Ca Immobilien Anlagen Ag · VIE:CAI

Ca Immobilien Anlagen — FY2017 Earnings Presentation

51 slides from Ca Immobilien Anlagen's earnings presentation, March 2018

  1. Slide 1: FY 2017 Results – Analyst and Investor Update

    FY 2017 RESULTS ANALYST AND INVESTOR UPDATE Andreas Quint, CEO Dr. Hans Volkert Volckens, CFO March 2018

  2. Slide 2: Business Year 2017 Highlights

    Business Year 2017 Highlights  Several key metrics reached the highest level in CA Immo’s history driven by a strong rental Record results income improvement and highly profitable property disposals, in particular Tower 185 in Frankfurt  FFO I rose to € 106.8 m and stood 9% above the guidance for

  3. Slide 3: Business Year 2017 Highlights

    Business Year 2017 Highlights  Solid top line growth by 13.0% per share despite rental income losses linked to non-strategic asset sales Net rental income per share  Improved operating margin at 90.6% (FY 2016: 88.9%) 1.75 (2016: 1.55) +13%  Major driver acquisition of Millennium Towers in Budape

  4. Slide 4: Agenda and Targets 2017

    Agenda and Targets 2017 Full Achievement of Targets Investment portfolio  Buy-out of of joint venture partner Union Investment in CEE portfolio Growth  Expansion of CEE portfolio through property acquisition Development  Buy-out of JV partner Patrizia and construction start of mixed use hotel/off

  5. Slide 5: Profit and Loss

    Profit and Loss Record Result with Highest Net Profit in CA Immo‘s History P&L FY FY +/- 4Q 4Q +/- FY 2017 earnings driver 2017 2016 2017 2016 Rental income 180.3 165.6 8.9% 46.8 43.0 8.9%  Rental income up 9% yoy driven by CEE portfolio expansion (acquisision of Millennium Towers in Net rental inc

  6. Slide 6: Funds from Operations (FFO)

    Funds from Operations (FFO) FFO I per Share at € 1.14 (+19% yoy), Tower 185 Sale Boosts FFO II FFO FY FY 4Q 4Q +/- FY 2017 earnings driver 2017 2016 2017 2016 Net rental income 163.4 147.1 11.0% 41.5 38.3 8.4%  Net rental income increase by 11% mainly driven by Result from services 11.1 13.3 -16.3%

  7. Slide 7: Funds from Operations (FFO I)

    Funds from Operations (FFO I) Guidance: > € 115 m (FY 2018); > € 125 m (FY 2019) FY 2017 FFO I per share (yoy) FY 2017 FFO I guidance per share FFO I 1.20 1.20 +19% +9% 106.8 (2016: 91.7) 1.15 1.10 1.15 1.10 1.05 1.05 FFO I per share 1.00 1.00 0.95 0.95 1.14 (2016: 0.97) 0.90 0.90 0.85 0.85 0.97 1.1

  8. Slide 8: Balance Sheet (December 31, 2017)

    Balance Sheet (December 31, 2017) Strong Equity Base Secures Growth Balance Sheet 31.12.2017 31.12.2016 +/- Investment properties 3,155.7 2,923.7 7.9%  Rock solid balance sheet metrics comfortably within strategic target range despite balance sheet extension Properties under development 579.3 433.0

  9. Slide 9: Net Asset Value (NAV)

    Net Asset Value (NAV) EPRA NAV per Share at € 29.90 (+ 11.8% yoy) Net Asset Value 31.12.2017 31.12.2016 +/- EPRA NAV per share YTD 32.0 NAV (IFRS equity) 2,398.5 2,204.5 31.0 +11.8% Exercise of options 0.0 0.0 30.0 NAV after exercise of options 2,395.5 2,204.5 8.8% 29.0 NAV per share 25.73 23.60 9.0

  10. Slide 10: Optimisation of Financing Structure FY 2017

    Optimisation of Financing Structure FY 2017 € 1 bn of Financing Volume in Motion FINANCING TARGETS 2017 Corporate bond (02/2017) Convertible bond (09/2017) Effective € 175 m , 7 yrs, 1.875% € 200 m , 7.5 yrs, 0.75% in 4Q 17  Capitalize on historically low interest rate environment  Further CoD red

