Tag Immobilien Ag · XETR:TEG
Tag Immobilien — FY2021 Earnings Presentation
54 slides from Tag Immobilien's earnings presentation, March 2022
Slide 1: Conference call presentation FY 2021
Conference call presentation FY 2021
Slide 2: Content
Germany Poland Content I. TAG highlights FY 2021 3 II. TAG financials FY 2021 7 III. TAG strategy 11 IV. TAG German portfolio FY 2021 15 V. TAG Poland business update 19 VI. TAG decarbonization strategy 24 VII. TAG guidance FY 2022 29 VIII. Appendix 31 Income Statement, balance sheet, EPRA earning
Slide 3: TAG highlights FY 2021
Germany Poland 3 TAG highlights FY 2021 TAG Immobilien AG | March 2022 | 3
Slide 4: TAG highlights FY 2021 Germany
Germany TAG highlights FY 2021 Germany 44 FY 2021 FY 2020 Q4 2021 Q3 2021 Vacancy (residential units) 5.4% 5.3%*/4.5% 5.4% 5.7% Vacancy (total portfolio) 5.7% 5.6% 5.7% 6.0% Operational performance L-f-l rental growth y-o-y 1.5% 1.4% 1.5% 1.8% German portfolio L-f-l rental growth y-o-y (incl
Slide 5: TAG highlights FY 2021 Poland
Poland TAG highlights FY 2021 Poland 55 FY 2021 FY 2020 Revenues from sale of properties (in EURm) 62.4 73.4 APPENDIX Results operations Poland (FFO II impact, in EURm) 6.7 9.1 Units handed over 575 719 Operational performance Units sold 412 509 Poland Build-to-hold units (contractually secured pipe
Slide 6: TAG highlights YTD 2022
Germany Poland TAG highlights YTD 2022 66 FY 2022e FY 2021 FFO I (EURm) 188 – 192 182.0 +5% FFO I and dividend guidance unchanged FFO I (EUR/share) c. 1.30 1.24 +5% Dividend (EUR/share) 0.98 0.93 +5% new FFO II guidance FFO II (EURm) 247 – 253 188.8 +32% FFO II (EUR/share) c. 1.71 1.29 +32
Slide 7: TAG financials FY 2021
Germany Poland 7 TAG financials FY 2021 TAG Immobilien AG | March 2022 | 7
Slide 8: EBITDA, FFO and AFFO calculation
Germany Poland TAG EBITDA, FFO and AFFO calculation (in EURm) FY 2021 FY 2020 Q4 2021 Q3 2021 Consolidated net profit 585.6 402.6 223.2 38.3 - Net income Poland -17.9 -3.6 -8.0 -2.3 Net income Germany 567.7 399.0 215.2 36.0 1 Improved EBITDA adjusted (Germany) y-o-y by EUR 3.8m mainly as a net + Inc
Slide 9: EPRA NTA calculation
Germany Poland TAG EPRA NTA calculation EPRA Net Tangible Assets EPRA NTA bridge in EUR/share (in EURm) 31 Dec-2021 31 Dec-2020 + 0.71 Equity (without minorities) 3,039.7 2,602.6 + 3.76 + Effect from conversion of convertible bonds 2017/2022 0.0 25.9 - 0.88 + Deferred taxes on investment properties
Slide 10: TAG financing structure
Germany Poland TAG financing structure Debt structure as of 31 Dec-2021 Key financial KPIs as of 31 Dec-2021 Ø Maturity total financial debt 6.3 years Debt volume Ø interest rate % fixed rates 9% Ø Maturity bank loans 7.6 years 8% Ø Interest rate total financial debt 1.39% EUR 2,078m 1.60% 99% EUR Ø
Slide 11: TAG strategy
Germany Poland 11 TAG strategy TAG Immobilien AG | March 2022 | 11
Slide 12: Portfolio strategy
Germany Poland TAG portfolio strategy 12 12 Two separate country operations with distinct strategic angles TAG Germany TAG Poland Increasing regulation in residential property sector leading to flattening curve of Strongly rising demand for rental apartments as well as condominiums in major rent
Slide 13: Poland investment rationale
Germany Poland TAG Poland investment rationale 13 13 Creation of largest residential letting portfolio in Poland with c. 20k units and established presence in all major Polish cities Creating Poland’s leading landlord with visibility of over 20k residential “build-to-hold” units Ground-up developmen
Slide 14: TAG ESG strategy essentials
Germany TAG ESG strategy essentials 14 14 Turning strategy into action: TAG has quantified path to decarbonization, “in-place” quality of its portfolio resulting in lower level of capex ESG strategy ESG ratings / awards Improving energy efficiency and reducing emissions Best possible cost-benefit ra
Slide 15: TAG German portfolio FY 2021
Germany 15 TAG German portfolio FY 2021 TAG Immobilien AG | March 2022 | 15
Slide 16: German portfolio rental growth and capex allocation
