Tag Immobilien Ag · XETR:TEG
Tag Immobilien — Q3 2023 Earnings Presentation
40 slides from Tag Immobilien's earnings presentation, November 2023
Slide 1: Conference call presentation Q3 2023
Conference call presentation Q3 2023 TAG Immobilien AG | November 2023| 1
Slide 2: Content
Content I. TAG highlights Q3 2023 3 II. TAG financials Q3 2023 7 III. TAG German portfolio Q3 2023 12 IV. TAG Polish portfolio Q3 2023 15 V. TAG guidance FY 2023 and 2024 18 VI. Appendix 22 Income statement details Germany and Poland, balance sheet, EPRA NAV calculations German portfolio details
Slide 3: TAG highlights Q3 2023
TAG highlights Q3 2023 TAG Immobilien AG | November 2023| 3
Slide 4: TAG highlights Q3 2023: disposals, re-financings and new guidance FY 2024
TAG highlights Q3 2023: disposals, re-financings and new guidance FY 2024 1 Further 262 units sold in Q3 2023; in total disposals of 1,313 units (including one commercial building) in 9M 2023 with total sales proceeds of EUR 205.4m (Q3 2023: EUR 43.6m) and expected net cash proceeds of c. 2,200 un
Slide 5: TAG highlights Q3 2023: financial performance & German portfolio
TAG highlights Q3 2023: financial performance & German portfolio Q3 2023 Q2 2023 9M 2023 9M 2022 FY 2022 FFO I (EURm) 43.5 46.5 132.6 145.3 189.4 FFO I (EUR/share) 0.25 0.27 0.76 0.95 1.19 FFO II (EURm) 53.2 60.5 164.8 155.6 247.3 Financial performance FFO II (EUR/share) 0.30 0.35 0.94 1.01
Slide 6: TAG highlights Q3 2023: Poland
TAG highlights Q3 2023: Poland Q3 2023** Q2 2023 9M 2023** 9M 2022* FY 2022 Revenues from sale of properties (EURm) 53.2 32.2 143.5 98.4 337.6 Rental revenues (EURm) 3.5 2.7 7.7 1.9 2.7 FFO I Poland*** (EURm) 0.7 -0.1 0.3 --- --- Operational performance Adjusted net income from sales Poland (EURm) 4
Slide 7: TAG financials Q3 2023
TAG financials Q3 2023 TAG Immobilien AG | November 2023| 7
Slide 8: TAG income statement
TAG income statement* (in EURm) Q3 2023 Q2 2023 9M 2023 9M 2022 FY 2022 Net actual rent increases Q-o-Q as a result of higher rents in Poland. Net actual rent in Germany Net actual rent** 1 87.7 87.4 261.8 254.1 339.9 1 in Q3 2023 slightly reduced due to disposals. Y-o-Y increase by EUR 7.7m (3.0%)
Slide 9: TAG EBITDA, FFO and AFFO calculation
TAG EBITDA, FFO and AFFO calculation (in EURm) Q3 2023* Q2 2023* 9M 2023* 9M 2022* FY 2022* EBIT Germany 53.6 -408.8 -304.2 420.0 118.1 EBITDA (adjusted) rental business reduced Q-o-Q mainly due to lower net EBIT Poland rental** 2.5 2.1 5.4 0.0 0.0 1 rental income (higher expenses from property mana
Slide 10: TAG EPRA NTA calculation
TAG EPRA NTA calculation EPRA Net Tangible Assets EPRA NTA bridge in EUR/share (in EURm) 30 Sep-2023 31 Dec-2022 Equity (without minorities) 2,955.2 3,198.5 -2.53 + Deferred taxes on investment properties and 0.83 563.0 638.6 financial derivatives + Fair value of financial derivatives -1.5 -6.1 + Di
Slide 11: TAG financing structure
TAG financing structure Debt structure as of 30 Sep-2023 Key financial KPIs as of 30 Sep-2023 Debt volume Ø interest rate % fixed rates Ø Maturity total financial 4.8 years debt 1% Ø Maturity bank loans 5.9 years 2% Bank loans EUR 2,405m 2.3% 93% 3% Ø Interest rate total financial 2.3% Corporate bon
Slide 12: TAG German portfolio Q3 2023
TAG German portfolio Q3 2023 TAG Immobilien AG | November 2023| 12
Slide 13: TAG German portfolio rental growth and capex allocation
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) 21.6 20.9 24.6 24.0 TAG creates attractive rental
