Tag Immobilien Ag · XETR:TEG
Tag Immobilien — Q1 2020 Earnings Presentation
40 slides from Tag Immobilien's earnings presentation, May 2020
Slide 1: Conference call presentation Q1 2020
Conference call presentation Q1 2020
Slide 2: Content
Content 22 I. TAG highlights Q1 2020 3 II. TAG Covid-19 business update 5 III. TAG financials Q1 2020 7 IV. TAG German portfolio Q1 2020 13 V. TAG acquisitions Germany Q1 2020 17 VI. TAG Poland business update 19 VII. TAG guidance FY 2020 25 VIII. Appendix 27 German portfolio details by region G
Slide 3: TAG highlights Q1 2020
33 TAG highlights Q1 2020 TAG Immobilien AG | May 2020 | 3
Slide 4: TAG highlights Q1 2020
TAG highlights Q1 2020 44 Q1 2020 Q4 2019 FY 2019 Vacancy (residential units) 4.9% 4.5%/ 4.6%* 4.5%/ 4.6% Vacancy (total portfolio) 5.3% 4.9% 4.9% Operational performance L-f-l rental growth y-o-y 1.9% 1.9% 1.9% German portfolio L-f-l rental growth y-o-y (incl. vacancy reduction) 2.3% 2.4% 2
Slide 5: TAG Covid-19 business update
TAG Covid-19 business update 55 Since March 2020 no rent increases on the basis of adjustments to local comparative rents No terminations due to loss of income caused by the Corona crisis and no evictions of inhabited apartments Our social responsibility Receivables management teams, as in the
Slide 6: TAG Covid-19 business update
TAG Covid-19 business update 66 Liquidity position as of 31 Mar-2020: EUR 196.8m cash EUR 120.0m credit lines (fully undrawn) Dividend payment after virtual AGM on 22 May 2020 of EUR 119.9m (EUR 0.82/s) Good liquidity Expected cash inflows from signed disposals in 2020: c. EUR 60m position
Slide 7: TAG financials Q1 2020
77 TAG financials Q1 2020 TAG Immobilien AG | May 2020 | 7
Slide 8: TAG income statement
TAG income statement 88 Germany Poland Total Germany Poland Total 1 Increase in net rent q-o-q by EUR 0.5m as a result of rental growth (in EURm) Q1 2020 Q1 2020 Q1 2020 Q4 2019 Q4 2019 Q4 2019 (EUR 0.2m) and portfolio acquisitions (EUR 0.3m). Net rent* 1 79.7 0.0 79.6 79.1 0.0 79.1 2 Decrease in ne
Slide 9: TAG EBITDA, FFO and AFFO calculation
TAG EBITDA, FFO and AFFO calculation 99 (in EURm) Q1 2020 Q4 2019 FY 2019 1 For reasons of comparability to FY 2018 effects from first time application of IFRS 16 were eliminated in FFO in 2019. In line with Net income 32.1 188.5 456.4 most peers, this adjustment no longer takes place from 2020 - Ne
Slide 10: TAG balance sheet
TAG balance sheet 10 10 (in EURm) 31 Mar-2020 31 Dec-2019 Non-current assets 5,386.1 5,301.5 Investment property 1 5,263.4 5,200.0 1 EUR 63.4m higher investment properties mostly result of capex (EUR 20.7m) and book value of new acquisitions/first-time consolidation Vantage. Deferred tax assets 50.8
Slide 11: TAG EPRA NTA and NAV calculation
TAG EPRA NTA and NAV calculation 11 11 EPRA Net Tangible Assets in EUR/share (“new“ definition) EPRA Net Asset Value in EUR/share (“old“ definition) (in EURm) 31 Mar-2020 31 Dec-2019 (in EURm) 31 Mar-2020 31 Dec-2019 Equity (without minorities) 2,362.5 2,342.6 Equity (without minorities) 2,362.5 2,3
Slide 12: TAG financing structure
TAG financing structure 12 12 Debt structure as of 31 Mar-2020 Key financial KPIs as of 31 Mar-2020 Ø Maturity total financial debt 7.3 years 3.8% Ø Maturity bank loans 8.6 years 1.5% Ø Interest rate total financial debt 1.72% Debt volume Ø interest rate % fixed rates 9.7% Ø Interest rate bank loans
Slide 13: TAG German portfolio Q1 2020
13 13 TAG German portfolio Q1 2020 TAG Immobilien AG | May 2020 | 13
Slide 14: TAG German portfolio as of Mar-2020
TAG German portfolio as of 31 Mar-2020 14 14 Regionally focused and efficiently managed residential portfolio in Northern and Eastern Germany Portfolio as of 31 Mar-2020 31 Dec-2019 TAG is a leader in affordable housing in Northern and Eastern Number of units 84,890 84,510 Germany. Lettable area i