  11. Slide 11: Financing: Average Cost of Debt

    Financing Average Cost of Debt at 1.87% Exceeds 2017 Target CONTINUOUS COD OPTIMISATION CoD cut of  50 bps over last 12 months 3.00%  Average financing costs stood at 1.87% (incl. 2.80% 2.80% pro rata joint venture financing) at reporting date 2.60% 2.37% 2.34% 2.40% 2.21% 2.18%  Achieved number

  12. Slide 12: Financing: Hedging Ratio and Maturities

    Financing Significant Financing Structure Optimisation Improves Cash Flow Resilience EXTENDED HEDGING RATIO AND MATURITIES Average debt maturity 6.5  92% of financial liabilities are hedged or fixed, 6.0 6.0 which strongly increases cash flow resilience 6.0 5.8 5.5  Significant extension of averag

  13. Slide 13: Portfolio

    a= CA IMMO URBAN BENCHMARKS. PORTFOLIO

  14. Slide 14: Property Portfolio (€ 4.3 bn)

    Property Portfolio (€ 4.3 bn)* Germany Accounts for 47% of Portfolio Value PORTFOLIO STRUCTURE Portfolio split by region and country (€ m)  Total property asset base of € 4.3 bn 6%  Germany largest single core market 581 7% 14% 14%  Income- producing investment portfolio of € 3.2 bn Austria 6% 1,

  15. Slide 15: Investment Portfolio: Record Occupancy

    Investment Portfolio* Occupancy Rate Reaches Record Level of More Than 95% Portfolio occupancy (economic) Occupancy rate (economic) 96% 95.2% 95.2% (4Q 2016: 92.4%) 94% 92% 92.4% 91.1% 92.4% 93.6% 90% 88% Gross initial yield 86% 6.2% (4Q 2016: 6.1%) 84% 82% 80% 4Q 2016 1Q 2017 2Q 2017 3Q 2017 4Q 201

  16. Slide 16: Investment Portfolio: Strong Portfolio Performance

    Investment Portfolio* Strong Portfolio Performance PORTFOLIO YIELD/OCCUPANCY DRIVERS Gross initial yields 9.0%  Among other factors, the sale of lower yielding 8.0% 8.0% 7.6% 7.8% properties with a below-average yield (in 7.0% 6.9% 6.9% particular Tower 185 in Frankfurt) led to a slight 7.0% 6.0% 6

  17. Slide 17: Letting Performance / Leasing Metrics

    Investment Portfolio* Letting Performance / Leasing Metrics LETTING VOLUME OF  258,000 SQM IN 2017 Weighted average lease term (years) 8.0  CA Immo let 257,880 sqm of floor space in 2017 7.0  Pre-lettings on development projects accounted 6.0 for 14% (around 35,240 sqm). Excluding these pre-letti

  18. Slide 18: Acquisition of Prime Office Building in Warsaw

    Investment Portfolio Acquisition of Prime Office Building in Warsaw in Fourth Quarter CEE PORTFOLIO EXPANSION  Acquisition of the 21,600 sqm Warsaw Spire Building B for around € 100 m  Prime office building located in the Wola district  100% occupied by a European Union Agency (Frontex) as anchor

  19. Slide 19: Sale of Tower 185

    Investment Portfolio Highly Profitable Sale of Tower 185 - Major Earnings Driver in 2017 SALE OF LARGEST PROPERTY  CA Immo successfully sold its largest asset Tower 185 in Frankfurt to Deka  Transaction rationale  Taking advantage of outstanding market conditions in Germany  Reduction of minorit

  20. Slide 20: Development

    a= CA IMMO URBAN BENCHMARKS. DEVELOPMENT

  21. Slide 21: Development Strategy

    Development Strategy Monetization of Land Reserves with Significant Embedded Value High-quality inner city land reserves Development volume* ( € 300 m book value,  90% located in Germany) ( € 4.2 bn, 2018 – 2025) Office / Hotel (Core strategy: Develop to own) Residential (Core strategy: Develop t

