Tag Immobilien Ag · XETR:TEG
Tag Immobilien — Q3 2024 Earnings Presentation
46 slides from Tag Immobilien's earnings presentation, Nov 16, 2024
Slide 1: Conference call presentation Q3 2024
Conference call presentation Q3 2024
Slide 2: Content
Content I. TAG highlights Q3 2024 3 II. TAG financials Q3 2024 7 III. TAG German portfolio Q3 2024 12 IV. TAG Polish portfolio Q3 2024 15 V. TAG guidance FY 2024 and FY 2025 20 VI. Appendix 24 – 45 ▪ Strategy ▪ Income statement, balance sheet, EPRA NAV calculations ▪ German portfolio details by regi
Slide 3: TAG highlights Q3 2024
TAG highlights Q3 2024 TAG Immobilien AG | November 2024 | 3
Slide 4: TAG highlights Q3 2024: overview
TAG highlights Q3 2024: overview 44 1 ▪ FFO I (at EUR 130.5m in 9M 2024, nearly unchanged y-o-y) and net income from sales Poland (at Operational business well on track to EUR 38.8m, representing a 39% increase y-o-y) well on track due to strong operational development. Higher rental growth and meet
Slide 5: TAG highlights Q3 2024: financial performance and German Portfolio
TAG highlights Q3 2024: financial performance and German Portfolio 55 Q3 2024 Q2 2024 9M 2024 9M 2023 FY 2023 ▪ FFO I (EURm) 42.4 43.5 130.5 132.6 171.7 ▪ FFO II (EURm) 46.1 57.1 167.5 164.8 255.6 ▪ EBITDA adjusted rental (EURm) 58.3 58.7 178.3 182.0 236.4 Financial ▪ EBITDA adjusted sales (EURm) 4.
Slide 6: TAG highlights Q3 2024: Polish portfolio
TAG highlights Q3 2024: Polish portfolio 66 Rental business performance (BTH) Sales business perfomance (BTS) Q3 2024 1) Q2 2024 2) 9M 2024 1) 9M 2023 3) FY 2023 4) Q3 2024 1) Q2 2024 2) 9M 2024 1) 9M 2023 3) FY 2023 4) ▪ Sales revenues (EURm) 99.5 78.4 292.5 189.5 485.8 ▪ Net actual rent (EURm) 4.8
Slide 7: TAG financials Q3 2024
TAG financials Q3 2024 TAG Immobilien AG | November 2024 | 7
Slide 8: TAG EBITDA, FFO and AFFO calculation
TAG EBITDA, FFO and AFFO calculation (in EURm) Q3 2024 Q2 2024 9M 2024 9M 2023 FY 2023 EBITDA adjusted rental business decreased by EUR 0.3m Q-o-Q driven by a reduced EBIT Germany1) 50.7 -89.8 15.6 -304.2 -512.8 1 EBITDA in Germany of EUR 2.0m as a result of higher maintenance costs of EUR 2.4m in E
Slide 9: TAG EPRA NTA calculation
TAG EPRA NTA calculation EPRA NTA per share increased by 2% in 9M 2024 despite portfolio devaluation in Germany resulting from strong cash generation in the operational business. EPRA Net Tangible Assets EPRA NTA bridge in EUR/share (in EURm) 30 Sep-2024 31 Dec-2023 Equity (without minorities) 2,929
Slide 10: TAG financing structure
TAG financing structure 10 10 LTV nearly at LTV target, two stable investment grade ratings ensure good access to a variety of financing sources Financing Mix Debt volume Ø interest rate % fixed rates 2% 4% 13% Bank loans EUR 2,327m 2.4% 96% 6% Corporate bonds EUR 625m 3.8% 100% Σ EUR Promissory not
Slide 11: TAG maturity profile
TAG maturity profile 11 11 Current liquidity of c. EUR 670m covers all maturities until YE 2025 Maturity profile as of 30 Sep-2024 (in EURm) 92 525 777 585 9 459 1,265 Total: Ø 3.36% Ø 2.75% Ø 1.23% Ø 2.90% Ø 2.96% Ø 3.32% Ø 2.72% 30 500 21 24 40 470 73 49 10 125 43 311 92 243 488 9 449 735 2024 202
Slide 12: TAG German portfolio Q3 2024
