Hiag Immobilien Holding Ag · SIX:HIAG
Hiag Immobilien — H1 2024 Earnings Presentation
46 slides from Hiag Immobilien's earnings presentation, Aug 26, 2024
Slide 1: Half-Year Results 2024
Half-Year Results 2024 HIAG Immobilien Holding AG Marco Feusi Stefan Hilber CEO CFO 26 August 2024
Slide 2: Agenda
Agenda 1 Key Highlights 2 Financials 3 Sustainability 4 Site Development 5 Transactions 6 Market assessment by HIAG 7 Outlook HIAG Half-Year Results 2024 2
Slide 3: Key Highlights
Key Highlights Strong reporting period with further development progress Net income Property income Net profit from CHFm 36.2 CHFm 37.1 sale of (+63.5%) (+5.3%) condominiums CHFm 11.1 Revaluation Vacancy rate (H1 23: CHFm 5.3) CHFm +11.6 from 4.0% to 3.5% High equity ratio Financing security 53.6% G
Slide 4: Financials
Financials HIAG
Slide 5: Financial figures H1 2024
Financial figures H1 2024 Net income significantly increased Income Statement ROE annualised / EPS In CHFm H1 24 H1 23 Δ CHFm Δ% Property income 37.1 35.3 1.9 5.3 11.1% 10.4% Revaluation of properties 11.6 -7.0 18.6 <-100 7.7% 6.7% Income from sale of condominiums 29.0 15.4 13.6 88.1 4.7% 4.6% 4.4%
Slide 6: Property income
Property income Increase by 5.3% mainly due to new lettings and project completions Property income bridge (in CHFm) Main effects New lettings: +5.3% − Smyths Toys AG Dietikon 0.2 0.0 − Migros Dietikon -0.3 0.6 − Verein Bachtelen Dornach 1.4 -1.4 -0.5 37.1 Project completions: − Chama 1st stage Cham
Slide 7: Vacancy rate / Yields
Vacancy rate / Yields Further remarkable vacancy rate decrease by 0.5%p to 3.5% Vacancy rate / Potential property income (in CHFm)1 Yields annualised (in %)2 13.2% 5.6% 5.5% 5.4% 5.2% 5.2% 10.7% 80.3 77.2 75.1 69.1 70.7 4.7% 4.2% 6.4% 3.9% 4.0% 3.5% 3.7% 3.6% 9.1 7.6 4.9 3.0 2.8 01.01.2021 01.01.202
Slide 8: Tenants: WAULT / Lease expiry profile
Tenants: WAULT / Lease expiry profile Stable WAULT at almost 7 years Lease expiries WAULT 6.8 years 37.1% Thereof Residentials (45%) 20.3% 11.3% 8.6% 7.3% 7.9% 3.7% 3.8% 2024 2025 2026 2027 2028 2029 2030 - 2080 unlimited WAULT Top 15 tenants: 8.6 years HIAG Half-Year Results 2024 8
Slide 9: Portfolio value
Portfolio value CHFm c. 300 portfolio growth within 4 years Portfolio value bridge (in CHFm) 44 14 12 1,949 1,926 1,898 -18 1,784 1,638 703 782 830 647 612 1,223 1,138 1,115 1,119 1,026 31.12.2020 31.12.2021 31.12.2022 31.12.2023 Investments Investment in Revaluation Disposals 30.06.2024 Properties
Slide 10: Revaluations
Revaluations Development progress leads to revaluation gains Revaluations (in CHFm) Revaluation by type of use (in CHFm) 22.6 Office -1.4 19.6 19.1 Distribution / Logistics -0.6 10.6 Retail -0.1 10.9 (+1.3%) 7.8 Residential mixed 0.1 6.8 1.0 1.9 Industrial / Commercial 1.5 (+0.1%) Residential 1.8 Ot
Slide 11: Capital Structure
Capital Structure Strong balance sheet as foundation for further growth LTV Ratio / Equity Ratio (in %) 49.9% 53.1% 53.9% 53.6% 52.0% 48.7% 45.0% 44.5% 42.6% 40.9% 41.1% 40.5% 39.6% 39.8% 39.5% 31.12.2020 31.12.2021 31.12.2022 31.12.2023 30.06.2024 LTV Ratio gross LTV Ratio net Equity Ratio HIAG Hal
Slide 12: Financial liabilities
Financial liabilities Interest rates increased along market environment Financial liabilities Average interest rate, duration +1.3% 813 820 H1 2024 2023 Δ 793 780 790 93 70 70 173 245 150 Average interest rate 1.7% 1.6% +0.1 %p 260 50 Duration (Interest rate fixation) 2.7 yrs 3.2 yrs -0.5 yrs 700 64
