Tag Immobilien Ag · XETR:TEG
Tag Immobilien — Q1 2013 Earnings Presentation
35 slides from Tag Immobilien's earnings presentation, 2013
Slide 1: Growing Assets
11 2013 Growing Assets Q1 – 2013 Q1-Q3 2011 TAG Immobilien AG | 2013 – Q1
Slide 2: Content
Content 22 I. TAG Overview/ Highlights Q1-2013 4 CONTENT II. TAG FFO Q1-2013 / Guidance 2013 5 III. TAG Strategy / Growth and Margins 7 IV. TAG Portfolio / 5 regions 8 V. TAG Acquisitions 2011/ 2012 / DKBI & TLG Wohnen 17 VI. TAG Sales 2012 22 VII. TAG Financials Q1-2013/ Balance sheet / Debt / Fina
Slide 3: TAG Strategic achievements 2012
TAG Strategic achievements 2012 33 Acquisitions DBKI 25,000 Residential Units / EUR 960m (13.2 multiple) OVERVIEW TLG 11,350 Residential Units / EUR 471m (11.0 multiple) Eberswald 1,100 Residential Units / EUR 30m (10.6 multiple) Erfurt 360 Residential Units / EUR 29m (10.5 multiple) Disposals 1,384
Slide 4: TAG Highlights Q1-2013
TAG Highlights Q1-2013 44 Rental income of EUR 63.2m OVERVIEW Rental profit of EUR 49.2m EBT of EUR 13.3m FFO of EUR 15.1m FFO per share of EUR 0.12 Vacancy residential portfolio 9.4% Salzgitter 20.8% NAV of EUR 10.0 per share LTV of 57.6% (ex convertibles) Dividend per share of EUR 0.25 proposed TA
Slide 5: TAG FFO FY 2012/ Q1-2013
TAG FFO FY 2012/ Q1-2013 55 OVERVIEW TAG Immobilien AG | 2013 – Q1
Slide 6: TAG FFO Guidance 2013
TAG FFO Guidance 2013 66 Not including: Lower refinancing costs OVERVIEW Vacancy cost reduction Synergies from TLG acquisition in EUR Mio. +3 -2 +5 Disposals 68 Growth +15 Further improvements / Vacancy reduction +7 TLG Wohnen 40 Synergies DKBI FFO FFO 12 / 31 / 2012 12 / 31 / 2013 TAG Immobilien AG
Slide 7: TAG Growth and profitability
TAG Growth and profitability 77 Growth has been a strategic imperative for us in order to Adj. EBIT and FFO Margin (in %) (1) achieve economies of scale GROWTH& PROFITABILITY 31,6% 49,9% 28,0% 10,1% benefit from effects of step-fixed costs 20,6% 0% become a better quality landlord reduce variable co
Slide 8: TAG Portfolio end of 2012
TAG Portfolio end of 2012 88 PORTFOLIO Rental Real income Net Estate in m actual Volume (annua- Vacancy EUR / Portfolio Units Floor area sqm in m lised) in % sqm TAG 33.290 2,372,697 2,039 139,8 11.5 5.55 DKBI 24,870 1,475,808 1,053 73,6 10.9 4.67 TLG 11,500 711,561 571 42,6 4.8 5.25 Total 2012 69,6
Slide 9: TAG Portfolio Q1-2013
TAG Portfolio Q1-2013 99 Real estate volume Rental income by portfolio (in EUR m) (in EUR m) PORTFOLIO TAG Immobilien AG | 2013 – Q1
Slide 10: TAG Portfolio residential by region Q1-2013
TAG Portfolio residential by region Q1-2013 10 10 10 10 PORTFOLIO TAG Immobilien AG | 2013 – Q1
Slide 11: Portfolio residential by region – Hamburg
Portfolio residential by region – 11 11 Hamburg PORTFOLIO Average asset rent: EUR 5.12 Number of accommodation units: 11,242 18% of the residential portfolio (by book value) Vacancy 8.1% Strong need for new residential units in Hamburg overall Increase of single tenant and elderly people households
Slide 12: Portfolio residential by region – Berlin
Portfolio residential by region – 12 12 Berlin PORTFOLIO Average asset rent: EUR 4.93 Number of accommodation units: 13,301 21% of the residential portfolio (by book value) Vacancy 5.2% Increasing lack of new residential units Average letting size 54 sqm Strong like-for-like rental growth. 14% homeo
Slide 13: Portfolio residential – Berlin
Portfolio residential – 13 13 Berlin PORTFOLIO TAG is in Berlin regions where demographics Existing show a growing population TAG Portfolio TAG is happy to buy in the centre as well in New Acquisitions in 2011/2012 the outskirts as long as the relative value is right TAG Potsdam (DKBI) Portfolio In
