Ca Immobilien Anlagen Ag · VIE:CAI

Ca Immobilien Anlagen — Q2 2018 Earnings Presentation

56 slides from Ca Immobilien Anlagen's earnings presentation, Aug 22, 2018

  1. Slide 1: 2Q 2018 Results Analyst and Investor Update

    2Q 2018 RESULTS ANALYST AND INVESTOR UPDATE August 22, 2018

  2. Slide 2: 2Q 2018 Highlights

    2Q 2018 Highlights Robust operating business  Net rental income up 8.4% yoy at € 86.8 m  Operating margin of letting business remains on a high level at 92.7%  High portfolio occupancy maintained at 94.6%  Strong like-for-like rental income growth of 4.1% across the investment portfolio  FFO I

  3. Slide 3: 2Q 2018 Key Performance Indicators

    2Q 2018 Key Performance Indicators  Net rental income increase to € 44.1 m (2017: 41.8 m) Net rental income per share  High operating margin maintained at 92.7% (2Q 2017: 93.4%) 0.47 (2017*: 0.45) +6%  Major driver: acquisition of Warsaw Spire B, KPMG Berlin office completion, large-scale reletti

  4. Slide 4: Profit and Loss

    Profit and Loss Top Line Maintains Upward Trend P&L** 1H 1H +/- 2Q 2Q +/- 2Q earnings driver 2018 2017 2018 2017 Rental income 93.8 88.6 5.9% 47.6 44.8 6.2%  Rental income up 6% yoy Net rental income 86.8 80.1 8.4% 44.1 41.8 5.4%  Acquisision of Warsaw Spire B Other property development expenses -

  5. Slide 5: Funds from Operations (FFO)

    Funds from Operations (FFO) 2Q FFO I at € 35.5 m (+9% yoy) FFO** 1H 1H 2Q 2Q +/- 2Q earnings driver 2018 2017 2018 2017 Net rental income  Net rental income up 5.4% 86.8 80.1 8.4% 44.1 41.8 5.4% Result from services 7.3 5.8 27.3% 3.6 3.0 18.9%  Acquisision of Warsaw Spire B Other development expen

  6. Slide 6: Funds from Operations (FFO)

    Funds from Operations (FFO) 1H FFO I at 63.2 m (€ 0.68 per share) H1 2018 FFO I per share (yoy) H1 2018 FFO II per share (yoy) FFO I 0.80 0.75 63.2 (2017*: 56.0) +13% 0.70 +13% 0.65 +16% 0.60 0.55 FFO I per share 0.50 0.45 0.68 (2017*: 0.60) +13% 0.40 0.35 0.30 0.25 0.60 0.68 0.59 0.68 0.20 0.15 FFO

  7. Slide 7: Balance Sheet (June 30, 2018)

    Balance Sheet (June 30, 2018) Strong Equity Base Secures Growth Balance Sheet* 30.06.2018 31.12.2017 +/- Investment properties 3,291.7 3,155.7 4.3%  Rock solid balance sheet metrics comfortably within Properties under development strategic target range despite continuous balance sheet 645.8 579.3 1

  8. Slide 8: Net Asset Value (NAV)

    Net Asset Value (NAV) EPRA NAV per Share at € 30.42 EPRA NAV per share YOY Net Asset Value 30.06.2018 31.12.2017**** +/- 31.0 +10.2% 30.5 NAV (IFRS equity) 2,420.6 2,419.20 30.0 Exercise of options 0.0 0.0 29.5 NAV after exercise of options 2,420.6 2,419.2 0.1% 29.0 28.5 NAV per share 26.02 25.95 0.

  9. Slide 9: Financing

    Financing Average Cost of Debt at 1.72% Reflect Financing Structure Optimisation CONTINUOUS COD OPTIMISATION CoD cut of  50 bps over last 12 months 3.00%  Average financing costs stood at 1.72% (incl. 2.80% 2.80% pro rata joint venture financing) at reporting date 2.60% 2.37% 2.34% 2.40% 2.21% 2.1

  10. Slide 10: Financing

    Financing Significant Financing Structure Optimisation Improves Cash Flow Resilience EXTENDED HEDGING RATIO AND MATURITIES Average debt maturity (years) 7.0  The average debt maturity stood at 6.5 years 6.5 as at June 30, up from 6.0 years a year earlier 6.5 6.0 6.0 6.1 6.0 5.8  CA Immo’s hedging