Slide 13: Financial liabilities
Financial liabilities Revolving credit facility leads to high financing security Due dates of financial liabilities and credit line 3.1% 2.1% 2.1% 1.9% 1.8% 0.8% 50 70 150 160 110 100 90 60 2024 2025 2026 2027 2028 2029 Mortgages Private placements Syndicate loan Bonds Average interest rate Focus on
Slide 14: Financing project pipeline
Financing project pipeline Sale of condominiums enlarges financing flexibility Financing of mid-term pipeline (in CHFm) -260 500 88 -96 -201 150 130 -307 172 Projects under Projects Other mid- Total CF sale of Total CF sale of CF from mid-term Total revolving Already used Financing surplus construct
Slide 15: Sustainability
Sustainability HIAG
Slide 16: Sustainability Update
Sustainability Update Goals are being driven forward Project Certification HIAG Solar GHG Reduction Employee Satisfaction New construction projects Goal achieved: Six-fold Preparations for various We continuously strengthen completed with certifications increase in the plant capacity heating replace
Slide 17: Site Development
Site Development HIAG
Slide 18: Projects realised and short-term
Projects realised and short-term Successful project completions and good progress on constructions Usable Market Expec. Total Remaining Open Est. Est. Pre-let Lease Project status 2024 2025 2026 2027 area Value MV after investment investment developer Rental sales Ratio Duration in m2 (MV) compl. vo
Slide 19: Projects short-term
Projects short-term High visibility of additional rent and development gains Usable Market Expec. Total Remaining Open Est. Est. Pre-let Lease Project status 2024 2025 2026 2027 area Value MV after investment investment developer Rental sales Ratio Duration in m2 (MV) compl. volume in in CHFm, gain
Slide 20: Update selected projects
Update selected projects Important milestones were achieved Centre development «Im Farn» «Gleis Süd» Niederhasli ZH Pratteln BL Residential use development (97% residential) Mixed use development (67% residential) – c. 200 residential units (flats/condominiums), c. 500 m2 commercial area – c. 350 re
Slide 21: Transactions
Transactions HIAG
Slide 22: Divestments 2024
Divestments 2024 Expected gross profit > 15% Notarised divestments to be closed in the 2nd half of the year Address Property Type Portfolio Expected Fair value Annual rent Gross- Closing-Date CHFm CHFm p.a. Profit Aathal, Zürichstrasse 1-7 Residential Yielding 01.10.2024 Wetzikon, Zürcherstrasse 130
Slide 23: Market assessment by HIAG
Market assessment by HIAG HIAG
Slide 24: Market assessment by HIAG
Market assessment by HIAG Good market momentum due to lower interest rates Economic environment Real estate segments Impact real Commercial 2014-2023 Forecast Forecast estate – Industry / Light industrial: Intact demand, reluctance for large facilities, Swiss KPI (p.a.) 2024 2025 market industry (PM
Slide 25: Outlook 2024
Outlook 2024 HIAG
Slide 26: Outlook 2024
Outlook 2024 Promising, particularly in the letting and development business Business topic Ambitions Actions Portfolio / Asset – Increase collected income by 6% to 7% vs. 2023 – Rental income from in H� completed projects fully effective Management – Vacancy rate YE 2024 <4% – Consequent CPI and ref
Slide 27: Q&A
Q&A HIAG
Slide 28: Thank you!
