Tag Immobilien Ag · XETR:TEG
Tag Immobilien — 9M 2013 Earnings Presentation
28 slides from Tag Immobilien's earnings presentation, 2013
Slide 1: Growing Assets
2013 Growing Assets 9M – 2013 Q1-Q3 2011
Slide 2: Content
Content 22 I. TAG Highlights 3 CONTENT II. TAG FFO 2013 / Guidance 2014 5 III. TAG Strategy: Growth and Margins 7 IV. TAG Portfolio: Regions / Achievements / Capex - Maintenance / Top 20 Cities / Sales 8 V. TAG Financials: Balance sheet / Profit and loss 14 VI. TAG Financing: Refinancing / LTV / NAV
Slide 3: TAG Highlights 9M-2013
TAG Highlights 9M-2013 33 Rental income of EUR 188m (+34% previous year) Achievements OVERVIEW Rental profit of EUR 149.5m (+39%) Acquistion Chemnitz: 219 Residential Units / EUR 7.7m FFO I of EUR 48.6m Disposal of commercial units in Hamburg, Hanover, Nuremberg, Ahrensburg, Munich FFO
Slide 4: TAG FFO FY 2012/ 9M-2013
TAG FFO FY 2012/ 9M-2013 44 FFO TAG Immobilien AG | 2013 Q1-Q3
Slide 5: TAG FFO Guidance 2014
TAG FFO Guidance 2014 55 FFO The interest cost savings stem from refinancing that have already been effected in 2013. The synergies are basically the management contract fees for TAG Wohnen which TAG had to pay in 2013, this contract has been cancelled with effect of year-end 2013. Furthermore w
Slide 6: TAG's track record of growth 2009/2013
TAG‘s track record of growth 2009/2013 66 GROWTH Real estate volume (EURm) Rental revenues (EURm) 3,665 3,563 x4.8 x4.2 192.5 188.0 1,969 3,203 3,134 115.4 978 770 1,493 51.8 46.2 318 499 452 479 476 462 429 2009 2010 2011 2012 9M 2013 Residential incl. undeveloped properties Commercial incl. undeve
Slide 7: TAG's profitable growth strategy
TAG’s profitable growth strategy 77 Growth has been a strategic imperative for TAG in order to achieve economies of scale Adj. EBITDA(1) and FFO margin(2) GROWTH benefit from effects of step-fixed costs relating to administration and overhead expenses 63,2% 64,4% 44,7% 48,8% become a best in class
Slide 8: TAG Portfolio 9M-2013
TAG Portfolio 9M-2013 88 TAG has its focus on 5 regions in Germany PORTFOLIO Most of the portfolio is in good urban locations and growth regions, promising continued stable rental income and value creation TAG offers attractive housing at affordable prices The commercial portfolio (represent
Slide 9: TAG Portfolio 9M-2013 – Residential by region
TAG Portfolio 9M-2013 – Residential by region 999 9 PORTFOLIO TAG Immobilien AG | 2013 Q1-Q3
Slide 10: TAG Portfolio 2013 - Operating achievements
TAG Portfolio 2013 - Operating achievements 10 10 10 10 PORTFOLIO TAG Immobilien AG | 2013 Q1-Q3
Slide 11: TAG Portfolio 9M-2013 – Capex - Maintenance
TAG Portfolio 9M-2013 – Capex - Maintenance 11 11 Portfolio residential 30.762 PORTFOLIO in EURm 11.418 11,418 Overall investments: 6,192 19.344 6,115 12.140 Modernisation/ investments (capitalized): 11.42m 10.073 6,997 8.549 5.985 3.881 Maintenance/ repair (charged to P&L): 19.34m 1.552 TOTAL
Slide 12: TAG Portfolio residential – Top cities
TAG Portfolio residential – Top 20 cities 12 12 IFRS Book Value Book Value City Region Units TEUR EUR/sqm Recent lettings in €/sqm Net actual rent in €/sqm PORTFOLIO Salzgitter Salzgitter 8,739 309,146,468 579 4.39 6.26 4.78 Gera Thuringia/ Saxony 7,208 272,148,647 628 2.99 6.24 4.44 4.83 7.16 5.00
Slide 13: TAG Sales 2012/ 2013
TAG Sales 2012/ 2013 13 13 Residential Units in Berlin 1,384 Commercial Units Hamburg, Nuremberg, Ahrensburg, SALES Price in EUR/m 87 Hannover, Munich Pre tax earnings EUR/m 12 Buyer: diverse Equity inflow in EUR/m 40 Buyer: Union Investment Institutional Property GmbH Value optimi
Slide 14: TAG Group financials (IFRS) – Consolidated balance sheet
TAG Group financials (IFRS) 14 14 Consolidated balance sheet (in EURm) FINANCIALS 12/31/2012 9/30/2013 4000 3,800 3,800 4000 3,733 3,733 3600 3600 3200 3,495 1,156 3200 3,544 1,137 2800 2800 175 116 2400 2400 197 2000 2000 1600 1,961 1600 1,960 1200 1200 800 800 400 400 305 508 323 189 0 0 Assets Li
Slide 15: TAG Group financials (IFRS) – Profit & loss