Slide 14: TAG German portfolio vacancy reduction residential units
TAG German portfolio vacancy reduction residential units Strong track record of recurring vacancy reduction after acquisitions leads to significant value creation Acquisitions Acquisitions +0.1% +0.8% 5.9% 5.8% 5.7% 5.7% 5.5%* Acquisitions Acquisitions 5.3%* 5.4% 5.1% 5.2% +0.1% +0.1% 4.9% 4.8% 4.8%
Slide 15: TAG Poland portfolio Q3 2023
TAG Poland portfolio Q3 2023 TAG Immobilien AG | November 2023| 15
Slide 16: TAG Rental portfolio Poland
TAG Rental portfolio Poland Continious strong rental results and a growing portfolio Rentable Fair value (IFRS) Units In-place Vacancy Vacancy Net actual rent l-f-l rental growth Region area EURm # yield Sep-2023 Dec-2022 EUR/ sqm/month* y-o-y sqm Sep-2023 Residential units 695 29,961 71.3 6.0% 2.3%
Slide 17: TAG Poland sales portfolio historical performance trajectory
TAG Poland sales portfolio historical performance trajectory Strategic focus on develop to sell projects drives uptick in disposal volumes, which allows to capitalize on rising sales prices and stable construction costs Sales, hand over and revenue per quarter 35 58 33 239 58 78 53 339 538 401 2,510
Slide 18: TAG guidance FY 2023 and 2024
TAG guidance FY 2023 and 2024 TAG Immobilien AG | November 2023| 18
Slide 19: TAG FFO guidance FY 2023 (unchanged)
TAG FFO guidance FY 2023 (unchanged) FFO I/s* 170-174m -9%/- 18% (EUR) 0.98/s vs. 2022 FFO II* 240-246m -9%/-11% (EUR) 1.38/s vs. 2022 Dividend Suspension proposed to the AGM (new) * based on 175,441,591 average NOSH (oustanding without treasury shares) TAG Immobilien AG | November 2023| 19
Slide 20: TAG EBITDA and FFO guidance FY 2024 (new)
TAG EBITDA and FFO guidance FY 2024 (new) in EURm 2024e 2023e Total 230 – 234 230 – 234 EBITDA FFO I* 170-174m +/-0% Rental Business 218 – 222 223 – 227 (EUR) 0.98/s vs. 2023 11 – 13 6–8 FFO II* 217-223m -9% EBITDA (EUR) 1.25/s vs. 2023 Sales Business 64 – 70 100 – 106 Dividend depending on market c
Slide 21: TAG FFO I bridge 2023e to 2024e
TAG FFO I bridge 2023e to 2024e in EURm c.7 (c.4) c.8 (c.6) c.4 (c.4) ~172 (c.3) (c.2) ~172 FFO I 2023 guidance L-f-l rental Reduced rents from Rent increase Poland Higher maintenance Increased personnel Reduced interest costs Increased Other FFO I 2024e growth Germany disposals Germany and other pr
Slide 22: APPENDIX
APPENDIX TAG Immobilien AG | November 2023| 22
Slide 23: TAG income statement details Germany and Poland
TAG income statement details Germany and Poland Poland - Poland – Poland - Poland – Germany Poland Total Germany Poland Total APPENDIX (in EURm) Rental Sales Rental Sales Q3 2023 Q3 2023 Q3 2023 9M 2023 9M 2023 9M 2023 Q3 2023 Q3 2023 9M 2023 9M 2023 Net actual rent* 84.2 3.5 3.5 0.0 87.7 254.1 7.7
Slide 24: TAG balance sheet
TAG balance sheet (in EURm) 30 Sep-2023 31 Dec-2022 APPENDIX Non-current assets 6,489.0 6,936.1 Investment property 1 6,082.6 6,569.9 Change in investment property in 9M 2023 mainly due to valuation loss of EUR 461.8m offset by 1 capex in Germany of EUR 63.3m and ongoing construction activities for
Slide 25: TAG EPRA NAV calculations
TAG EPRA NAV calculations APPENDIX EPRA NRV EPRA NTA EPRA NDV Net reinstatement value Net tangible assets Net disposal value (in EURm) 30 Sep-2023 30 Sep-2023 30 Sep-2023 Equity (before minorities) 2,955.2 2,955.2 2,955.2 Difference between fair value and book value for properties valued at cost 91.
