HIAG Immobilien Holding AG · SIX:HIAG

HIAG Immobilien — FY2015 Earnings Presentation

50 slides from HIAG Immobilien's earnings presentation, Mar 21, 2016

  1. Slide 1: HIAG Immobilien Business Year 2015

    HIAG Immobilien Business Year 2015 21 March 2016 © HIAG Immobilien, 21 March 2016 1

  2. Slide 2: Disclaimer

    Disclaimer The financial data as well as the other information presented herein constitute selected information. The information in this presentation does not constitute an offer or invitation and may not be construed as a recommendation by us to purchase, hold or sell shares of HIAG Immobilien Hold

  3. Slide 3: Agenda

    Agenda 1. Highlights 2. Update on strategy 3. Financial results 2015 4. Major developments 5. Market and outlook 6. Financial calendar 7. Appendix HIAG Immobilien 3

  4. Slide 4: Highlights

    Highlights  Increase in property income by 5.2% to CHFm 51.2  CHFm 59.5 net profit  Earnings per share at CHF 7.4  Return on equity at 8.8%  Growth of portfolio to CHFm 1’224  Like for like reduction of vacancy rate from 11.7% to 10.0% in yielding portfolio  Solid financing structure with equ

  5. Slide 5: Agenda

    Agenda 1. Highlights 2. Update on strategy 3. Financial results 2015 4. Major developments 5. Market and outlook 6. Financial calendar 7. Appendix HIAG Immobilien 5

  6. Slide 6: Further acquisitions in line with strategy

    Further acquisitions in line with strategy Office  Investment focus on 1 2 6 Office 2 Switzerland only 1 1 8 1 1  Long-term landlord 2 1 1 2 Basel 1 2 1 8 4 1 1 3 1 1 1 1 4 3  Large scale 1 1 4 3 9 St Gallen 2 8 Zurich 1 1 1 1 1  Redeveloper of well-located 3 1 3 Lucerne Neuchâtel former commerc

  7. Slide 7: Attractive mix of uses with little exposure to office markets

    Attractive mix of uses with little exposure to office markets… Others 3.4% Building land 8.0% Industry, Commercial 27.7% Office 12.0% Industry, Commercial and Distribution, Logistics 36.7% Retail 13.6% Distribution, Logistics 9.0% Residential Residential / 21.3% Retail 5.0% Residential 26.3% Based o

  8. Slide 8: …with a strong and diversified tenant base…

    …with a strong and diversified tenant base… Top 10 tenants (Group) based on annualised property income Tenants and credit rating Share of annualised rental Cumulative share of (Moody’s, S&P, Fitch) income: annualised rental income: ABB Group, industry (A2 / A / A-) 5.2% 5.2% Hewlett-Packard, IT (Baa

  9. Slide 9: …and a long-dated expiry profile

    …and a long-dated expiry profile Expiry profile based on property income as of 31 December 2015 * Letting to residential tenants and in redeve- 37.0% lopment segment. 21.0% 11.0% 10.0% 7.0% 5.0% 4.0% 5.0% 2016 2017 2018 2019 2020 2021 2022-2032 Perpetual* HIAG Immobilien 9

  10. Slide 10: Project pipeline grown by 20% since IPO

    Project pipeline grown by 20% since IPO – three new projects under construction HIAG Immobilien 10

  11. Slide 11: Agenda

    Agenda 1. Highlights 2. Update on strategy 3. Financial results 2015 4. Major developments 5. Market and outlook 6. Financial calendar 7. Appendix HIAG Immobilien 11

  12. Slide 12: Income statement

    Income statement in CHFm FY 2015 FY 2014  CHFm % Property income 51.2 48.7 +2.5 +5.2% Revaluations of properties 31.5 28.7 +2.8 +9.7% Total operating income without revaluations 54.1 50.2 +3.8 +7.6% Total operating expenses -20.5 -19.6 +0.9 +4.6% EBITDA 65.0 59.3 +5.7 +9.6% Adj. EBITDA* 40.2 39.8

  13. Slide 13: Increase in annualised property income by CHFm 1.6

    Increase in annualised property income by CHFm 1.6 in CHFm 31.12.2013 31.12.2014 31.12.2015  CHFm % Target annualised property income 57.0 60.4 61.0 +0.6 +1.0% Actual annualised property income 46.6 49.8 51.4 +1.6 +3.2% Actual property income 43.5 48.7 51.2 +2.5 +5.2%  Like for like increase in a

