Tag Immobilien Ag · XETR:TEG

Tag Immobilien — FY 2022 Earnings Presentation

43 slides from Tag Immobilien's earnings presentation, Mar 16, 2023

  1. Slide 1: Conference call presentation FY 2022

    Conference call presentation FY 2022

  2. Slide 2: Content

    Content I. TAG highlights FY 2022 3 II. TAG financials FY 2022 8 III. TAG German portfolio FY 2022 13 IV. TAG Poland portfolio FY 2022 17 V. TAG guidance FY 2023 23 VI. Appendix 26  Income statement details Germany and Poland, balance sheet, EPRA NAV calculations  Overview and strategy, German por

  3. Slide 3: TAG highlights FY 2022

    3 TAG highlights FY 2022 TAG Immobilien AG | March 2023 | 3

  4. Slide 4: TAG FY 2022 operational highlights

    TAG FY 2022 operational highlights Strong operational performance in FY 2022 paired with self-funding Polish development business 1 Strong operational development in  Above expectation total rental growth in German portfolio of 2.7% in 2022 to EUR 340.6m annualised net actual rent German portfolio

  5. Slide 5: TAG highlights: financing and deleveraging measures in FY 2022

    TAG highlights: financing and deleveraging measures in FY 2022 All major maturities in FY 2023 addressed (repaid or cash already at hand); ROBYG acquisition bridge (maturing in Jan-2024) reduced to EUR 250m Overview of measures Financial impact In July 2022, TAG Immobilien completed a rights issue t

  6. Slide 6: TAG highlights FY 2022: financial performance and German Portfolio

    TAG highlights FY 2022: financial performance and German Portfolio 66 Y-o-Y trajctory FY 2022 FY 2021 Q4 2022 Q3 2022  FFO I (EURm) 189.4 182.0 44.1 49.1  FFO I (EUR/share) 1.19 1.24 0.25 0.29  FFO II (EURm) 247.3 188.8 91.5 55.0 Financial performance  FFO II (EUR/share) 1.56 1.29 0.52 0.33 31 D

  7. Slide 7: TAG highlights FY 2022: Poland

    TAG highlights FY 2022: Poland 77 Y-o-Y trajectory FY 2022* FY 2021 Q4 2022 Q3 2022 Revenues from sale of properties (EURm)* 337.6 63.4 239.2 32.5 Rental revenues (EURm)* 2.7 0.5 0.8 0.7 Operational performance Result operations Poland 59.3 6.7 47.7 6.3 Poland Units handed over ** 3,510 575 2,510 40

  8. Slide 8: TAG financials FY 2022

    8 TAG financials FY 2022 TAG Immobilien AG | March 2023 | 8

  9. Slide 9: TAG income statement

    TAG income statement* (in EURm) FY 2022 FY 2021 Q4 2022 Q3 2022 Increase in net actual rent Y-o-Y by EUR 6.8m due to good l-f-l development in Germany (2.7% Net actual rent** 1 339.9 333.1 85.8 85.0 1 including vacancy reduction). Growing rental business Poland contributes additional EUR 2.7m. Q-o-Q

  10. Slide 10: TAG EBITDA, FFO and AFFO calculation

    TAG EBITDA, FFO and AFFO calculation Improved EBITDA adjusted (Germany) Y-o-Y by EUR 7.4m mainly as a net (in EURm) FY 2022 FY 2021 Q4 2022 Q3 2022 Consolidated net profit 117.3 585.6 -217.6 33.1 effect of higher net rental income and lower personnel expenses. Q-o-Q - Net income Poland -43.0 -17.9 -

  11. Slide 11: TAG EPRA NTA calculation

    TAG EPRA NTA calculation EPRA Net Tangible Assets EPRA NTA bridge in EUR/share (in EURm) 31 Dec-2022 31 Dec-2021 1.67 Equity (without minorities) 3,198.5 3,039.7 0.93 0.24 + Deferred taxes on investment properties and financial 638.6 653.8 3.06 derivatives 1.10 +/- Fair value of financial derivative

