TAG Immobilien AG · XETR:TEG
TAG Immobilien — Investor Presentation (2012)
36 slides from TAG Immobilien's investor presentation, 2012
Slide 1: Transformation 2011 - 2012
TAG Immobilien AG Transformation T f ti 2011 - 2012 Q1-Q3 2011 TAG I 1
Slide 2: Content
Content I. Highlights 2011/ Group overview including DKB page 3-8 II. Portfolio TAG excluding DKB page 9-19 III. TAG Group financials 2011 page 20-21 IV. TAG Share 2011 page 22-23 V. TAG Acquisitions 2011-2012 page 24-28 VI VI. Outlook page 29 29-30 30 Appendix page 31-36 TAG I 2
Slide 3: Highlights FY 2011 figures / What to expect in 2012
Highlights FY 2011 figures What to expect in 2012? • Rental income of EUR 115m • Rental income of EUR 144m • R t l profit Rental fit off EUR 79 79m • R t l profit Rental fit off EUR 110 110m • EBT of EUR 83m • EBT of EUR 75m • Operating profit EUR 35m • Vacancy reduction residential • Net profit fro
Slide 4: TAG investment case after the DKB acquisition
TAG investment case after the DKB acquisition I. Solid financing structure • L Loan V l 63% (former t Value to (f 59%) 59%), average loan l maturity 7 3 years (5.4) t it off 7.3 (5 4) on TAG side id • 10 year DKB financing of EUR 680m plus EUR 120m other debt II. Team with high expertise; low-cost l
Slide 5: Portfolio combined
Portfolio combined TAG DKB Combined Units 30,960 25,500 56,460 Floor Area sqm 2,268,500 1,500,000 3,768,500 Real Estate Volume TEUR 1 969 350 1,060,000 1,969,350 1 060 000 3,029,350 3 029 350 Rental income in TEUR 134.000 73,200 207,200 Vacancy % 11.1 10.9 Net Actual Rent EUR/sqm 5.44 4.60 • Metropo
Slide 6: Acquisition 2012 - DKB
Acquisition 2012 - DKB History of the portfolio 1995 DKB Immobilien was founded 2007 DKB and GBW legally separated Dresden Break down by region Quality Saxony- Ov 85% refurbished verview Anhalt Mecklenburg- 8% Thuringia Leipzig 9% newly built Vorpommern 50% 6% unrefurbished 9% 15% conventional build
Slide 7: Funding of the DKB acquisition
Funding g of the DKB acquisition q in EUR million 1.000 • Total acquisition of cEUR 960m 900 800 • Debt of cEUR 800m 700 • Equity from rights issue cEUR 127m 600 Ov verview 500 • Deferred payment from DKB up to cEUR 60m 400 • To be refinanced within 18 months 300 • EUR 33m cash at YE11 200 • Proceed
Slide 8: TAG's debt maturity will improve
TAG’s debt maturity y will improve p Debt structure at Q1 2012 •EUR 2,006m in EUR million 550 •28 German Banks 450 •7.3 years ø maturity •Interest costs of 4.0% 350 528 Ov 250 verview 150 150 263 216 156 180 143 130 122 50 56 34 15 19 -50 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 > 2022
Slide 9: Content
Content I. Highlights 2011/ Group overview including DKB page 3-8 II. Portfolio TAG excluding DKB page 9-19 TAG I 9
Slide 10: Why we have grown: net rental profit outpacing interest costs
Whyy we have ggrown: Net rental p profit outpacing p g interest costs also resulting in higher margins • Cash flow from EUR -36m 2009: in EUR million • TAG EUR -17m17 • Colonia EUR -15m 80 • Francono EUR -4m 79 back to black in 2011: EUR +4m 70 +126% • Portfolio growth from 2009: 4,000 60 units to 2
Slide 11: Portfolio TAG in total 2011
Portfolio TAG in total 2011 Po ortfolio TAG I 11
Slide 12: Portfolio TAG residential 2011
Portfolio TAG residential 2011 Po ortfolio TAG I 12
Slide 13: Portfolio residential by region - Hamburg