  14. Slide 14: Continuing reduction of vacancy rate

    Continuing reduction of vacancy rate in % 31.12.2015 31.12.2014 Yielding properties 11.1% 11.7% Yielding properties undergoing repositioning* 32.4% 33.8% Redevelopment properties 19.3% 24.9% Total portfolio 16.0% 18.0%  Yielding properties: full occupancy in the property Spinnerkönig (Windisch), ne

  15. Slide 15: Revaluation of properties

    Revaluation of properties in CHFm FY 2015 FY 2014 Revaluations of properties +31.5 +28.7 Thereof revaluation promotion +6.7 +9.1 Thereof adjustment costs for environmental risks +0.2 -  Positive contributions: Meyrin, Windisch, Baar, Dornach, Cham  Negative contributions: Dietikon, Birsfelden, Aat

  16. Slide 16: One third of revaluation effects linked to reduction of discount rate

    One third of revaluation effects linked to reduction of discount rate  Major impact of condominium projects discounted at 2.5% instead of 4.0% in 2014  Condominium effect will disappear after units are sold  Reduction in yielding portfolio: 11 bps 31.12.2015 31.12.2014 Weighted average real disco

  17. Slide 17: Operating expenses in line with business development

    Operating expenses in line with business development in CHFm FY 2015 FY 2014  CHFm % Personnel expenses 7.6 6.4 +1.2 +18.1% Maintenance and repairs* 3.5 3.2 +0.3 +10.2% in % of total property value 0.28% 0.27% Insurance and fees 0.8 1.0 -0.2 -20.8% Energy costs and building maintenance 2.4 2.5 -0.

  18. Slide 18: Key financial figures per share

    Key financial figures per share in CHF FY 2015 FY 2014 Earnings per share 7.4 6.8 Earnings per share without revaluation 3.5 2.8 Earnings per share without revaluation including revaluation of promotion 4.3 4.1 Time-weighted average number of shares 8’000’000 7’362’500 EPRA Earnings per share 3.5 3.

  19. Slide 19: Balance sheet

    Balance sheet in CHFm 31.12.2015 31.12.2014  CHFm % Properties 1’105.3 1’048.7 Properties held for sale 118.7 102.4 GAV 1’224.0 1’151.1 +72.9 +6.3% LTV Ratio 36.8% 37.0% Swiss GAAP FER NAV 708.7 675.6 Swiss GAAP FER NAV per share* 88.6 84.5 Capital contribution reserves 101.0 127.4 -26.4 Equity ra

  20. Slide 20: Continuous portfolio growth

    Continous portfolio growth 2014 2015 in CHFm NAV defined as shareholders’ equity as per Swiss GAAP FER (1) The company held treasury shares in the amount of 10% of share capital as of 31.12.2013 HIAG Immobilien 20

  21. Slide 21: Diversified financing structure

    Diversified financing structure in CHFm 31.12.2015 31.12.2014 Bank financing 402.3 487.8 Bond (CS rating Low: BBB stable / Vontobel rating: BBB stable) 100.0 - Total 493.4 487.8 • Most of the Group’s bank financing agreements are perpetual with interest only • Current LTV ratio of 36.8% (37.0% in 20

  22. Slide 22: Dividend increase by 6% to CHF 3.5 p.s.

    Dividend increase by 6% to CHF 3.5 p.s. Other 7.2% Other Switzerland 24.6% Free float SFAG Holding AG 34.7% 50.0% Management 2.9% Salome Grisard Varnholt Anchor shareholders 3.5% 65.3% Andrea Grisard 4.8% Dr. Felix Grisard 6.9% HIAG Immobilien shareholders 31.12.2015 SFAG Holding AG* 50.0% Dr. Felix

  23. Slide 23: Agenda

    Agenda 1. Highlights 2. Update on strategy 3. Financial results 2015 4. Major developments 5. Market and outlook 6. Financial calendar 7. Appendix HIAG Immobilien 23

