Tag Immobilien Ag · XETR:TEG
Tag Immobilien — Q1 2018 Earnings Presentation
31 slides from Tag Immobilien's earnings presentation, April 2018
Slide 1: Conference call presentation Q1 2018
Conference call presentation Q1 2018 2018
Slide 2: Content
Content 22 I. TAG highlights Q1 2018 3 II. TAG financials Q1 2018 5 III. TAG portfolio Q1 2018 12 IV. TAG outlook FY 2018 16 V. Appendix 19 Portfolio details, vacancy reduction and rental growth by region Portfolio valuation EPRA earnings LTV calculation Maintenance and capex Shareholder
Slide 3: TAG highlights Q1 2018
3 TAG TAG acquisitions highlights Q1 2016 2018
Slide 4: TAG highlights Q1 2018
TAG highlights Q1 2018 44 Q1 2018 Q4 2017 FY 2017 Vacancy (residential units) 5.6% 4.8%/5.3%* 4.8% Operational L-f-L rental growth Y-o-Y 2.0% 2.0% 2.0% performance L-f-L rental growth Y-o-Y incl. vacancy reduction 2.6% 3.1% 3.1% FFO I (EUR m) 35.1 34.1 127.4 FFO I (EUR/share) 0.24 0.23 0.8
Slide 5: TAG financials Q1 2018
5 TAG TAG acquisitions financials Q1 2016 2018
Slide 6: TAG income statement (IFRS)
TAG income statement (IFRS) 66 Q1 2018 Q4 2017 FY 2017 1 Increase in net rent of EUR 0.6m q-o-q driven by total l- (in EUR millions) f-l rental growth and net effect from portfolio 1 transactions. Net rent* 75.6 75.0 293.0 Expenses from property 2 Net rental income increased by EUR 0.7m q-o-q. -15.8
Slide 7: TAG EBITDA, FFO and AFFO calculation
TAG EBITDA, FFO and AFFO calculation 77 (in EUR millions) Q1 2018 Q4 2017 FY 2017 Net income 26.7 220.0 313.7 + Income tax 7.1 58.7 82.8 + Net financial result 15.6 14.6 82.4 EBIT 49.4 293.3 478.9 + Adjustments 1 Improved EBITDA of EUR 1.3m q-o-q mainly as a result of higher net rental income (+EUR
Slide 8: TAG balance sheet (IFRS)
TAG balance sheet (IFRS) 88 (in EUR millions) 31 Mar-2018 31 Dec-2017 Non-current assets 4,154.7 4,243.8 Investment property 4,076.9 4,166.0 Deferred tax assets 45.1 45.4 Other non-current assets 32.7 32.4 Current assets 366.2 339.2 Real estate inventory 48.7 48.1 Cash and cash equivalents 1 284.8 2
Slide 9: TAG EPRA NAV calculation
TAG EPRA NAV calculation 99 Higher EPRA NAV mainly driven by net income in (in EUR millions) 31 Mar-2018 31 Dec-2017 Q1 2018. Equity (without minorities) 1,650.9 1,625.9 Next portfolio valuations at 30 Jun-2018 and 31 Dec-2018 + Deferred taxes on investment properties and 366.0 362.3 financial d
Slide 10: TAG cost of debt and LTV
TAG cost of debt and LTV 10 10 Cost of debt Ø Continuous reduction of average cost of debt from FY 2015 onwards. Average cost of debt as of 31 Mar-2018 3.45 3.15 excluding already refinanced corporate bond due 2.34 2.35 Aug-2018 (effective coupon 4.83%) on a pro- forma basis down to 2.14%. Sal
Slide 11: TAG debt financing structure
TAG debt financing structure 11 11 Debt maturity profile as of 31 Mar-2018 Interest rates Corporate bonds EUR 316m (13%) Ø interest rate: Bank loans 4.41% EUR 1,898m (77%) 100% fixed rates Total Ø interest rate: financial debt Convertible bonds 2.25% EUR 2,476m EUR 262m (10%) 99% fixed rates Ø 2
Slide 12: TAG portfolio Q1 2018
12 TAGTAG acquisitions portfolio Q1 2016 2018
Slide 13: TAG portfolio in total as of 31 Mar-2018
TAG portfolio in total as of 31 Mar-2018 13 13 TAG is a leader in affordable housing in Northern and Eastern Germany. The portfolio is structured in ten defined regions in and around large and mid-sized cities. The management of these regions is conducted in a decentralized fashion. TAG’s lo
Slide 14: TAG strong vacancy reduction
TAG strong vacancy reduction 14 14 TAG exhibits strong local presence in its core regions which allows for excellent market knowledge and efficient operation of properties. Levering on its strong local network TAG explicitly aims to acquire smaller and / or geographically diversified portfolios
Slide 15: TAG attractive and efficient rental growth
TAG attractive and efficient rental growth 15 15 TAG creates attractive rental growth from regular rent increases and tenant turnover (“basis l-f-l rental growth”) and Rental growth from vacancy reduction (leading to “total l-f-l rental growth”). achieved with Targeted and efficient capex st
Slide 16: TAG outlook FY 2018
16 TAG TAG acquisitions outlook 2016 FY 2018
Slide 17: TAG guidance FY 2018
TAG guidance FY 2018 17 17 Guidance FFO EUR 135m-137m (7% increase Y-o-Y) FY 2018 (unchanged, to be reviewed FFO/s EUR 0.93 (7% increase Y-o-Y) post Q2 2018) Dividend/s EUR 0.70 (8% increase Y-o-Y, equals 75% of FFO) Senftenberg FFO in EURm FFO per share in EUR Dividend per share in EUR c.136.