Slide 14: Portfolio residential by region – Thuringia/ Saxony
Portfolio residential by region – 14 14 Thuringia/ Saxony PORTFOLIO Average asset rent: EUR 4.84 Number of accommodation units: 29,715 42% of the residential portfolio (by book value) Vacancy 9.6% Very attractive concentration of B cities between Erfurt, Leipzig, Gera and Dresden. Good infrastructur
Slide 15: Portfolio residential by region – North Rhine Westphalia
Portfolio residential by region – 15 15 North Rhine Westphalia PORTFOLIO Average asset rent: EUR 5.52 Number of accommodation units: 3,820 8% of the residential portfolio (by book value) Vacancy 4.7% Portfolio of TAG in Düsseldorf, Leverkusen Dortmund, Köln Siegburg, Moers Agglomeration of at least
Slide 16: Portfolio residential by region – Salzgitter
Portfolio residential by region – 16 16 Salzgitter PORTFOLIO Average asset rent: EUR 5.12 Number of accommodation Units: 9,203 11% of the residential portfolio (by book value) Vacancy 20.8% Vacancy reduction Overall vacancy in Salzgitter: 10% Vacancy in our portfolio 21.3% (down from 24.4%) We are i
Slide 17: TAG Acquisition principals
TAG Acquisition principals 17 17 I. NAV & Cash flow & FFO enhancive ACQUISITIONS II. Portfolio at existing TAG locations – with focus on TAG 5 regions Low marginal costs for Asset and Property Management Scale economies III. Deal size < EUR 30m – too big for retail investors, too small for family of
Slide 18: TAG Acquisition 2011
TAG Acquisition 2011 18 18 Marzahn/DOM Portfolio Hellersdorf/Marzahn Units 612 Units 461 ACQUISITIONS Floor area in sqm 43,591 Floor area in sqm 26,921 Net rental EUR/sqm 4.29 Net rental EUR/sqm 5.20 Vacancy 1.47% Vacancy 6% Purchase price EURm 25.2 Purchase price EURm 18.7 North Germany/Saxony Chem
Slide 19: TAG Acquisitions 2012
TAG Acquisitions 2012 19 19 DKBI/ TAG Potsdam Break down by region Units 50 % ACQUISITIONS 25,000 Floor area in sqm 1,500,000 17 % Net rental EUR/sqm 4.60 Vacancy 10.9% 15 % Purchase price EURm 960 9% (including debt financing) 8% Thuringia / Saxony Saxony Mecklenburg- Berlin-Brandenburg NRW Vorpomm
Slide 20: TAG Acquisition 2012 – DKBI
TAG Acquisition 2012 – DKBI 20 20 History of the portfolio 1995 ACQUISITIONS DKB Immobilien was founded 2007 DKBI and GBW legally separated Quality 85% refurbished 19% rental upside to local market 9% newly built 6% unrefurbished Capex EUR 18/sqm EUR 185m over the last 5 y 15% conventional buildings
Slide 21: TLG Wohnen acquisition and integration
TLG Wohnen acquisition and integration 21 21 Seller Federal Republic of Germany Closing December 2012 ACQUISITIONS Purchase price EUR 471m Multiple 11.1, NRI yield of 9% Number of units: 11,500 Vacancy 4.8% Rental income EUR 42m p.a. Gains from first time consolidation EUR 49m Integration of central
Slide 22: TAG Sales 2012
TAG Sales 2012 22 22 Residential Units in Berlin 1,384 Price in EUR/m 87 SALES Pre tax earnings EUR/m 12 Equity inflow in EUR/m 40 Buyer: Union Investment Institutional Property GmbH Value optimizing strategy Improve operating profitability Improve the FFO Reinvestments in portfolio with higher init
Slide 23: TAG Group financials (IFRS)
TAG Group financials (IFRS) 23 23 Consolidated balance sheet (in EUR m) GROUP FINANCIALS 12/31/2012 3/31/2013 4000 3,800 3,800 4000 3,698 3,698 3600 3600 3200 3,495 1,156 3200 3,495 1,174 2800 2800 2400 2400 2000 2000 1600 2,134 1600 1,994 1200 1200 800 800 400 400 305 510 530 203 0 0 Assets Liabili
Slide 24: TAG Debt structure Q1-2013