  24. Slide 24: Windisch «Feinspinnerei»

    Windisch «Feinspinnerei» Construction started in October 2015 Under construction / Pre-marketing / Commercialisation • Spinnerkönig fully let by July 2015 • Commercialisation of Spinnerei III end of February at 96% and Stegbünt at 100% • Project Feinspinnerei: construction started in October 2015, 1

  25. Slide 25: Baar «The Cloud»

    Baar «The Cloud» First units delivery in April 2016 Commercialisation • First units to be delivered in April 2016 • 55% of condominiums sold and signed reservations end of February 2016 • Strengthened differentiation of rooftop apartments HIAG Immobilien 25

  26. Slide 26: «HQ EMEA HP» Meyrin

    «HQ EMEA HP» Meyrin Second floor under construction Under construction • Long-term lease with Hewlett-Packard for new EMEA headquarter (approx. 8’300 m2), building fully let • Construction status: second floor under construction, delivery planned Q3 2017 HIAG Immobilien 26

  27. Slide 27: Bremgarten «Jeld-Wen»

    Bremgarten «Jeld-Wen» Construction started in November 2015 Under construction • Within 2 years, 2‘500m2 office and 4‘900m2 commercial space added during operation • Investment volume of approximately CHFm 16 • Rental agreement was prolonged by 12 years HIAG Immobilien 27

  28. Slide 28: «Papieri» Biberist Masterplan approved

    «Papieri» Biberist Masterplan approved Under redevelopment • Communal authorities approve unanimously Masterplan Papieri 2033 • Land swap with Canton for development for renaturation project of Emme in January 2016 HIAG Immobilien 28

  29. Slide 29: «Papieri» Biberist High bay storage in permission process

    «Papieri» Biberist High bay storage in permission process Permit pending • Pre rental agreement signed • Expected investment volume of approximately CHFm 4 • Start of renovation subordinated to permission building HIAG Immobilien 29

  30. Slide 30: Dornach site

    Dornach site Competition in preparation Under Redevelopment • Urbanist competition in preparation, expected to be commenced in 2016 • Railway and highway access defining pace of development • Part of production facilities to be moved to Reconvillier until end of 2016 HIAG Immobilien 30

  31. Slide 31: Frauenfeld

    Frauenfeld Building permit applications submitted Permit pending • Three sub-projects comprising 39 apartments and 2’600m2 of office and commercial area • Total expected investment volume of approximately CHFm 34 HIAG Immobilien 31

  32. Slide 32: Brugg

    Brugg Renovation in 2016 Permit pending • Renovation and enlargement project with the main tenant, the cantonal and municipal police forces • Building permit expected mid 2016 • Expected investment volume of approximately CHFm 6 HIAG Immobilien 32

  33. Slide 33: Cham Nord

    Cham Nord Development perspectives strengthened Under redevelopment • Private hockey athlete campus for EVZ strengthens attractiveness of site • App. 6’000m2 land to be sold (total 46’282m2) will consume almost full commercial volume • Preparation of building application for campus and phase one res

  34. Slide 34: Agenda

    Agenda 1. Highlights 2. Update on strategy 3. Financial results 2015 4. Major developments 5. Market and outlook 6. Financial calendar 7. Appendix HIAG Immobilien 34

  35. Slide 35: Market

    Market  Economic slowdown expected to continue in 2016  Migration still driving market but at lower purchasing power  Uncertainty tends to slow down decision taking process  Interest rate environment not expected to change fundamentally  Highly attractive Real Estate yields encourage additional

  36. Slide 36: Outlook

    Outlook  Property income expected to increase in 2016 at slower pace  Net capital inflow of CHFm 77 from current condominium projects expected within 2-3 years  Recent valuation shift of new residential projects (rental) increases relative attractiveness of rental appartments vs. condominiums  H

  37. Slide 37: Agenda

    Agenda 1. Highlights 2. Update on strategy 3. Financial results 2015 4. Major developments 5. Market and outlook 6. Financial calendar 7. Appendix HIAG Immobilien 37

  38. Slide 38: Financial calendar

    Financial calendar 19 April 2016 General Meeting in Aathal (ZH) 5 September 2016 Publication half-year results 2016 investor.relations@hiag.com www.hiag.com HIAG Immobilien 38

  39. Slide 39: Agenda

    Agenda 1. Highlights 2. Update on strategy 3. Financial results 2015 4. Major developments 5. Market and outlook 6. Financial Calendar 7. Appendix HIAG Immobilien 39

