Hiag Immobilien Holding Ag · SIX:HIAG
Hiag Immobilien — FY2022 Earnings Presentation
60 slides from Hiag Immobilien's earnings presentation, Mar 13, 2023
Slide 1: Investor presentation FY 2022
Investor presentation FY 2022 HIAG Immobilien Holding AG Marco Feusi Stefan Hilber CEO CFO 13 March 2023
Slide 2: Agenda
Agenda 1 Year 2022 at a glance 2 Key financials 3 Portfolio figures 4 Financing 5 Portfolio / Asset Management 6 Site Development 7 Transactions 8 Sustainability 9 Market assessment by HIAG 10 Outlook 2023 11 Q&A 12 Appendix HIAG Investor presentation 2022 2
Slide 3: Year 2022 «at a glance»
Year 2022 «at a glance» HIAG
Slide 4: Key Highlights 2022
Key Highlights 2022 Strong letting business and good progress in site developments Increased collected property income Best Full Year by 7.2% to CHFm 67.7 result – Reduction of vacancy rate Net income increased up to Increased annualised from 10.7% to 6.4% CHFm 99.4 a plus of 11.4% property income b
Slide 5: KPI Overview
KPI Overview Net income Net income excl. Earnings NAV per share Return on Equity Equity ratio LTV (in CHFm) Revaluation gains per share (incl. deferred tax) (in %) (in %) gross / net (in CHFm) (in CHF) (in CHF) (in %) +10.1 +1.3 -5.2% +7.3% -0.7 +1.2 -1.9 99.4 10.4 9.8 11.1 53.1 +1.3 37.0 38.3 105.2
Slide 6: Financials 2022
Financials 2022 HIAG
Slide 7: Key financial figures 2022
Key financial figures 2022 At a glance Income Statement / ROE / EPS In CHFm 2022 2021 Δ CHFm Δ% ROE RoE Property income 67.7 63.1 4.5 7.2 RoE excl. Revaluation and related deferred tax 11.1% 10.4% Revaluation of properties 64.3 60.5 3.8 6.2 7.9% 7.7% Income from sale of properties 13.8 - 13.8 100.0
Slide 8: Portfolio figures
Portfolio figures HIAG Investor presentation 2022 8
Slide 9: Annualised / Collected property income
Annualised / Collected property income Increased annualised (+14.6%) and collected (+7.2%) property income Annualised property income / Collected property income Comments Main effects: Annualised property income (in CHFm) New/extended lettings: +14.6% – Flaschenpost/Klingnau (CHFm +0.7 p.a.) 1.0 -0.
Slide 10: Vacancy rate
Vacancy rate Remarkable vacancy rate decrease by 4.4%p to 6.4% Vacancy rate / Potential property income (at full occupancy) Comments Vacancy rate of 6.4% (CHFm 4.9 p.a.) à Vacancy rate 2018 to 2022 19.1% decreased by -4.4%p (CHFm -2.7 p.a.) Total Portfolio 16.2% Yielding Portfolio 15.7% 14.5% Develo
Slide 11: Tenants: WAULT / Lease expiry profile
Tenants: WAULT / Lease expiry profile High WAULT with over 8 years WAULT / Lease expiry Comments New material contracts (Total CHFm 7.1 p.a.): WAULT (in yrs) WAULT – Top 15 tenants (in yrs) – XXXLutz (2037) +2.9% 9.7 -1.3% – LEM International (2037) 8.9 10.5 7.9 8.2 8.1 10.2 – Flaschenpost (2029) –
Slide 12: Tenants – Top 15
Tenants –Top 15 XXXLutz and LEM strengthen tenant mix Top 15 tenants (Group) based on annualised property income – 1 January 2023 Share of annualised property income 42.2% Share of annualised property income 32.7% Cumulative share of annualised property income 30.2% 27.6% New tenants 24.8% 21.9% 18.