  22. Slide 22: Pipeline Projects out of Landbank (€ 4.2 bn)

    Development Pipeline Projects out of Landbank ( € 4.2 bn)* SIGNIFICANT EMBEDDED VALUE OF LANDBANK Regional split (€ bn) 1%  CA Immo currently holds land reserves worth  € 300 m in addition to its projects under construction (with a total investment volume of around € 1.2 bn) 21% CEE  The majorit

  23. Slide 23: Total Volume incl. Projects under Construction and Pipeline

    Development Total Volume incl. Projects under Construction and Pipeline ( € 6 bn)* THREE DEVELOPMENT PHASES Total pipeline including projects under construction and redevelopments (€ bn)  CA Immo divides its long-term development 3.89 5.95 5.95 6.00 pipeline based on current land reserves into thr

  24. Slide 24: Pipeline Projects out of Landbank: Sector and Region

    Development Pipeline Projects out of Landbank ( € 4.2 bn)* OUSTANDING MARKET POSITION IN GERMANY Sectoral split (€ bn) Regional split (€ bn) 1%  With German rental yields on production costs at 5.5% to 6% and development value after completion including profitability of 15–20%, the 21% CEE earning

  25. Slide 25: Pipeline Projects for Own Investment Portfolio

    Development Pipeline Projects for Own Investment Portfolio ( € 2.1 bn)* DEVELOPMENT VOLUME FOR OWN PORTFOLIO Development pipeline for own investment portfolio (€ bn) 2.50  Office and hotel properties are developed 0.29 2.10 primarily for the company's own portfolio, whereas residential properties

  26. Slide 26: Pipeline Projects for Sale

    Development Pipeline Projects for Sale ( € 1.8 bn)* RESIDENTIAL PIPELINE Residential pipeline by city (€ bn) 2.00  To make the best possible use of the significant 1.30 1.81 1.80 organic growth potential in terms of profitability, CA Immo will develop also plots dedicated to 1.60 residential usage

  27. Slide 27: Pipeline Projects - Munich

    Development Pipeline Projects - Munich MUNICH CITY AND PERIHPERY  CA Immo has a successful residential development track record ( 1,600 apartments successfully developed standalone or in joint ventures), in particular on the Munich market  The majority of CA Immo‘s building plots in Munich are lo

  28. Slide 28: Pipeline Projects - Berlin

    Development Pipeline Projects - Berlin EUROPACITY BERLIN  The Europacity district is taking shape around Berlin’s main railway station, near the Reichstag building and the chancellor's office  It has become a major office hub in the German capital, drawing together also residential, hotel and reta

  29. Slide 29: Pipeline Projects - Mainz

    Development Pipeline Projects - Mainz ZOLLHAFEN MAINZ  In a joint venture with Stadtwerke Mainz, Hafenspitze CA Immo is developing one of the most attractive waterside locations for the region, in the heart of the city (mixed used quarter for around 2,500 Rheinallee III people which will also creat

  30. Slide 30: Projects under Construction for Own Investment Portfolio

    Development Projects under Construction for Own Investment Portfolio Investment portfolio Investment Outstanding Planned Gross yield Main usage Share Pre-letting Construction projects volume* investment rentable on cost ratio phase area ViE (Vienna) 38 19 14.700 6.3 Office 100% 6% 3Q 16– 3Q 18 MY.O

  31. Slide 31: Projects under Construction for Sale

    Development Projects under Construction for Sale Trading portfolio projects Investment Outstanding Planned Main usage Share** Utilisation Construction volume* investment rentable area rate phase Cube (Berlin) 100 60 17,000 Office 100% 100% 4Q 16– 4Q 19 B ü rogebä ude am Kunstcampus– 31 22 5,200 100%

