Tag Immobilien Ag · XETR:TEG
Tag Immobilien — H1 2024 Earnings Presentation
43 slides from Tag Immobilien's earnings presentation, Aug 16, 2024
Slide 1: Conference call presentation H1 2024
Conference call presentation H1 2024
Slide 2: Content
Content I. TAG highlights H1 2024 3 II. TAG financials H1 2024 7 III. TAG German portfolio H1 2024 11 IV. TAG Polish portfolio H1 2024 15 V. TAG guidance FY 2024 19 VI. Appendix 21 – 42 ▪ Strategy ▪ Income statement, balance sheet, EPRA NAV calculations ▪ German portfolio details by region, German p
Slide 3: TAG highlights H1 2024
TAG highlights H1 2024 TAG Immobilien AG | August 2024 | 3
Slide 4: TAG highlights H1 2024: overview
TAG highlights H1 2024: overview 44 1 ▪ FFO I of EUR 88.1m in H1 2024 (H1 2023: EUR 89.1m) despite disposals in Germany in FY 2023 and H1 2024 Stable FFO I from rental business ▪ German portfolio with increased total l-f-l rental growth of 2.7% (FY 2023: 2.3%) and vacancy rate of 4.2% Rental growth
Slide 5: TAG highlights H1 2024: financial performance and German Portfolio
TAG highlights H1 2024: financial performance and German Portfolio 55 Q2 2024 Q1 2024 H1 2024 H1 2023 FY 2023 ▪ FFO I (EURm) 43.5 44.6 88.1 89.1 171.7 ▪ FFO II (EURm) 57.1 64.3 121.4 111.6 255.6 ▪ EBITDA adjusted rental (EURm) 58.7 61.4 120.1 121.8 236.4 Financial ▪ EBITDA adjusted sales (EURm) 16.1
Slide 6: TAG highlights H1 2024: Polish portfolio
TAG highlights H1 2024: Polish portfolio 66 Rental business performance (BTH) Sales business perfomance (BTS) Q2 2024 1) Q1 2024 2) H1 2024 1) H1 2023 3) FY 2023 4) Q2 2024 1) Q1 2024 2) H1 2024 1) H1 2023 3) FY 2023 4) ▪ Sales revenues (EURm) 78.4 114.6 193.0 90.3 485.8 ▪ Net actual rent (EURm) 4.3
Slide 7: TAG financials H1 2024
TAG financials H1 2024 TAG Immobilien AG | August 2024 | 7
Slide 8: TAG EBITDA, FFO and AFFO calculation
TAG EBITDA, FFO and AFFO calculation (in EURm) Q2 2024 Q1 2024 H1 2024 H1 2023 FY 2023 EBIT Germany1) -89.8 54.7 -35.2 -357.8 -512.8 EBITDA adjusted rental business decreased by EUR 2.7m Q-o-Q driven by a reduced 1 EBIT Poland rental1) 11.3 3.1 14.4 2.8 22.1 EBITDA in the German business as a result
Slide 9: TAG EPRA NTA calculation
TAG EPRA NTA calculation EPRA NTA per share stable in H1 2024 despite portfolio devaluation in Germany resulting from good cash generation in the operational business. EPRA Net Tangible Assets EPRA NTA bridge in EUR/share (in EURm) 30 Jun-2024 31 Dec-2023 -0.66 +0.68 Equity (without minorities) 2,88
Slide 10: TAG financing structure
TAG financing structure 10 10 Lower LTV and strong financial ratios: Moody’s upgraded credit rating to Baa3 investment grade and confirmed outlook as stable Debt structure as of 30 Jun-2024 Key financial KPIs as of 30 Jun-2024 Debt volume Ø interest rate % fixed rates Ø Maturity total financial debt
Slide 11: TAG German portfolio H1 2024
TAG German portfolio H1 2024 TAG Immobilien AG | August 2024 | 11
Slide 12: 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 22.2 ▪ TAG creates attractive rental
Slide 13: 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% +0.1% Acquisitions 4.8% 4.7% 4.7% 4.4% 4
Slide 14: TAG portfolio valuation overview Germany