Portfolio residential by region - Hamburg • Strong need for new residential units • Increase of single tenant and elderly people households • Homeownership 22% • Strong spillover effects into periphery / commuter towns. • Biggest vacancy upside in communter town north of Hamburg (Elmshorn) o Co • Fr
Slide 14: Portfolio residential by region - Berlin
Portfolio residential by region - Berlin • Increasing lack of new residential units • Average letting size 54 sqm • Strong like-for-like rental growth. • 11% homeowner ship in Berlin • Berlin is growing and g y attracting increasingly gppeople p Po ortfolio • Building substance not good as in the re
Slide 15: Portfolio residential by region - Berlin
Portfolio residential by region - Berlin • TAG is in Berlin regions where demographics show a growing population • TAG is happy to buy in the centre as well in the outskirts as long as the relative value is right. • In 2011 TAG bought for over 9% gross yield in Berlin Po ortfolio 10,000 units as of
Slide 16: Portfolio residential by region - Saxony/Leipzig
Portfolio residential by region – Saxony/Leipzig Po ortfolio • Average asset rent: EUR 4.47 • Very attractive concentration of B cities between Leipzig and • Number of accommodation Dresden. units: 2,497 • Good infrastructure, good demographics (again) and strong • 8% of the residential portfolio ec
Slide 17: Portfolio residential by region - Salzgitter
Portfolio residential by region - Salzgitter Vacancy reduction • Overall vacancy in Salzgitter: 10% • V Vacancy iin our portfolio tf li 21.7% 21 7% (f (from 24 24.4%) 4%) • We are in above-average location • 2,000 units are missing for elderly tenants • Chances/angles for marketing: - having h i ad
Slide 18: Portfolio residential by region - North Rhine Westphalia
Portfolio residential by region – North Rhine Westphalia • Agglomeration of at least 30 cities (29 of 80 metropolises in Germany) • 22% of the German GDP (BIP) • Centres of economic growth • Homeownership 39% Portfolio of TAG in Po ortfolio • Düsseldorf, Leverkusen • Dortmund, Köln • Siegburg, Moers
Slide 19: Portfolio - vacancy rate reduction - residential
Portfolio – vacancy rate reduction – residential* Po ortfolio * Not including vacancy due to construction measures Proven track record of reducing vacancies rapidly and steadily in new acquisitions TAG I 19
Slide 20: Content
Content I. Highlights 2011/ Group overview including DKB page 3-8 II. Portfolio TAG excluding DKB page 9-19 III. TAG Group financials 2011 page 20-21 TAG I 20
Slide 21: Group financials (IFRS)
Group financials (IFRS) Consolidated balance sheet (in EUR m) 12/31/2010 12/31/2011 2,048 2,048 219 204 2000 2000 595 1600 1600 1,922 Group 1,191 1,191 p finanicals 1200 1200 365 1,208 918 800 800 658 400 400 273 245 168 126 0 0 Assets Liabilities Assets Liabilities Non-current assets Equity Current
Slide 22: Content
Content I. Highlights 2011/ Group overview including DKB page 3-8 II. Portfolio TAG excluding DKB page 9-19 III. TAG Group financials 2011 page 20-21 IV. TAG Share 2011 page 22-23 TAG I 22
Slide 23: Stock market data TAG as of Q1/2012
Stock market data TAG as of Q1/2012 High/Low (Q1-Q4 2011) EUR 7.39/EUR 5.70 Shareholder structure Ruffer LLP, UK* 18% Number of shares 74 905m/ 96.428m 74.905m/ 96 428m IP Concept, FvS Strategie SICAV, L* 10% Market capitalisation EUR 461m/666m Taube Hodson Stonex, UK* 5% Stock exchange SDAX/EPRA Th
