TAG Immobilien AG · XETR:TEG

TAG Immobilien — FY2010 Earnings Presentation

37 slides from TAG Immobilien's earnings presentation, 2011

  1. Slide 1: FY 2010 figures

    TAG Immobilien AG FY 2010 figures FY 2010 Figures TAG I 1

  2. Slide 2: Content

    Content I. Group overview • Investment case/ Strategy, Structure page 3-9 • Highlights • Combined Entity TAG – CRE II. Portfolio page 10-19 • Overview • Residential • Commercial • Vacancy reduction III. Group financials page 20 Overview • Consolidated balance sheet IV. Financial structure page 21-23

  3. Slide 3: TAG Investment Case

    TAG Investment Case I. Focus: High-quality EUR 499m German residential real estate in metropolitan regions such as Hamburg, Berlin, North Rhine Westphalia and Munich II. Plus: Solid EUR 479m German commercial real estate with solvent tenants (52% Siemens) and 96% occupancy III. Solid financing struc

  4. Slide 4: Strategic situation of the Group

    Strategic situation of the Group I. Consolidation mostly completed • No more write-downs/depreciation of the properties expected • No refinancing issues • Significant reduction in non-property-related costs • Personnel costs dropped to EUR 8.8 million for the period compared to the previous year (re

  5. Slide 5: Highlights 2010

    Highlights 2010 • Successful issue of a convertible bond of EUR 30mln on May, 2010 and EUR 66mln on December, 2010 in a difficult market environment • Acquisitions have expanded the housing stock by more than 77% • Vacancy down from 7.4% to 5.3% throughout the group even including the new portfolio

  6. Slide 6: Combined entity TAG – CRE: Strategic rationale

    Combined entity TAG – CRE Strategic rationale – business plan  Critical mass  The combined entity becomes a serious player in terms of size, market liquidity, investability etc.  Both companies have high fixed costs. Combined entity can improve profitability significantly  Strong potential for s

  7. Slide 7: Combined entity TAG – CRE: Portfolio

    Combined entity TAG – CRE Portfolio Total TAG CRE Units 26,813 7,711 19,012 Floor Area sqm 2,014,448 848,498 1,165,950 Vacancy % 5.3 10.9 Net actual EUR/sqm 6.11 4.72 Hamburg Berlin Combined entity Dusseldorf Leipzig Dresden Cologne TAG headquarter and Portfolio Frankfurt TAG branches and Portfolio

  8. Slide 8: Combined entity TAG - CRE: Synergies, attractive platform and critical mass

    Combined entity TAG - CRE Synergies, attractive platform and critical mass  General overhead reductions  Branches, administration, management, car pool, etc. Strong potential  Lower vacancies expected at CRE as TAG has proven track record of reducing vacancies rapidly revenue and cost  Combinati

  9. Slide 9: Portfolio – TAG – CRE – What has been achieved to date?

    Portfolio – TAG – CRE – What has been achieved to date? Seats on the SB Exceeded 50% stake in CRE Announced the takeover Took over mgt. in accordance with (Board) WpÜG Combined entity 5,27 6,94 4,24 5,30  Took over the management (Board) on the day we exceeded the 50% threshold  Reduced management

  10. Slide 10: Portfolio Total

    Portfolio Total Real estate volume Rental profit per segment Volumen in EUR million in EUR million 40.2 978 40 1000 34.4 35.0 900 804 770 800 30 700 Portfolio 17.3 600 12.8 358 387 499 15.8 500 20 22.2 22.9 418 318 476 463 400 479 18.6 452 386 300 10 200 100 0 0 31/12/08 31/12/09 31/12/10 2008 2009

  11. Slide 11: Portfolio Total

    Portfolio Total* Portfolio *as of: 12/31/2010 by book value FY 2010 Figures TAG I 11

  12. Slide 12: Portfolio Residential

    Portfolio Residential* Portfolio *as of: 12/31/2010 by book value FY 2010 Figures TAG I 12

  13. Slide 13: Portfolio residential by region

    Portfolio residential Region Hamburg Region Berlin Average asset rent: € 6.50 Average asset rent: € 5.03 – Number of accommodation North – Number of accommodation units: 1,576 units: 2,479 – 23% of the residential portfolio of – 30% of the residential portfolio of TAG (by book value) TAG (by book va