  12. Slide 12: TAG financing structure

    TAG financing structure Debt structure as of 31 Dec-2022 Key financial KPIs as of 31 Dec-2022 Debt volume Ø interest rate % fixed rates 4% Ø Maturity total financial debt 5.0 years 7% Ø Maturity bank loans 6.8 years EUR 2,282m 2.1% 97% 12% Ø Interest rate total financial debt 2.1% EUR 250m 1.5% 100%

  13. Slide 13: TAG German portfolio FY 2022

    13 TAG German portfolio FY 2022 TAG Immobilien AG | March 2023 | 13

  14. Slide 14: TAG German portfolio rental growth and capex allocation

    TAG German portfolio rental growth and capex allocation Rental growth achieved with moderate capex investments due to strong underlying fundamentals Rental growth achieved with moderate investments Maintenance & capex development (in EUR/sqm/year) 24.6 21.6 20.9 17.2  TAG creates attractive rental

  15. Slide 15: TAG German portfolio vacancy reduction residential units

    TAG German portfolio vacancy reduction residential units 15 15 Strong track record of vacancy reduction Acquisitions Acquisiions +0.1% +0.8% 5.9% 5.8% Acquisitions 5.7% 5.7% 5.4% 5.5% +0.1 5.3% 5.2% 5.1% 4.9% 4.8% 4.8% 4.6% 4.5% 4.4% Vacancy rate Jan Mar Jun Sep Dec Jan Mar Jun Sep Dec Jan Mar Jun S

  16. Slide 16: TAG portfolio valuation overview Germany

    TAG portfolio valuation overview Germany Portfolio valuation result Development of gross yield H2 2022 vs. H1 2021 H2 2022 H1 2022 6.1% 6.5% 5.9% 6.1% 5.7% 6.3% in EUR m -353.8* 256.5** 5.5% 5.4% 5.9% 5.7% 5.3% 5.1% 5.5% 5.4% 5.3% semi-annual valuation uplift (w/o capex) -5.5% 4.0% 5.1%  thereof fr

  17. Slide 17: TAG Poland portfolio FY 2022

    17 TAG Poland portfolio FY 2022 TAG Immobilien AG | March 2023 | 17

  18. Slide 18: TAG Poland portfolio overview

    TAG Poland portfolio overview Addition of ROBYG – the leading player in Polish residential market enhances TAG’s presence in Poland Strategy Key portfolio metrics 31 Dec-2022  Building a portfolio of residential properties via own project developments in A cities only BUILD TO HOLD Total  Focus on

  19. Slide 19: TAG Poland portfolio historical performance trajectory

    TAG Poland portfolio historical performance trajectory Strategic focus on develop to sell projects drives uptick in disposal volumes, which allows to capitalize on rising sales prices Units sold (#) Disposal price / Construction costs (in EUR / sqm) 19 22 15 7 35 58 33 239 198 192 131 54 339 538 401

  20. Slide 20: TAG Rental portfolio Poland

    TAG Rental portfolio Poland 20 20 Strong rental results in 2022; net actual rent for units new in operation c. 30% higher than planned about one year ago Re-letting Rentable Rented IFRS BV Net actual rent l-f-l rental Units In-place Vacancy Vacancy rent Region area area EURm EUR/ growth # yield Dec-

  21. Slide 21: TAG Rental portfolio Poland: completion of rental units

    TAG Rental portfolio Poland 21 21 Completion of rental units over time c. 3,350 c. 2,800 +550 c. 2,300 c. 2,300 +500 +1,150 1,153 Dec-2022 Jun-2023e Dec-2023e Jun-2024e Dec-2024e TAG Immobilien AG | March 2023 | 21

  22. Slide 22: Overview of Polish residential rental market

    Overview of Polish residential rental market Strong increase in rent prices throughout major Polish cities Average rental level for new stock (EUR / sqm / month) +34% (as of December 2022) 20 18.66  Throughout 2022, there was a high demand for apartments for rent. A sharp increase in +27% 15.15 +24