  32. Slide 32: Projects Under Construction: KPMG, Berlin

    Development Projects Under Construction (Completion in 2018) KPMG, BERLIN PHASE 2  Phase 1 (12,800 sqm) successfully completed and handed over to the tenant in March 2018  100% of space let to KPMG  Total investment volume (incl. plot) € 57 m  Yield on cost  5.7%  Phase 2 (Baufeld 04 project)

  33. Slide 33: Projects Under Construction: Orhideea Towers, Bucharest

    Development Projects Under Construction (Completion in 2018) ORHIDEEA TOWERS, BUCHAREST  Lettable area 36,900 sqm  Investment volume  € 74 m (incl. plot)  Outstanding investment  € 44 m  Expected yield on cost  8.6%  Construction phase 4Q 2015 – 3Q 2018  Pre-let ratio  50% All figures (€)

  34. Slide 34: Projects Under Construction: ViE, Vienna

    Development Projects Under Construction (Completion in 2018) VIE, VIENNA  Lettable area 14,700 sqm  Investment volume  € 38 m (incl. plot)  Outstanding investment  € 19 m  Expected yield on cost  6.3%  Construction phase 3Q 2016 – 3Q 2018  Excellent location between airport and city center

  35. Slide 35: Appendix

    a= CA IMMO URBAN BENCHMARKS. APPENDIX

  36. Slide 36: Top Tenants and Properties

    Investment Portfolio* Top Tenants and Properties Top 15 tenants (by annualized rent)** Top 15 yielding assets (by value)** Skygarden (DE) 217 3.1% Millennium Towers (HU) 178 2.2% Kontorhaus (DE) 174 2.2% River Place (RO) 108 2.1% Warsaw Spire B (PL) 102 2.0% John F. Kennedy - Haus (DE) 101 2.0% Kavc

  37. Slide 37: Like-for-Like Performance

    Investment Portfolio* Like-for-Like Performance Like-for-like Fair value Rental income Yield (%) Occupancy (%) 2017 2016 +/- 2017 2016 +/- 2017 2016 2017 2016 Austria 494.2 506.6 -2.5% 29.6 28.8 2.6% 6.0 5.7 96.2 94.8 Germany 1,099.7 970.2 13.3% 51.9 47.3 9.6% 4.7 4.9 98.2 94.9 Czechia 237.6 235.9 0

  38. Slide 38: Projects Under Construction: Laendyard Living, Wohnbau Süd

    Development Projects Under Construction (Expected Completion in 2018) Laendyard Living Laendyard Living LÄNDE 3 RESIDENTIAL PROJECTS  Laendyard Living ( 18,400 sqm)  50/50 joint venture with Austrian residential expert JP Immobilien  Investment volume  € 29 m (CA Immo 50% share); 270 apartments

  39. Slide 39: Projects Under Construction: MY.O, Munich

    Development Projects Under Construction (Expected Completion in 2019) MY.O, MUNICH  Lettable area  26,100 sqm  Investment volume  € 96 m (incl. plot)  Outstanding investment  € 73 m  Expected yield on cost  6.1%  Construction phase 2Q 2017 – 4Q 2019  Pre-let ratio  20% All figures (€) as

  40. Slide 40: Projects Under Construction: Steigenberger, Frankfurt

    Development Projects Under Construction (Expected Completion in 2019) STEIGENBERGER, FRANKFURT  Main usage hotel  Total investment volume (incl. plot) € 58 m  Outstanding construction costs  € 26 m  Planned lettable area 17,300 sqm  Yield on cost  6.2%  Pre-letting-ratio 99%  Construction p

  41. Slide 41: Projects Under Construction: Cube, Berlin

    Development Projects Under Construction (Expected Completion in 2019) CUBE, BERLIN  Highly profitable forward sale of office property development  Trophy Asset deal terms reflect booming market conditions in Berlin  Development and initial letting by CA Immo on behalf of buyer   17,000 sqm gros

  42. Slide 42: Projects Under Construction: NEO, Munich

    Development Projects Under Construction (Expected Completion in 2020) NEO, MUNICH  Mixed use  Office (8,5000 sqm), hotel with 143 rooms  55 apartments (for sale)  Investment volume  € 64 m (incl. plot)  Outstanding investment  € 44 m  Expected yield on cost  4.9%  Construction phase 1Q 201

