Hiag Immobilien Holding Ag · SIX:HIAG
Hiag Immobilien — H1 2022 Earnings Presentation
62 slides from Hiag Immobilien's earnings presentation, Aug 25, 2022
Slide 1: Investor presentation HY 2022 HIAG Immobilien Holding AG
Investor presentation HY 2022 HIAG Immobilien Holding AG
Slide 2: Agenda
Agenda 1 Half-Year 2022 at a glance Marco Feusi 2 Key financial figures Rico Mueller 3 Portfolio figures Rico Mueller 4 Balance sheet figures Rico Mueller 5 Portfolio Management Marco Feusi 6 Site Development Marco Feusi 7 Transactions Marco Feusi 8 Sustainability Rico Mueller 9 Market assessment by
Slide 3: Half-Year 2022 «at a glance»
Half-Year 2022 «at a glance»
Slide 4: Key Highlights – Half-Year 2022
Key Highlights –Half-Year 2022 Strong net income contribution by all business areas
Slide 5: Financials Half-Year 2022
Financials Half-Year 2022
Slide 6: Key financial figures – 30 June 2022
Key financial figures –30 June 2022 At a glance Income Statement / ROE / EPS – 30 June 2022 In CHFm H1 22 H1 21 CHFm % ROE Property income 32.4 30.6 1.8 5.8 Revaluation of properties 42.3 32.2 10.1 31.2 Income from sale of properties 2.3 - 2.3 100.0 Profit from sale of investment properties 1.1 1.7
Slide 7: Portfolio figures
Portfolio figures
Slide 8: Annualised / Collected property income
Annualised / Collected property income Increased annualised (+12.2%) and collected (+5.8%) property income Annualised property income – 1 July 2022 / Collected property income – 30 June 2022 Comments → increased Annualised property income (in CHFm) by CHFm 7.7 (+12.2%) – New/extended lettings: Hitac
Slide 9: Vacancy rate
Vacancy rate Remarkable vacancy rate decrease from 10.7% to 6.9% (-3.8%p) Vacancy rate – 1 July 2022 / Potential property income (at full occupancy) – 1 July 2022 Comments Vacancy rate 2018 to H1 2022 → decreased by -3.8%p – Increase of potential income at full occupancy by CHFm +5.4, due to project
Slide 10: Tenants: WAULT / Lease expiry profile
Tenants: WAULT / Lease expiry profile Comfortable WAULT increase by +3.5% (total) and by 5.7% (top 15) WAULT / Lease expiry – 1 July 2022 Comments WAULT (in yrs) WAULT – Top 15 tenants (in yrs) XXXLutz (2037), LEM International (2037), Hitachi Energy Switzerland (2025), Genossenschaft Migros Zürich
Slide 11: Tenants – Top 15
Tenants –Top 15 XXXLutz newly biggest tenant strengthening mix of “Top 15 tenants” Top 15 tenants (Group) based on annualised property income – 1 July 2022 Share of annualised property income (incl. cumulative) Share of Share of annualised annualised property income Branch Expiry Year Rating** prope
Slide 12: Portfolio value
Portfolio value Increased by 4.7%, mainly due to investments and revaluation gains Portfolio value – 30 June 2022 Comments Development 2018 to H1 22 (in CHFm) → – Investments in yielding portfolio (+4.5) – Investments in pipeline (+25.9) – Development portfolio (+22.0) – Investment in properties for
Slide 13: Revaluation gains
Revaluation gains Increased by 31.2% due to management efforts and market effects Revaluation gains* – H1 2022 Comments Development 2018 to H1 2022 (CHFm), net → increased by CHFm +10.1 (+31.2%), due to – Management efforts (reduction of vacancies, rent extensions and rent increases as well as proje
Slide 14: Balance sheet figures
Balance sheet figures
Slide 15: NAV per share
NAV per share Positive performance leads to improved NAV per share NAV per Share – 30 June 2022 Comments NAV excl. deferred tax (in CHF) → increased by CHF +3.0 (+2.8%) → increased by CHF +2.8 (+2.9%) – Positive impact from valuation gains – Reduction as a result of dividend payment (CHF -2.7/share)
Slide 16: Equity Ratio / LTV Ratio
Equity Ratio / LTV Ratio Solid debt financing and equity base to support HIAG’s future growth Equity Ratio / LTV Ratio (gross and net) – 30 June 2022 Comments ∆ Equity Ratio → increased by +0.4%p – Net income (+56.1) – Dividend payment in May 2022 (-27.2) → decreased by -2.1%p – Portfolio value (CHF