Germany TAG German portfolio rental growth and capex allocation 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) 19.2 20.4 21.6 20.9 14.6 13.6 13.3 TAG cre
Slide 17: German portfolio vacancy reduction residential units
Germany TAG German portfolio vacancy reduction residential units 17 17 Strong track record of vacancy reduction; temporary increases in H1 2020 and H1 2021 as a result of the Covid-19-pandemic Acquisitions Acquisitions 6.1% +0.5% Acquisitions 5.9% +0.8% 5.9% 5.7% 5.8% 5.7% 5.6% 5.5% +0.3% Acquisitio
Slide 18: Portfolio valuation overview Germany
Germany TAG portfolio valuation overview Germany Portfolio valuation result Development of gross yield FY 2021 vs. FY 2020 FY 2021 FY 2020 7.1% 525.0* 327.0** 6.7% in EUR m 6.5% 6.3% annual valuation uplift (w/o capex) 9.0% 6.2% 6.1% 5.9% thereof from yield compression 80% 85% 5.7% 5.5% 5.3% the
Slide 19: TAG Poland business update
Poland 19 TAG Poland business update TAG Immobilien AG | March 2022 | 19
Slide 20: Poland portfolio overview as of Dec-2021
Poland Poland portfolio overview as of 31 Dec-2021 Unlocking superior returns by addressing the growing demand of the Polish residential-for-rent market Strategic rationale Current locations/ projects Against the backdrop of its strong macroeconomic and demographic growth, Poland is experiencing a
Slide 21: Poland rental units on offer
Poland Poland rental units on offer 21 21 First build-to-hold projects in Poland finished in Wroclaw in 2021 and Poznan in January 2022 (www.vantagerent.pl) Build-to-hold projects on offer Dorzecze Legnickiej IV Buforowa 89 III Legnicka 33 Hawelanska 2 Total (Wroclaw) (Wroclaw) (Wroclaw) (Poznan) To
Slide 22: ROBYG acquisition delivers strong value to Polish portfolio
Poland ROBYG acquisition delivers strong value to Polish portfolio Addition of ROBYG – the leading player in Polish residential market - enhances TAG’s presence in Poland and adds the Warsaw market with an established local portfolio TAG Poland key KPIs pre and post ROBYG acquisition (as per 31-Dec
Slide 23: ROBYG business overview
Poland ROBYG business overview Build-to-hold and build-to-sell pipeline currently focused on Warsaw, Tri-City, Wrocław and Poznań Business description Key financials (in EUR m) 2021 2020 2019 Founded in 2000 and headquartered in Warsaw, ROBYG develops, manages, and sells Revenues* 284.7 238.1 240.
Slide 24: TAG decarbonization strategy
Germany 24 TAG decarbonization strategy TAG Immobilien AG | March 2022 | 24
Slide 25: TAG ESG strategy and core axes
Germany TAG ESG strategy and core axes Sustainability is an essential part of TAG’s corporate vision Improving energy efficiency and reducing emissions Sustainability principles and guidelines at TAG Environment Best possible cost-benefit ratio Business principles Anti-discrimination Anti- Sustainab
Slide 26: Target of TAG's ESG strategy
Germany Target of TAG’s ESG strategy Meaning and target of decarbonization strategy Maintenance and Introduction of green tech for a future-proof portfolio 1 modernization as Active portfolio investment strategy towards long-term competitiveness needed Support for local service and material su
Slide 27: Decarbonization strategy German portfolio
Germany TAG Decarbonization strategy German portfolio Target CO2 emission Full commitment to reach CO2 emission level in line with 1.5oC climate goal Conducted study to define measures required to achieve goal Current emission of 31.9kg/sqm (based on last available data for 2019) 31.9 kg/sqm i
Slide 28: Projected development of decarbonization strategy
Germany Projected development of TAG’s decarbonization strategy Together with EWUS Energy consultants, TAG has developed a scenario for TAG’s decarbonization TAG scenario Investment volume c. EUR 690m CO2 emission development (kg/sqm p.a.) 40 Green district heating, green electricity <28 kg/sqm Exte
Slide 29: TAG guidance FY 2022
Germany 29 TAG guidance FY 2022 TAG Immobilien AG | March 2022 | 29
