Tag Immobilien Ag · XETR:TEG

Tag Immobilien — Q3 2016 Earnings Presentation

27 slides from Tag Immobilien's earnings presentation, November 2016

  1. Slide 1: Conference call presentation Q3 2016

    Conference call presentation Q3 2016

  2. Slide 2: Content

    Content 22 CONTENT I. TAG highlights Q3 2016 3 II. TAG financials Q3 2016 6 III. TAG portfolio Q3 2016 13 IV. TAG portfolio valuation Q3 2016 17 V. TAG guidance 2016 and 2017 20 VI. Appendix 22  Capex and maintenance  Capital markets data  Bonds  Management Board TAG Immobilien AG | November 201

  3. Slide 3: TAG highlights Q3 2016

    3 TAG highlights Q3 2016

  4. Slide 4: TAG highlights Q3 2016

    TAG highlights Q3 2016 44 Q3 2016 Q2 2016 FY 2015 Q3 2015  Vacancy (residential units) 6.7% 7.1% 7.5%/7.7%* 8.4% HIGHLIGHTS Operational  L-f-L rental growth Y-o-Y 1.9% 1.9% 1.6% 1.5% performance  L-f-L rental growth Y-o-Y incl. vacancy reduction 3.8% 3.9% 3.3% 2.6%  FFO I (EUR/m) 25.0 23.3 76.3

  5. Slide 5: TAG highlights Q3 2016

    TAG highlights Q3 2016 55  Early conversion of last outstanding convertible bond 2012/2019 (EUR 74.5m, coupon 5.5% p.a.) Optimized  Innovative capital market transaction for the benefit of our shareholders in Jul-/Aug-2016. HIGHLIGHTS capital and financing  More than 94% of the bondholders (EUR 7

  6. Slide 6: TAG financials Q3 2016

    6 TAG financials Q3 2016

  7. Slide 7: TAG income statement (IFRS)

    TAG income statement (IFRS) 77 (in EUR millions) Q3 2016 Q2 2016 9M 2016 9M 2015 FY 2015  Rental revenues in Q3 increased due to further INCOME STATEMENT rental growth and vacancy reduction. Rental income 69.2 68.3 205.2 193.3 259.3 Expenses from property -12.7 -13.0 -40.3 -41.6 -54.0  Lower expen

  8. Slide 8: TAG FFO calculation

    TAG FFO calculation 88 (in EUR millions) Q3 2016 Q2 2016 9M 2016 9M 2015 FY 2015 Net income 134.0 22.1 174.1 115.2 147.3 FFO + Taxes 40.6 3.6 45.9 28.6 27.8 + Net financial result 27.4 21.4 70.7 74.4 96.0  FFO I increased by EUR 1.7m compared EBIT 202.0 47.1 290.7 218.2 271.1 to previous quarter an

  9. Slide 9: TAG balance sheet (IFRS)

    TAG balance sheet (IFRS) 99 (in EUR millions) 30 Sep-2016 31 Dec-2015 BALANCE SHEET Non-current assets 3,804.9 3,605.4 Investment property 3,742.6 3,531.1  Increase in investment property relates to valuation (EUR 164m), capex (EUR 35m) and Deferred tax assets 37.8 43.6 acquisitions/sales (EUR 13m)

  10. Slide 10: TAG NAV calculation

    TAG NAV calculation 10 10 (in EUR millions) 30 Sep-2016 31 Dec-2015  NAV per share development of EUR +0.70 NAV (+7%) in 9M 2016: Equity (without minorities) 1,324.7 1,085.1  EUR -0.55 reduction due to dividend + Deferred taxes on investment properties 287.8 245.1 payment and financial derivatives

  11. Slide 11: TAG debt financing structure

    TAG debt financing structure 11 11 Debt maturity profile as of 30 Sep-2016 in EUR millions Interest rates and maturities (1) Corporate bonds FINANCING STRUCTURE EUR 435m (EUR 310m) Bank loans EUR 1,859m (EUR 604m) Ø interest rate: 4.52% (4.83%) Ø interest rate: 2.86% (3.55%) Total: EUR 2,294m Ø 3.18

  12. Slide 12: TAG cost of debt and LTV

    TAG cost of debt and LTV 12 12  Cost of debt Ø FINANCING STRUCTURE  Continuous reduction of average cost of debt during 2015 and 2016.  Upcoming refinancings of bank 3.74% 3.45% 3.20% 3.18% loans and corporate bond in 2017 and 2018 will reduce borrowing costs further (current run rate: Chemnitz 3

