /EUR 9.65 dation price in EUR APPENDIX  Number of shares (issued) 133.3m Kempen Bernd Stahli Underweight 10.0 05-May-15  Number of shares (outstanding) 122.1m Berenberg Kai Klose Buy 13.0 04

  28. Slide 28: TAG bonds and convertibles

    TAG bonds and convertibles 28 28  Two corporate bonds outstanding (issued in 2013 and 2014) APPENDIX  Two convertibles remaining after conversions in 2012 and (partly) buy back of convertibles in 2013, both convertibles trade in the money Bonds Convertibles TAG Immobilien AG | Q1 2015

  29. Slide 29: TAG Management Board

    TAG Management Board 29 29 APPENDIX Claudia Hoyer Martin Thiel Dr. Harboe Vaagt COO CFO CLO  Key responsibilities: Property and  Key responsibilities: Controlling,  Key responsibilities: Legal, Human Asset Management, Acquisitions and Accounting, Financing, Taxes, Resources and Transactions Dispo

  30. Slide 30: TAG Notes

    TAG Notes 30 30 APPENDIX TAG Immobilien AG | Q1 2015

  31. Slide 31: TAG Notes

    TAG Notes 31 31 APPENDIX TAG Immobilien AG | Q1 2015

  32. Slide 32: TAG Contacts

    32 32 TAG Contacts Martin Thiel Dominique Mann TAG Immobilien AG CFO Head of Investor & Public Relations Steckelhörn 5 Fon: +49 40 380 32-222 Fon: +49 40 380 32-305 20457 Hamburg Fax: +49 40 380 32-388 Fax: +49 40 380 32-388 Fon: +49 40 380 32-0 ir@tag-ag.com ir@tag-ag.com Fax: +49 40 380 32-388 www

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