  11. Slide 11: Financing: Debt Structure

    Financing Debt Structure WELL-BALANCED DEBT STRUCTURE Debt structure Unsecured debt  CA Immo’s debt structure is well-balanced Bonds between secured debt provided by a number of 4% 5% UniCredit financial institutions and capital markets 5% 200 financings, which do not carry a concentration risk Hel

  12. Slide 12: Financing: Weighted Average Cost of Debt and Maturities

    Financing Weighted Average Cost of Debt and Maturities*  CoD/Maturities Outstanding debt Swaps  Cost of debt  Cost of debt  Debt maturity  Swap maturity (nominal value) (nominal value) excl. derivatives incl. derivatives (years) (years) Austria 141 52 2.00% 2.26% 8.3 8.5 Germany 516 222 1.02% 1

  13. Slide 13: Portfolio

    a= CA IMMO URBAN BENCHMARKS. PORTFOLIO

  14. Slide 14: Property Portfolio (€ 4.0 bn)

    Property Portfolio (€ 4.0 bn)* Largest Single Market Germany Accounts for 44% of Portfolio Value PORTFOLIO STRUCTURE Portfolio split by region and country (€ m)  Total property asset base of € 4.0 bn 2% 3% Germany  Excluding joint ventures with a property value of 528 Austria € 132 m (CA Immo pro

  15. Slide 15: Investment Portfolio (€ 3.3 bn)

    Investment Portfolio (€ 3.3 bn) Core Office Focussed Yielding Portfolio Across Key Economic Centres in CE STANDING INVESTMENTS Investment portfolio split by region and country (€ m)  Total income-producing property asset base of 3% 3% Germany  € 3.3 bn 498 Austria  Thereof assets in joint venture

  16. Slide 16: Investment Portfolio: Occupancy Rate Close to 95%

    Investment Portfolio* Occupancy Rate Close to 95% Portfolio occupancy (economic) Occupancy rate (economic) 96% 95.2% 94.6% (2Q 2017: 92.4%) 95% 94% 93.6% 94.4% 94.6% 93% 92.4% 92% 91.1% Gross initial yield 91% 90% 6.1% (2Q 2017: 6.0%) 89% 88% 87% 86% Like-for-like rental income (€ m)** 1Q 2017 2Q 20

  17. Slide 17: Investment Portfolio: Portfolio Metrics

    Investment Portfolio Portfolio Metrics Weighted average lease term (years) Gross initial yields 7.0 9.0% 7.9% 7.9% 7.9% 8.0% 7.0% 7.0% 6.0 6.9% 7.0% 6.1% 5.0 5.6% 6.0% 4.7% 4.0 5.0% 3.0 4.0% 3.0% 2.0 2.0% 1.0 1.0% 6.6 4.2 3.8 3.1 2.8 2.7 2.5 2.4 4.2 0.0 0.0% Germany Austria Poland Romania Hungary Ot

  18. Slide 18: Investment Portfolio: Like-for-Like Performance

    Investment Portfolio Like-for-Like Performance Like-for-like Fair value Rental income* Yield (%) Occupancy (%) 2Q 2018 2Q 2017 +/- 2Q 2018 2Q 2017 +/- 2Q 2018 2Q 2017 2Q 2018 2Q 2017 Austria 494.6 505.3 -2.1% 27.9 29.1 -4.0% 5.6 5.8 92.4 95.6 Germany 1,107.4 1,032.0.8 7.3% 52.9 48.3 9.5% 4.8 4.7 98.

  19. Slide 19: Investment Portfolio: Growth Strategy Gains Momentum

    Investment Portfolio Growth Strategy Gains Momentum EXTERNAL PORTFOLIO GROWTH Investment portfolio growth by selective acquisitions in CEE 200  Around € 700 m were invested into core 180 investment properties (incl. JV buy-outs) since 160 2013 140 120  CA Immo is well positioned to fully capture t

  20. Slide 20: Market Environment CEE

    Market Environment CEE Strong Economic Framework Prime office yields Prime office rents 9.00% 28.00 8.00% 26.00 24.00 7.00% 22.00 6.00% 20.00 5.00% 18.00 4.00% 16.00 Prague Budapest Warsaw Bucharest Prague Budapest Warsaw Bucharest GDP (yoy percentage change) Unemployment (%, seasonally adjusted) 9.

