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Patrizia — PATRIZIA Immobilien — 9M 2014 Earnings Presentation

35 slides from Patrizia's earnings presentation, Nov 17, 2014

  1. Slide 1: PATRIZIA Immobilien AG – The fully integrated real estate investment company

    PATRIZIA Immobilien AG The fully integrated real estate investment company Business Model, Financials and Market November 2014 PATRIZIA Immobilien AG PATRIZIA Bürohaus | Fuggerstrasse 26 | 86150 Augsburg | T +49 821 50910-000 | F +49 821 50910-999 | immobilien@patrizia.ag | www.patrizia.ag

  2. Slide 2: Agenda

    Agenda  BUSINESS MODEL  FINANCIALS 9M 2014  OUTLOOK FY 2014 / FY 2015  PATRIZIA SHARE  FINANCIAL CALENDAR AND CONTACT DETAILS PATRIZIA Immobilien AG| © 2014 2

  3. Slide 3: PATRIZIA − Owner-led and Independent of Banks since 1984

    PATRIZIA − Owner-led and Independent of Banks since 1984 ASSETS UNDER MANAGEMENT (IN EUR BILLION)  Founded in 1984 by Wolfgang Egger, CEO and majority shareholder (51.62%) 14 13.5 13  PATRIZIA is a fully integrated real estate investment company, i.e. a real estate investor and full service 12 11

  4. Slide 4: Business Model “Real Estate Investment House“

    Business Model “Real Estate Investment House“ DIRECT ACCESS TO EQUITY AND PROPERTIES WITHOUT INTERMEDIARIES Re-Investment Options Research Investors Sales Product development / Acquisition SPV PATRIZIA Real Estate Asset / Portfolio Development Co-Investment Management Yes/ No Refurbishment Property

  5. Slide 5: The PATRIZIA Real Estate Value Chain – Covering the Whole Life-Cycle of Real Estate

    The PATRIZIA Real Estate Value Chain – Covering the Whole Life-Cycle of Real Estate Re-Investment Research Options Sales Investor driven product development and real estate acquisition Real Estate Development Asset Management/ Portfolio Management Refurbishment Property Management Management PATRIZI

  6. Slide 6: Own Portfolio

    Own Portfolio SALE OF PATRIZIA‘S OWN PORTFOLIO1 UNTIL YEAR-END 2015  Sale of approx. 3,000 units in 2014  Sale of 592 units in 9M 2014 (426 individual sales, 166 en bloc), another 2,200 units already notarised via bloc sales  Stable sales prices in residential property resale (EUR 2,720/sqm) and

  7. Slide 7: Own Portfolio – Single Unit and Block Sales by FY

    Own Portfolio – Single Unit and Block Sales by FY STABLE SALE FIGURES SINCE 2010  Target 2014: sale of 1,800 units will be exceeded as a further 2,200 units has been notarised as block sales in Q4  Sales have always presented themselves as volatile within a year with highest numbers in H2 units 2,

  8. Slide 8: Positive Development of the Financial Situation

    Positive Development of the Financial Situation BANK LOANS VS. EQUITY RATIO  Bank loans excluded bonded loans have been reduced by 33.2% to EUR 215m (31 Dec 2013: EUR 322m)  2014 target for indebtedness will be outperformed:  Reduction of bank loans to less than EUR 100m, bonded loans stable at E

  9. Slide 9: Net Asset Value

    Net Asset Value NAV / INVESTMENTS SEGMENT REPRESENTS 45% OF THE OPERATING RESULT FOR 9M 2014  Investment property and inventories were sold in 9M 2014 at a profit with a gross margin of 9.6% and 22.1% respectively, thus confirming the value retention of the properties  The whole service business t

  10. Slide 10: The Strategy of Co-Investments

    The Strategy of Co-Investments SIGNIFICANT INCREASE OF INVESTMENT VOLUME  In addition to funds in which PATRIZIA has no equity stake of its own, we intend to offer a larger number of co-investments that will increasingly replace our own 100% investments  Our own stake depends on the investment and

  11. Slide 11: PATRIZIA Capital Allocation

    PATRIZIA Capital Allocation RELEASE OF ANOTHER EUR 299 MILLION FOR FURTHER CO-INVESTMENTS IN EUR MILLION, AS OF 30.09.2014 ASSETS UNDER MANAGEMENT INVESTMENT CAPITAL PARTICIPATION IN % OPERATING COMPANIES1 ‒ 39.6 100 OWN INVESTMENTS2 465 225.7 100 CO-INVESTMENTS 5,740 128.0 RESIDENTIAL 4,787 98.1 GB

  12. Slide 12: Co-Investments – WohnModul I

    Co-Investments – WohnModul I Business Case: Acquire – Add value – Sell; PATRIZIA is doing the entire management RESIDENTIAL / REAL ESTATE DEVELOPMENTS WOHNMODUL I SICAV-FIS (balanced as at-equity participation)  Strategy  Purchase of real estate developments and asset repositioning properties  As

