Hiag Immobilien Holding Ag · SIX:HIAG

Hiag Immobilien — H1 2016 Earnings Presentation

39 slides from Hiag Immobilien's earnings presentation, Sep 5, 2016

  1. Slide 1: HIAG Immobilien Half-Year Results 2016

    HIAG Immobilien Half-Year Results 2016 5 September 2016 © HIAG Immobilien, 5 September 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. Financial results Half-Year 2016 3. Major developments 4. Update on strategy 5. Market and outlook 6. Financial calendar HIAG Immobilien 3

  4. Slide 4: Highlights

    Highlights  Increase in property income by 3.8% to CHFm 26.1  CHFm 21.6 net profit  Increase in EPRA-Earnings by 13.7% to CHFm 14.5  Annualised return on equity at 6.2%  Stable vacancy rate in yielding portfolio of 11.3%  Solid financing structure with equity ratio at 54.6% and LTV ratio of 37

  5. Slide 5: Agenda

    Agenda 1. Highlights 2. Financial results Half-Year 2016 3. Major developments 4. Update on strategy 5. Market and outlook 6. Financial calendar HIAG Immobilien 5

  6. Slide 6: Income statement

    Income statement in CHFm 30.06.2016 30.06.2015  CHFm % Property income 26.1 25.1 +1.0 +3.8% Revaluations of properties 7.4 15.2 -7.8 -51.5% Total operating income without revaluations 26.7 26.2 +0.5 +1.8% Total operating expenses -10.0 -11.1 +1.1 -9.5% EBITDA 24.0 30.4 -6.3 -20.8% Adj. EBITDA* 18.

  7. Slide 7: Stable annualised property income

    Stable annualised property income in CHFm 31.12.2014 31.12.2015 30.06.2016  CHFm % Target annualised property income 60.4 61.0 61.1 +0.1 +0.2% Actual annualised property income 49.8 51.4 51.5 +0.1 +0.2% Actual property income 48.7 51.2 26.1 HIAG Immobilien 7

  8. Slide 8: Ongoing negotiations of expiring contracts – except VBS

    Ongoing negotiations of expiring contracts – except VBS Expiry profile based on property income as of 30 June 2016 * Letting to residential tenants and in redeve- 37.0% lopment segment. 20.0% 14.0% 12.0% 4.0% 4.0% 4.0% 5.0% 2016 2017 2018 2019 2020 2021 2022-2032 Perpetual* HIAG Immobilien 8

  9. Slide 9: Minor reduction of vacancy rate

    Minor reduction of vacancy rate in % 30.06.2016 31.12.2015 Yielding properties 11.3% 11.1% Yielding properties undergoing repositioning* 32.0% 32.4% Redevelopment properties 18.6% 19.3% Total portfolio 15.9% 16.0% * Properties Mandachstrasse 50-56 (Niederhasli), Lorzenpartkstrasse 2-16 (Cham) and St

  10. Slide 10: Revaluation of properties

    Revaluation of properties in CHFm 30.06.2016 30.06.2015 Revaluation of properties +7.4 +15.2 Thereof revaluation promotion +1.3 +3.7 Thereof adjustment costs for environmental risks +0.5 -0.1  1st HY15 without acquisition effect: +CHFm 10.2  Positive contributions: Biberist, Meyrin, Cham  Negativ

  11. Slide 11: No significant variation of discount rate

    No significant variation of discount rate 30.06.2016 31.12.2015 Weighted average real discount rate yielding portfolio** 4.64% 4.66% Weighted average real discount rate redevelopment portfolio** 4.15% 4.12% Weighted average real discount rate total portfolio 4.34% 4.44% * except land and building ri

  12. Slide 12: No unexpected major variance in operating expenses

    No unexpected major variance in operating expenses in CHFm 30.06.2016 30.06.2015  CHFm % Personnel expenses 4.1 3.8 +0.2 +6.0% Maintenance and repairs* 1.8 2.2 -0.4 -18.3% in % of total property value 0.15% 0.18% Insurance and fees 0.5 0.6 -0.1 -16.3% Energy costs and building maintenance 1.2 1.5

  13. Slide 13: Key financial figures per share

    Key financial figures per share in CHF 30.06.2016 30.06.2015 Earnings per share (EPS) 2.7 3.0 EPS without revaluation 1.8 1.1 EPS without revaluation including revaluation of promotion 2.0 1.6 Time-weighted average number of shares 8’000’000 8’000’000 EPRA Earnings per share 1.8 1.6 Average number o

