Tag Immobilien Ag · XETR:TEG

Tag Immobilien — Q1 2014 Earnings Presentation

32 slides from Tag Immobilien's earnings presentation, Aug 5, 2014

  1. Slide 1: Growing Assets – Q1 2014 Figures

    2014 Growing Assets Q1 2014 Figures

  2. Slide 2: Content

    Content 22 I. TAG Highlights FY 2013 / Q1 2014 3 CONTENT II. TAG Strategy/ Efficiency: Growth and Margins 5 III. TAG Achievements: Vacancy reduction / rent increases 6 IV. TAG Investments: Capex – Maintenance 2012/ 2013/ Q1 2014 8 V. TAG FFO / AFFO 2013 / 2014e 9 VI. TAG Portfolio: Regions/ Top 20 C

  3. Slide 3: TAG Highlights Q1 2014

    TAG Highlights Q1 2014 33  Rental income (including commercial)  Achievements 2013  EUR 65.1m (63.2m in Q1 2013)  Acquistion Chemnitz: 219 Residential Units / EUR 7.7m OVERVIEW  Rental profit (including commercial)  Disposal of single commercial units in Hamburg, Hanover, Nuremberg, Ahrensburg

  4. Slide 4: TAG Growth Strategy 2009-2013

    TAG Growth Strategy 2009-2013 44 GROWTH Real estate volume (EURm) Rental revenues (EURm) 3,665 3,606 250.9 x4.8 X5.4 192.5 1,969 3,203 3,164 115.4 978 770 1,493 51.8 46.2 318 499 452 479 476 462 442 2009 2010 2011 2012 2013 Residential incl. undeveloped properties Commercial incl. undeveloped proper

  5. Slide 5: TAG Efficiency 2009-Q1 2014

    TAG Efficiency 2009-Q1 2014 55  Growth has been a strategic imperative for TAG in order to  achieve economies of scale Adj. EBITDA and FFO margin (including commercial) GROWTH  benefit from effects of step-fixed costs relating to administration and overhead expenses  become a best in class landl

  6. Slide 6: TAG Achievements 2013

    TAG Achievements 2013 666 6 Vacancy reduction per region (in%)* PORTFOLIO Net actual rent per region (in EUR/ sqm)* *excluding properties for sale and the acquisition in Eastern Germany end of Dec. 2013 TAG Immobilien AG | Q1 figures 2014

  7. Slide 7: TAG Achievements Q1 2014

    TAG Achievements Q1 2014 777 7 PORTFOLIO Rental margin pre maintenance (in%) (including commercial)  TAG’s operational platform has become more efficient and more effective over the course of 2013.  Operational improvements beyond pure corporate cost efficiencies due to growth strategy: Service ch

  8. Slide 8: TAG Investments Q1 2014

    TAG Investments Q1 2014 88 Portfolio residential PORTFOLIO in EURm Overall investments in Q1 2014:  Modernisation/ investments (capitalized): 7.9m  Maintenance/ repair (charged to P&L): 6.3m  TOTAL EUR: 14.2m Regional Split TAG Immobilien AG | Q1 figures 2014

  9. Slide 9: TAG FFO FY 2013 - Q1 2014

    TAG FFO FY 2013- Q1 2014 (including commercial) 99 FFO TAG Immobilien AG | Q1 figures 2014

  10. Slide 10: TAG FFO Guidance 2014

    TAG FFO Guidance 2014 10 10 FFO  The interest cost savings stem from refinancing that have already been effected in 2013.  The synergies are basically the management contract fees for TAG Wohnen which TAG had to pay in 2013, this contract has been cancelled with effect of year-end 2013. Furthermor

  11. Slide 11: TAG Portfolio Q1 2014

    TAG Portfolio Q1 2014 11 11  TAG has its focus on 5 regions in Germany  Most of the portfolio is in good urban locations and growth PORTFOLIO regions, promising continued stable rental income and value creation  TAG offers attractive housing at affordable prices  The commercial portfolio sold vi

  12. Slide 12: TAG Portfolio - Top cities Q1 2014

    TAG Portfolio - Top 20 cities Q1 2014 12 12 PORTFOLIO TAG Immobilien AG | Q1 figures 2014

  13. Slide 13: TAG Portfolio Q1 2014 by region

    TAG Portfolio Q1 2014 by region 13 13 13 13 PORTFOLIO *As of 31 March 2014 according to book value; including properties for sale *as of 3/31/2014 by book value TAG Immobilien AG | Q1 figures 2014

  14. Slide 14: TAG Acquisitions 2013

    TAG Acquisitions 2013 14 14 Chemnitz  Units 219  Closing Q3 2014 ACQUISITIONS  Floor area in sqm 13,271  Net rental EUR/sqm 4.60  Vacancy 6.9%  Purchase price EURm (net) 7.7 Dresden  Multiple 9.6x  NRI yield 10.4% Eastern Germany  Closing  Units 2,860 Q4 2013 (EUR 54m)  Floor area in sqm

  15. Slide 15: TAG Acquisition 2014

    TAG Acquisition 2014 15 15 Thuringia/ Saxony TOP FIVE by units  Units  Hermsdorf 1,483 ACQUISITIONS 3,985  Jena 525  Floor area in sqm 236,000  Weimar 436  Erfurt 314  Net rental EUR/sqm 5.24  Chemnitz 233  Vacancy 10.7%  Sum 2,991  % of total  Purchase price EURm (net) 120.5 75% Erfurt