  21. Slide 21: Acquisition Strategy CEE: Prime Office Building in Prague

    Investment Portfolio: Acquisition Strategy CEE Acquisition of a Prime Office Building in Prague in Second Quarter CEE PORTFOLIO EXPANSION  Acquisition of Visionary building in Prague with a lettable area of  23,000 sqm from Skanska  Transaction volume  € 68 m  Completed in April 2018  Current

  22. Slide 22: Core Markets: Prague

    Core Markets Prague @ CA Immo investment properties i Kavci Hory Office Park BB Danube House Bi Nile House Amazon Court i Visionary @ CA Immo projects under construction River City Prague @ Landmarks E§ Central Station gQ Bi Dancing House ff) @ National Museum gr BD Charles Bridge xx Prague Castle c

  23. Slide 23: Acquisition Strategy CEE: Prime Office Building in Bucharest

    Investment Portfolio: Acquisition Strategy CEE Acquisition of a Prime Office Building in Bucharest in 2018 CEE PORTFOLIO EXPANSION  Acquisition of Campus 6.1 building in Bucharest with a lettable area of  22,000 sqm from Skanska  Transaction volume  € 53 m  Completion planned in 3Q 2018  Closi

  24. Slide 24: Core Markets: Bucharest

    Core Markets Bucharest = CAIMMO @ CA Immo investment properties River Place Bh Oper Center 1 Oper Center 2 Europehouse Bukarest Business Park @ CA Immo projects under construction @ Orhideea @ Landmarks Central Station g Triumphal Arch VW @ Palace pig Airport 4 Va VO Sektor 2 (e 24

  25. Slide 25: Development: Completed Projects, KPMG Berlin

    Development Completed Projects KPMG, BERLIN PHASE 2  Phase 1 (12,800 sqm) successfully completed and handed over to the tenant in March 2018  100% of space let to KPMG  Total investment volume (incl. plot) € 57 m  Yield on cost  5.7%  Phase 2 (Baufeld 04 project) in preparation  Adjacent high

  26. Slide 26: Projects Under Construction: Orhideea Towers, Bucharest

    Development Projects Under Construction (Completion in 2018) ORHIDEEA TOWERS, BUCHAREST  Lettable area 36,900 sqm  Investment volume  € 74 m (incl. plot)  Outstanding investment  € 27 m  Expected yield on cost  8.4%  Construction phase 4Q 2015 – 3Q 2018  Pre-let ratio  55% All figures (€)

  27. Slide 27: Projects Under Construction: ViE, Vienna

    Development Projects Under Construction (Completion in 2018) VIE, VIENNA  Lettable area 14,700 sqm  Investment volume  € 38 m (incl. plot)  Outstanding investment  € 12 m  Expected yield on cost  6.4%  Construction phase 3Q 2016 – 3Q 2018  Excellent location between airport and city center

  28. Slide 28: Projects Under Construction: InterCity Hotel, Frankfurt

    Development Projects Under Construction (Expected Completion in 2018) INTERCITY HOTEL, FRANKFURT  Main usage hotel  Total investment volume (incl. plot) € 58 m  Outstanding investment  € 12 m  Planned lettable area 17,300 sqm  Yield on cost  6.2%  Pre-letting-ratio 99%  Construction phase 3

  29. Slide 29: Projects in Planning Stage: Mississippi & Missouri Offices

    Development Projects in Planning Stage MISSISSIPPI & MISSOURI OFFICES, RIVERY CITY PRAGUE  Prime property development on plot adjacent to fully-let River City properties  Lettable area 20,000 sqm  Investment volume  € 54 m (incl. plot)  Outstanding investment  € 44 m  Expected yield on cost

  30. Slide 30: Appendix

    a= CA IMMO URBAN BENCHMARKS. APPENDIX

  31. Slide 31: Property Portfolio Overview

    Property Portfolio Overview Investment Investment Short-term Total property Total property Rentable area in Annualised Properties* properties under property assets assets assets (%) sqm *** rental income development ** (€ m) Austria 498 30 0 528 13 318,263 27.9 Germany 1,180 542 39 1,762 44 307,961

  32. Slide 32: Investment Portfolio: Major Assets

    Investment Portfolio Major Assets Largest investment properties (by value) Largest investment properties (by sqm) Arnulfpark, Skygarden, Munich 217 Millennium Towers, Budapest 70,712 Arnulfpark, Kontorhaus, Munich 174 River Place, Bucharest 46,960 River Place, Bucharest 108 Kavci Hory, Prague 42,265

  33. Slide 33: Investment Portfolio: Major Tenants

    Investment Portfolio Major Tenants Top 20 tenants (by annualized rent) PWC 3.1% European Border and Coast Guard Agency 2.9% Verkehrsbüro 2.3% Google Germany 2.2% Morgan Stanley 2.2% Land Berlin 2.0% TOTAL 1.9% Robert Bosch 1.7% KPMG 1.7% Bundesanstalt für Immobilienaufgaben 1.7% InterCityHotel 1.4%