Slide 17: Financial liabilities
Financial liabilities Increased duration/avg. interest rate, comfortable credit lines available Financial liabilities – 30 June 2022 30 Jun 2022 / 31 Dec 2021 30 Jun 2022 / 31 Dec 2021 30 Jun 2022 / 31 Dec 2021 Financial liabilities (in CHFm) Debt ratio Average interest Duration rate in Years Due da
Slide 18: Portfolio Management
Portfolio Management
Slide 19: Portfolio overview
Portfolio overview Highly diversified RE portfolio in strategic and well distributed locations Actual Annualised income by type of use Actual annualised income by sector Portfolio value by canton Note: Figures based on 1 July 2022 Note: Figures based on 1 July 2022 Note: Figures based on 30 June 202
Slide 20: Inflation and rental income
Inflation and rental income Inflation protection through CPI linked leases to increase rental income Annualised income by type of lease indexation CPI linked leases by indexation level Rental income increase due to inflation Rental contracts with option to be adjusted once a year at each month with
Slide 21: Largest Vacancies
Largest Vacancies Diligent management actions to reduce vacancy rate underway 1 July 2022 / 1 January 2022 Properties Main use Portfolio Part of total Contribution Vacancy Vacancy ∆ Vacancy Vacancy Action taken / vacancy portfolio 1.7.2022 1.7.2022 1.1.2022 1.1.2022 vacancy including letting success
Slide 22: Site Development
Site Development
Slide 23: Project pipeline
Project pipeline Significant income and value growth potential over next 10-15 years Project pipeline with cumul. investment volume next 10 years of CHFb c. 2.75 (YE 2021: 2.70) Remarks 400 Total investment volume CHFb 3.07 (YE 2021: 2.98) (c. 160% of MV Portfolio) c. 815,000 m2 usable area, c. 3,20
Slide 24: Projects finished and under construction
Projects finished and under construction Projects generating continual development gains Corporate building LEM XXXLutz Furniture store Chama, 1st stage Yielding and Promotion «Columbus» Hive Campus, Meyrin GE Dietikon ZH Cham ZG Construction 03.2020-01.2022 Construction 10.2020-02.2022 Mixed use de
Slide 25: Update mid-term projects (1/2)
Update mid-term projects (1/2) Projects with substantial profit potential Chama, 2nd stage Yielding and Promotion Campus Reichhold, 1st stage Cham ZG Hausen/Lupfig AG Residential development based on revised development plan (“Überbauungsplan”), Commercial development, based on special use plan (“Ge
Slide 26: Update mid-term projects (2/2)
Update mid-term projects (2/2) Building permissions granted or in progress Zentrum West, Kunz site Librec, Papieri site WINTECH, Technoramastrasse Freihofstrasse Windisch AG Biberist SO Winterthur ZH Zurich-Altstetten ZH Mixed use property (85% residential) Commercial property Commercial property Mi
Slide 27: Transactions
Transactions HIAG
Slide 28: Acquisitions and Disposals
Acquisitions and Disposals Portfolio optimisation through opportunistic acquisitions/divestments Acquisitions H1 2022 Address Property Description Transaction Type Closing-Date Fair Value (H1 2022) Annual rent Gross- CHFm CHFm p.a. Profit Niederwil (AG), Rigiweg 1/3/5 − 3 Multi Family Houses Asset-D
Slide 29: Sustainability
Sustainability
Slide 30: Sustainability
Sustainability Projects well underway with great success stories along the way March 2023 on track − Reduction path is established applying the "CO2mpass" tool − Database for simulations is currently being created − Simulations and target setting are starting in autumn 2022 End of 2023 on track − To
Slide 31: Market assessment by HIAG
Market assessment by HIAG
Slide 32: Market assessment by HIAG