  23. Slide 23: TAG guidance FY 2023

    TAG guidance FY 2023 TAG Immobilien AG | March 2023 | 23

  24. Slide 24: TAG FFO and dividend guidance FY 2023 (unchanged)

    TAG FFO and dividend guidance FY 2023 (unchanged) FFO I -9% FFO I/s* -19% (EUR) 170-174m 0.98 vs. 2022 (EUR) vs. 2022 FFO II -2% FFO II/s* -12% 240-246m 1.38 (EUR) vs. 2022 (EUR) vs. 2022 depending on market conditions and Dividend completions of refinancings * based on 175,441,591 average NOSH (ous

  25. Slide 25: TAG outlook

    TAG outlook High visibility of stabilized FFO I development for 2023-2025, future financing cost increases mitigated by increasing contribution from Poland portfolio (in EUR m) c. 9% one-time drop in FFO I from 2022 to 2023 stabilized FFO I level from ~190 c.8 (c.4) 2024 onwards (c.7) (c.5) ~172 1 (

  26. Slide 26: Appendix

    26 APPENDIX TAG Immobilien AG | March 2023 | 26

  27. Slide 27: TAG income statement details Germany and Poland

    TAG income statement details Germany and Poland Germany Poland Total Germany Poland Total Germany Poland Total (in EURm) APPENDIX Q4 2022 Q4 2022 Q4 2022 FY 2022 FY 2022 FY 2022 FY 2021 FY 2021 FY 2021 Net actual rent* 85.0 0.8 85.8 337.2 2.7 339.9 332.5 0.5 333.1 Expenses from property management*

  28. Slide 28: TAG balance sheet

    TAG balance sheet (in EURm) 31 Dec-2022 31 Dec-2021 Positive change in book value of investment properties by EUR 29.5 mainly results from the first time consolidation of ROBYG (EUR 101.9m), investments on Vantage level (EUR 88.4m), the Non-current assets 6,936.1 6,659.8 1 purchase of smaller portfo

  29. Slide 29: TAG EPRA NAV calculations

    TAG EPRA NAV calculations EPRA NRV EPRA NTA EPRA NDV APPENDIX Net reinstatement value Net tangible assets Net disposal value (in EURm) 31 Dec-2022 31 Dec-2022 31 Dec-2022 Equity (before minorities) 3,198.5 3,198.5 3,198.5 Difference between fair value and book value for properties valued at cost 74.

  30. Slide 30: TAG overview and strategy

    TAG overview and strategy Leading German affordable housing player and major Polish development business Strategy for German portfolio  TAG is a specialist for affordable housing in Eastern and Northern Germany and among the largest owners of residential properties in Eastern Germany APPENDIX  Ful

  31. Slide 31: TAG German portfolio details by region

    TAG German portfolio details by region Region Units Rentable IFRS BV Gross Vacancy Vacancy Net actual Re-letting l-f-l rental l-f-l rental growth Mainte- Capex # area EURm yield Dec- Dec- rent rent growth Y-o-Y incl. nance EUR/sqm sqm Dec- 2022 2021* EUR/ EUR/ Y-o-Y vacancy EUR/sqm APPENDIX 2022 sqm

  32. Slide 32: TAG German portfolio vacancy reduction and rental growth

    TAG German portfolio vacancy reduction and rental growth Vacancy development FY 2022* l-f-l rental growth (Y-o-Y) FY 2022 APPENDIX Gera 3.9% Gera from 6.5% to 3.9% -2.6% 1.1% 3.8% Leipzig from 9.4% to 7.7% -1.7% Leipzig 1.9% Salzgitter from 6.4% to 5.3% -1.1% Berlin 3.4% 2.4% Total residential units

  33. Slide 33: TAG German portfolio valuation details

    TAG German portfolio valuation details APPENDIX Dec-2022 Dec-2022 Share of operational Dec-2021 Dec-2021 Dec-2021 Region Dec-2022 YTD 2022 Share of yield Fair value Implied performance/ other Fair value Fair value Implied (in EURm) Fair value (IFRS) Valuation result compression (EUR/sqm) multiple ma