  14. Slide 14: Balance sheet as of 30 June 2016

    Balance sheet as of 30 June 2016 in CHFm 30.06.2016 31.12.2015  CHFm % Properties 1’123.5 1’105.3 Properties held for sale 103.2 118.7 GAV 1’226.7 1’224.0 +2.7 +0.2% LTV Ratio 37.0% 36.8% Swiss GAAP FER NAV 702.6 708.7 Swiss GAAP FER NAV per share* 87.8 88.6 Capital contribution reserves 73.0 101.

  15. Slide 15: Diversified financing structure

    Diversified financing structure in CHFm 30.06.2016 31.12.2015 Bank financing 390.8 402.3 Bond (CS rating: Low BBB stable / Vontobel rating: BBB stable) 100.0 100.0 Total 490.8 502.3 • Most of the Group’s bank financing agreements are perpetual with interest only • Current LTV ratio of 37.0% (36.8% a

  16. Slide 16: Agenda

    Agenda 1. Highlights 2. Financial results Half-Year 2016 3. Major developments 4. Update on strategy 5. Market and outlook 6. Financial calendar HIAG Immobilien 16

  17. Slide 17: Windisch «Feinspinnerei» Topping-out ceremony

    Windisch «Feinspinnerei» Topping-out ceremony as of 8 September Under construction / Pre-marketing / Commercialisation • Commercialisation of Spinnerei III end of August at 96% • Project Feinspinnerei: topping-out ceremony as of 8 September 2016, 44% sold end of August 2016 HIAG Immobilien 17

  18. Slide 18: Baar «The Cloud» Commercialisation at 76%

    Baar «The Cloud» Commercialisation at 76% Commercialisation • First units delivered in 1st HY 2016 • 76% of condominiums sold end of August 2016 • First net cash effect expected during 2 nd HY 2016 HIAG Immobilien 18

  19. Slide 19: «HQ EMEA HP» Meyrin Building shell completed

    «HQ EMEA HP» Meyrin Building shell completed Under construction • Construction status: building shell completed, delivery planned in Q3 2017 • Topping-out ceremony took place on 9 June 2016 • Launching of the website: www.thehive-gva.ch HIAG Immobilien 19

  20. Slide 20: «Papieri» Biberist General building permit obtained

    «Papieri» Biberist General building permit obtained Under renovation • General building permit granted • Rental agreement for the high bay storage came into force (annualised CHFm 1) • Renovation has started (expected investment volume of approximately CHFm 4) HIAG Immobilien 20

  21. Slide 21: Frauenfeld Building permits obtained

    Frauenfeld Building permits obtained Permits obtained • Two sub-projects comprising 21 apartments and 2’300m2 of office and commercial area granted (total expected investment volume of approximately CHFm 23) • Third permit submitted, no objection so far HIAG Immobilien 21

  22. Slide 22: Niederhasli Doka Schweiz commits to the site

    Niederhasli Doka Schweiz commits to the site Under redevelopment • Agreement with Doka Schweiz on the framework for a long-term development • Office building of 2‘600m2 and commercial halls of 4‘200m 2 to be developed • Building permit approbation uncertain due to the implemented planning zone HIAG

  23. Slide 23: Aathal, Talwies Coop established as the main tenant

    Aathal, Talwies Coop established as the main tenant Under redevelopment • Long term contract signed with Coop Bau+Hobby • Supermarket with a surface area of about 4’700m² • Design plan to be submitted for preliminary examination by the end of 2016 • end of 2016 HIAG Immobilien 23

  24. Slide 24: Agenda

    Agenda 1. Highlights 2. Financial results Half-Year 2016 3. Major developments 4. Update on strategy 5. Market and outlook 6. Financial calendar HIAG Immobilien 24

  25. Slide 25: HIAG supplies infrastructure…

    HIAG supplies infrastructure… Office …transforming our tenants 2 1 1 1 6 8 Office 1 2 Capex into Opex Basel 1 1 2 1 2 2 1 1 unleashing financial resources 8 4 1 1 3 1 1 1 1 4 3 …optimising surfaces to suit tenants 1 1 4 3 9 St Gallen 2 7 Zurich 1 1 1 1 3 1 3 business models 1 Lucerne enabling value