Slide 30: FFO and dividend guidance FY 2022
Germany Poland TAG FFO and dividend guidance FY 2022 FFO I* +5% FFO I/s** +5% (EUR) 188-192m 1.30 vs. 2021 (EUR) vs. 2021 DPS*** +5% (EUR) 0.98 vs. 2021 FFO II +32% FFO II/s +32% 247-253m 1.71 (EUR) NEW vs. 2021 (EUR) NEW vs. 2021 *For purpose of the guidance no further acquisitions/disposals in 202
Slide 31: Appendix
31 APPENDIX TAG Immobilien AG | March 2022 | 31
Slide 32: Income statement
Germany Poland TAG income statement* 1 Increase in net actual rent y-o-y by EUR 10.5m as a result of l-f-l rental growth of 1.3% p.a. and portfolio acquisitions in 2020 (mainly Q4). 2 Improved net rental income by EUR 7.1m y-o-y mainly driven by higher net rent (EUR 10.5m) and higher maintenance cos
Slide 33: Income statement details Germany and Poland
Germany Poland TAG income statement details Germany and Poland Germany Poland Total Germany Poland Total Germany Poland Total (in EURm) APPENDIX Q4 2021 Q4 2021 Q4 2021 FY 2021 FY 2021 FY 2021 FY 2020 FY 2020 FY 2020 Net actual rent* 83.4 0.4 83.8 332.5 0.5 333.1 322.5 0.0 322.5 Expenses from proper
Slide 34: Balance sheet
Germany Poland TAG balance sheet (in EURm) 31 Dec-2021 31 Dec-2020 Non-current assets 6,659.8 5,949.2 1 Increase in book value of investment properties by EUR 721.2m mainly result of portfolio valuation APPENDIX Investment property 1 6,540.4 5,819.2 gain (EUR 540.0), capex in Germany (EUR 68.1m) and
Slide 35: EPRA Earnings
Germany Poland TAG EPRA Earnings (in EURm FY 2021 FY 2020 Q4 2021 Q3 2021 Net income Germany 567.7 399.1 215.3 36.0 Valuation result -525.0 -327.0 -219.3 -0.3 APPENDIX Deferred income taxes on valuation result 105.9 64.3 40.2 3.6 Net income from sales -0.1 -40.2 0.5 0.3 Cash taxes on net income from
Slide 36: EPRA NAV calculations
Germany Poland TAG EPRA NAV calculations EPRA NRV EPRA NTA EPRA NDV APPENDIX Net reinstatement value Net tangible assets Net disposal value (in EURm) 31 Dec-2021 31 Dec-2021 31 Dec-2021 Equity (before minorities) 3,039.7 3,039.7 3,039.7 Effect from conversion of convertible bonds 2017/2022 0.0 0.0 0
Slide 37: TAG portfolio at a glance
Germany TAG portfolio at a glance Leading company in the affordable housing sector in Northern and Eastern Germany Strategy TAG is a specialist for affordable housing in Eastern and Northern Germany and among the largest owners of residential properties in Eastern Germany APPENDIX Fully integrat
Slide 38: TAG German portfolio details by region
Germany TAG German portfolio details by region Region Units Rentable IFRS BV Gross Vacancy Vacancy Net actual Re-letting l-f-l rental l-f-l rental growth Mainte- Capex # area EURm yield Dec- Dec- rent rent growth y-o-y incl. nance EUR/sqm sqm Dec- 2021 2020* EUR/ EUR/ y-o-y vacancy EUR/sqm APPENDIX
Slide 39: German portfolio vacancy reduction and rental growth
Germany TAG German portfolio vacancy reduction and rental growth Vacancy development 12M 2021* l-f-l rental growth (y-o-y) 12M 2021 APPENDIX Berlin 2.9% Erfurt from 1.8% to 1.3% -0.5% 2.6% Dresden 2.4% Leipzig from 9.6% to 9.3% -0.3% 2.2% Leipzig 1.9% Berlin from 3.9% to 3.7% -0.2% 1.3% Hamburg 1.7%
Slide 40: German portfolio valuation details
Germany TAG German portfolio valuation details APPENDIX Dec-2021 Dec-2021 Share of operational Dec-2020 Dec-2020 Dec-2020 Region Dec-2021 FY 2021 Share of yield Fair value Implied performance/ other Fair value Fair value Implied (in EURm) Fair value (IFRS) Valuation result compression (EUR/sqm) mult
Slide 41: TAG acquisitions Germany FY 2021 / FY 2020
Germany TAG acquisitions Germany FY 2021 / FY 2020 Signing 2021 2020 APPENDIX no portfolio purchases 4,578 Units Bernburg Net actual rent --- 4.93 in EUR/sqm/month Vacancy --- 21.1% Purchase price in EURm --- 174.7 Net actual rent in EURm p.a. --- 11.9 Dessau Merseburg, Plauen, Gotha, Magdeburg, Loc
Slide 42: TAG disposals Germany FY 2021/ FY 2020
