Tag Immobilien Ag · XETR:TEG
Tag Immobilien — Q1 2023 Earnings Presentation
38 slides from Tag Immobilien's earnings presentation, May 2023
Slide 1: Conference call presentation Q1 2023
Conference call presentation Q1 2023
Slide 2: Content
Content I. TAG highlights Q1 2023 3 II. TAG financials Q1 2023 6 III. TAG German portfolio Q1 2023 10 IV. TAG Poland portfolio Q1 2023 13 V. TAG guidance FY 2023 20 VI. Appendix 22 Income statement, Income statement details Germany and Poland, balance sheet, EPRA NAV calculations German portfoli
Slide 3: TAG highlights Q1 2023
3 TAG highlights Q1 2023 TAG Immobilien AG | May 2023 | 3
Slide 4: TAG highlights Q1 2023: financial performance and German Portfolio
TAG highlights Q1 2023: financial performance and German Portfolio 44 Q1 2023 Q4 2022 FY 2022 FFO I (EURm) 42.6 44.1 189.4 FFO I (EUR/share) 0.24 0.25 1.19 Financial FFO II (EURm) 51.1 91.7 247.3 performance FFO II (EUR/share) 0.29 0.52 1.56 31 Mar-2023 31 Dec 2022 31 Dec-2021 EPRA NTA (EU
Slide 5: TAG highlights Q1 2023: Poland
TAG highlights Q1 2023: Poland 55 Q1 2023* Q4 2022 FY 2022 FY 2021 Revenues from sale of properties (EURm) 58.1 239.2 337.6 63.4 Rental revenues (EURm) 1.5 0.8 2.7 0.5 Operational performance FFO I Poland** -0.3 --- --- --- Poland Adjusted net income from sales Poland 8.8 47.9 59.3 6.7 Units handed
Slide 6: TAG financials Q1 2023
6 TAG financials Q1 2023 TAG Immobilien AG | May 2023 | 6
Slide 7: TAG EBITDA, FFO and AFFO calculation
TAG EBITDA, FFO and AFFO calculation (in EURm) Q1 2023* Q4 2022* FY 2022* EBIT Germany 51.0 -302.0 118.1 Improved EBITDA adjusted Q-o-Q by EUR 3.3m mainly driven by German business (e.g. 1 higher net result from services with EUR 2.1m; partly compensated by higher cost EBIT Poland rental** 0.7 0.0 0
Slide 8: TAG EPRA NTA calculation
TAG EPRA NTA calculation EPRA Net Tangible Assets (in EURm) 31 Mar-2022 31 Dec-2022 Equity (without minorities) 3,231.7 3,198.5 + Deferred taxes on investment properties and financial 642.4 638.6 derivatives +/- Fair value of financial derivatives -4.6 -6.1 + Difference between fair value and book v
Slide 9: TAG financing structure
TAG financing structure Debt structure as of 31 Mar-2023 Key financial KPIs as of 31 Mar-2023 Debt volume Ø interest rate % fixed rates 4% Ø Maturity total financial debt 5.0 years 7% Ø Maturity bank loans 6.6 years EUR 2,265m 2.0% 94% 12% Ø Interest rate total financial debt 2.1% EUR 250m 1.5% 100%
Slide 10: TAG German portfolio Q1 2023
10 TAG German portfolio Q1 2023 TAG Immobilien AG | May 2023 | 10
Slide 11: TAG German portfolio rental growth and capex allocation
TAG German portfolio rental growth and capex allocation Rental growth achieved with moderate capex investments due to strong underlying fundamentals Rental growth achieved with moderate investments Maintenance & capex development (in EUR/sqm/year) 21.6 20.9 24.6 23.4 17.2 16.4 TAG creates attracti
Slide 12: TAG German portfolio vacancy reduction residential units
TAG German portfolio vacancy reduction residential units 12 12 Strong track record of vacancy reduction Acquisitions Acquisitions +0.1% +0.8% 5.9% 5.8% 5.7% 5.7% Acquisitions Acquisitions 5.5%* 5.3%* 5.4% +0.1% +0.1 5.1% 5.2% 4,9% 4.8% 4.8% 4.6%* 4.7% 4.5% 4.4% 4.5%* Vacancy rate Jan Mar Jun Sep Dec
Slide 13: TAG Poland portfolio Q1 2023
13 TAG Poland portfolio Q1 2023 TAG Immobilien AG | May 2023 | 13
Slide 14: TAG Poland portfolio overview
TAG Poland portfolio overview Establish Polish build-to-sell and build-to-hold platform, based on the fully integrated Vantage and ROBYG businesses Portfolio strategy and geographic breakdown Key portfolio metrics 31 Mar-2023 Building a portfolio of residential properties via own project developme