  40. Slide 40: Portfolio key figures

    Portfolio key figures in CHFm 31.12.2015 31.12.2014 Portfolio 1’224 1’151 Yielding Portfolio 717 703 Redevelopment Portfolio 507 448 Annualised property income 51.4 49.8 Number of properties 115 115 Number of redevelopment properties 54 53 Number of projects 48 51 Vacancy rate 16.0% 18.0% HIAG Immob

  41. Slide 41: Strong credit metrics and solid capital structure

    Strong credit metrics and solid capital structure – LTV ratio of 36.8% in CHFm 31.12.2015 31.12.2014 GAV 1’224.0 1'151.1 Cash & cash equivalents 52.4 62.2 Gross financial debt 502.3 487.8 Thereof due within 12 months 8.9 11.3 EBITDA before revaluation of properties 33.5 30.6 Net financial result* -4

  42. Slide 42: 2015 Share price performance

    2015 Share price performance Share price in CHF 2015 High 99.8 Low 81.2 End of period 91.0 Market capitalisation in CHFm 2015 End of period 728.0 Registered shares 2015 End of period 8’000’000 HIAG Immobilien 42

  43. Slide 43: Condominium sales

    Condominium sales Stegbünt, Spinnerei III, The Cloud, Feinspinnerei, Project Windisch Windisch Baar Windisch Under Under Status Marketing Marketing construction construction Targeted completion of construction - - 2016 2017 # of condominiums 63 50 99 29 % of units sold as of 31.12.2015 97% 82% 39% 7

  44. Slide 44: Cash flow

    Cash flow in CHFm FY 2015 FY 2014 Funds from operations incl. sales of condominiums +44.6 +46.4 Cash Flow from Investments -42.8 -99.0 Cash Flow from Financing -11.6 +95.9 HIAG Immobilien 44

  45. Slide 45: Yielding Portfolio – Overview

    Yielding Portfolio – Overview Description Top 5 yielding sites • HIAG Immobilien’s Yielding Portfolio includes the properties for which currently no redevelopment is Klein- (in CHFm) Dietikon döttingen Klingnau Niederhasli Windisch planned and which are intended to generate a stable and predictable

  46. Slide 46: Redevelopment Portfolio – Overview

    Redevelopment Portfolio – Overview Portfolio segmentation Selected redevelopment sites Under With partial use of existing substance: Marketing construction Mid-term Long-term Expected main On-going On-going 3-5 years 5-10 years redevelopment steps (in CHFm) Meyrin* Brugg Neuchâtel Bremgarten Frauenf

  47. Slide 47: Portfolio split by type of use and region

    Portfolio split by type of use and region Others Others Building land 3.3% 5.8% 8.0% Baselland Industry, 6.8% commercial 27.7% Aargau Office 12.0% 28.6% Geneva 8.1% Retail Solothurn 13.6% 8.2% Distribution, Logistics 9.0% Residential and Zug Zurich commercial 15.7% 26.8% 5.0% Residential 21.3% GAV a

  48. Slide 48: EPRA key financial figures

    EPRA key financial figures in CHFm except figures per share in CHF 31.12.2015 31.12.2014 EPRA Earnings 28.3 25.2 EPRA Earnings per share (CHF) 3.5 3.5 Average number of shares 8’000’000 7’150’000 EPRA NAV 771.9 732.0 EPRA NNAV 708.7 675.0 EPRA NAV per share (CHF) 96.5 91.5 Number of shares (diluted)

  49. Slide 49: Reconciliation Swiss GAAP FER - EPRA

    Reconciliation Swiss GAAP FER - EPRA in CHFm 31.12.2015 31.12.2014 Swiss GAAP FER NAV 708.7 675.6 Effect Incentive Plan / Treasury shares -0.0 -0.6 Deferred Tax Liabilities +63.2 +56.9 EPRA NAV 771.9 732.0 Swiss GAAP FER Earnings 59.5 48.9 Revaluation of properties -31.5 -28.7 Deferred Tax / Tax los

  50. Slide 50: Strong NAV growth

    Strong NAV growth IPO CHFm 58 2014 2015 in CHFm NAV defined as shareholders’ equity as per Swiss GAAP FER HIAG Immobilien 50

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