  34. Slide 34: Development Strategy

    Development Strategy Monetization of Land Reserves with Significant Embedded Value High-quality inner city land reserves Estimated development volume* ( € 300 m book value,  85% located in Germany) ( € 4.2 bn,  10 years) Office / Hotel (Core strategy: Develop to own) Residential (Core strategy:

  35. Slide 35: Projects under Construction for Own Investment Portfolio

    Development Projects under Construction for Own Investment Portfolio Investment portfolio Investment Outstanding Planned Gross yield Main usage Share Pre-letting Construction projects volume* investment rentable on cost ratio phase area ViE (Vienna) 37.6 11.8 14,700 6.4 Office 100% 23% 3Q 16 – 3Q 18

  36. Slide 36: Projects under Construction for Sale

    Development Projects under Construction for Sale Trading portfolio projects Investment Outstanding Planned Main usage Share** Utilisation Construction volume* investment rentable area rate phase Rheinallee III (Mainz) 59.7 15.0 19,700 Residential 100% 100% 3Q 16 – 4Q 18 Bürogebäude am Kunstcampus –

  37. Slide 37: Laendyard Living, Vienna

    Development Projects Under Construction (Expected Completion in 2018) LAENDYARD LIVING, VIENNA  50/50 joint venture with Austrian residential developer JP Immobilien  Investment volume  € 31 m (CA Immo 50% share)  270 apartments ( 18,800 sqm) of which 96% have been sold  Construction phase 3Q

  38. Slide 38: MY.O, Munich

    Development Projects Under Construction (Expected Completion in 2019) MY.O, MUNICH  Lettable area  27,000 sqm  Investment volume  € 96 m (incl. plot)  Outstanding investment  € 63 m  Expected yield on cost  6.4%  Construction phase 2Q 2017 – 4Q 2019  Pre-let ratio  20% All figures (€) as

  39. Slide 39: Cube, Berlin

    Development Projects Under Construction (Expected Completion in 2019) CUBE, BERLIN  Highly profitable forward sale of office property development  Trophy Asset deal terms reflect booming market conditions in Berlin  Development and initial letting by CA Immo on behalf of buyer   17,100 sqm gros

  40. Slide 40: MY.B, Berlin

    Development Projects Under Construction (Expected Completion in 2019) MY.B, BERLIN  Total investment volume (incl. plot)  € 68 m  Outstanding investment  € 43 m  Rental area  14,500 sqm  Expected yield on cost  5.5%  Construction phase 3Q 2017 – 4Q 2019 All figures (€) as at 30 June 2018, u

  41. Slide 41: NEO, Munich

    Development Projects Under Construction (Expected Completion in 2020) NEO, MUNICH  Mixed use  Office (8,500 sqm), hotel with 143 rooms  55 apartments  Investment volume  € 64 m (incl. plot)  Outstanding investment  € 40 m  Expected yield on cost  4.9%  Construction phase 1Q 2017 – 2Q 2020

  42. Slide 42: ONE, Frankfurt

    Development Projects Under Construction (Expected Completion in 2021) ONE, FRANKFURT  Mixed use hotel/office high-rise (190 m, 49 floors)  Lettable area 66,200 sqm ( 85,000 sqm GFA)  Investment volume  € 354 m (incl. plot)  Outstanding investment  € 3296 m  Expected yield on cost  5.3 %  C

  43. Slide 43: Pipeline Projects out of Landbank (€ 4.2 bn)

    Development Pipeline Projects out of Landbank ( € 4.2 bn)* SIGNIFICANT EMBEDDED VALUE OF LANDBANK Regional split (€ bn) 1%  CA Immo currently holds land reserves worth  € 300 m in addition to its projects under construction (with a total investment volume of around € 1.0 bn) 21% CEE  The majorit

  44. Slide 44: Total Volume incl. Projects under Construction and Pipeline (€ 6 bn)

    Development Total Volume incl. Projects under Construction and Pipeline ( € 6 bn)* THREE DEVELOPMENT PHASES Total pipeline including projects under construction and redevelopments (€ bn)  CA Immo divides its long-term development 3.89 5.95 5.95 6.00 pipeline based on current land reserves into thr

  45. Slide 45: Pipeline Projects out of Landbank (€ 4.2 bn)

    Development Pipeline Projects out of Landbank ( € 4.2 bn)* OUSTANDING MARKET POSITION IN GERMANY Sectoral split (€ bn) Regional split (€ bn) 1%  With German rental yields on production costs at 5.5% to 6% and development value after completion including profitability of 15–20%, 21% CEE the earning