  13. Slide 13: Co-Investments – WohnModul I

    Co-Investments – WohnModul I  WohnModul I portfolio – breakdown by region as at 30 September 2014 NUMBER OF UNITS AREA IN SQM AT THE NUMBER OF UNITS AREA IN SQM REGION/CITY AT THE TIME OF PURCHASE TIME OF PURCHASE 30.09.2014 30.09.2014 Berlin 54 4,560 11 934 Copenhagen 484 39,036 464 37,384 Cologne

  14. Slide 14: Co-Investments Germany – Residential

    Co-Investments Germany – Residential Business Case: Buy to long-term hold Business Case: Buy to long-term hold SÜDDEUTSCHE WOHNEN GMBH GBW AG FORMERLY LBBW IMMOBILIEN GMBH PATRIZIA WINS BID FOR BAYERNLB’ SHARES IN GBW Closing of the deal in March 2012 Closing of the deal in May 2013  Gross purchase

  15. Slide 15: Co-Investments Germany – Commercial

    Co-Investments Germany – Commercial Business Case: Acquire – Add value – Sell; Business Case: Buy to long-term hold PATRIZIA is doing the entire management PATROFFICE DEIKON ACQUISITION OF A PORTFOLIO OF 85 GERMAN RETAIL FIRST PATRIZIA CO-INVESTMENT PROPERTIES  Founded in 2007, planned duration 7 y

  16. Slide 16: Co-Investments UK – Commercial

    Co-Investments UK – Commercial Business Case: Acquire – Add value – Sell; PATRIZIA is doing the entire management; realised with Oaktree Capital Management, L.P. as partner PLYMOUTH SOUND HOLDINGS LP “AVIEMORE” − ACQUISITION OF THREE BUSINESS PARKS  Open-ended fund, 10% PATRIZIA stake in equity  C

  17. Slide 17: Income from Co-Investments – FY 2013, 9M 2014

    Income from Co-Investments – FY 2013, 9M 2014 THE CO-INVESTMENT BUSINESS IN THE P&L  The acquisition fee is accounted in the P&L in the "revenues" item  Regular co-investment business is accounted in the P&L in the item "revenues"  Südewo and GBW are accounted in the P&L item "income from partici

  18. Slide 18: Third Party Business – German "Spezialfonds"

    Third Party Business – German "Spezialfonds" Business Case: Buy to long-term hold, no PATRIZIA equity included TWO INVESTMENT MANAGEMENT COMPANIES OFFER SPECIAL FUNDS  Growth target of 1bn AuM p.a. out of the funds business and the WohnModul I has been exceled after 9 months with 1.5bn RESIDENTIAL:

  19. Slide 19: Third Party Business – German "Spezialfonds"

    Third Party Business – German "Spezialfonds" Business Case: Buy to long-term hold, no PATRIZIA equity included PATRIZIA is doing the entire management "HESSEN PORTFOLIO" – LEO II "HESSEN PORTFOLIO" – LEO I LARGEST TRANSACTION INVOLVING COMMERCIAL BIG MILESTONE AT THE BEGINNING OF FY 2014 REAL ESTATE

  20. Slide 20: Income Structure – Service Business

    Income Structure – Service Business STABLE BUSINESS MODEL DELIVERS GROWING REVENUES  Increasing assets under management will generate higher service fees and increase earnings visibility  Management services generated revenues of EUR 70.7m in 9M 2014, thereof EUR 18.8m out of co-investments and EU

  21. Slide 21: Growth of PATRIZIA since 2007

    Growth of PATRIZIA since 2007 DEVELOPMENT OF ASSETS UNDER MANAGEMENT1, 2 (IN EUR BILLION) / EMPLOYEES  Increase by EUR 1.7bn from 2013 to 30 Sept 2014  Growth target of another EUR 2bn till year-end 2014 to EUR 14bn  AuM almost exclusively comprise co-investments and third parties 757 (735 FTE) 1

  22. Slide 22: Asset Allocation of Funds and Co-Investments

    Asset Allocation of Funds and Co-Investments Sectors Geographical Footprint Sectors1 * * of Assets1 2.0% 1.7% 0.9% 2.2% 5.8% 10.0% 80.5% 7.3% 48.1% 4.4% 4.0% 29.3% 3.8% Residential Light Industrial Germany Office Health Other Hotel Nordics Retail UK/Ireland Other Logistics France As of 30 September

  23. Slide 23: Asset Allocation of Funds and Co-Investments – Capital Commitments

    Asset Allocation of Funds and Co-Investments Capital Commitments Investor Domicile by equity commitment by Investor Type in business volume 3% 7% 8% 38% 24% 92% 28% Pension funds National institutional investors Saving banks Insurances International institutional investors Other 175 investors in tot