TAG German portfolio Q3 2024 TAG Immobilien AG | November 2024 | 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) 20.9 24.6 25.2 23.9 ▪ 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 +0.8% 5.9% 5.8% +0.1% 5.7% 5.7% 5.4% 5.5% 1) 5.3% 1) Acquisitions 5.2% Disposals +0.1% Acquisitions 4.8% 4.7% 4
Slide 15: TAG Polish portfolio Q3 2024
TAG Polish portfolio Q3 2024 TAG Immobilien AG | November 2024 | 15
Slide 16: TAG Polish rental business: portfolio data
TAG Polish rental business: portfolio data Continuous 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-2024 Dec-2023 EUR/ sqm/month 1) y-o-y 2) sqm Sep-2024 1) Wroclaw 1,290 53,780
Slide 17: TAG Polish BTH portfolio mid-term development
TAG Polish BTH portfolio mid-term development 17 17 Overview of the planned development for the build-to-hold pipeline Completed units BTH portfolio Mid-term target FY 2028 FY 2029 # units on the market c. 8,000 c. 10,000 Net actual rent p.a. c. EUR 70m c. EUR 85m c.10,000 c.8,000 EBITDA margin c. 7
Slide 18: TAG Polish sales business: sales results
TAG Polish sales business: sales results 1,435 units sold in 9M 2024 after 2,877 units in 9M 2023; lower number of units sold but increase in sales prices Y-o-Y of c. 10-15% Sold units and sales volume per quarter 706 527 441 715 972 845 1,060 709 636 420 379 200 150 100 148 110 112 110 118 50 75 76
Slide 19: TAG Poland sales business: revenue recognition
TAG Poland sales business: revenue recognition 1,581 units handed over in 9M 2024 after 1,502 units in 9M 2023; Q4 typically strongest quarter in terms of revenue recognition Units handed over and revenue per quarter 1) 339 538 401 2,510 583 280 639 2,310 821 509 251 300 225 150 296 239 75 115 99 99
Slide 20: TAG guidance FY 2024 and 2025
TAG guidance FY 2024 and 2025 TAG Immobilien AG | November 2024 | 20
Slide 21: TAG EBITDA and FFO guidance FY 2024 (unchanged/new dividend guidance)
TAG EBITDA and FFO guidance FY 2024 (unchanged/new dividend guidance) Resumption of dividend payments planned, new pay out ratio set at 40% of FFO I EUR 170-174m +/-0% 2024e Y-o-Y change FFO I EUR 0.98/s 1) vs. 2023 Total EUR 230-234m (-2%) Adjusted net income -41% EBITDA EUR 46-52m EUR 218-222m (-3
Slide 22: TAG EBITDA and FFO guidance FY 2025 (new)
TAG EBITDA and FFO guidance FY 2025 (new) Growing EBITDAs and growing results expected for FY 2025 EUR 172-176m +1% 2025e Y-o-Y change FFO I EUR 0.99/s 1) vs. 2024 Total EUR 240-246m (+5%) Adjusted net income +31% EBITDA EUR 61-67m EUR 224-228m (+3%) from sales Poland vs. 2024 Rental Business EUR 16
Slide 23: TAG FFO I bridge 2024e to 2025e
TAG FFO I bridge 2024e to 2025e in EURm c.10 (c.4) c.6 (c.3) (c.3) (c.3) ~172 (c.1) ~174 FFO I 2024e rental growth reduced rents from higher maintenance rental growth higher higher other FFO I 2025e guidance Germany disposals Germany and other property Poland financing costs cash taxes guidance mana
Slide 24: Appendix
Appendix TAG Immobilien AG | November 2024 | 24
Slide 25: TAG strategy: three segments – two countries – one company
TAG strategy: three segments – two countries – one company Cash and value orientated portfolio strategy APPENDIX Affordable housing rental business Build-to-hold (BTH) Build-to-sell (BTS) ▪ One of the biggest landlords in Poland focused on the ▪ Construction focus on Polish A cities ▪ TAG’s core bus
Slide 26: TAG income statement