TAG Group financials (IFRS) 15 15 Profit & loss (in EUR m) FINANCIALS In Q3 stable R&M expenses: Improved margin is a result of decrease in vacancy costs and in non-recoverable expenses In Q3 Sale of Commercial Assets in Hamburg und Nuremberg for 8m Major items in Q3: 0.4m reimbursement insurance et
Slide 16: TAG Financial structure – Debt financing
TAG Financial structure – Debt financing 16 16 TAG has a solid financing structure and its growing scale decrease financing costs even further FINANCIING Debt maturity profile as of 6/30/2013 Debt maturity profile as of 9/30/2013 4.11% average cost of 3.77% average cost of bank debt bank debt 8.7 ye
Slide 17: TAG Financial structure – NAV
TAG Financial structure – NAV 17 17 EPRA NAV - Diluted NAV Dilution effects: The repurchase of convertible bonds decreased FINANCING the potenital dilution by approx. EUR 11m TAG shares From the second to the third quarter 2013 the dilution effect has been reduced from EUR 0.47 to EUR 0.23 and
Slide 18: TAG Financial structure – Asset Valuation
TAG Financial structure – Asset Valuation 18 18 Portfolio residential FINANCING 2012 2013 Assumptions/drivers 2012 2013 Fair Value per sqm €760 €758 Cap rate (%) 5.48 5.49 Discount rate (%) 6.18 6.14 Multiple (current rent) 14.2x 14.0x Administrative costs (€/unit) 201 204 Current maintenance (€/sqm
Slide 19: TAG Financial structure – Pro forma NNNAV & LTV
TAG Financial structure – Pro forma NNNAV & LTV 19 19 FINANCING Pro forma assumptions: Real estate valuation completely at net valuation after 7-8% transaction costs will lead to a revaluation of EUR -210m of real estate All financial debt is revalued at Fair value; this 74.5 will lead to a reva
Slide 20: TAG Stock market data 9M-2013
TAG Stock market data 9M-2013 20 20 High/Low (Jan/Sept 2013) EUR 9.65/ EUR 8.16 Number of shares SHAREHOLDER VALUE 130.765m Market capitalisation 1,199,134 EUR Stock indices MDAX/EPRA Free Float * 100% * Deutsche Börse definition including institutional investors TAG Immobilien AG | 2013 Q
Slide 21: TAG - The way forward: Value enhancing asset management
TAG - The way forward: 21 21 Value enhancing asset management OUTLOOK Focus on residential property segment Continuously work the existing portfolio Dispose of commercial properties in value Increase rents – lfl rental growth 3.2% in 2013 maximizing manner over time Reversionary rent potential v
Slide 22: Appendix
APPENDIX 22 22 Growing Assets TAG Immobilien AG | 2013 Q1-Q3
Slide 23: TAG Management Board
TAG Management Board 23 23 Rolf Elgeti, CEO Claudia Hoyer, COO from July 2012 onwards TAG Immobilien AG, Management Board (since July 2009), DKBI Management Board (since July 2010) APPENDIX Supervisory Board from 2008 onwards 10 years in successive positions at Deutsche Kreditbank AG Settin
Slide 24: TAG Portfolio commercial Q1-Q3-2013
TAG Portfolio commercial Q1-Q3-2013 24 24 APPENDIX TAG Immobilien AG | 2013 Q1-Q3
Slide 25: East Germany is catching up…
East Germany is catching up… 25 25 …making it an attractive investment region for TAG APPENDIX GDP growth per employee (1991-2009) Disposable income growth per Residential market rents household (1991-2008) (€ per sqm per month) 4,4 8,2 Berlin 3,6 6,6 4,2 8,0 Leipzig 4,0 6,7 5,0 7,8 Dresden 4,4 6,3
Slide 26: TAG Acquisition 2011/ 2013
TAG Acquisition 2011/ 2013 26 26 APPENDIX TAG Immobilien AG | 2013 Q1-Q3
Slide 27: TAG Integration track record 2012
TAG Integration track record 2012 27 27 DKBI Integration of all central functions completed APPENDIX Start of integration of (de- Closure of headquarter in Progress in operating terms: Control over board of centralized) operational units Potsdam and merger with vacancy down, directors and manageme
Slide 28: TAG Contacts
28 28 TAG Contacts Rolf Elgeti Dominique Mann TAG Immobilien AG CEO Head of Investor & Public Relations Steckelhörn 5 Fon: +49 40 380 32-307 Fon: +49 40 380 32-305 20457 Hamburg Fax: +49 40 380 32-388 Fax: +49 40 380 32-388 Fon: +49 40 380 32-0 ir@tag-ag.com ir@tag-ag.com Fax: +49 40 380 32-388 www.