TAG Debt structure Q1-2013 24 24 Debt structure at year end 2012 including TLG GROUP FINANCIALS EUR 2,144m 47 German Banks 9.4 years ø maturity Interest costs of 4.2% TAG debt in EUR million 637 600 500 400 300 265debt 267 TAG 240 220 197 200 117 100 83 73 30 15 0 2013 2014 2015 2016 2017 2018 2019
Slide 25: TAG Financial structure – Convertible Bonds
TAG Financial structure – Convertible Bonds 25 25 all 4 Convertibles trade in or close to the money in EUR million TAG share price EUR 9.29 as the first has been converted in July 2012 ahead of maturity of 5/6/2013 GROUP FINANCIALS EUR 8.85 EUR 7.20 Convertibles have enabled TAG to grow in a capital
Slide 26: TAG Group financials Q1-2013 (IFRS)
TAG Group financials Q1-2013(IFRS) 26 26 Profit & loss (in EUR m) GROUP FINANCIALS TAG Immobilien AG | 2013 – Q1
Slide 27: Consolidated income statement 2012 (IFRS)
Consolidated income statement 2012 (IFRS) 27 27 EBITDA before fair value remeasurement (in € m) EBT (in € m) GROUP FINANCIALS 250 275 202.6 200 150 100 83.3 120 50 13.7 22.2 31.4 -24.7 0 2009 2010 2011 2012 2009 2010 2011 2012 Consolidated net profit (in € m) Earnings per share (in €) 1.88 179.1 1.0
Slide 28: TAG Stock market data Q1-2013
TAG Stock market data Q1-2013 28 28 High/Low (Jan/March 2013) EUR 9.65/EUR 8.59 Shareholder structure acc. to the notifications to the company Number of shares 130.738m SHAREHOLDER VALUE Ruffer LLP, UK* 15% Market capitalisation 1,167,490 EUR Flossbach von Storch Invest S.A., L* 12% Stock indices MD
Slide 29: TAG - The way forward: value enhancing asset management
TAG - The way forward: 29 29 value enhancing asset management OUTLOOK Focus on residential property segment Continuously work the existing portfolio Dispose of commercial properties in value maximizing manner Increase rents – lfl rental growth 3.2% in 2012 over time Reversionary rent potential vs. i
Slide 30: Appendix
APPENDIX 30 30 Growing Assets TAG Immobilien AG | 2013 – Q1
Slide 31: TAG Management Board
TAG Management Board 31 31 Rolf Elgeti, CEO Claudia Hoyer, COO from July 2012 onwards TAG Immobilien AG, Management Board (since July 2009), Supervisory Board DKBI Management Board (since July 2010) APPENDIX from 2008 onwards 10 years in successive positions at Deutsche Kreditbank AG Setting up and
Slide 32: TAG Portfolio commercial Q1-2013
TAG Portfolio commercial Q1-2013 32 32 Commercial real estate holdings by region* APPENDIX 50 % 26 % 11 % 11 % 2% Munich Berlin Thuringia / Saxony NRW / Mannheim Hamburg *as of 03/31/2013 according to balance sheet value TAG Immobilien AG | 2013 – Q1
Slide 33: East Germany is catching up
East Germany is catching up… 33 33 …making it an attractive investment region for TAG APPENDIX GDP growth per employee (1991-2009) Disposable income growth per household Residential market rents (1991-2008) (€ per sqm per month) (1) West Germany + 37% (1) 4,4 8,2 East Germany (2) + 149% West Germany
Slide 34: Top Cities of TAG residential portfolio
Top 20 Cities of TAG residential portfolio 34 34 IFRS Book Value Book Value Net actual rent Recent lettings Top-20 City Region Units TEUR EUR/sqm EUR/sqm EUR/sqm APPENDIX 1 Salzgitter SZ 8,741 306,411 574 4.76 4.50 up to 6.79 2 Gera T/S 7,187 272,606 631 4.40 3.99 up to 6.36 3 Berlin (City) B 6,947
Slide 35: TAG Contacts
TAG Contacts 35 35 TAG Immobilien AG Rolf Elgeti Dominique Mann CEO Head of Investor & Public Relations Steckelhörn 5 APPENDIX 20457 Hamburg Telefon: +49 40 380 32-307 Telefon: +49 40 380 32-305 Telefax: +49 40 380 32-388 Telefax: +49 40 380 32-388 Telefon: +49 40 380 32-0 Telefax: +49 40 380 32-388