  14. Slide 14: Portfolio residential

    Portfolio residential  TAG owns almost 7,500 residential units with 465,663 sqm and a book value of 460,371 TEUR  Since year end 2009 units and floor area of TAG increased by around 77% - purchase have positive impact on NAV, P&L and cash flow Portfolio  Average actual net rents are between € 4,7

  15. Slide 15: Portfolio commercial

    Portfolio commercial 12/31/2009 12/31/2010 • sqm total 342,911 sqm 335,686 sqm • sqm rental 324,971 sqm 323,063 sqm • current rental p.a. net of charged costs (EUR mln) 26.6 26,0 • current rental net of charged costs (EUR/ sqm) 6.81 6.70 • vacancy 5.2% 3.8% Real estate portfolio by region* Portfolio

  16. Slide 16: Portfolio commercial: rental agreements and top 5 tenants

    Portfolio commercial Duration of commercial rental agreements* TOP 5 tenants** in % of open ended Rental p.a. annualised 14% Tenants in TEUR rental 2010 past 2018 20% Siemens AG 12,848 50% State /City authorities 1,854 7% 2011 Federal Employment Office 955 4% Portfolio 12% Linde Gas Therapeutics 464

  17. Slide 17: Portfolio – Vacancy rate reduction – Total

    Portfolio – Vacancy rate reduction – Total Portfolio FY 2010 Figures TAG I 17

  18. Slide 18: Portfolio – Vacancy rate reduction – Residential

    Portfolio – Vacancy rate reduction – Residential • Proven track record of Portfolio reducing vacancies rapidly and steadily in new acquisitions FY 2010 Figures TAG I 18

  19. Slide 19: Portfolio – Vacancy rate reduction – Commercial

    Portfolio – Vacancy rate reduction – Commercial Portfolio FY 2010 Figures TAG I 19

  20. Slide 20: Group financials (IFRS)

    Group financials (IFRS) Consolidated balance sheet (in EUR mln) 12/31/2009 12/31/2010 1,191 1,191 219 631 254 204 900 801 801 1200 800 365 204 1000 700 918 Group finanicals 615 600 800 500 430 658 400 600 300 400 200 186 200 100 167 273 168 0 0 Assets Liabilities Assets Liabilities Non current asset

  21. Slide 21: Financial Structure: Credit periods

    Financial Structure Credit periods: EUR mln 2011: 114 17% 2012: 117 18% Financial structure 2013: 54 8% 2014: 62 10% 2015: 57 9% 2016: 44 7% 2017: 146 23% 2018: 15 2% 2019: 0 0% 2020: 38 6% Total 647 100% Stahltwiete, Hamburg FY 2010 Figures TAG I 21

  22. Slide 22: Financial structure

    Financial structure 12/31/2010 12/31/2009 12/31/2008 Bank borrowings in TEUR 647,655 525,856 538,042 non current 523,512 400,939 407,980 current 124,143 124,917 130,062 net borrowing costs -31,185 -25,329 -27,910 Financial structure Average interest levels in % 12/31/2010 12/31/2009 12/31/2008 non-c

  23. Slide 23: Financial Structure: Bank borrowings, LTV and equity ratio

    Financial Structure Bank borrowings Loan to Value / Equity ratio in EUR mln in % 500 70 60 523,5 67.4 Financial structure 400 66.9 407.9 50 400.9 52.9 300 40 30 200 30.0 27.1 20 24.5 100 130.1 124,1 124.9 10 0 0 12/31/2008 12/31/2009 12/31/2010 12/31/2008 12/31/2009 12/31/2010 current liabilities LT

  24. Slide 24: Stock market data as of 12/31/2010

    Stock market data as of 12/31/2010 High/Low (2010) EUR 6.48 / EUR 3.94 Shareholder structure Number of shares 58.57 mln Ruffer LLP, UK 20% Taube Hodson Stonex, UK 7% Market capitalisation EUR 372mln Asset Value Investors, UK 6% Stock exchange SDAX/ EPRA IPConcept/ FvS Strategie SICAV, L 5% Free Floa