Slide 15: TAG Poland build-to-hold portfolio mid-term development
TAG Poland build-to-hold portfolio mid-term development Overview of the planned development for the build-to-hold pipeline Overview of the Polish build-to-hold portfolio Potential scenarios for the build-to-hold portfolio Scenario 1: Scenario 2: Growth only by using Additional growth via surplus fro
Slide 16: TAG Rental portfolio Poland
TAG Rental portfolio Poland 16 16 Strong rental results in Q1 2023; net actual rent for units new in operation c. 30% higher than planned about one year ago Re-letting Rentable IFRS BV Net actual rent l-f-l rental Units In-place Vacancy Vacancy rent Region area EURm EUR/ growth # yield Mar-2022 Dec-
Slide 17: Overview of Polish residential rental market
Overview of Polish residential rental market Strong increase in rent prices throughout major Polish cities Average rental level for new stock EUR/sqm/month) Throughout 2022, there was a high demand for apartments for rent throughout Poland. A +23% (as of March 2023) 20 18.43 sharp increase in rent
Slide 18: TAG Poland portfolio historical performance trajectory
TAG Poland portfolio historical performance trajectory Strategic focus on develop to sell projects drives uptick in disposal volumes, which allows to capitalize on rising sales prices Units sold (#) Disposal price / Construction costs (in 35 58 33 239 58 EUR / sqm) 339 538 401 2,510 583 1.000 972 3.
Slide 19: TAG Poland – New joint venture with institutional investor
TAG Poland – New joint venture with institutional investor 19 19 Description Joint venture structure (simplified) Institutional On 28 April 2023 TAG signed a joint venture agreement with an international institutional investor investor in order to develop a build-to-sell portfolio in Poland The
Slide 20: TAG guidance FY 2023
TAG guidance FY 2023 TAG Immobilien AG | May 2023 | 20
Slide 21: TAG FFO and dividend guidance FY 2023 (unchanged)
TAG FFO and dividend guidance FY 2023 (unchanged) FFO I -9% FFO I/s* -18% (EUR) 170-174m 0.98 vs. 2022 (EUR) vs. 2022 FFO II -3% FFO II/s* -11% 240-246m 1.38 (EUR) vs. 2022 (EUR) vs. 2022 depending on market conditions and Dividend completions of refinancings * based on 175,441,591 average NOSH (ous
Slide 22: APPENDIX
22 APPENDIX TAG Immobilien AG | May 2023 | 22
Slide 23: TAG income statement
TAG income statement* APPENDIX (in EURm) Q1 2023 Q4 2022 FY 2022 Increase in net actual rent Q-o-Q by EUR 0.8m due to growing rental business in Poland. 1 Contribution Germany stable despite slightly lower number of units. Net actual rent** 1 86.6 85.8 339.9 Expenses from property 2 Net rental incom
Slide 24: TAG income statement details Germany and Poland
TAG income statement details Germany and Poland Poland - Poland – Germany Poland Total Germany Poland Total Germany Poland Total (in EURm) Rental Sales Q1 2023 Q1 2023 Q1 2023 Q4 2022 Q4 2022 Q4 2022 FY 2022 FY 2022 FY 2022 Q1 2023 Q1 2023 APPENDIX Net actual rent* 85.1 1.5 1.5 0.0 86.6 85.0 0.8 85.
Slide 25: TAG balance sheet
TAG balance sheet (in EURm) 31 Mar-2023 31 Dec-2022 Non-current assets 6,925.4 6,936.1 APPENDIX Investment property 1 6,558.2 6,569.9 1 The change in investment properties mainly results from the capex for the first three months (EUR 20.6m) and investments in Poland (EUR 23.8m). Furthermore, propert
Slide 26: TAG EPRA NAV calculations
TAG EPRA NAV calculations EPRA NRV EPRA NTA EPRA NDV APPENDIX Net reinstatement value Net tangible assets Net disposal value (in EURm) 31 Mar-2023 31 Mar-2022 31 Mar-2022 Equity (before minorities) 3,231.7 3,231.7 3,231.7 Difference between fair value and book value for properties valued at cost 74.
