Tag Immobilien Ag · XETR:TEG
Tag Immobilien — FY2015 Earnings Presentation
36 slides from Tag Immobilien's earnings presentation, Feb 24, 2016
Slide 1: Conference Call presentation FY 2015 Figures
Conference Call presentation FY 2015 Figures
Slide 2: Content
Content 22 CONTENT I. TAG highlights Q4 and FY 2015 3 II. TAG financials Q4 and FY 2015 5 III. TAG portfolio 11 IV. TAG return on capex 16 V. TAG acquisitions and disposals 21 VI. TAG outlook 25 VII. Appendix 27 Strategy Valuation Capex and maintenance Capital markets heads-up Bonds and co
Slide 3: TAG highlights Q4 and FY 2015
3 TAG highlights Q4 and FY 2015
Slide 4: TAG highlights Q4 and FY 2015
TAG highlights Q4 and FY 2015 44 FY 2015 FY 2014 Q4 2015 Q3 2015 Vacancy (residential units) 7.5% 8.1% / 9.0%* / / HIGHLIGHTS Strong Net in-place rents (EUR/sqm) 5.04 5.00 / 4.97* / / operational L-f-L rental growth Y-o-Y 1.6% 1.2% / / performance in Q4 2015 L-f-L rental growth Y-o-Y incl. V
Slide 5: TAG financials Q4 and FY 2015
5 TAG financials Q4 and FY 2015
Slide 6: TAG income statement (IFRS)
TAG income statement (IFRS) 66 (in EUR millions) FY 2015 FY 2014 Q4 2015 Q3 2015 Increased rental income due to closing of INCOME STATEMENT Rental income 259.3 257.4 65.9 64.5 acquisitions (1,176 residential units) end of August 2015 (EUR 3.9m rent p. a.) and through significant Expenses from prop
Slide 7: TAG FFO calculation
TAG FFO calculation 77 (in EUR millions) FY 2015 FY 2014 Q4 2015 Q3 2015 Net income 147.3 29.0 32.1 67.0 FFO + Taxes 27.8 54.1 -0.8 18.5 + Net financial result 96.0 118.0 21.6 25.9 EBIT 271.1 201.1 52.9 111.4 - Net financial result (cash, after one off’s) -84.0 -92.9 -20.2 -20.1 - Cash taxes -0.4 0.
Slide 8: TAG balance sheet (IFRS)
TAG balance sheet (IFRS) 88 (in EUR millions) 31 Dec-2015 30 Sep-2015 31 Dec-2014 BALANCE SHEET (historical) Non-current assets 3,605.4 3,527.5 3,421.6 Change 31 Dec-2015 vs. 31 Dec-2014 includes Investment property 3,531.1 3,441.7 3,331.6 annual revaluation gain of EUR 62.0m and EUR 36.9m valuati
Slide 9: TAG NAV calculation
TAG NAV calculation 99 31 Dec- 31 Dec- 30 Sep- 2014 NAV per share development 31 Dec-2015 NAV (in EUR millions) 2015 2015 (historical) compared to 31 Dec-2014: Equity (without minorities) 1,085.1 1,054.9 979.5 + Deferred taxes on investment properties and Approx. EUR 1.24 per share increase due to
Slide 10: TAG debt financing structure
TAG debt financing structure 10 10 Debt maturity profile as of 31 Dec-2015 in EUR millions Interest rates and maturities (1) Bonds FINANCING STRUCTURE EUR 435m (310m) Bank loans EUR 1,844m (734m) Ø interest rate: 4.52% (4.83%) Ø interest rate: 3.11% (3.15%) Total: 310 EUR 2,353m Ø 3.45% Convertibles
Slide 11: TAG portfolio
11 TAG portfolio
Slide 12: TAG portfolio in total as of Dec-2015
TAG portfolio in total as of 31 Dec-2015 12 12 Geographic regions in accordance with decentralized management PORTFOLIO / PLATFORM clusters and strategic relevance Recent portfolio acquisition in Saxony in Dec-2015 (972 units) not included as of 31 Dec-2015 due to closing end of Jan-2016 Portfol
Slide 13: TAG portfolio in total – Q4 2015 by region
TAG portfolio in total – Q4 2015 by region 13 13 Region Units Rentable IFRS BV In- Vacancy Vacancy Actual Re- L-f-l L-f-l rental Mainte- Capex Comments # area TEUR place Q4 Q4 net letting rental growth nance EUR/sqm sqm yield 2015 2014 cold rent growth y-o-y incl. EUR/ % % % rent EUR/ y-o-y vacancy
Slide 14: TAG vacancy reduction track record
TAG vacancy reduction track record 14 14 Residential units 2013-2015 Realisation of development potential from newly acquired portfolios PORTFOLIO / PLATFORM Proof of successful asset and property management over the last three years Increases in vacancy due to new acquisitions with higher v
Slide 15: TAG rental growth and vacancy development 2015
TAG rental growth and vacancy development 2015 15 15 PORTFOLIO / PLATFORM Rental growth and vacancy reduction are the two main drivers to further improve the rental income profile of TAG Like-for-like Like-for-like rental growth rental growth TAG invests in regions with rather stable rent withou
Slide 16: TAG return on capex
16 TAG return on capex
Slide 17: TAG return on capex
TAG return on capex 17 17 Modernization is key element of TAG’s strategy Methodology RETURN ON CAPEX TAG spends approx. €40m p.a. on capex measures; these 1 Incremental revenues can be broken down into = Return on investment Total investment Modernization during re-letting (tenant turnover) 2 In
Slide 18: TAG return on capex - overview
TAG return on capex - overview 18 18 RETURN ON CAPEX TAG Total capex FY 2015: EUR 40.1m Single unit program Property based program Share of total capex: c.65% Share of total capex: c.35% Return on total investment: c.30%-35% Return on total investment: c.8%-12% Return on equity invested: c.30%-35% R