Slide 18: TAG upcoming events
TAG upcoming events 18 18 Dividend payment of EUR 0.65/s Elections to the supervisory board: with the exception of Dr. Hans-Jürgen Ahlbrecht, all current shareholder representatives on the supervisory board will be nominated for re-election, Prof. Dr. Kristin Wellner as new representative recomm
Slide 19: Appendix
19 19 APPENDIX APPENDIX TAG Immobilien AG | November 2017
Slide 20: TAG portfolio details by region
TAG portfolio details by region 20 20 Region Units Rentable IFRS BV In- Vacancy Vacancy Current Re- L-f-l rental L-f-l rental Mainte- Capex # area EURm place Mar- Dec- net rent letting growth growth nance EUR/sqm sqm Mar- yield 2018 2017 EUR/ rent Y-o-Y Y-o-Y incl. EUR/sqm APPENDIX 2018 sqm EUR/ vac
Slide 21: TAG vacancy reduction and rental growth
TAG vacancy reduction and rental growth 21 21 Vacancy development per region L-f-l rental growth per region (Y-o-Y) Q1 2018 Q1 2018 APPENDIX Basis l-f- l Including vacancy reduction 2017 2017 TAG Immobilien AG | April 2018 | 21
Slide 22: TAG portfolio valuation overview
TAG portfolio valuation overview 22 22 Key metrics Total valuation gain in 2017 of EUR 549.7m before change in APPENDIX treatment of transaction costs led to c. 14% annual valuation uplift and Mar-2018 Dec-2017 Dec-2016 Dec-2016 c. 80 bps gross yield reduction: (adjusted for (as reported) transact
Slide 23: TAG portfolio valuation details
TAG portfolio valuation details 23 23 Share of Region Mar-2018 Mar-2018 Mar-2018 Q1 2018 operational Dec-2017 Dec-2017 Dec-2017 Share of yield Fair value Fair value Implied Valuation performance/ Fair value Fair value Implied compression APPENDIX (in EUR millions) (IFRS) (EUR/sqm) multiple result ot
Slide 24: TAG EPRA Earnings
TAG EPRA Earnings 24 24 (in EUR millions) Q1 2018 Q4 2017 FY 2017 Net income 26.7 220.1 313.7 APPENDIX Valuation result 0.5 -253.7 -293.0 Deferred income taxes on valuation result 3.6 64.1 76.9 Net revenues from sales 0.5 0.9 0.0 Fair value valuation of derivative financial instruments 0.0 0.7 1.2 B
Slide 25: TAG LTV calculation
TAG LTV calculation 25 25 APPENDIX (in EUR millions) 31 Mar-2018 31 Dec-2017 Non-current and current liabilities to banks 1,899.0 1,935.4 Non-current and current liabilities from corporate bonds 321.0 322.2 Non-current and current liabilities from convertible bonds 256.1 256.2 Cash and cash equivale
Slide 26: TAG maintenance and capex
TAG maintenance and capex 26 26 APPENDIX in EUR millions 2017 2018 Total portfolio Q1 Q2 Q3 Q4 Total FY Q1 Maintenance 7.3 6.9 7.5 7.4 29.1 8.6 Chemnitz Capex 7.9 9.9 11.8 13.2 42.8 13.0 Total 15.2 16.8 19.3 20.6 71.9 21.6 in EUR/sqm 2017 2018 Residential units Q1 Q2 Q3 Q4 Total FY Q1 Maintenance 1.
Slide 27: TAG return on capex
TAG return on capex 27 27 Modernisation is key element of TAG’s strategy Methodology APPENDIX Capex measures can be broken down into Incremental revenues 1 = Return on investment Modernisation of vacant flats Total investment (longer term vacancy) Modernisation of flats during re-letting I
Slide 28: TAG return on capex
TAG return on capex 28 28 Total capex APPENDIX Q1 2018: EUR 13.0m FY 2017: EUR 42.8m Modernisation of flats Large modernisation measures (Equity financed) (Modernisation capex, partly debt financed) Share of total capex: c.55% in Q1 2018 (c.63% in FY 2017) Share of total capex: c.45% in Q1 2018 (c.3
Slide 29: TAG shareholder structure
TAG shareholder structure 29 29 Shareholder structure as of 31 Mar-2018 APPENDIX Number of shares (issued) 146.5m Market capitalisation (31 Mar-2018) EUR 2.5bn Stock indices MDAX/EPRA Free Float * 100% * Deutsche Börse definition including institutional investors Bestensee Rostock Jänschwald
Slide 30: TAG management board
TAG management board 30 30 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 31: TAG contacts
31 31 TAG contacts Martin Thiel Dominique Mann TAG Immobilien AG CFO Head of Investor & Public Relations Steckelhörn 5 Phone: +49 40 380 32-0 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