Slide 24: Content
Content I. Highlights 2011/ Group overview including DKB page 3-8 II. Portfolio TAG excluding DKB page 9-19 III. TAG Group financials 2011 page 20-21 IV. TAG Share 2011 page 22-23 V. TAG Acquisitions 2011-2012 page 24-28 TAG I 24
Slide 25: Acquisitions 2010
Acquisitions 2010 TAG Nordimmobilien Berlin Properties 37 Units 789 Floor area in sqm 51,300 Net rental EUR/sqm 5.08 Vacancy from 14.0% to 5.8% Purchase price EUR/m 43 TAG Sachsenimmobilien GmbH Units 436 Floor area in sqm 29,104 Vacancy from 9.6% to 7.2% Acquisitions FranconoWest AG Region eg o Sax
Slide 26: Acquisition 2011
Acquisition 2011 Acquisitions TAG I 26
Slide 27: EPRA NAV 2011
EPRA NAV 2011 Acquisitions TAG I 27
Slide 28: Acquisition 2011
Acquisition 2011 Marzahn/DOM Portfolio Chemnitz Units 612 Units residential 420 Floor area in sqm 43,591 Floor area in sqm 32,000 Net rental EUR/sqm 4.29 Net rental EUR/sqm 5.55 Vacancy 1.47% Vacancy 4.0% Purchase price EUR/m 25.2 Purchase price EUR/m 23.75 Hellersdorf/Marzahn Acquisitions Units 461
Slide 29: Content
Content I. Highlights 2011/ Group overview including DKB page 3-9 II. Portfolio TAG excluding DKB page 9-19 III. TAG Group financials 2011 page 20-21 IV. TAG Share 2011 page 22-23 V. TAG Acquisitions 2011-2012 page 24-28 VI VI. Outlook page 29-30 TAG I 29
Slide 30: FFO guidance 2012 including DKB
FFO guidance 2012 including DKB in EUR million Sales profit DKB FFO* 8 47 40 Reduction in Reduction in Rent from maintanance 12 39 vacancy vacancy costs in SZ costs 30 Reduction in reduction corporate Rental growth g 2 1 Outlook O Lower interest overheads 3 27 20 costs 3.5 6 1.5 10 10 0 FFO Q3-2011
Slide 31: Appendix
Appendix Markets, Commercial TAG I
Slide 32: Markets in key Eastern German cities have improved
Markets in key y Eastern German cities have improved p • Purchase power, population and employment have Market rents (EUR per sqm) improved since 2006 4.0 7.0 Magdeburg 3.5 6.1 • Average population growth of 4.2% expected for 40 4.0 58 5.8 Dresden, Erfurt, Jena, Leipzig, Potsdam and Weimar Leipzig 3
Slide 33: Portfolio commercial
Portfolio commercial 12/31/2009 12/31/2010 09/30/2011 12/31/2011 • sqm total 342,911 sqm 335,686 sqm 323,902 sqm 348,403 sqm • sqm rental 324,971 sqm 323,063 sqm 298,944 sqm 319,940 sqm • current rental p.a. net of charged costs (EUR m) 26.6 26,0 25.9 28.8 • current rental net of charged costs (EUR/
Slide 34: Management Board
Management Board Rolf Elgeti, CEO Colonia Real Estate AG, Management Board since February 2011 TAG Immobilien AG, Management Board (since July 2009), Supervisory Board from 2008 onwards Bau-Verein zu Hamburg AG, Management Board (since July 2009) Founder of Elgeti Ashdown Advisors Ltd. (2007
Slide 35: Contacts
Contacts TAG Immobilien AG Rolf Elgeti g CEO Steckelhörn 5 Telefon: +49 40 380 32-307 20457 Hamburg Telefax: +49 40 380 32-388 ir@tag-ag.com @ g g Telefon: +49 40 380 32-0 Telefax: +49 40 380 32-388 Britta Lackenbauer/ Dominique Mann www.tag-ag.com Ap Investor & Public Relations ppendix info@tag-ag.
Slide 36: Disclaimer and Copyright
Disclaimer Disclaimer and Copyright This document (presentation) does not constitute an offer or invitation or form part of an offer or invitation to subscribe for or purchase any securities and, neither this document or anything contained herein shall form the basis of any contract of commitment wh