Market assessment by HIAG Decoupling of financial and the real estate market to closely monitor Economic environment Real estate segments Historical Impact Commercial Market Residential Market 2012-2021 real estate Industry / Light industrial: Ongoing Rental Housing: Increasing asking KPI (p.a.) 202
Slide 33: Outlook 2022
Outlook 2022
Slide 34: Outlook 2nd Half-Year 2022
Outlook 2nd Half-Year 2022 Farther expecting good results with increased property income Increase collected property income by >+7% vs. 2021 Full rental income from new leases in the first half of the year Keep vacancy rate at current level c. 7% Active letting and sign new leases for vacant surface
Slide 35: Q&A
Q&A
Slide 36: Thank you! Contact
Büro Basel Büro Zürich Thank you ! Büro Genf contact
Slide 37: Company Calendar
Company Calendar 27 September 2022 HIAG Capital Market Day 14 March 2023 Publication annual report 2022 27 April 2023 2022 General Meeting investor.relations@hiag.com www.hiag.com
Slide 38: Appendix
Appendix
Slide 39: Half-Year 2022 - at a glance
Half-Year 2022 -at a glance
Slide 40: Strong profit contribution by all business segments
Strong profit contribution by all business segments Collected property Revaluation gains* Net income* Return on Equity Earnings Equity ratio LTV income* per share (gross / net) Annualised Portfolio value Vacancy rate WAULT Gross / Net Yield NAV / share Operating CF* / property income (yielding portf
Slide 41: Half-Year 2022 - Highlights (1/2)
Half-Year 2022 -Highlights (1/2) Overachieving performance in all business segments Portfolio Value CHFm 1’868 (+4.7% vs. YE 21) Positive revaluation gains, investments and acquisition Annualized income (+12.2% vs. YE 21) / collected income (+5.8% vs. Finished major projects (mainly XXXLutz, LEM) H1
Slide 42: Half-Year 2022 - Highlights (2/2)
Half-Year 2022 -Highlights (2/2) Overachieving performance in all business segments Net income CHFm 56.1 (+33.7% vs. H1 22) Successful positive financial impact of refined Strategy 2025 with Net income excl. revaluation of properties and deferred tax integrated business model (Yielding, Development,
Slide 43: Project overview
Project overview
Slide 44: Projects - finished / under / before construction
Projects -finished / under / bef. construction Half-Year 2022 Usable Total Expected Est. Pre-let Lease Project status 2022 2023 2024 2025 2026 area to expected remaining Rental Ratio Duration be deve- investment investment Value in Com- in loped volume in in CHFm, CHFm mercial years in m2 CHFm 2022
Slide 45: Projects - mid-term
Projects -mid-term Half-Year 2022 Usable Total Expected Est. Pre-let Lease Project status 2022 2023 2024 2025 2026 area to expected remaining Rental Ratio Duration be deve- investment investment Value in Com- in loped volume in in CHFm, CHFm mercial years in m2 CHFm 2022 ff. (excl. Ground lease) Bib
Slide 46: Projects - long-term
Projects -long-term Half-Year 2022 Effective Total (expected) Est. Rental Est. Project status 2027 2026 2028 2029 2030 2031 2032 2033 2034 ff. area to be investment Value in sales developed volume in CHFm revenue in m2 CHFm pro- motion Cham, Cham Nord, 2st stage Residential, New Building 14,800 96.2
Slide 47: Additional financials
Additional financials
Slide 48: Operating expenses / Financial result / Taxes H1 22
Operating expenses / Financial result / Taxes H1 22 Increase of operating exp. due to strategic investments in personnel Income Statement – 30 June 2022 vs. 30 June 2021 Comments In CHFm H1 22 H1 21 CHFm % → increased by CHFm +2.5 Property income 32.4 30.6 1.8 5.8 – Direct expenses from sales of pro
Slide 49: Income Statement H1 2022 by business segment (1/2)
Income Statement H1 2022 by business segment (1/2) EBITDA contr.: Yielding (63%), Dev. (40%), Trans. (1%), Other (-4%)* Income Statement by business segment – 30 June 2022 Intersegment In CHFm H1 22 Yielding Other eliminations Property income 32.4 26.1 6.5 - - -0.2 Revaluation of properties 42.3 19.