Slide 19: Modernization of vacant flats (longer term vacancy)
Modernization of vacant flats (longer term vacancy) 19 19 Case Study – Freiberg „Am Mühlteich/ Maxim Gorki“ (acquired Sep-2014) Pre modernization Measures Post modernization RETURN ON CAPEX Units: 128 Vacancy at acquisition date: 10.5% Vacancy today: 2.3% Interior refurbishment Completed i
Slide 20: Modernization large modernization measures
Modernization large modernization measures 20 20 Case Study – Erfurt „Am Ringsee“ (acquired April-2012) Pre modernization Measures Post modernization RETURN ON CAPEX Units: 20 Vacancy at acquisition date: 98% Vacancy today: 0% Interior and exterior refurbishment for the duration of 1 year
Slide 21: TAG acquisitions and disposals
21 TAG acquisitions and disposals
Slide 22: TAG acquisitions 2015
TAG acquisitions 2015 22 22 Signing Saxony/Saxony- NRW/ Anhalt Brandenburg Rügen Brandenburg Lower Saxony Saxony Saxony-Anhalt Total May-2015 Jun-2015 Jul-2015 Nov-2015 Nov-2015 Dec-2015 Dec-2015 FY2015 DISPOSALS / ACQUISITIONS Units 860 134 180 1,776 1,304 972 96 5,322 Rentable area in 49,900 11,40
Slide 23: TAG disposals 2015
TAG disposals 2015 23 23 Signing Berlin (Marzahn/ Stuttgart Hamburg Privatisation and Total DISPOSALS / ACQUISITIONS Hellersdorf) (Commercial) (Wedel) ongoing disposals FY 2015 Apr-2015 Oct-2015 Dec-2015 2015 Units 972 182 100 679 1,933 Actual net cold rent 5.26 13.64 6.60 --- EUR/sqm/month Berlin A
Slide 24: TAG capital recycling strategy in 2015
TAG capital recycling strategy in 2015 24 24 TAG constantly analyzes regional markets and its portfolio to determine the best point in time to realize highest value by targeted disposals DISPOSALS / ACQUISITIONS Portfolio Sales Acquisitions Portfolio sales Units: 1,254 Units: 5,322 Re-investment
Slide 25: TAG outlook
25 TAG outlook
Slide 26: TAG outlook
TAG outlook 26 26 FFO New guidance in Nov-2015 at EUR 74 – EUR 75m (after EUR 79.5m – EUR 81.8m in Nov- OUTLOOK 2014). Strong operational development in Q4 2015 leads to EUR 76.3m in FY 2015 New FFO/share EUR 0.62 (weighted average NOSH of 123.1m shares for FY 2015) vs. EUR 0.62 in Guidance Nov-20
Slide 27: Appendix
27 APPENDIX
Slide 28: TAG strategy
TAG strategy 28 28 The three pillar TAG investment case and strategy framework APPENDIX “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 investment
Slide 29: TAG portfolio valuation
TAG portfolio valuation 29 29 Region 2015 2015 2015 Revaluation Capex Net 2014 2014 2014 Fair Value Fair Value Implied gain / loss acquisitions Fair Value Fair Value Implied (in EUR millions) (IFRS) (EUR/sqm) multiple and other (IFRS) (EUR/sqm) multiple APPENDIX movements Berlin 441.1 884.5 14.95 19
Slide 30: TAG annual valuation by CBRE
TAG annual valuation by CBRE 30 30 Comments on valuation results 30 30 30 APPENDIX Sep- Sep- Sep- Yield compression in “A-Locations” like Berlin and Stuttgart Assumptions / drivers 2015 2014 2013 (Stuttgart included in “Other”) as well as in some cities of Cap rate (%) 5.59 5.56 5.52 the Rhine-R
Slide 31: TAG capex and maintenance
TAG capex and maintenance 31 31 APPENDIX 2014 2015 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 6.45 7.09 5.38 5.77 24.69 Commercial 0.59 0.53 0.06 0.15 1.33 0.11 0.00 0.22 0.19 0.52 Capex Residential 7.73 6.55 6.98 9.83 31.09 6.80 9.88 13.56
Slide 32: TAG capital markets heads-up
TAG capital markets heads-up 32 32 Institution Analyst Recommen- Target price Date dation in EUR High/Low (Q1-Q4 2015) EUR 13.05/EUR 9.56 Oddo Seydler Manuel Martin Buy 12.50 24-Feb-16 APPENDIX Number of shares (issued) 136.6m Bankhaus Lampe Georg Kanders Buy 13.00 19-Feb-16 Baader Bank André Re
Slide 33: TAG bonds and convertibles
TAG bonds and convertibles TAG share price EUR 11.50 as of 31 Dec-2015 33 33 Two corporate bonds outstanding (issued in 2013 and 2014) One convertible remaining after conversions/clean up call in 2012 and 2015 APPENDIX and (partly) buy back of convertibles in 2013, convertible trades in the mone
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
Slide 35: TAG de-centralized management structure
TAG de-centralized management structure 35 35 Strategic Portfolio Acquisitions / Central Shared Service centralized functions APPENDIX FM Services Management / Sales Procurement Center Marketing Definition of portfolio, location and property management concepts and standards Support of LIMs on a
Slide 36: TAG Contacts
36 36 TAG Contacts Martin Thiel Dominique Mann TAG Immobilien AG CFO Head of Investor & Public Relations Steckelhörn 5 Phone: +49 40 380 32-222 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 ir@tag-ag.com ir@tag-ag.com Fax: +49 40 380 32-3