TAG income statement APPENDIX (in EURm) Q3 2024 Q2 2024 9M 2024 9M 2023 FY 2023 Total net actual rent Q-o-Q above pre-quarter level despite sales of rental units in Germany due to Net actual rent 1) 1 90.0 89.4 268.2 261.8 350.8 1 good operational performance in Germany and higher contribution from
Slide 27: TAG income statement details Germany and Poland
TAG income statement details Germany and Poland APPENDIX Poland - Poland – Poland - Poland – Poland - Poland – Germany Poland Total Germany Poland Total Germany Poland Total (in EURm) Rental Sales Rental Sales Rental Sales Q3 2024 Q3 2024 Q3 2024 Q2 2024 Q2 2024 Q2 2024 9M 2024 9M 2024 9M 2024 Q3 20
Slide 28: TAG balance sheet
TAG balance sheet (in EURm) 30 Sep-2024 31 Dec-2023 APPENDIX Non-current assets 6,234.3 6,368.9 The change in investment properties is mainly due to the H1 2024 revaluation of assets ( Investment property 1 5,792.6 5,935.3 EUR -130.4m), capex (EUR 56.1m) and investments in Poland (EUR 64.9m). In add
Slide 29: 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-2024 30 Sep-2024 30 Sep-2024 Equity (before minorities) 2,928.9 2,928.9 2,928.9 Difference between fair value and book value for properties valued at cost 70.
Slide 30: TAG German portfolio details by region
TAG German portfolio details by region Region Units Rentable IFRS fair value Gross Vacancy Vacancy Net actual Re-letting l-f-l rental l-f-l rental growth Mainte- Capex # area EURm yield Sep- Dec- rent rent growth Y-o-Y incl. nance EUR/sqm sqm Sep- 2024 2023 EUR/ EUR/ Y-o-Y vacancy EUR/sqm APPENDIX 2
Slide 31: TAG German portfolio vacancy reduction and rental growth
TAG German portfolio vacancy reduction and rental growth APPENDIX Vacancy development 9M 2024 1) l-f-l rental growth (Y-o-Y) 9M 2024 Salzgitter from 5.3% to 4.6% -0.7% 5.0% Leipzig 3.6% Berlin from 2.8% to 2.2% -0.6% Hamburg 4.6% 3.7% Leipzig from 7.9% to 7.5% -0.4% 3.3% Berlin 2.3% -0.3% 2.8% Hambu
Slide 32: TAG portfolio valuation overview Germany
TAG portfolio valuation overview Germany 32 32 Portfolio valuation result Development of gross yield APPENDIX H1 24 vs. H2 23 and H1 23 H1 2024 1) H2 2023 2) H1 2023 ∑H2 22-H1 24 6.5% 6.3% 6.1% -144.3 -260.4 -471.2 -1,229.7 5.9% in EURm 5.7% 5.3% 5.1% 5.4% semi-annual valuation result -2.7% -4.1% -7
Slide 33: TAG Germany portfolio valuation details
TAG Germany portfolio valuation details Dec-2023 Sep-2024 Sep-2024 Share of operational Dec-2023 Dec-2023 Region Sep-2024 YTD 2024 Share of yield Fair value Fair value Implied performance/ other Fair value Implied APPENDIX (in EURm) Fair value (IFRS) Valuation result compression (IFRS BV) (EUR/sqm)
Slide 34: TAG Polish portfolio overview
TAG Polish portfolio overview Established Polish build-to-sell and build-to-hold platform, based on the fully integrated Vantage and ROBYG businesses APPENDIX Portfolio strategy and geographic breakdown Key portfolio metrics 30 Sep-2024 ▪ Building a portfolio of residential properties via own projec
Slide 35: Overview of Polish residential rental market
Overview of Polish residential rental market After exceptional high growth in 2022 and 2023, rents have stabilised in 2024 APPENDIX +1% Average rental offer price for new stock (EUR/sqm/month) 20.90 (% y-o-y as of Q3 2024, w/o f/x effects) ▪ Throughout 2023 and in the first nine month of 2024, there