Office Basel Aeschenplatz 7 4052 Basel T +41 61 606 55 00 Office Zurich Thank you ! Löwenstrasse 51 8001 Zürich T +41 44 404 10 30 Office Geneva Rue François-Bonivard 10 1201 Genf T +41 22 304 10 30 hiag.com
Slide 29: Company Calendar
Company Calendar 24 September 2024 Capital Market Day 03 March 2025 Publication Annual Report 2024 17 April 2025 General Meeting 18 August 2025 Publication Half-year Report 2025 investor.relations@hiag.com www.hiag.com HIAG 30
Slide 30: Appendix
Appendix HIAG
Slide 31: KPI Overview
KPI Overview HY result reflects the strength and the solidity of the business model Net income Net income excl. Earnings NAV per share Return on Equity Equity ratio LTV (in CHFm) revaluation per share excl. (incl. deferred tax) (in %) (in %) gross / net (in CHFm) revaluation (in CHF) (in %) (in CHF)
Slide 32: Portfolio overview
Portfolio overview Highly diversified portfolio Actual Annualised income by type of use Actual annualised income by sector Investment properties by canton 8-11; 6% 1 Industry/Commercial 12-17; 4% 1 Manufacturing industry / 8; 6% 1 ZH 11; 2% Production 7; 4% 2 Office 10; 2% 7; 3% 2 AG 2 Residential t
Slide 33: Property income like-for-like
Property income like-for-like Increase by 9.8% mainly due to new lettings and project completions Property income bridge (in CHFm) +9.8% 0.2 37.1 1.4 -0.3 0.6 -0.5 1.9 33.8 H1 23 New lettings Project completion Due to development Cancel- CPI adjustments Reference interest H1 24 lations rate adjustme
Slide 34: Tenants – Top 15
Tenants –Top 15 Strong tenant structure with high credibility Top 15 tenants based on annualised property income – 1 July 2024 41.3% Share of annualised property income 32.1% Cumulative share of annualised property income 29.7% 27.2% 24.3% 21.4% 18.5% 15.3% 12.0% 8.3% 9.1% 4.3% 4.0% 3.7% 3.3% 3.1% 3
Slide 35: Inflation and rental income
Inflation and rental income Inflation protection through CPI and reference rate linked leases Annualised income by type of lease indexation Actual reference interest rates 4; 1% 5; 1% 5; 11% 3; 3% 4; 0% 1; 7% 1 CPI linked leases 1; 1.25% 2; 28% 2 Non-CPI linked leases 2; 1.5% CHFm 3 Step rents CHFm
Slide 36: Discount rates
Discount rates Slightly increased discount rates in line with expectations Discount rate development 5.50% 5.40% 5.30% 5.30% 5.30% in % H1 24 2023 2022 2021 2020 Weighted average discount 3.51 3.51 3.34 3.52 3.71 rate yield portfolio 3.55% 3.43% 3.37% 3.33% Weighted average discount 3.22% 3.19 3.13
Slide 37: Pipeline
Pipeline Mid-term to long-term Usable Total Remaining Open Est. Est. Pre-let Lease Project status 2025 2026 2027 2028 2029 area investment investment developer Rental sales Ratio Duration in m2 volume in CHFm, gain Value in rev. in Com- in in CHFm H2 24 ff. H2 24 ff. CHFm CHFm mercial years Projects
Slide 38: Development Performance
Development Performance Outperforming in average during the last years Segments since 2021 without valuation change from market 2021 2022 2023 H1 2024 6,6% 6,3% In CHFm Yielding Develop. Yielding Develop. Yielding Develop. Yielding Develop. Reported EBITDA 74.4 19.9 59.1 54.6 17.5 42.5 24.4 24.8 5,3
Slide 39: NAV per share
NAV per share Increasing NAV in the last 5 years NAV per share excl. deferred tax (in CHF) NAV per share incl. deferred tax (in CHF) +0.6% +0.4% 115.2 3.8 -3.1 115.8 -3.1 107.0 3.6 107.4 NAV per share 2023 Result Dividend per share NAV per share H1 24 NAV per share 2023 Result Dividend per share NAV
Slide 40: Share price performance
Share price performance Overview Development of share price performance – 30 June 2024 Share price (in CHF) H1 2024 2023 High 81.40 85.60 Low 69.40 73.40 End of period 73.40 79.80 Market capitalisation (in CHFm) High 822.28 865.27 Low 701.06 741.95 End of period 741.46 806.64 Number of shares Issued
Slide 41: Company information
Company information HIAG
Slide 42: Investment Case HIAG
Investment Case HIAG Why to invest? Financing & Risk Status quo & Potential Organisation & Experience – Solid balance sheet structure – Diversified mixed use real estate – Strong in house real estate throughout internal planning period portfolio of CHFb 1.9 with rental development know-how with prov
Slide 43: HIAG «at a Glance»
HIAG «at a Glance» Long-term view to realise profitable growth based on solid financing Long-term oriented business view Strong market positioning Performance / Finance structure Diversified Portfolio for Long-term Real Estate challenging market Enormous value increase business supported by the envi
Slide 44: Integrated Business Model / Sites and offices
Integrated Business Model / Sites and offices At a glance Integrated business model (incl. 3 segments) HIAG sites and offices HIAG Half-Year Results 2024 45
Slide 45: Shareholder structure
Shareholder structure No significant change of shareholder structure Shareholder structure – 30 June 2024 Major shareholders H1 2024 2023 1 Anchor shareholders 54.6% 54.6% 2 Free Float 45.4% 45.4% Shareholder structure A SFAG Holding AG 20.0% 20.0% B Grisgros Beteiligungs AG 17.8% 17.8% C BraCHe Bet
Slide 46: Disclaimer
Disclaimer This presentation does not constitute or form part of any advertising, offer, recommendation or invitation to sell or issue, or any solicitation of any offer to purchase or subscribe for, any securities, nor shall part, or all, of this presentation or their distribution form the basis of,
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