  24. Slide 24: Agenda

    Agenda  BUSINESS MODEL  FINANCIALS 9M 2014  OUTLOOK FY 2014 / FY 2015  PATRIZIA SHARE  FINANCIAL CALENDAR AND CONTACT DETAILS PATRIZIA Immobilien AG| © 2014 24

  25. Slide 25: Development of the Operating Result

    Development of the Operating Result OPERATING RESULT  IFRS EBT without valuation items  Increase by 41% compared with 9 months 2013 50 40 50.0 43.9 30 38.1 20 12.4 28.8 26.3 10 4.0 2.7 0 2008 2009 2010 2011 2012 2013 9M 2014 2014e INVESTMENTS MANAGEMENT SERVICES 100% 100% Target 2015 80% 80% 80% 7

  26. Slide 26: Development of IFRS Figures

    Development of IFRS Figures EBT  Decrease by 22.5% compared with 9 months 2013, due lower gains of interest rate hedges 45.0 25.0 39.6 8.0 11.5 28.6 5.0 19.9 15.5 -15.0 -32.4 -35.0 2008 2009 2010 2011 2012 2013 9M 2014 CONSOLIDATED ANNUAL PROFIT/LOSS  Decrease by 24.4% compared with 9 months 2013

  27. Slide 27: Agenda

    Agenda  BUSINESS MODEL  FINANCIALS 9M 2014  OUTLOOK FY 2014 / FY 2015  PATRIZIA SHARE  FINANCIAL CALENDAR AND CONTACT DETAILS PATRIZIA Immobilien AG| © 2014 27

  28. Slide 28: Outlook 2014 / 2015

    Outlook 2014 / 2015  Operating result for 2014 of at least EUR 50m confirmed, thereof at least 80% out of services  Further deleveraging :  Reduction of bank liabilities below EUR 100m, plus EUR 77m for two bonded loans  Almost debt free until December 2015  Equity ratio of 48.3% should increas

  29. Slide 29: Agenda

    Agenda  BUSINESS MODEL  FINANCIALS 9M 2014  OUTLOOK FY 2014 / FY 2015  PATRIZIA SHARE  FINANCIAL CALENDAR AND CONTACT DETAILS PATRIZIA Immobilien AG| © 2014 29

  30. Slide 30: PATRIZIA Share

    PATRIZIA Share PATRIZIA SHARE AT A GLANCE SHARE PRICE LAST 12 MONTHS: +44% ISIN, SIN (Security Identification Number) DE000PAT1AG3, PAT1AG Code P1Z 11 € No. of shares in issue 69,385,030 10 € 9M 2014 high*/ low* EUR 10.86 / EUR 7.49 Closing price at 30 September 2014* EUR 10.62 9€ Share price perfor

  31. Slide 31: Top Holders by Position

    Top 20 Holders by Position SOURCE: BLOOMBERG, OCTOBER 2014 6.10% 0.20% 0.96% Percent Country Category Holder Name Position Outstanding 10.30% Germany Germany First Capital Partner (Wolfgang Egger, CEO) 35,816,553 51.62 Germany Germany Union Investment 2,500,000 3.60 Sweden Europe SEB 1,519,589 2.19

  32. Slide 32: PATRIZIA Market Capitalisation

    PATRIZIA Market Capitalisation DEVELOPMENT OF THE PATRIZIA MARKET CAP  Issue of bonus shares in 2012, 2013 and 2014, each with a capital increase of10% from company funds (i.e. without cash requirement) 800 737 700 612 600 527 500 484 400 370 300 269 200 179 200 160 85 100 0 2007 2008 2009 2010 201

  33. Slide 33: Agenda

    Agenda  BUSINESS MODEL  FINANCIALS 9M 2014  OUTLOOK FY 2014 / FY 2015  PATRIZIA SHARE  FINANCIAL CALENDAR AND CONTACT DETAILS PATRIZIA Immobilien AG| © 2014 33

  34. Slide 34: Financial Calendar, Conferences and Roadshows

    Financial Calendar, Conferences and Roadshows 2014 November 25  4th Annual Berenberg 1on1 Symposium @ the German Equity Forum, Frankfurt/Main 26  German Equity Forum, Frankfurt/Main 27  Roadshow with Close Brothers Seydler Bank, Brussels December 10  Close Brothers Seydler Bank AG – Mid Cap Conf

  35. Slide 35: Contact Details

    Contact Details ARWED FISCHER MARGIT MILLER VERENA SCHOPP DE CFO HEAD OF IR ALVARENGA MANAGER IR PATRIZIA Immobilien AG PATRIZIA Immobilien AG PATRIZIA Immobilien AG PATRIZIA Bürohaus PATRIZIA Bürohaus PATRIZIA Bürohaus Fuggerstrasse 26 Fuggerstrasse 26 Fuggerstrasse 26 86150 Augsburg 86150 Augsburg

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