Tag Immobilien Ag · XETR:TEG

Tag Immobilien — FY2014 Earnings Presentation

36 slides from Tag Immobilien's earnings presentation, Feb 26, 2015

  1. Slide 1: 2014 Company's Full Year Financials presentation

    2014 Company’s Full Year Financials presentation

  2. Slide 2: Content

    Content 22 I. TAG highlights 2014 3 CONTENT II. TAG financials 2014 5 III. TAG portfolio and platform 11 IV. TAG acquisitions and disposals 16 V. TAG strategy and outlook 23 VI. Appendix 26  capex and maintenance  P&L split residential/commercial  valuation  capital markets heads-up and share re

  3. Slide 3: TAG highlights 2014

    Content 33 3 I. TAG highlights 2014 CONTENT 5 II. TAG financials 2014 11 III. TAG portfolio and platform 16 IV. TAG acquisitions and disposals 22 V. TAG strategy and outlook 25 VI. Appendix: Valuation, Capex/ Maintenance, Share, Bonds, Management TAG highlights 2014 TAG Immobilien AG | Prelims 2014

  4. Slide 4: TAG highlights 2014

    TAG highlights 2014 44  Overview of financial metrics 2014  Capital recycling kicked-off in 2014  Rental income (total): EUR 257.4m (EUR 251.0m in 2013)  Sales commercial (commercial portfolio and other) HIGHLIGHTS  Net rental income (total): EUR 209.5m (EUR 199.1m in 2013)  Number of properti

  5. Slide 5: TAG financials

    Content 55 3 I. TAG highlights 2014 CONTENT 5 II. TAG financials 2014 11 III. TAG portfolio and platform 16 IV. TAG acquisitions and disposals 22 V. TAG strategy and outlook 25 VI. Appendix: Valuation, Capex/ Maintenance, Share, Bonds, Management TAG financials 2014 TAG Immobilien AG | Prelims 2014

  6. Slide 6: TAG income statement (IFRS)

    TAG income statement (IFRS) 66 (in EUR millions – preliminary figures) FY 2014 FY 2013 Q4 2014 Q3 2014  Increased rental income due to new acquisitions INCOME STATEMENT and further reduction of vacancy in existing portfolio Rental income 257.4 251.0  64.5  62.4 Expenses from property management -

  7. Slide 7: TAG FFO calculation

    TAG FFO calculation 77 (in EUR millions – preliminary figures) FY 2014 FY 2013 Q4 2014 Q3 2014 Net income 29.0 27.0 -34.5 49.3 FFO + Taxes 54.1 -3.9 34.7 10.1 FFO development compared to 2013 + Net financial result 118.0 105.7 34.9 24.5 driven by: EBIT 201.1 128.8 35.2 83.9 - Net financial result (c

  8. Slide 8: TAG balance sheet (IFRS)

    TAG balance sheet (IFRS) 88 (in EUR millions – preliminary figures) 31-Dec-2014 30-Sep-2014 31-Dec-2013 BALANCE SHEET Non-current assets 3,421.6 3,560.4 3,581.2  Change Q4 vs. Q3 refers to sales (EUR - Investment property  3,331.6  3,493.7 3,544.1 204m), acquisitions (EUR +46m) and Other financia

  9. Slide 9: TAG NAV calculation

    TAG NAV calculation 99 31-Dec- (in EUR millions – preliminary figures) 2014 30-Sep-2014 31-Dec-2013 NAV Equity (without minorities) 979.5 1,007.8 1,107.3 EPRA NAV negatively impacted by: + Deferred taxes 152.1 126.2 120.1  Impairments of receivables from sale of commercial portfolio + Fair value of

  10. Slide 10: TAG debt financing structure

    TAG debt financing structure 10 10 Debt maturity profile as of 31-Dec-2014 in EUR m Interest rates and maturities Current Average Maturity/ Average amount interest Refinancing interest rate FINANCING STRUCTURE rate in the next (refinancing 3 years in the next (in EUR millions) 3 years) 310 Bonds 435

  11. Slide 11: TAG portfolio and platform

    Content 11 11 3 I. TAG highlights 2014 CONTENT 5 II. TAG financials 2014 11 III. TAG portfolio and platform 16 IV. TAG acquisitions and disposals 22 V. TAG strategy and outlook 25 VI. Appendix: Valuation, Capex/ Maintenance, Share, Bonds, Management TAG portfolio and platform TAG Immobilien AG | Pre

  12. Slide 12: TAG portfolio in total as of 31-Dec-2014

    TAG portfolio in total as of 31-Dec-2014 12 12  Growth in recent years and disposal of PORTFOLIO / PLATFORM commercial portfolio has triggered the need for an update of geographic portfolio regions  Renewed definitions of geographic regions in accordance with decentralized management clusters and