Slide 27: TAG German portfolio details by region
TAG German portfolio details by region Region Units Rentable IFRS BV Gross Vacancy Vacancy Net actual Re-letting l-f-l rental l-f-l rental growth Mainte- Capex # area EURm yield Mar- Dec- rent rent growth Y-o-Y incl. nance EUR/sqm sqm Mar- 2023 2022* EUR/ EUR/ Y-o-Y vacancy EUR/sqm APPENDIX 2023 sqm
Slide 28: TAG German portfolio vacancy reduction and rental growth
TAG German portfolio vacancy reduction and rental growth Vacancy development Q1 2023* l-f-l rental growth (Y-o-Y) Q1 2023 APPENDIX Leipzig 4.8% 2.2% Gera from 3.9% to 3.5% -0.4% Gera 4.6% 1.7% Leipzig from 8.6% to 8.4% -0.2% Hamburg 3.0% from 8.0% to 8.1% +0.1% 2.5% Chemnitz Chemnitz 2.9% Rhein-Ruhr
Slide 29: TAG portfolio valuation overview Germany
TAG portfolio valuation overview Germany Portfolio valuation result Development of gross yield APPENDIX H2 2022 vs. H1 2021 H2 2022 H1 2022 6.1% 6.5% 5.9% 6.1% 5.7% 6.3% in EUR m -353.8* 256.5** 5.5% 5.4% 5.9% 5.7% 5.3% 5.1% 5.5% 5.4% 5.3% semi-annual valuation uplift (w/o capex) -5.5% 4.0% 5.1% t
Slide 30: TAG German portfolio valuation details
TAG German portfolio valuation details Mar-2023 Mar-2023 Share of operational Dec-2022 Dec-2022 Dec-2022 Region Mar-2023 YTD 2022 Share of yield Fair value Implied performance/ other Fair value Fair value Implied APPENDIX (in EURm) Fair value (IFRS) Valuation result compression (EUR/sqm) multiple ma
Slide 31: TAG LTV calculation
TAG LTV calculation (in EURm) 31 Mar-2023 31 Dec-2022 APPENDIX Non-current and current liabilities to banks 2,509.2 2,522.0 Non-current and current liabilities from corporate bonds and other loans 651.3 798.6 Non-current and current liabilities from convertible bonds 460.6 460.6 Cash and cash equiva
Slide 32: TAG net financial result calculation
TAG net financial result calculation (in EURm) Q1 2023 Q4 2022 FY 2022 APPENDIX + Interest income 1.0 -13.0 3.0 - Interest expenses -18.4 -15.1 -54.0 + Other financial result -0.1 18.0 18.4 = Net financial result -17.4 -10.1 -32.6 + Financial result from convertible/corporate bonds 0.8 0.8 3.4 + Bre
Slide 33: TAG cost of debt and LTV
TAG cost of debt and LTV Cost of debt Ø in % LTV in % APPENDIX 2.1% 2.1% 44.8% 45.1% 46.7% 43.2% 46.4% 1.7% 1.5% 1.4% 2019 2020 2021 2022 Q1 2023 31 Dec-2019 31 Dec-2020 31 Dec-2021 31 Dec-2022 31 Mar-2023 TAG Immobilien AG | May 2023 | 33
Slide 34: TAG other financing metrics
TAG other financing metrics ICR Net financial debt/ EBITDA adjusted Net financial debt in EUR/ sqm APPENDIX 12.7 672 7.4 11.6 586 6.7 11.3 5.6 10.9 10.9 479 504 5.2 460 4.2 2019 2020 2021 2022 LTM 2023* 2019 2020 2021 2022 LTM 2023* 2019 2020 2021 2022 3M 2023 6.7x reflects the total adjusted EBITDA
Slide 35: TAG financial covenants overview
TAG financial covenants overview as of 31 Mar-2022 Covenants leave extensive flexibility for further refinancings Instrument Volume Comments APPENDIX • Typically ICR/ DSCR or LTV covenants with material headroom Bank loans c. EUR 2,300m • “Soft covenants”, i.e. breach does not lead to an termination
Slide 36: TAG ESG ratings
TAG ESG ratings TAG ranks among the top ratings in the real estate sector ESG rating and award improvements TAG’s ESG disclosure improvement APPENDIX Since 2020 we have placed particular emphasis on improving our ESG performance and reporting in order to better meet the expectations of Sustainalyt
Slide 37: TAG share data
TAG share data Shareholder structure as of 30 Apr-2022 Share information as of 30 Apr-2022 9.9% MFS (Massachusetts Financial Services Company), USA Market cap EUR 1,360m APPENDIX 9.9% 4.9% BayernInvest Kapitalverwaltungsgesellschaft mbH, GER NOSH issued 175.5m 4.9% 4.7% Versorgungsanstalt des Bundes
Slide 38: TAG contacts
TAG contacts Martin Thiel Dominique Mann TAG Immobilien AG CFO Head of Investor & Public Relations Steckelhörn 5 Phone: +49 40 380 32-305 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 www