  26. Slide 26: …in brick & mortar… …and glass & metal

    …in brick & mortar… …and glass & metal Amsterdam Frankfurt HIAG Data supplies an IT-infrastructure platform …transforming our tenants Capex into Opex Biberist enabling growth Menziken …optimising platform to meet needs of IoT and industry 4.0… Switzerland creating access to new markets …industrialis

  27. Slide 27: Agenda

    Agenda 1. Highlights 2. Financial results Half-Year 2016 3. Major developments 4. Update on strategy 5. Market and outlook 6. Financial calendar HIAG Immobilien 27

  28. Slide 28: Market

    Market  Economic recovery hindered by uncertainty about outcome of monetary experiment  Brexit to impact possible solution on migration settlement with EU  Interest rate environment not expected to change fundamentally  Highly attractive Real Estate yields encourage additional capital inflow in

  29. Slide 29: Outlook

    Outlook  Property income expected to increase in 2nd HY 2016 at slower pace than 2015, more dynamic rise in annualised rental income  HIAG Immobilien currently in due diligence engaged but will stick to its acquisition metrics and policy  HIAG Data expected to have noteworthy impact on operating

  30. Slide 30: Agenda

    Agenda 1. Highlights 2. Financial results Half-Year 2016 3. Major developments 4. Update on strategy 5. Market and outlook 6. Financial calendar HIAG Immobilien 30

  31. Slide 31: Financial calendar

    Financial calendar 20 March 2017 Publication annual results 2016, ZH 20 April 2017 General Meeting in Biberist (SO) investor.relations@hiag.com www.hiag.com HIAG Immobilien 31

  32. Slide 32: Appendix

    Appendix HIAG Immobilien 32

  33. Slide 33: Portfolio key figures

    Portfolio key figures in CHFm 30.06.2016 31.12.2015 Portfolio 1’227 1’224 Yielding Portfolio 714 717 Redevelopment Portfolio 512 507 Annualised property income 51.5 51.4 Number of properties 113 115 Number of redevelopment properties 52 54 Number of projects 48 48 Vacancy rate 15.9% 16.0% HIAG Immob

  34. Slide 34: Portfolio split by type of use and region

    Portfolio split by type of use and region Other Other Building land 3.2% 5.8% 8.5% Baselland Industry, 6.8% commercial 27.8% Aargau Office 28.3% 12.4% Geneva 8.6% Retail Solothurn 13.7% 8.6% Distribution, Logistics 9.2% Residential and Zug Zurich commercial 14.9% 27.0% 5.0% Residential 20.2% GAV as

  35. Slide 35: A strong, stable and diversified tenant base

    A strong, stable 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) income: annualised rental income: ABB Group, industry (A2/A) 5.2% 5.2% Hewlett-Packard, IT (Baa2/BBB) 5.0% 1

  36. Slide 36: Condominium sales

    Condominium sales Spinnerei III, The Cloud, Feinspinnerei, Project Windisch Baar Windisch Under Under Status Marketing construction construction Targeted completion of construction - 2016 2017 # of condominiums 50 99 29 % of units sold as of 30.06.2016 92% 61% 14% % of units sold and signed reservat

  37. Slide 37: Strong credit metrics and solid capital structure – LTV ratio of 37.0%

    Strong credit metrics and solid capital structure – LTV ratio of 37.0% in CHFm 30.06.2016 31.12.2015 GAV 1’226.7 1’224.0 Cash & cash equivalents 36.8 52.4 Gross financial debt 490.8 502.3 Thereof repayment of bank financing related to the bond issued in July 71.9 n.a. Thereof amortisation due within

  38. Slide 38: Cash flow

    Cash flow in CHFm HY 2016 HY 2015 Funds from operations incl. sales of condominiums net of financing +22.2 +20.9 Cash Flow from Operations +14.6 +10.0 Cash Flow from Investments +9.0 -16.8 Cash Flow from Financing -39.2 -28.2 HIAG Immobilien 38

  39. Slide 39: Shareholder structure as of 30.06.2016

    Shareholder structure as of 30.06.2016 Other 6.4% Other Switzerland 25.5% 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% Major shareholders 30.06.2016 SFAG Holding AG* 50.0% Dr. Felix Grisard 6.

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