Slide 15: TAG German portfolio rental growth and capex allocation
TAG German portfolio rental growth and capex allocation 15 15 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) TAG creates attractive rental growth from 15
Slide 16: TAG German portfolio vacancy reduction residential units
TAG German portfolio vacancy reduction residential units 16 16 Strong track record of vacancy reduction due to TAG’s active asset management approach 8.9% 8.1% Vacancy rate 7.5% Acquisitions +0.0% Acquisitions 6.1% 6.1% +0.5% Acquisitions Acquisitions 5.9% 5.7% +0.3% +0.1% 5.6% 5.5% 5.3% 5.3% 5.2% 5
Slide 17: TAG acquisitions Germany Q1 2020
17 17 TAG acquisitions Germany Q1 2020 TAG Immobilien AG | May 2020 | 17
Slide 18: TAG acquisitions Germany Q1 2020
TAG acquisitions Germany Q1 2020 18 18 Saxony-Anhalt Saxony Total Signing Jan-2020 Mar-2020 2020 431 434 865 Units Bernburg Net rent 4.61 4.29 4.47 in EUR/sqm/month Vacancy 5.2% 18.9% 12.0% Purchase price in EURm --- --- 29.3 Net rent in EURm p.a. 1.26 0.99 2.3 Dessau Bernburg, Dessau Plauen Locatio
Slide 19: TAG Poland business update
19 19 c. 1,100 units c. 4,600 units TAG Poland business update TAG Immobilien AG | May 2020 | 19
Slide 20: Poland strategic rationale
Poland strategic rationale 20 20 Unlocking superior returns by addressing the growing demand of the Polish residential-for-rent market Strategic rationale Current locations Against the backdrop of its strong macroeconomic and demographic growth, Poland is experiencing a structural gap between dema
Slide 21: Vantage history and platform
Vantage history and platform 21 21 Best in-class development platform amplified by strong management team and in-house capabilities 2007 2012 2014 2019 Company history Start of IPO on the First 1,000 units TAG residential activity Warsaw Stock sold by Vantage acquisition in Wroclaw Exchange Developm
Slide 22: Poland build-to-hold pipeline
Poland build-to-hold pipeline 22 22 Polish build-to-hold projects currently concentrated in growth regions of Wroclaw and Poznan Build-to-hold projects overview Build-to-hold pipeline locations Other Pipeline locations Wroclaw Poznan Total locations Total number of projects 8 8 8 24 Total number of
Slide 23: Poland build-to-sell pipeline
Poland build-to-sell pipeline 23 23 Attractive build-to-sell projects in Wroclaw offering strong cashflows and significant support to FFO II Build-to-sell projects overview Build-to-sell pipeline locations Pipeline location Wroclaw Total number of projects 11 Total number of project stages 28 Number
Slide 24: Poland financing strategy
Poland financing strategy 24 24 Multi-faceted financing strategy in Poland Financing strategy in Poland 3-year PLN/EUR exchange rate trend 0.260 TAG targets multi-faceted financing strategy in Poland, involving 0.250 Max: 0.242 employment of both secured and unsecured instruments at Vantage and TA
Slide 25: TAG guidance FY 2020
25 25 TAG guidance FY 2020 TAG Immobilien AG | May 2020 | 25
Slide 26: Guidance FY 2020 (unchanged)
TAG guidance FY 2020 26 26 FFO I +5% based on the current portfolio 168-170m Guidance FY 2020 (unchanged) (EUR) vs. 2019 (for purpose of the guidance no further acquisitions/disposals are included) FFO I/s +5% based on 146.3m outstanding shares 1.16 (EUR) vs. 2019 DPS +5% equals 75% of FFO I (
Slide 27: Appendix
27 27 APPENDIX TAG Immobilien AG | May 2020 | 27
Slide 28: TAG German portfolio details by region
TAG German portfolio details by region 28 28 Region Units Rentable IFRS BV Gross Vacancy Vacancy Net rent Re-letting L-f-l rental L-f-l rental Mainte- Capex # area EURm yield Mar- Dec- EUR/ sqm rent growth growth nance EUR/sqm sqm Mar- 2020 2019* EUR/ y-o-y y-o-y incl. EUR/sqm 2020 sqm vacancy APPEN
Slide 29: TAG German portfolio vacancy reduction and rental growth