Slide 26: TAG German portfolio details by region
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 APPENDIX # area EURm yield Sep- Dec- rent rent growth Y-o-Y incl. nance EUR/sqm sqm Sep- 2023 2022* EUR/ EUR/ Y-o-Y vacancy EUR/sqm 2023 sqm
Slide 27: TAG German portfolio vacancy reduction and rental growth
TAG German portfolio vacancy reduction and rental growth APPENDIX Vacancy development 9M 2023* l-f-l rental growth (Y-o-Y) 9M 2023 Gera 4.0% 1.8% Gera from 3.9% to 2.6% -1.3% Hamburg 3.2% Chemnitz from 8.0% to 7.8% 3.0% -0.2% Leipzig 2.5% Leipzig from 8.6% to 8.5% -0.1% 1.9% Berlin 2.3% Hamburg from
Slide 28: TAG portfolio valuation overview Germany
TAG portfolio valuation overview Germany Portfolio valuation result Development of gross yield 5.9% 5.9% H1 2023 vs. H1 2022 H1 2023 H1 2022 5.7% 5.5% 5.4% 5.3% -471.2 256.5** 5.1% in EUR m semi-annual valuation result (w/o capex) -7.4% +4.0% thereof from yield compression/ expansion -8.3% +3.4%
Slide 29: TAG German portfolio valuation details
TAG German portfolio valuation details APPENDIX Sep-2023 Sep-2023 Share of operational Dec-2022 Dec-2022 Dec-2022 Region Sep-2023 YTD 2023 Share of yield Fair value Implied performance/ other Fair value Fair value Implied (in EURm) Fair value (IFRS) Valuation result compression (EUR/sqm) multiple ma
Slide 30: TAG Poland portfolio overview
TAG Poland portfolio overview Established Polish build-to-sell and build-to-hold platform, based on the fully integrated Vantage and ROBYG businesses Portfolio strategy and geographic breakdown Key portfolio metrics 30 Sep-2023 Building a portfolio of residential properties via own project develop
Slide 31: TAG Poland build-to-hold portfolio mid-term development
TAG Poland build-to-hold portfolio mid-term development Overview of the planned development for the build-to-hold pipeline Overview of the Polish build-to-hold portfolio Potential scenarios for the build-to-hold portfolio Scenario 1: Scenario 2: Growth only by using Additional growth via surplus cas
Slide 32: TAG LTV calculation
TAG LTV calculation APPENDIX (in EURm) 30 Sep-2023 31 Dec-2022 31 Dec-2021 Non-current and current liabilities to banks 2,475.2 2,522.0 2,066.5 Non-current and current liabilities from corporate bonds and other loans 539.1 798.6 546.3 Non-current and current liabilities from convertible bonds 462.0
Slide 33: TAG net financial result calculation
TAG net financial result calculation (in EURm) Q3 2023 Q2 2023 9M 2023 9M 2022 FY 2022 APPENDIX + Interest income 1.8 0.5 3.3 1.2 4.7 - Interest expenses -18.5 -18.1 -55.0 -38.9 -54..0 + Other financial result -0.6 -4.7 -5.4 15.1 16.7 = Net financial result -17.3 -22.4 -57.1 -22.6 -32.6 + Financial
Slide 34: TAG cost of debt and LTV
TAG cost of debt and LTV APPENDIX Cost of debt Ø in % LTV in % 2.3% 2.1% 44.8% 45.1% 46.7% 46.9% 1.7% 43.2% 1.5% 1.4% 2019 2020 2021 2022 30 Sep-2023 31 Dec-2019 31 Dec-2020 31 Dec-2021 31 Dec-2022 30 Sep-2023 TAG Immobilien AG | November 2023| 34
Slide 35: TAG other financing metrics
TAG other financing metrics ICR Net financial debt/ EBITDA adjusted Net financial debt in EUR/ sqm APPENDIX 12.7 586 615 7.4 11.6 504 6.0 11.3 460 479 5.2 5.6 10.9 4.2 10.0 2019 2020 2021 2022 LTM 2023* 2019 2020 2021 2022 LTM 2023* 2019 2020 2021 2022 30 Sep-2023 6.0x reflects the total adjusted EB
Slide 36: TAG financial covenants overview as of 30 Sep-2023
TAG financial covenants overview as of 30 Sep-2023 Covenants leave extensive flexibility for further refinancing's APPENDIX Instrument Volume Comments • Mostly ICR/ DSCR or LTV covenants with material headroom Bank loans EUR 2,405m • “Soft covenants”, i.e. breach does not lead to an termination of t
Slide 37: TAG FFO and dividend historical development
TAG FFO and dividend historical development APPENDIX FFO I / FFO II in EURm FFO I / FFO II per share in EUR Dividend per share in EUR FFO I FFO II 247.3 FFO I FFO II c.243.0 1.56 1.52 221.9 c. 220.0 c.1.38 0.93 1.29 c. 1.25 0.88 Dividend 0.82 depending on 188.8 1.24 market 1.18 1.24 conditions 189.4
Slide 38: TAG ESG ratings
TAG ESG ratings TAG ranks among the top ratings in the real estate sector APPENDIX ESG rating and award improvements TAG’s ESG disclosure improvement Since 2020 we have placed particular emphasis on improving our ESG performance and reporting in order to better meet the expectations of Sustainalyt
Slide 39: TAG share data
TAG share data Shareholder structure as of 30 Sep-2023 Share information as of 30 Sep-2023 APPENDIX Market cap EUR 1,743m NOSH issued 175.5m NOSH outstanding 175.4m Treasury shares 0.1m Free float (Deutsche Börse definition) 99.9% ISIN DE0008303504 Ticker symbol TEG Index MDAX/ EPRA Frankfurt Stock
Slide 40: TAG contacts
TAG contacts Martin Thiel Dominique Mann TAG Immobilien AG CFO and Co-CEO 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