  13. Slide 13: TAG platform efficiency

    TAG platform efficiency 13 13 TAG runs the most efficient Property and Asset Management platform in the sector, which still offers capacity for future acquisitions PORTFOLIO / PLATFORM FTE / 1,000 units  De-centralized organization  Currently, LIMs (“Leiter Immobilien-Management”/Head of Real Esta

  14. Slide 14: TAG de-centralized management structure

    TAG de-centralized management structure 14 14 Strategic PORTFOLIO / PLATFORM Portfolio Acquisitions / Central Shared Service centralized functions FM Services Management / Sales Procurement Center Marketing  Definition of portfolio, location and property management concepts and standards  Support

  15. Slide 15: TAG portfolio in total – 2014 by region

    TAG portfolio in total – 2014 by region 15 15 Region Units Area IFRS BV In- Vacancy Vacancy Net in- Re- L-f-l Mainte- Capex Comments place 2014 2013 place letting rental nance PORTFOLIO / PLATFORM yield rent rent growth EUR / EUR / y-o-y EUR / EUR / # sqm TEUR % % % sqm sqm % sqm sqm Berlin 9,702 56

  16. Slide 16: TAG acquisitions and disposals

    Content 16 16 3 I. TAG highlights 2014 CONTENT 5 II. TAG financials 2014 11 III. TAG portfolio and platform 16 IV. TAG acquisitions and disposals 22 V. TAG strategy and outlook 25 VI. Appendix: Valuation, Capex/ Maintenance, Share, Bonds, Management TAG acquisitions and disposals TAG Immobilien AG |

  17. Slide 17: TAG acquisitions 2014

    TAG acquisitions 2014 17 17 Thuringia Saxony North/East Others Total Signing Feb. 2014 Sept. 2014 Germany Aug./Nov. DISPOSALS & ACQUISITIONS Nov. 2014 2014 Units 4,000 1,500 2,300 1,100 8,900 Floor area in sqm 236,000 85,400 150,200 68,500 540,100 Net rental 5.24 5.20 5.22 --- --- Thuringia, Erfurt

  18. Slide 18: TAG disposals 2014 – residential

    TAG disposals 2014 – residential 18 18 Berlin (Marzahn) Berlin (Staaken et al.) Others Total DISPOSALS & ACQUISITIONS Nov. 2014 Dec. 2014 2014 Units 2,600 900 600 4,100 Net rental EUR/sqm/month 4.89 4.97-7.53 --- --- Net actual rent p.a. EURm 9.4 4.1 0.9 14.4 Berlin (Staaken) Vacancy 1.2% 1.8% - 5.3

  19. Slide 19: TAG disposals 2014 – commercial

    TAG disposals 2014 – commercial 19 19 Commercial portfolio Others Total DISPOSALS & ACQUISITIONS Units 21 2 23 Floor area in sqm 270,000 5,270 275,270 Net rental 7.50 5.90 --- EUR/sqm/month Commercial, Planckstraße, Hamburg Vacancy 10% 80% --- Sold real estate volume/ 294.0 1.7 295.7 selling price E

  20. Slide 20: TAG capital recycling strategy since Q4 2014

    TAG capital recycling strategy since Q4 2014 20 20 TAG constantly analyzes regional markets and its portfolio to determine the best point in time to realize highest value by targeted disposals DISPOSALS & ACQUISITIONS Sales Acquisitions Sale of residential properties  Units: 3,500  Units: 3,150 Re

  21. Slide 21: TAG asset management case study: Berlin Marzahn

    TAG asset management case study 21 21 I. Berlin Marzahn  Key take-aways of successful asset management by TAG: DISPOSALS & ACQUISITIONS  Strict receivables management  Facts and Figures:  Implementation of a significantly improved tenant structure  Adapt standard residential units to the requir

  22. Slide 22: TAG asset management case study: Salzgitter region

    TAG asset management case study 22 22 II. Salzgitter region  Key take-aways of successful Asset Management by TAG: DISPOSALS & ACQUISITIONS  Adjust residential units to the requirements of the market (for  Facts and Figures: students, singles, couples, families and elderly)  Quality of service a

  23. Slide 23: TAG strategy and outlook

    Content 23 23 3 I. TAG highlights 2014 CONTENT 5 II. TAG financials 2014 11 III. TAG portfolio and platform 16 IV. TAG acquisitions and disposals 22 V. TAG strategy and outlook 25 VI. Appendix: Valuation, Capex/ Maintenance, Share, Bonds, Management TAG strategy and outlook TAG Immobilien AG | Preli

  24. Slide 24: TAG strategy

    TAG strategy 24 24 The three pillar TAG investment case and strategy framework STRATEGY&OUTLOOK  “High Yield” investment profile  Highest FFO and dividend yield profile amongst peer group  Total return focus on distributions to shareholders rather than un-crystalized NAV growth  Anti-cyclical in