Germany TAG disposals Germany FY 2021/ FY 2020 Signing 2021 2020 APPENDIX Total Units 684 1,009 Bad Frankenhausen Net actual rent in EUR/sqm/month 5.39 5.38 Vacancy 19% 18% Selling price in EURm 64.3 55.3 Net actual rent in EURm p.a. 2.72 3.21 Net cash proceeds in EURm 50.8 54.3 Kiel Book profit in
Slide 43: TAG services business – FFO contribution 2021
Germany TAG services business – FFO contribution 2021 c. 6% (EUR 10.7m) of FFO generated from services business in 2021 Quality improvement FFO generation APPENDIX FFO FFO Facility Craftsmen Energy Multimedia Condominium 2) 1) 1) Others services Total rental management services services services man
Slide 44: TAG return on capex calculation 2021
Germany TAG return on capex calculation 2021 Total capex* APPENDIX (EUR 68.1m) Equity (EUR 34.9m) Equity + Debt (EUR 33.2m) Modernisation of flats Large modernisation measures Share of total capex: c.51% Share of total capex: c.49% Return on equity invested: 20%-25% Return on total investmen
Slide 45: Poland build-to-hold pipeline as of Dec-2021
Poland Poland build-to-hold pipeline as of 31 Dec-2021 Polish build-to-hold projects currently concentrated in growth regions in Poland’s largest regional hubs Build-to-hold projects overview Build-to-hold projects locations APPENDIX Pipeline locations Wroclaw Poznan Lodz Gdansk Krakow Total Total n
Slide 46: Poland build-to-sell pipeline as of Dec-2021
Poland Poland build-to-sell pipeline as of 31 Dec-2021 Attractive build-to-sell projects offer strong cashflows and significant support to FFO II Build-to-sell projects overview Build-to-sell projects locations APPENDIX Pipeline location Wroclaw Gdansk Total Total number of projects 5 1 6 Gdansk Tot
Slide 47: Cost of debt and LTV
Germany Poland TAG cost of debt and LTV Cost of debt Ø in % LTV in % APPENDIX 3.45 3.15 56.9 57.1 2.34 52.3 1.92 47.3 44.8 45.1 1.73 43.2 1.49 1.39 31 Dec- 31 Dec- 31 Dec- 31 Dec- 31 Dec- 31 Dec- 31 Dec- 31 Dec- 31 Dec- 31 Dec- 31 Dec- 31 Dec- 31 Dec- 31 Dec- 2015 2016 2017 2018 2019 2020 2021 2015
Slide 48: Strong development of financing metrics
Germany Poland TAG strong development of financing metrics ICR Net financial debt/ EBITDA adjusted Net financial debt in EUR/ sqm APPENDIX 479 504 5.6 13.4 12.5 12.7 453 450 445 449 460 5.2 11.3 11.2 10.9 11.6 4.7 3.8 3.0 1.9 2.3 2015 2016 2017 2018 2019 2020 2021 2015 2016 2017 2018 2019 2020 2021
Slide 49: LTV calculation
Germany Poland TAG LTV calculation (in EURm) 31 Dec-2021 31 Dec-2020 APPENDIX Non-current and current liabilities to banks 2,066.5 1,977.9 Non-current and current liabilities from corporate bonds and other loans 546.3 495.9 Non-current and current liabilities from convertible bonds 457.8 565.4 Cash
Slide 50: Interest coverage ratio (ICR) calculation
Germany Poland TAG interest coverage ratio (ICR) calculation (in EURm) FY 2021 FY 2020 Q4 2021 Q3 2021 APPENDIX + Interest income 4.3 10.2 3.7 0.1 - Interest expenses -50.7 -116.6 -8.0 -12.3 + Other financial result 3.1 -0.7 1.4 0.9 = Net financial result -43.3 -107.0 -2.9 -11.3 + Financial result f
Slide 51: ESG ratings
Germany Poland TAG ESG ratings TAG ranks among the top ratings in the real estate sector ESG rating and award improvements TAG’s ESG disclosure improvement APPENDIX In 2020 and 2021, we have placed particular emphasis on improving our ESG performance and reporting in order to better meet the expec
Slide 52: Share data
Germany Poland TAG share data Shareholder structure as of 31 Dec-2021 Share information as of 31 Dec-2021 APPENDIX 9.9% MFS (Massachusetts Financial Services Company), USA Market cap EUR 3.6bn 9.9% NOSH issued 146.5m 7.7% The Capital Group Companies Inc., USA 7.7% NOSH outstanding 146.4m 8.1% BlackR
Slide 53: Management board
Germany Poland TAG management board APPENDIX Claudia Hoyer, COO Martin Thiel, CFO Key responsibilities: Real Estate Management, Acquisitions and Key responsibilities: Accounting, Financing and Treasury, Disposals, Strategic Property Management/Marketing, Shared Service Taxes, Controlling, Legal,
Slide 54: TAG contacts
TAG contacts 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.com www