  46. Slide 46: Pipeline Projects for Own Investment Portfolio (€ 2.1 bn)

    Development Pipeline Projects for Own Investment Portfolio ( € 2.1 bn)* DEVELOPMENT VOLUME FOR OWN PORTFOLIO Development pipeline for own investment portfolio (€ bn) 2.50  Office and hotel properties are developed 0.29 2.10 primarily for the company's own portfolio, whereas residential properties

  47. Slide 47: Pipeline Projects for Sale (€ 1.8 bn)

    Development Pipeline Projects for Sale ( € 1.8 bn)* RESIDENTIAL PIPELINE Residential pipeline by city (€ bn) 2.00  To make the best possible use of the significant 1.30 1.81 1.80 organic growth potential in terms of profitability, CA Immo will develop also plots dedicated to 1.60 residential usage

  48. Slide 48: Pipeline Projects - Munich

    Development Pipeline Projects - Munich MUNICH CITY AND PERIHPERY  CA Immo has a successful residential development track record ( 1,600 apartments successfully developed standalone or in joint ventures), in particular on the Munich market  The majority of CA Immo‘s building plots in Munich are lo

  49. Slide 49: Pipeline Projects - Berlin

    Development Pipeline Projects - Berlin EUROPACITY BERLIN  The Europacity district is taking shape around Berlin’s main railway station, near the Reichstag building and the Chancellery  It has become a major office hub in the German capital, drawing together also residential, hotel and retail  CA

  50. Slide 50: Pipeline Projects - Mainz

    Development Pipeline Projects - Mainz ZOLLHAFEN MAINZ  In a joint venture with Stadtwerke Mainz, CA Immo is developing one of the most attractive waterside locations in the region, in the heart of the city (mixed used quarter for around 2,500 people which will also create space for 4,000 jobs)  Re

  51. Slide 51: Core Markets: Vienna

    Core Markets Vienna z= CA IMMO Landmarks Hauptbahnhof @ Wien Mitte @ Stephansdom Prater Flughafen 3 BESBEGE HE -CA1MMO Invostmont Properties EB Linke Wienzeile Bi Wolfganggesse Ey Mariabilfar Strafo EW Rennweg 15 / Mechelgasse 1 Bi Galleria Erdberger Linde @ Silbermawe By Donau Business Center ICA I

  52. Slide 52: Core Markets: Berlin

    Core Markets = CA IMMO Berlin Landmarks Central Station B Reichstag, Kanzleramt Brandenburger Tor Tift Potsdamer Platz I Reinickendorf Alexanderplatz — Airport Tegel 3 Airport Schénefeld a 1B D LE] Spandau CA IMMO Investment Properties Marzahn- Kirchstrahe 7 Hellersdorf Joachimsthaler StraBe 20 Char

  53. Slide 53: Core Markets: Frankfurt

    Core Markets Frankfurt HCA IMMO Investment Properties Meininger Hotel Skyline Plaza ‘Tower 185 HCA IMMO-Projects under construction / in preparation EE Mannheimer StraBe ‘Tower ONE © CA IMMO Land reserve ® Millenium Plot Districts Innenstadt I Innenstadt II Tnnenstadt IT Innenstadt IV Siid West Mitt

  54. Slide 54: Core Markets: Budapest

    Core Markets Budapest = CA IMMO BERBER BESHBESE05 wo Landmarks Central Station @ St.-Stephans-Basilika fd Parliament building (AY i Hero Squar Airport 9¢ CA IMMO Investment Properties IP West Infopark A Bartok Haz City Gate Millennium Towers R 70 Office Complex Vizivaros Office Center Canada Square

  55. Slide 55: Core Markets: Warsaw

    Core Markets Warsaw = CA IMMO Wi Landmarks Central Station @ By Palace of Culture & Science ik Royal Castle ; DD Mermaid of Warsaw Airport 3 CA IMMO Investment Properties Saski Point Saski Crescent Sienna Center Warsaw Towers Wspolna Bitwy Warszawskiej Warsaw Spire Building B BSGS555o o Districts 1

  56. Slide 56: Investor Relations Contact Details

    Investor Relations Contact Details Christoph Thurnberger Claudia Höbart Head of Capital Markets Investor Relations / Capital Markets Tel.: +43 (1) 532 59 07 504 Tel.: +43 (1) 532 59 07 502 E-Mail: christoph.thurnberger@caimmo.com E-Mail: claudia.hoebart@caimmo.com www.caimmo.com/investor_relations/

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