TAG German portfolio vacancy reduction and rental growth 29 29 Vacancy development Q1 2020* L-f-l rental growth (y-o-y) Q1 2020 APPENDIX Chemnitz 1.0% 3.0% Hamburg -0.2% from 4.2% to 4.0% Gera 1.3% 2.6% Berlin from 4.1% to 4.2% +0.1% Berlin 2.3% 2.6% Salzgitter from 5.2% to 5.3% +0.1% Dresden 2.1% 2
Slide 30: TAG German portfolio valuation overview
TAG German portfolio valuation overview 30 30 Portfolio valuation result Development of gross yield APPENDIX 7.2% 7.1% 7.0% FY 2019 vs. FY 2018 FY 2019 FY 2018 6.7% 6.8% 414.1 430.0 6.6% 6.5% in EUR m 6.4% 6.3% annual uplift 8.6% 10.1% 6.2% 6.1% 6.1% 6.0% thereof from yield compression 73% 73% 5.8
Slide 31: TAG German portfolio valuation details
TAG German portfolio valuation details 31 31 Share of Mar-2020 Mar-2020 Mar-2020 operational Dec-2019 Dec-2019 Dec-2019 Region Mar-2020 Share of yield Fair value Fair value Implied performance/ Fair value Fair value Implied (in EURm) Valuation result compression (IFRS) (EUR/sqm) multiple other marke
Slide 32: TAG EPRA NAV calculations
TAG EPRA NAV calculations 32 32 New EPRA metrics APPENDIX EPRA NAV EPRA NRV EPRA NTA EPRA NDV Net asset value Net reinstatement value Net tangible assets Net disposal value (in EURm) Q1 2020 Q1 2020 Q1 2020 Q1 2020 Equity (before minorities) 2,362.5 2,362.5 2,362.5 2,362.5 Effect from conversion of
Slide 33: TAG EPRA Earnings
TAG EPRA Earnings 33 33 (in EURm) Q1 2020 Q4 2019 FY 2019 Net income 32.1 188.5 456.4 Valuation result 0.9 -203.1 -414.1 APPENDIX Deferred income taxes on valuation result 4.1 28.1 76.7 Net income from sales 1.4 0.4 0.4 Cash taxes on net revenues from sales 0.2 2.0 2.0 Fair value valuation of deriva
Slide 34: TAG cost of debt and LTV
TAG cost of debt and LTV 34 34 Cost of debt Ø in % LTV* in % APPENDIX 3.45 3.15 62.7 57.1 2.34 52.3 47.3 1.73 1.72 44.8 44.6 1.92 31 Dec- 31 Dec- 31 Dec- 31 Dec- 31 Dec- 31 Mar- 31 Dec- 31 Dec- 31 Dec- 31 Dec- 31 Dec- 31 Mar- 2015 2016 2017 2018 2019 2020 2015 2016 2017 2018 2019 2020 *For further d
Slide 35: TAG strong development of financing metrics
TAG strong development of financing metrics 35 35 ICR Net financial debt/ EBITDA adjusted Net financial debt in EUR/ sqm 460 461 453 450 449 445 4.7 5.0 13.4 3.8 12.5 3.0 11.3 11.2 11.3 2.3 10.9 1.9 2015 2016 2017 2018 2019 Q1 2020 2015 2016 2017 2018 2019 Q1 2020 2015 2016 2017 2018 2019 Q1 2020
Slide 36: TAG LTV calculation
TAG LTV calculation 36 36 APPENDIX (in EURm) 31 Mar-2020 31 Dec-2019 31 Dec-2018 Non-current and current liabilities to banks 2,001.8 1,901.2 1,855.5 Non-current and current liabilities from corporate bonds and other loans 418.9 403.0 285.8 Non-current and current liabilities from convertible bonds
Slide 37: TAG interest coverage ratio (ICR) calculation
TAG interest coverage ratio (ICR) calculation 37 37 (in EURm) Q1 2020 Q4 2019 FY 2019 APPENDIX + Interest income 0.8 0.1 0.5 - Interest expenses -12.8 -34.4 -79.4 + Net income from investments 0.2 0.9 1.4 = Net financial result -11.8 -33.4 -77.6 + Financial result from convertible/corporate bonds 0.
Slide 38: TAG German portfolio maintenance and capex
TAG German portfolio maintenance and capex 38 38 in EUR millions 2019 2020 APPENDIX Total German portfolio Q1 Q2 Q3 Q4 Total FY Q1 Maintenance 8.4 8.3 8.8 7.8 33.3 8.4 Capex 15.2 14.9 16.8* 19.8* 66.7 20.7 Chemnitz Total 23.6 23.2 25.6 27.6 100.0 29.1 in EUR/sqm 2019 2020 German Residential units Q1
Slide 39: TAG share data
TAG share data 39 39 Shareholder structure as of 31 Mar-2020 Share information as of 31 Mar-2020 APPENDIX Market cap EUR 2.6bn 9.9% MFS (Massachusetts Financial Services Company), USA NOSH issued 146.5m 9.9% 9.6% The Capital Group Companies Inc., USA NOSH outstanding 146.2m 9.6% 6.2% BlackRock Inc.,
Slide 40: TAG contacts
TAG contacts 40 40 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.c