Tag Immobilien Ag · XETR:TEG

Tag Immobilien — FY2013 Earnings Presentation

28 slides from Tag Immobilien's earnings presentation, Apr 16, 2014

  1. Slide 1: Growing Assets – Full Year Figures 2013

    Growing Assets Full Year Figures 2013

  2. Slide 2: Content

    Content 22 I. TAG Highlights FY 2013 3 CONTENT II. TAG FFO 2012 - 2014 4 III. TAG Strategy: Growth and Margins 6 IV. TAG Portfolio: Regions / Achievements / Capex - Maintenance / Top 20 Cities 8 V. TAG Portfolio: Acquisitions 2013 / 2014 / Sales 14 VI. TAG Financials: Balance sheet / Profit and loss

  3. Slide 3: TAG Highlights FY 2013

    TAG Highlights FY 2013 33  Rental income of EUR 251m (+31% /192.5m in 2012)  Achievements 2013 OVERVIEW  Rental profit of EUR 199.1m (+36% /145.2m in 2012)  Acquistion Chemnitz: 219 Residential Units / EUR 7.7m  FFO I of EUR 68.1m  Disposal of single commercial units in Hamburg, Hanover, Nurem

  4. Slide 4: TAG FFO FY 2012 - 2014

    TAG FFO FY 2012 - 2014 44 FFO FFO I (EURm) *estimate TAG Immobilien AG | Full Year Figures 2013

  5. Slide 5: TAG FFO Guidance 2014

    TAG FFO Guidance 2014 55 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. Furthermore w

  6. Slide 6: TAG's track record of growth 2009/2013

    TAG„s track record of growth 2009/2013 66 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. undevelop

  7. Slide 7: TAG's profitable growth strategy

    TAG‟s profitable growth strategy 77  Growth has been a strategic imperative for TAG in order to  achieve economies of scale Adj. EBITDA and FFO margin(1),(2) GROWTH  benefit from effects of step-fixed costs relating to administration and overhead expenses 63,2% 65,1% 66.0%  become a best in clas

  8. Slide 8: TAG Portfolio FY 2013

    TAG Portfolio FY 2013 88  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 via s

  9. Slide 9: TAG Portfolio FY 2013 – Residential by region

    TAG Portfolio FY 2013 – Residential by region 999 9 PORTFOLIO *As of 31 December 2013 according to book value; including properties for sale TAG Immobilien AG | Full Year Figures 2013

  10. Slide 10: TAG Portfolio 2013 - Operational achievements

    TAG Portfolio 2013 - Operational achievements 10 10 10 10 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 | Full Year Figures 2013

  11. Slide 11: TAG Portfolio 2013 – Operational achievements

    TAG Portfolio 2013 – Operational achievements 11 11 11 11 PORTFOLIO Rental margin pre maintenance (in%)  TAG‟s operational platform has become more efficient and more effective over the course of 2013. 91.3 91.4  Operational improvements beyond pure corporate cost 89.9 efficiencies due to growth s

  12. Slide 12: TAG Portfolio FY 2013 – Capex - Maintenance

    TAG Portfolio FY 2013 – Capex - Maintenance 12 12 45.665 Portfolio residential 19.265 PORTFOLIO in EURm 11.418 11,418 Overall investments: 26.400 6,192 19.344 6,115  Modernisation/ investments (capitalized): 19.26m 15.239 6,997 11.632 10.580  Maintenance/ repair (charged to P&L): 26.40m 8.215 7.84

  13. Slide 13: TAG Portfolio residential – Top cities

    TAG Portfolio residential – Top 20 cities 13 13 PORTFOLIO TAG Immobilien AG | Full Year Figures 2013

  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 – Thuringia / Saxony

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

  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 12/31/2012 12/31/2013 4000 3,800 3,800 4000 3,763 3,763 3600 3600 3200 3,495 1,156 3200 3,581 1,127 2800 2800 175 106 2400 2400 197 2000 2000 1600 1,961 1600 2,078 1200 1200 800 800 400 400 305 508 246 182 0 0 Assets L

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

    TAG Group financials (IFRS) 18 18 Profit & loss (in EUR m) FINANCIALS In Q4 repair and maintenance expenses EUR/sqm 3.69 (Q3 EUR/sqm 2.57) Q4 includes EUR +0.5m compensation St. Martin Straße Major items in Q4: EUR -52.0m net valuation loss out of re- classification assets for sale / transaction cos

  19. Slide 19: TAG Financial structure – Debt financing

    TAG Financial structure – Debt financing 19 19 TAG has a solid financing structure and its growing scale decrease financing costs even further FINANCIING Debt maturity profile as of 6/30/2013 Debt maturity profile as of 12/31/2013 4.11% average cost of 3.70% average cost of bank debt bank debt 8.7 y

  20. Slide 20: TAG Financial structure – NAV

    TAG Financial structure – 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 the second to the fourth quarter 2013 the dilution effect has been reduced from EUR 0.47 to EUR 0.14

  21. Slide 21: TAG Financial structure – Asset Valuation

    TAG Financial structure – Asset Valuation 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 maintenanc

  22. Slide 22: TAG Stock market data FY 2013

    TAG Stock market data FY 2013 22 22  High/Low (Jan/Dec 2013) EUR 9.65/ EUR 8.16 Shareholderstructure as of 12/31/2013  Number of shares SHAREHOLDER VALUE 131.298m  Market capitalisation 1,152,799 EUR  Stock indices MDAX/EPRA  Free Float * 100% * Deutsche Börse definition including institutional

  23. Slide 23: TAG - The way forward: Value enhancing asset management

    TAG - The way forward: 23 23 Value enhancing asset management OUTLOOK Focus on residential property segment Continuously work the existing portfolio  Dispose of commercial properties succfessfully  Increase rents – lfl rental growth 1% in Q4 2013 achieved via share deal with Apollo Global Manageme

  24. Slide 24: Appendix

    APPENDIX 24 24 Growing Assets TAG Immobilien AG | Full Year Figures 2013

  25. Slide 25: TAG Management Board

    TAG Management Board 25 25 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

  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: East Germany is catching up…

    East Germany is catching up… 27 27 …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

  28. Slide 28: TAG Contacts

    28 28 TAG Contacts Rolf Elgeti Dominique Mann TAG Immobilien AG 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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