  25. Slide 25: TAG outlook

    TAG outlook 25 25 STRATEGY&OUTLOOK (in EUR) 2014 2015E FFO I per share (re-defined) 0.63 0.67 - 0.69 FFO I per share (as previously reported) 0.68 0.71 - 0.73 Dividend per share 0.50 0.55 Dividend per share (EUR) FFO I per share (EUR, re-defined) TAG Immobilien AG | Prelims 2014

  26. Slide 26: Appendix

    Content 26 26 3 I. TAG highlights 2014 CONTENT 5 II. TAG financials 2014 11 III. TAG portfolio and platform 16 IV. TAG acquisitions and disposals 22 V. TAG strategy and outlook 25 VI. Appendix: Valuation, Capex/ Maintenance, Share, Bonds, Management Appendix TAG Immobilien AG | Prelims 2014

  27. Slide 27: TAG capex and maintenance

    TAG capex and maintenance 27 27 APPENDIX 2014 2013 in EUR millions Q1 Q2 Q3 Q4 Total Q1 Q2 Q3 Q4 Total Maintenance Residential 5.75 5.89 6.05 6.23 23.92 6.68 5.64 6.69 7.39 26.40 Commercial 0.59 0.53 0.06 0.15 1.33 0.54 0.13 0.29 0.54 1.50 Capex Residential 7.73 6.55 6.98 9.83 31.09 1.55 5.98 3.88 7

  28. Slide 28: TAG P&L split residential/commercial

    TAG P&L split residential/commercial 28 28 Residentia Commercial Continuing Discontinued Total Residential Commercial Continuing Discontinued Total l 2014 properties operations operation 2014 Q4 2014 properties operations operation Q4 2014 APPENDIX and 2014 (sold and Q4 2014 (sold serviced commercia

  29. Slide 29: TAG portfolio valuation 30-Sept/31-Dec-2014

    TAG portfolio valuation 30-Sept/ 31-Dec-2014 29 29 Region 2014 Fair 2014 Fair 2014 Implied Revaluation Capex Net 2013 Fair 2013 Fair 2013 Implied Value (IFRS) Value / sqm multiple gain / loss acquisitions Value (IFRS) Value / sqm multiple (in EUR millions) and other APPENDIX movements Berlin 464.93

  30. Slide 30: TAG annual valuation by CBRE 30-Sept-2014

    TAG annual valuation by CBRE 30-Sept-2014 30 30  Details on asset vs. share deals APPENDIX  For valuation purposes TAG divides its regions in two Assumptions / drivers 9M 2014 9M 2013 markets: assets deal markets and share deal markets, Cap rate (%) 5.56 5.52 determined on public available informa

  31. Slide 31: TAG capital markets heads-up

    TAG capital markets heads-up 31 31  Broker recommendations update Institution Analyst Recommen- Target dation price in Date EUR  High/Low (Jan/Dec 2014) APPENDIX EUR 9.71 /EUR 8.52 Commerzbank Thomas Hold 12.5 26-Feb-15 Rothaeusler  Number of shares (issued) 131.7m Baader Bank André Remke Hold 12

  32. Slide 32: TAG share repurchase programme in Q4 2014

    TAG share repurchase programme in Q4 2014 32 32  Rationale  Details APPENDIX  Successful disposals with high cash inflows  Tender period between 15-Sep-2014 and 14-Oct-2014 at a range of EUR 8.35 to EUR 9.35  Excess cash on balance sheet given currently limited per share opportunities for accre

  33. Slide 33: TAG bonds and convertibles

    TAG bonds and convertibles 33 33  Two corporate bonds outstanding (issued in 2013 and 2014) APPENDIX  Two convertibles remaining after conversions in 2012 and (partly) buy back of convertibles in 2013, both convertibles trade in the money Bonds Convertibles TAG Immobilien AG | Prelims 2014

  34. Slide 34: TAG Management Board

    TAG Management Board 34 34 APPENDIX Claudia Hoyer Martin Thiel Dr. Harboe Vaagt COO CFO CLO  Key responsibilities: Property and  Key responsibilities: Controlling,  Key responsibilities: Legal, Human Asset Management, Acquisitions and Accounting, Financing, Taxes, Resources and Transactions Dispo

  35. Slide 35: TAG Notes

    TAG Notes 35 35 APPENDIX TAG Immobilien AG | Prelims 2014

  36. Slide 36: TAG Contacts

    36 36 TAG Contacts Martin Thiel Dominique Mann TAG Immobilien AG CFO Head of Investor & Public Relations Steckelhörn 5 Fon: +49 40 380 32-222 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

TAG Immobilien — FY2014 Earnings Presentation on 6ix