  16. Slide 16: TAG Sales 2013/2014

    TAG Sales 2013/ 2014 16 16  Disposal of TAG Gewerbeimmobilien GmbH end of March 2014  Commercial Units  Closing Q2 / Q3 2013 SALES  Share deal, Closing H1 2014, TAG keeps 20% stake Hanover, Nuremberg, Hamburg,  Approx. 270,000 sqm of the TAG commercial portfolio Ahrensburg  Purchase price/ Val

  17. Slide 17: TAG Group financials (IFRS) – Balance sheet

    TAG Group financials (IFRS) 17 17 Consolidated balance sheet (in EURm) FINANCIALS 12/31/2013 03/31/2014 4400 3,763 3,763 3,821 3,821 4000 4000 3600 3600 3200 3,581 1,127 3,294 1,135 3200 2800 2800 106 107 2400 2400 310 197 2000 2000 1600 2,078 1600 2,140 1200 1200 800 800 400 400 182 246 527 129 0 0

  18. Slide 18: TAG Group financials (IFRS) – Profit & loss

    TAG Group financials (IFRS) 18 18 Profit & loss (in EUR m) including commercial FINANCIALS TAG Immobilien AG | Q1 figures 2014

  19. Slide 19: TAG Financial structure

    TAG Financial structure 19 19 TAG has a solid financing structure and its growing scale decrease financing costs even further FINANCIING Debt maturity profile as of 12/31/2013 Debt maturity profile as of 03/31/2014* 3.70% average cost of 3.64% average cost of bank debt bank debt 9.4 years average 9.

  20. Slide 20: TAG Valuation – NAV

    TAG Valuation – NAV 20 20  EPRA NAV - Diluted NAV Dilution effects:  The repurchase of convertible bonds decreased FINANCING the potential dilution by approx. EUR 12.3m TAG shares  From 2013 on the dilution effect has been reduced from EUR 0.47 to EUR 0.14 in Q1 2014 TAG Immobilien AG | Q1 figure

  21. Slide 21: TAG Valuation by CBRE 2013

    TAG Valuation by CBRE 2013 21 21 Portfolio residential FINANCING 2012 2013 Assumptions/drivers 2012 2013 Fair Value per sqm EUR 760 EUR 740 Cap rate (%) 5.48 5.52 Discount rate (%) 6.18 6.16 Multiple (current rent) 14.2x 13.5x Administrative costs (EUR/unit) 201 205 Current maintenance (EUR/sqm) 7.9

  22. Slide 22: TAG Stock market data Q1 2014

    TAG Stock market data Q1 2014 22 22  High/Low (Jan/March 2014) EUR 9.65/ EUR 8.52 Shareholderstructure as of 03/31/2014  Number of shares SHAREHOLDER VALUE 131.298m  Market capitalisation 1,118,662 EUR  Stock indices MDAX/EPRA  Free Float * 100% * Deutsche Börse definition including institution

  23. Slide 23: TAG Outlook - Value enhancing asset management

    TAG Outlook - Value enhancing asset management 23 23 OUTLOOK Focus on residential property segment Continuously work the existing portfolio  Dispose of commercial properties in value  Increase rents – rental growth 0.5% in Q1 2014 maximizing manner over time Reversionary rent potential vs. in-plac

  24. Slide 24: TAG Outlook – Guidance 2014 - 2015

    TAG Outlook – Guidance 2014 - 2015 24 24 Dividend (EUR) FFO I (EURm) OUTLOOK *estimate *estimate TAG Immobilien AG | Q1 figures 2014

  25. Slide 25: Appendix

    APPENDIX 25 25 Growing Assets TAG Immobilien AG | Q1 figures 2014

  26. Slide 26: TAG Portfolio commercial FY 2013

    TAG Portfolio commercial FY 2013 26 26 APPENDIX  Disposal of TAG Gewerbeimmobilien GmbH end of March 2014  Share deal, Closing H1 2014, TAG keeps 20% stake  Approx. 270,000 sqm of the TAG commercial portfolio  Purchase price/ Value: approx. EUR 297 Mio. inlcuding EUR 167m loans  EUR 78m cash at

  27. Slide 27: TAG Management Board

    TAG Management Board 27 27 Rolf Elgeti, CEO Claudia Hoyer, COO from July 2012 onwards  TAG Immobilien AG, Management Board (since July 2009),  DKBI Management Board (since July 2010) APPENDIX Supervisory Board from 2008  10 years in successive positions at ​Deutsche Kreditbank AG  Setting up and

  28. Slide 28: East Germany is catching up…

    East Germany is catching up… 28 28 …making it an attractive investment region for TAG APPENDIX GDP growth per employee (1991-2009) Disposable income growth per Residential market rents household (1991-2008) (€ per sqm per month) 4,4 8,2 Berlin 3,6 6,6 4,2 8,0 Leipzig 4,0 6,7 5,0 7,8 Dresden 4,4 6,3

  29. Slide 29: TAG Acquisition 2011 – 2014

    TAG Acquisition 2011 – 2014 29 29 APPENDIX TAG Immobilien AG | Q1 figures 2014

  30. Slide 30: Notes

    NOTES 30 30 APPENDIX TAG Immobilien AG | Q1 figures 2014

  31. Slide 31: Notes

    NOTES 31 31 APPENDIX TAG Immobilien AG | Q1 figures 2014

  32. Slide 32: TAG Contacts

    32 32 TAG Contacts Rolf Elgeti TAG Immobilien AG Dominique Mann CEO Head of Investor & Public Relations Steckelhörn 5 Fon: +49 40 380 32-307 Fon: +49 40 380 32-305 20457 Hamburg Fax: +49 40 380 32-388 Fax: +49 40 380 32-388 Fon: +49 40 380 32-0 ir@tag-ag.com ir@tag-ag.com Fax: +49 40 380 32-388 www.

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