Slide 36: TAG overview of BTS contribution to key figures over time
TAG overview of BTS contribution to key figures over time1) APPENDIX Units handed over 2) Sales revenues (EURm) 2) EBITDA adjusted (EURm) 1)/2) 3,788 3,812 445 101 3,711 342 347 359 84 7.4x 6.0x 10.9x 11.6x 321 12.7x 11.3x 9.3x 72 77 4.7x 5.2x 5.6x 64 3,516 3,434 2019 2020 2021 2022 2023 2019 2020 2
Slide 37: Overview of Polish residential sales market
Overview of Polish residential sales market Average offer price gross (EUR/sqm, w/o fit-out costs) Strongly increasing sales prices throughout major Polish cities +12% (% y-o-y as of Q3 2024, w/o f/x effects) APPENDIX c. 4,300 +14% +7% c 3,800 c. 3,500 +9% ▪ In FY 2023 as well as in the first nine m
Slide 38: TAG LTV calculation
TAG LTV calculation APPENDIX (in EURm) 30 Sep-2024 31 Dec-2023 Non-current and current liabilities to banks 2,316.1 2,290.3 Non-current and current liabilities from corporate bonds and other loans 916.3 523.9 Non-current and current liabilities from convertible bonds 464.9 463.5 Cash and cash equiva
Slide 39: TAG net financial result calculation
TAG net financial result calculation APPENDIX (in EURm) Q3 2024 Q2 2024 9M 2024 9M 2023 FY 2023 + Interest income 3.7 3.9 10.4 3.3 6.6 - Interest expenses -17.9 -15.3 -49.6 -55.0 -72.6 + Other financial result1) -1.7 3.6 3.5 -5.4 -13.7 = Net financial result -15.8 -7.8 -35.6 -57.1 -79.7 + Financial
Slide 40: TAG cost of debt and LTV
TAG cost of debt and LTV APPENDIX Cost of debt Ø in % LTV in % 45.1% 43.2% 46.7% 46.1% 2.2% 2.5% 47.0% 1.7% 2.1% 2.2% 2.1% 1.5% 1.4% 1.5% 1.4% 2020 2021 2022 2023 9M 2024 31 Dec-2020 31 Dec-2021 31 Dec-2022 31 Dec-2023 30 Sep-2024 TAG Immobilien AG | November 2024 | 40
Slide 41: TAG other financing metrics
TAG other financing metrics APPENDIX ICR Net financial debt/ EBITDA adjusted Net financial debt in EUR/ sqm 3) 586 606 585 5.6x 7.4x 5.8x 6.9x 11.6x 12.7x 504 11.3x 9.3x 8.9x 479 5.2x 1) 2) 2020 2021 2022 2023 LTM 2024 2020 2021 2022 2023 LTM 2024 2020 2021 2022 2023 9M 2024 1) 6.9x reflects the tot
Slide 42: TAG financial covenants overview as of Sep-2024
TAG financial covenants overview as of 30 Sep-2024 Covenants leave extensive flexibility for further refinancing's APPENDIX Instrument Volume Covenants Thresholds Status Q3 2024 ▪ Mostly ICR/ DSCR or LTV 1) Bank loans EUR 2,327m ▪ Typically based on portfolio level ▪ Soft covenants ▪ currently mater
Slide 43: 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 FFO I FFO II 256.5 247.3 0.93 1.51 1.56 0.88 221.9 c.220 0.82 1.46 1.29 c.1.25 188.8 Dividend 1.18 1.24 1.19 suspended 0.40 182.0 189.4 171.7 c.172 0.98
Slide 44: TAG ESG ratings
TAG ESG ratings TAG ranks among the top ratings in the real estate sector APPENDIX *Not responsive level: rating only based on publicly available information, no participation of TAG in an active rating process TAG Immobilien AG | November 2024 | 44
Slide 45: TAG share data
TAG share data Shareholder structure as of 30 Sep-2024 Share information as of 30 Sep-2024 APPENDIX 6.3% BlackRock Inc., USA Market cap EUR 2,915m 6.3% 5.0% Resolution Capital Limited, AUS 5.0% NOSH issued 175.5m 4.9% 4.9% BayernInvest Kapitalverwaltungsgesellschaft mbH, GER NOSH outstanding 175.4m
Slide 46: Investor relations 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-ag.com www.t