TAG portfolio valuation overview Germany 14 14 Portfolio valuation result Development of gross yield 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 5.4% in EUR m 5.7% 5.3% 5.1% 5.4% semi-annual valuation result -2.7% -4.1% -7.4% c. -
Slide 15: TAG Polish portfolio H1 2024
TAG Polish portfolio H1 2024 TAG Immobilien AG | August 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 Jun-2024 Dec-2023 EUR/ sqm/month 1) y-o-y 3) sqm Jun-2024 1) Wroclaw 1,149 48,025
Slide 17: TAG Polish sales business: sales results
TAG Polish sales business: sales results 1.056 units sold in H1 2024 after 1,817 units in H1 2023; lower number of units sold but increase in sales prices Y-o-Y of c. 20% Sold units and sales volume per quarter 706 527 441 715 972 845 1,060 709 636 420 200 150 100 148 110 112 110 118 50 75 76 80 61
Slide 18: TAG Poland sales business: revenue recognition
TAG Poland sales business: revenue recognition 1,330 units handed over in H1 2024 after 863 units in H1 2023; Q4 traditionally strongest quarter in terms of revenue recognition Units handed over and revenue per quarter 1) 339 538 401 2,510 583 280 639 2,310 821 509 300 225 150 296 239 75 115 99 78 5
Slide 19: TAG guidance FY 2024
TAG guidance FY 2024 TAG Immobilien AG | August 2024 | 19
Slide 20: TAG EBITDA and FFO guidance FY 2024 (unchanged)
TAG EBITDA and FFO guidance FY 2024 (unchanged) in EURm 2024e 2023 Total 230 – 234 236.4 EBITDA FFO I 1) 170-174m +/-0% Rental Business 218 – 222 227.6 (EUR) 0.98/s vs. 2023 11 – 13 8.8 FFO II 1) 217-223m -9% EBITDA (EUR) 1.25/s vs. 2023 Sales Business 64 – 70 100.6 Adjusted net income Dividend depe
Slide 21: Appendix
Appendix TAG Immobilien AG | August 2024 | 21
Slide 22: 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 23: TAG income statement
TAG income statement APPENDIX (in EURm) Q2 2024 Q1 2024 H1 2024 H1 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 89.4 88.8 178.2 174.1 350.8 1 good operational performance in Germany and higher contribution from
Slide 24: 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 Q2 2024 Q2 2024 Q2 2024 Q1 2024 Q1 2024 Q1 2024 H1 2024 H1 2024 H1 2024 Q2 20
Slide 25: TAG balance sheet
TAG balance sheet (in EURm) 30 Jun-2024 31 Dec-2023 APPENDIX Non-current assets 6,201.3 6,368.9 The change in investment properties is mainly due to the revaluation of the portfolio (EUR -134.8m), Investment property 1 5,763.5 5,935.3 capex in Germany (EUR 35.5m) and investments in Poland (EUR 67.1m
Slide 26: 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 Jun-2024 30 Jun-2024 30 Jun-2024 Equity (before minorities) 2,884.4 2,884.4 2,884.4 Difference between fair value and book value for properties valued at cost 70.
Slide 27: 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 # area EURm yield Jun- Dec- rent rent growth Y-o-Y incl. nance EUR/sqm sqm Jun- 2024 2023 EUR/ EUR/ Y-o-Y vacancy EUR/sqm APPENDIX 2024 sqm/
Slide 28: TAG German portfolio vacancy reduction and rental growth
TAG German portfolio vacancy reduction and rental growth APPENDIX Vacancy development 6M 2024 1) l-f-l rental growth (Y-o-Y) 6M 2024 Salzgitter from 5.3% to 4.7% -0.6% Hamburg 4.8% 3.3% -0.4% 3.7% Hamburg from 3.5% to 3.1% Leipzig 2.4% 3.5% Leipzig from 7.8% to 7.5% -0.3% Berlin 2.6% from 2.8% to 2.