Slide 13: Portfolio value
Portfolio value Increased by 8.0%, mainly due to investments and revaluation gains Portfolio value Comments Total Portfolio value (gross, incl. properties for sale) Total Portfolio Development 2018 to 2022 (in CHFm) of CHFm 1,926 à increased by CHFm +142 (8.0%) Yielding Portfolio Development Portfol
Slide 14: Revaluation gains
Revaluation gains Increased by 6.2%, mainly in the Development Portfolio Revaluation gains* Comments Revaluation gains, net of CHFm 64.3. à increased by Yielding Portfolio (in CHFm, net) Development Portfolio (in CHFm, net) CHFm +3.8 (+6.2%), due to 30.06. 30.06. – Major project progress at developm
Slide 15: Financing
Financing HIAG Investor presentation 2022 15
Slide 16: Strong Balance Sheet in challenging environment
Strong Balance Sheet in challenging environment Capital Structure Equity Ratio / LTV Ratio (gross and net) in % Equity Ratio 53.1% 52.0% +1.2 49.1% 45.0% 41.3% 31.12.2018 31.12.2019 31.12.2020 31.12.2021 31.12.2022 LTV Ratio LTV Ratio net 52.9% LTV Ratio gross 49.9% 51.4% 46.9% 48.7% 44.5% 42.6% 43.
Slide 17: Financial liabilities
Financial liabilities Duration and average interest rate increased slightly Average interest rate, Duration and financial liabilities Comments 31 Dec 2022 / 31 Dec 2021 30 Dec 2022 / 31 Dec 2021 Average interest à increased by 0.2%p, mainly due to: Average interest Duration rate in Years – New bond
Slide 18: Financial liabilities
Financial liabilities Comfortable credit lines available Due dates of financial liabilities and credit lines – as of 31 December 2022 Comments Outlook 2023 Due dates of financial liabilities (in CHFm) 267 Successful placement of a new CHF 100m bond in Mortgages/fixed advances; Total CHFm 245 Februar
Slide 19: NAV per share
NAV per share Good financial results increased NAV per share NAV per Share – as of 31 December 2022 Comments Main drivers: NAV per share excl. deferred tax (in CHF) NAV per share incl. deferred tax (in CHF) Positive impact from revaluations, higher result from +7.1% +7.3% properties income and first
Slide 20: Portfolio / Asset Management
Portfolio / Asset Management HIAG
Slide 21: Portfolio overview
Portfolio overview Highly diversified RE portfolio in terms of use, tenant-mix and location Actual Annualised income by type of use Actual annualised income by sector Portfolio value by canton 8-11; 6% 1 Industry / Light industrial 12-17; 6% 1 Manufacturing industry / 8; 6% 1 ZH 11; 2% Production 7;
Slide 22: Inflation and rental income
Inflation and rental income Inflation protection through CPI linked leases and residential share Annualised income by type of lease indexation Actual reference interest rates residential Rental income increase due to inflation 5; 8% Commercial 3; 2% 4; 1% 4; 3% – Due to CPI adjustments done in 2022
Slide 23: Largest Vacancies
Largest Vacancies Diligent management actions to reduce vacancy rate underway 1 January 2023 / 1 January 2022 Properties Main use Portfolio Part of total Contribution Vacancy Vacancy ∆ Vacancy Vacancy Action taken / vacancy portfolio 1.1.2023 1.1.2023 1.1.2022 1.1.2022 vacancy including letting succ
Slide 24: Site Development
Site Development HIAG
Slide 25: Project pipeline
Project pipeline Adjustable capex and significant income/value growth potential Project pipeline with cumul. investment volume next 10 years of CHFb c. 2.61 (YH 2022: 2.75) Remarks CHFm CHFm c. 752 (YH 2022: 608) Total project pipeline with 58 projects (c. 15-20 years): Long-term 400 – Total investm
Slide 26: Developments: Projects under construction
Developments Projects under construction Chama, 1st stage Yielding and Promotion «Columbus» «Librec», Papieri site Zentrum West, Kunz site Cham ZG Biberist SO Windisch AG Mixed use development Promotion development «Columbus» – Building permission legal valid 12.2022 – Mixed use property (85% reside
Slide 27: Developments: Projects before construction