  43. Slide 43: Projects Under Construction: ONE, Frankfurt

    Development Projects Under Construction (Expected Completion in 2020) ONE, FRANKFURT  Mixed use hotel/office high-rise (190 m, 49 floors)  Lettable area 63,400 sqm ( 85,000 sqm GFA)  Investment volume  € 332 m (incl. plot)  Outstanding investment  € 288 m  Expected yield on cost  5.4%  Con

  44. Slide 44: Core Markets: Vienna

    Core Markets Vienna I CA IMMO-Projects under construction / in preparation HVE By Laendyard Districts a Innere Stadt Wien (City Center) 2) Loopoldstadt 3 LandstraBe Wien 4 Wieden 5 Margareten 6 Mariahilf 7 Neubau @ Josefstadt 9 Alsorgrund 10 Favoriten ii Simmering 2 Meidling 13 Hietzing 14 Ponzing 1

  45. Slide 45: Core Markets: Berlin

    Core Markets = CA IMMO Berlin Landmarks Central Station B Reichstag, Kanzleramt Brandenburger Tor Tift Potsdamer Platz I Reinickendorf Alexanderplatz — Airport Tegel 3 Airport Schénefeld a 1B D LE] Spandau CA IMMO Investment Properties Marzahn- Kirchstrahe 7 Hellersdorf Joachimsthaler StraBe 20 Char

  46. Slide 46: Core Markets: Frankfurt

    Core Markets Frankfurt HCA IMMO Investment Properties Meininger Hotel Skyline Plaza ‘Tower 185 HCA IMMO-Projects under construction / in preparation EE Mannheimer StraBe ‘Tower ONE © CA IMMO Land reserve ® Millenium Plot Districts Innenstadt I Innenstadt II Tnnenstadt IT Innenstadt IV Siid West Mitt

  47. Slide 47: Core Markets: Budapest

    Core Markets Budapest = CA IMMO BERBER BESHBESE05 wo Landmarks Central Station @ St.-Stephans-Basilika fd Parliament building (AY i Hero Squar Airport 9¢ CA IMMO Investment Properties IP West Infopark A Bartok Haz City Gate Millennium Towers R 70 Office Complex Vizivaros Office Center Canada Square

  48. Slide 48: Core Markets: Warsaw

    Core Markets Warsaw = CA IMMO Wi Landmarks Central Station @ By Palace of Culture & Science ik Royal Castle ; DD Mermaid of Warsaw Airport 3 CA IMMO Investment Properties Saski Point Saski Crescent Sienna Center Warsaw Towers Wspolna Bitwy Warszawskiej Warsaw Spire Building B BSGS555o o Districts 1

  49. Slide 49: Core Markets: Prague

    Core Markets Prague = CA IMMO | {BI D LE Landmarks Central Station ‘| Dancing House National Museum f@ Charles Bridge bet Prague Castle Ih Airport 3 CA IMMO Investment Prope: Kavci Hory Office Park Danube House Nile House Amazon Court CA IMMO Land reserve Plot River City Districts (1. - 22. District

  50. Slide 50: Core Markets: Bucharest

    Core Markets =z CA IMMO Bucharest @ Landmarks HN Central Station @ @ Palace of the Parliament D Airport x CA IMMO Investment Properties River Place Bf Opera Center 1 Opera Center 2 Europehouse Bucharest Business Park @ CA IMMO-Projects under construction / in preparation EI Orhideca "Sectors (1. - 6

  51. Slide 51: Investor Relations Contact Details

    Investor Relations Contact Details Christoph Thurnberger Claudia Höbart Head of Capital Markets Investor Relations / Capital Markets Tel.: +43 (1) 532 59 07 504 Tel.: +43 (1) 532 59 07 502 E-Mail: christoph.thurnberger@caimmo.com E-Mail: claudia.hoebart@caimmo.com www.caimmo.com/investor_relations/

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