Slide 29: TAG Germany portfolio valuation details
TAG Germany portfolio valuation details Dec-2023 Jun-2024 Jun-2024 Share of operational Dec-2023 Dec-2023 Region Jun-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 30: 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 Jun-2024 ▪ Building a portfolio of residential properties via own projec
Slide 31: TAG Polish BTH portfolio mid-term development
TAG Polish BTH portfolio mid-term development Overview of the planned development for the build-to-hold pipeline APPENDIX Overview of the Polish BTH portfolio Mid-term target until YE 2028 # units already finished/currently under c. 4,700 construction or in preparation Units in operation # further u
Slide 32: 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) 20.26 (% y-o-y as of H1 2024, w/o f/x effects) ▪ Throughout 2023 and in H1 2024, there was a high demand fo
Slide 33: 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 34: 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 +20% (% y-o-y as of Q2 2024, w/o f/x effects) APPENDIX c. 4,200 +23% +11% c 3,800 c. 3,400 +13% ▪ In FY 2023 as well as in the first half
Slide 35: TAG LTV calculation
TAG LTV calculation APPENDIX (in EURm) 30 Jun-2024 31 Dec-2023 Non-current and current liabilities to banks 2,353.3 2,290.3 Non-current and current liabilities from corporate bonds and other loans 417.4 523.9 Non-current and current liabilities from convertible bonds 464.9 463.5 Cash and cash equiva
Slide 36: TAG net financial result calculation
TAG net financial result calculation APPENDIX (in EURm) Q2 2024 Q1 2024 H1 2024 H1 2023 FY 2023 + Interest income 3.9 2.7 6.7 1.5 6.6 - Interest expenses -15.3 -16.4 -31.6 -36.5 -72.6 + Other financial result 3.6 1.6 5.2 -4.8 -13.7 = Net financial result -7.8 -12.0 -19.8 -39.8 -79.7 + Financial resu
Slide 37: TAG cost of debt and LTV
TAG cost of debt and LTV APPENDIX Cost of debt Ø in % LTV in % 2.2% 2.3% 45.1% 43.2% 46.7% 46.6% 2.1% 2.2% 47.0% 1.7% 1.4% 2.1% 1.5% 1.5% 1.4% 2020 2021 2022 2023 H1 2024 31 Dec-2020 31 Dec-2021 31 Dec-2022 31 Dec-2023 30 Jun-2024 TAG Immobilien AG | August 2024 | 37
Slide 38: TAG other financing metrics
TAG other financing metrics APPENDIX ICR Net financial debt/ EBITDA adjusted Net financial debt in EUR/ sqm 3) 586 606 593 5.6x 7.4x 5.8x 6.7x 11.6x 12.7x 504 11.3x 9.3x 9.0x 479 5.2x 1) 2) 2020 2021 2022 2023 H1 2024 2020 2021 2022 2023 H1 2024 2020 2021 2022 2023 H1 2024 1) 6.7x reflects the total
Slide 39: TAG financial covenants overview as of Jun-2024
TAG financial covenants overview as of 30 Jun-2024 Covenants leave extensive flexibility for further refinancing's APPENDIX Instrument Volume Comments • Mostly ICR/ DSCR or LTV covenants with material headroom Bank loans EUR 2,357m • “Soft covenants”, i.e. breach does not lead to an termination of t
Slide 40: 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 Dividend 221.9 c.220 0.82 depending on 1.46 market 1.29 c.1.25 conditions 188.8 Dividend 1.24 1.19 suspended
Slide 41: TAG ESG ratings
TAG ESG ratings TAG ranks among the top ratings in the real estate sector APPENDIX TAG Immobilien AG | August 2024 | 41
Slide 42: TAG share data
TAG share data Shareholder structure as of 30 Jun-2024 Share information as of 30 Jun-2024 APPENDIX 6.3% Black Rock Inc., USA Market cap EUR 2,399m 6.3% 4.9% NOSH issued 175.5m 4.9% BayernInvest Kapitalverwaltungsgesellschaft mbH, GER 4.7% NOSH outstanding 175.4m 3.4% 4.7% Versorgungsanstalt des Bun
Slide 43: Contact
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