Developments Major progress, projects before construction «GTR, Oerlikon, Logistic», Campus Reichhold «Fahrwerk», Technoramastrasse Freihofstrasse Hausen/Lupfig AG Winterthur ZH Zurich-Altstetten ZH – Special use plan (“Gestaltungsplan”), «Oerlikon» – Building permission granted 11.2022, – Building
Slide 28: Projects
Projects Finished 2022 / Under and before construction Usable Total Expected Est. Rental Est. sales Pre-let Lease Project status 2023 2024 2025 2026 area to be expected remaining Value in revenue Ratio Duration deve- investment investment CHFm (excl. in CHFm Com- in loped volume in in CHFm, Ground m
Slide 29: Transactions
Transactions HIAG
Slide 30: Acquisitions
Acquisitions Opportunistic acquisitions with profit and tax optimisation potential Acquisitions 2022 Address Property Description Transaction Type Closing-Date Fair Value Annual rent Gross- CHFm CHFm p.a. Profit Niederwil (AG), Rigiweg 1/3/5 - 3 Multi Family Houses Asset-Deal 30.6.2022 13.55 0.49 -
Slide 31: Disposals
Disposals Further portfolio optimisation and sales profit Closed divestments 2022 Address Property Type Portfolio Closing-Date Fair Value1 Annual rent Gross- CHFm CHFm p.a. Profit Diesbach, Legler Fabrik Industrial Yielding 18.05.2022 0.02 vacant Diesbach, Hauptstrasse 38-40 Office, Residential Yiel
Slide 32: Sustainability
Sustainability HIAG
Slide 33: Project review 2022
Project review 2022 All set goals in the reporting year were met GHG Risk Management Guideline HIAG Solar GRESB ESG-Policy and Reduction Path Construction Participation Grievance Procedure ! Reduction path for ESG risk Manifesto for Installed capacity of First-time GRESB Sustainability policy greenh
Slide 34: Greenhouse Gas Reduction Path
Greenhouse Gas Reduction Path Reduction Path Yielding Portfolio HIAG (incl. growth through completed development projects) About the Reduction Path kg CO2e / m2EBF Scope 1 – Shows Scope 1 and Scope 2 emissions under HIAG's Scope 2 control (excl. Triple-net lease contracts) 8 7 -85% GHG Scope 1 Scope
Slide 35: Outlook
Outlook Goals for 2023 and subsequent years TCFD Recommendations Realisation Customer and Employee Property Management GHG Reduction Path Satisfaction Expansion HIAG Solar Elaboration of a concept Voluntary approach to the Realization of the Development and Further expansion of HIAG for sustainable
Slide 36: Market assessment by HIAG
Market assessment by HIAG HIAG
Slide 37: Market assessment by HIAG
Market assessment by HIAG Real Estate Market marked by inflation and rising interest rates Economic environment Real estate segments KPI Forecast Forecast Impact Commercial Market Residential Market 2012-2021 2022 2023 2024-2028 real estate (p.a.) (p.a.) market – Industry / Light industrial: Stable
Slide 38: Outlook 2023
Outlook 2023 HIAG
Slide 39: Outlook 2023
Outlook 2023 Expected good results with increased property income Business topic Ambitions Actions Portfolio Management – Increase collected income by c. 2% vs. 2022, LfL c. 3.5% – Full rental income from new leases and CPI adjustements – Further reduction vacancy rate to <6% – Active letting and si
Slide 40: Q&A
Q&A HIAG
Slide 41: Thank you / contact
Büro Basel Aeschenplatz 7 4052 Basel T +41 61 606 55 00 Büro Zürich Thank you ! Löwenstrasse 51 8001 Zürich T +41 44 404 10 30 Büro Genf Rue François-Bonivard 10 1201 Genf T +41 22 304 10 30 contact hiag.com
Slide 42: Company Calendar
Company Calendar 27 April 2023 2023 General Meeting 28 August 2023 Publication half-year report 2023 26 September 2023 Capital Market Day 4 March 2024 Publication annual report 2023 18 April 2024 2024 General Meeting investor.relations@hiag.com www.hiag.com HIAG 42
Slide 43: Appendix
Appendix HIAG
Slide 44: Project overview
Project overview HIAG
Slide 45: Projects: Mid-term
Projects Mid-term Total Usable Total Expected Est. Est. sales Pre-let Lease Project status 2023 2024 2025 2026 area to be expected remaining Rental revenue Ratio Duration deve- investment investment Value in in CHFm Com- in loped volume in in CHFm, CHFm mercial years in m2 CHFm 2023 ff. (excl. Groun
Slide 46: Selected projects: Long-term