  25. Slide 25: Capital increases and acquisitions in 2010

    Capital increases and acquisitions in 2010 Share FY 2010 Figures TAG I 25

  26. Slide 26: What TAG has planned – further growth

    What TAG has planned – further growth Long-term outlook • Focused, transparent access to an attractive asset class – to best possible cash flows and yields • Financial investments in attractive real estate as an option for increasing key values New acquisitions • Acquisitions at existing locations a

  27. Slide 27: Outlook 2011

    Outlook 2011  Operations successfully strengthened  Vacancy reduction further intensified  Portfolio optimised and strategically expanded  Active asset and property management bears fruit  Liquidity secured with stable cash flows  Continued systematic optimisation of cost processes and efficie

  28. Slide 28: Appendix

    Appendix FY 2010 Figures TAG I 28

  29. Slide 29: Portfolio residential CRE

    Portfolio residential CRE Region Berlin Average asset rent: € 4.61/4.79 Region Hamburg – Number of accommodation Average asset rent: € 5.21 units: 4,626 – Number of accommodation – 25% of the residential portfolio of units: 1,541 CRE (by book value) – 11% of the residential portfolio of CRE (by book

  30. Slide 30: Acquisitions 2010

    Acquisitions 2010 Strategical Goal • Additional growth makes us more profitable simply through economies of scale • Strategy to grow in the locations where we already own residential stock means marginal costs • Enhancement of profitability and cashflow as well as value per share Appendix Leipzig Do

  31. Slide 31: Acquisition Portfolio Berlin

    Acquisition Portfolio Berlin TAG Nordimmobilien GmbH Units 787 Floor area in sqm 51.300 Vacandy reduction 14.0% to 8.1% Appendix Regions: Berlin: Charlottenburg, Neukölln, Kreuzberg Flensburg Zingst FY 2010 Figures TAG I 31

  32. Slide 32: Acquisition FranconoWest and TAG Sachsenimmobilien

    Akquisition FranconoWest and TAG Sachsenimmobilien FranconoWest AG TAG Sachsenimmobilien GmbH Units 1.525 Units 436 Floor area in sqm 96.895 Floor area in sqm 29,104 Vacancy reduction 6,6% to 5,8% Vacancy reduction 9.6% to 7.2% Region NRW Region Saxonia Appendix • Acquisition costs EUR 31,3 mln • Pa

  33. Slide 33: LARUS Asset Management GmbH

    LARUS Asset Management GmbH  Strategic and value-oriented management of a real estate portfolio  Strengthening its service activities with takeover the shareholding of HSH Real Estate of the existing joint venture since the end of September 2010  124 properties worth EUR 2.2bln under management A

  34. Slide 34: TAG Gewerbeimmobilien AG

    TAG Gewerbeimmobilien AG  Pre-REIT status registered in June 2007  Focus on office real estate in urban locations with growth potential  Asset volume around EUR 381 mln  Good portfolio mix Appendix  investment properties ensure stable cash flows  value growth potential tapped by means of selec

  35. Slide 35: Important subsidiaries of TAG

    Important subsidiaries of TAG 100 % TAG Gewerbeimmobilien AG • Pre-REIT status • EUR 381mln real estate volume • Founded 1892 91 % Bauverein zu Hamburg Aktien- • EUR 294m real estate volume • Listed on the General Standard Gesellschaft • EUR 2.1bln assets under management • 19,000 residential Units

  36. Slide 36: Management

    Management Management Board Rolf Elgeti, CEO  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)  Setting up and management of various German real

  37. Slide 37: Contacts

    Contacts Rolf Elgeti CEO Telefon: +49 40 380 32-307 TAG Immobilien AG Telefax: +49 40 380 32-390 ir@tag-ag.com Steckelhörn 5 20457 Hamburg Hans-Ulrich Sutter CFO Telefon: +49 40 380 32-300 Telefon: +49 40 380 32-171 Telefax: +49 40 380 32-390 Telefax: +49 40 380 32-390 ir@tag-ag.com www.tag-ag.com A

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