Slide 50: Income Statement H1 2021 by business segment (2/2)
Income Statement H1 2021 by business segment (2/2) EBITDA contr.: Yielding (75%), Dev. (8%), Trans. (22%), Other (-5%)* PY Income Statement by business segment – 30 June 2021 Intersegment In CHFm H1 21 Yielding Other eliminations Property income 30.6 25.5 5.3 - - -0.1 Revaluation of properties 32.2
Slide 51: Balance sheet
Balance sheet Increased total assets by 2.1% from CHFm 1,904 to CHFm 1,943 Balance sheet – 30 June 2022 vs. 31 December 2021 In CHFm 30/06/2022 31/12/2021 Cash and cash equivalents 39.3 87.3 -48.0 -55.0 Properties for sale 34.6 32.1 2.5 7.8 Other current assets 18.9 16.6 2.3 14.0 Current assets 92.8
Slide 52: Cash flow
Cash flow Cash flow decreased due to CHAMA invests and NUV development Cash flow – 30 June 2022 vs. 30 June 2021 Comments → In CHFm H1 22 H1 21 CHFm % H1 20 H1 19 H1 18 decreased by CHFm -6.8 (-48.0%) Cash flow from operating activities 7.4 14.2 -6.8 -48.0 9.0 -8.7 7.3 – Down due to investments in C
Slide 53: Alternative Performance Measures (1/2)
Alternative Performance Measures (1/2) Funds from Operations Funds from Operations (FFO) – 30 June 2022 Comments H1 2018 to H1 2022 FFO (in CHFm) → increased by CHFm +2.6 (+20.3%) – Higher cash flow from property income (+1.3) – Higher operating income from J&B (+0.3) – Lower cash drain from operati
Slide 54: Alternative Performance Measures (2/2)
Alternative Performance Measures (2/2) Real estate comparables based on Swiss GAAP FER figures Company specific (adjusted ) KPIs – 30 June 2022 vs. 30 June 2021 Operating profit and operating earnings per share Adjusted equity (NAV) per share in CHFm H1 22 H1 21 CHFm % in CHFm H1 22 H1 21 CHFm % Net
Slide 55: Discount rate
Discount rate Strong demand for real estate to drive discount rate reduction Discount rate development 2018 - 2022 in % Weighted average real discount rate in % H1 22 2021 2019 2018 Weighted average real discount rate yield portfolio* 3.39 3.52 3.87 3.93 4.08 Weighted average real discount rate deve
Slide 56: Share price performance
Share price performance Overview Development of share price performance – 30 June 2022 Share price in CHF H1 2022 2021 High 107.00 118.00 Low 82.20 91.40 End of period 84.00 95.00 Market capitalisation in CHFm High 1,082.80 1,194.11 Low 831.83 924.93 End of period 850.05 961.36 Number of shares Issu
Slide 57: Shareholder structure
Shareholder structure No significant change of shareholder’s structure since YE 2021 Shareholder structure – 30 June 2022 Major shareholders H1 2022 2021 1 Anchor shareholders 54.57% 54.43% 2 Free Float 45.43% 45.57% Shareholder structure A SFAG Holding AG 43.80% 43.80% B HIAG Beteiligung Holding AG
Slide 58: Company information
Company information
Slide 59: Integrated Business Model / Sites and offices
Integrated Business Model / Sites and offices At a glance Integrated business model (incl. 3 segments) HIAG sites and offices
Slide 60: Governance
Governance HIAG
Slide 61: Corporate Governance
Corporate Governance Experienced board and management teams Board of Directors Executive Board Dr. Felix Grisard, President Balz Halter, Vice President Marco Feusi, CEO Salome Grisard Varnholt Dr. Christian Wiesendanger Rico Müller, CFO Dr. Jvo Grundler Anja Meyer Dr. Jvo Grundler, General Counsel
Slide 62: Disclaimer
Disclaimer This presentation does not constitute or form part of any advertising, offer, recommendation or invitation to sell or issue, or any solicitation of any offer to purchase or subscribe for, any securities, nor shall part, or all, of this presentation or their distribution form the basis of,
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