Selected projects Long-term Usable Total Est. Rental Est. sales Project status 2034 ff. 2027 2028 2029 2030 2031 2032 2033 Total area to be expected Value in revenue deve- investment CHFm in CHFm loped volume in in m2 CHFm St. Maurice Industrial/Logistic, New Building 25,500 50 3.3 Plan quartier 202
Slide 47: Additional financials
Additional financials HIAG
Slide 48: Operating expenses / Financial result / Taxes
Operating expenses / Financial result / Taxes Stable operating expenses Income Statement Comments In CHFm 2022 2021 Δ CHFm Δ% Operating expenses w/o Direct expenses from sales of properties of CHFm 37.1 à decreased by CHFm 1.6 Total operating income 161.9 154.3 7.6 4.9 (-4.2%) Direct expenses from s
Slide 49: Balance sheet
Balance sheet Increased total assets by 5% from CHFm 1,904 to CHFm 1,999 Balance sheet In CHFm 31.12.2022 31.12.2021 Δ CHFm Δ% Cash and cash equivalents 32.9 87.3 -54.4 -62.3 Properties for sale 30.4 32.1 -1.7 -5.4 Other current assets 23.2 16.6 6.6 39.8 Current assets 86.5 136.0 -49.6 -36.4 Investm
Slide 50: Cash flow
Cash flow Increase in operating cash flow due to higher Property income Cash flow Comments CF from operating activities of CHFm 23.6 à In CHFm 2022 2021 Δ CHFm Δ% 2020 2019 2018 increased by CHFm 3.5 (+17.3%) Cash flow from operating activities 23.6 20.1 3.5 17.3 16.4 5.1 19.8 – Higher Property inco
Slide 51: Alternative Performance Measures (1/2)
Alternative Performance Measures (1/2) Funds from Operations Funds from Operations (FFO) Comments FFO (in CHFm) 2018 to 2022 FFO is defined as the cash flow derived from regular, +74.0% FFO ongoing business activities: FFO per share 35.0 25.6 FFO of CHFm +35.0 à 20.1 15.6 increased by CHFm +14.9 (+7
Slide 52: Alternative Performance Measures (2/2)
Alternative Performance Measures (2/2) Real estate comparables based on Swiss GAAP FER figures Company specific (adjusted ) KPIs Operating profit and operating earnings per share Adjusted equity (NAV) per share in CHFm 2022 2021 Δ CHFm Δ% in CHFm 2022 2021 Δ CHFm Δ% Net income for the period 99.4 89
Slide 53: Discount rates
Discount rates Strong demand for real estate to drive discount rate reduction Discount rate development 2018 - 2022 Weighted average discount rate Highest discount rate* Weighted average discount rate* Lowest discount rate* 7.00% 6.00% 5.50% 5.40% 5.30% 4.15% 3.94% 3.73% 3.54% 3.32% 1.95% 1.95% 2.00
Slide 54: Share price performance
Share price performance Overview Development of share price performance – 31 December 2022 Share price in CHF 2022 2021 High 107.00 118.00 Low 78.00 91.40 End of period 82.00 95.00 Market capitalisation in CHFm High 1,082.80 1,194.11 Low 789.33 924.93 End of period 829.81 961.36 Number of shares Iss
Slide 55: Shareholder structure
Shareholder structure No significant change of shareholder structure Shareholder structure – 31 December 2022 Major shareholders 2022 2021 1 Anchor shareholders* 54.6% 54.4% 2 Free Float 45.4% 45.6% Shareholder structure A SFAG Holding AG 20.0% 43.8% B Grisgros Beteiligungs AG 17.7% - C BraCHe Betei
Slide 56: Company information
Company information HIAG
Slide 57: Integrated Business Model / Sites and offices
Integrated Business Model / Sites and offices At a glance Integrated business model (incl. 3 segments) HIAG sites and offices HIAG Investor presentation 2022 57
Slide 58: Governance
Governance HIAG
Slide 59: Corporate Governance
Corporate Governance Experienced board and strengthened management Board of Directors Executive Board Dr. Felix Grisard, President Balz Halter, Vice President Marco Feusi, CEO – Group CEO and member of the board – President of the Board / CEO Halter AG – Group CEO since 2020 2002 – 2010 1986 – 2009
Slide 60: Disclaimer
Disclaimer This presentation does not constitute or form part of any advertising, offer, recommendation or invitation to sell or issue, or any solicitation of any offer to purchase or subscribe for, any securities, nor shall part, or all, of this presentation or their distribution form the basis of,
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