  34. Slide 34: TAG services business – FFO contribution 2022

    TAG services business – FFO contribution 2022 c. 5% (EUR 10.1m) of FFO generated from services business in 2022 Quality improvement FFO generation APPENDIX FFO FFO Facility Craftsmen Energy Multimedia Condominium 1) 1) Others services Total rental management services services services management (in

  35. Slide 35: TAG return on capex German portfolio 2022

    TAG return on capex German portfolio 2022 Total capex* APPENDIX (EUR 86.6m) Equity (EUR 37.7m) Equity + Debt (EUR 48.9m) Modernisation of flats Large modernisation measures  Share of total capex: c.43%  Share of total capex: c.57%  Return on equity invested: 20%-25%  Return on total investment:

  36. Slide 36: TAG LTV calculation

    TAG LTV calculation (in EURm) 31 Dec-2022 31 Dec-2021 APPENDIX Non-current and current liabilities to banks 2,522.0 2,066.5 Non-current and current liabilities from corporate bonds and other loans 798.6 546.3 Non-current and current liabilities from convertible bonds 460.6 457.8 Cash and cash equiva

  37. Slide 37: TAG net financial result calculation

    TAG net financial result calculation (in EURm) FY 2022 FY 2021 Q4 2022 Q3 2022 APPENDIX + Interest income 3.0 4.3 -13.0 3.0 - Interest expenses --54.0 -50.7 -15.1 -15.7 + Other financial result 18.4 3.1 18.0 0.1 = Net financial result -32.6 -43.3 -10.1 -12.7 + Financial result from convertible/corpo

  38. Slide 38: TAG cost of debt and LTV

    TAG cost of debt and LTV Cost of debt Ø in % LTV in % APPENDIX 2.1% 47.3% 44.8% 45.1% 1.9% 43.2% 46.7% 1.7% 1.5% 1.4% 31 Dec-2018 31 Dec-2019 31 Dec-2020 31 Dec-2021 31 Dec-2022 2018 2019 2020 2021 2022 TAG Immobilien AG | March 2023 | 38

  39. Slide 39: TAG other financing metrics

    TAG other financing metrics ICR Net financial debt/ EBITDA adjusted Net financial debt in EUR/ sqm APPENDIX 12.7x 586 7.4x 11.6x 479 504 11.2x 11.3x 449 460 5.2x 5.6x 10.9x 4.2x 3.8x 2018 2019 2020 2021 2022* 2018 2019 2020 2021 2022* 2018 2019 2020 2021 2022* * 7.4x reflects the total adjusted EBIT

  40. Slide 40: TAG financial covenants overview as of Dec-2022

    TAG financial covenants overview as of 31 Dec-2022 Covenants leave extensive flexibility for further refinancings Instrument Volume Comments APPENDIX • Typically ICR/ DSCR or LTV covenants with material headroom Bank loans c. EUR 2,300m • “Soft covenants”, i.e. breach does not lead to an termination

  41. Slide 41: TAG ESG ratings

    TAG ESG ratings TAG ranks among the top ratings in the real estate sector ESG rating and award improvements TAG’s ESG disclosure improvement  Since 2020 we have placed particular emphasis on improving our ESG performance and reporting in order to better meet the expectations of Sustainalytics and M

  42. Slide 42: TAG share data

    TAG share data Shareholder structure as of 31 Dec-2022 Share information as of 31 Dec-2022 9.9% MFS (Massachusetts Financial Services Company), USA Market cap EUR 1,062m APPENDIX 9.9% NOSH issued 175.5m 4.9% BayernInvest Kapitalverwaltungsgesellschaft mbH, GER 4.9% NOSH outstanding 175.4m 4.8% 4.8%

  43. Slide 43: TAG contacts

    TAG contacts Martin Thiel Dominique Mann TAG Immobilien AG CFO Head of Investor & Public Relations Steckelhörn 5 Phone: +49 40 380 32-305 Phone: +49 40 380 32-305 20457 Hamburg Fax: +49 40 380 32-388 Fax: +49 40 380 32-388 Phone: +49 40 380 32-0 Fax: +49 40 380 32-388 ir@tag-ag.com ir@tag-ag.com www

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