  13. Slide 13: TAG portfolio Q3 2016

    13 TAG portfolio Q3 2016

  14. Slide 14: TAG portfolio in total as of Sep-2016

    TAG portfolio in total as of 30 Sep-2016 14 14  Geographic regions in accordance with decentralized management PORTFOLIO / PLATFORM clusters and strategic relevance.  Change in 2016: split of region “Dresden” into two regions (“Dresden” and “Chemnitz”) in accordance with new internal management an

  15. Slide 15: TAG portfolio in total – Q3 2016 by region

    TAG portfolio in total – Q3 2016 by region 15 15 Region Units Rentable IFRS BV In- Vacancy Vacancy Actual Re- L-f-l L-f-l rental Mainte- Capex Comments # area TEUR place Sep. Dec. net letting rental growth nance EUR/ sqm yield 2016 2015 cold rent growth y-o-y incl. EUR/ sqm rent EUR/ y-o-y vacancy s

  16. Slide 16: TAG vacancy reduction and rental growth

    TAG vacancy reduction and rental growth 16 16 PORTFOLIO / PLATFORM  Vacancy development residential units  L-f-l rental growth development residential units TAG Immobilien AG | November 2016

  17. Slide 17: TAG portfolio valuation Q3 2016

    17 TAG portfolio valuation Q3 2016

  18. Slide 18: TAG portfolio valuation Q3 2016

    TAG portfolio valuation Q3 2016 18 18 Region 2016 2016 2016 Revaluation Share of Share of Capex Net 2015 2015 2015 Fair Value Fair Value Implied gain / loss yield operational acquisitions Fair Value Fair Value Implied (in EUR millions) (IFRS) (EUR/sqm) multiple compression performance/ and other (IF

  19. Slide 19: TAG annual valuation by CBRE

    TAG annual valuation by CBRE 19 19  Comments on valuation results VALUATION 30 Sep- 30 Sep- 30 Sep-  Yield compression in “A-Locations” as well as in “B-Locations”. Key assumptions / drivers 2016 2015 2014  Valuation gains also from strong operational development (i.e. Cap rate (%) 5.40 5.59 5.56

  20. Slide 20: TAG guidance 2016 and 2017

    20 TAG guidance 2016 and 2017

  21. Slide 21: TAG guidance 2016 and 2017

    TAG guidance 2016 and 2017 21 21  FFO EUR 92m – EUR 93m (EUR 76.3m in FY 2015) OUTLOOK Guidance FY 2016  FFO/share EUR 0.68 (EUR 0.62 in FY 2015) based on current weighted average NOSH (unchanged)  Dividend EUR 0.57 per share (EUR 0.55 for FY 2015)  FFO EUR 104m – EUR 106m mainly driven by incre

  22. Slide 22: Appendix

    22 APPENDIX

  23. Slide 23: TAG capex and maintenance

    TAG capex and maintenance 23 23 APPENDIX 2015 2016 in EUR millions Q1 Q2 Q3 Q4 Total FY Q1 Q2 Q3 Total 9M Maintenance 6.6 7.1 5.6 5.9 25.2 6.6 6.6 5.8 19.0 Capex 6.8 9.9 13.7 9.7 40.1 9.6 11.7 13.6 34.9 Total 13.4 17.0 19.3 15.6 65.3 16.2 18.3 19.1 53.6 TAG Immobilien AG | November 2016

  24. Slide 24: TAG capital markets heads-up

    TAG capital markets heads-up 24 24 Institution Analyst Recommen- Price Target Date  High/Low (Q1-Q3 2016) EUR 13.15/EUR 9.85 dation in EUR Barclays David Prescott Underweight 10.70 04-Nov-16 APPENDIX  Number of shares (issued) 146.5m Morgan Stanley Bianca Riemer Underweight 8.70 02-Nov-16 VICTORIA

  25. Slide 25: TAG bonds

    TAG bonds 25 25 APPENDIX  Two corporate bonds outstanding until Aug-2018 (EUR 310m) and Jun-2020 (EUR 125m).  Bonds are included in the Open Market (Entry Standard) of the Frankfurt Stock Exchange with participation in the Prime Standard for corporate bonds. Erfurt  Aug 2013/Feb-2014 – Aug-2018 

  26. Slide 26: TAG management board

    TAG management board 26 26 APPENDIX Claudia Hoyer Martin Thiel Dr. Harboe Vaagt COO CFO CLO  Key responsibilities: Property and  Key responsibilities: Controlling,  Key responsibilities: Legal, Human Asset Management, Acquisitions and Accounting, Financing, Taxes, Resources and Transactions Dispo

  27. Slide 27: TAG Contacts

    27 27 TAG Contacts APPENDIX Martin Thiel Dominique Mann TAG Immobilien AG CFO Head of Investor & Public Relations Steckelhörn 5 Phone: +49 40 380 32-222 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 ir@tag-ag.com ir@tag-ag.com Fax: +49 40

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