Cpi Europe Ag · VIE:CPI
Cpi Europe — S Immo — H1 2017 Earnings Presentation
33 slides from Cpi Europe's earnings presentation, Aug 29, 2017
Slide 1: S IMMO HY results 2017
S IMMO HY results 2017 29 August 2017
Slide 2: Ongoing success in 2017
Ongoing success in 2017 • Excellent HY results following record year 2016 • Net income for the period more than tripled compared to HY 2015 • Financing result improved by 44% compared to HY 2016 • Attractive development pipeline • Excellent YTD performance of S IMMO share 2
Slide 3: Our approach is paying off
Our approach is paying off 30 June 2017 30 June 2016 FFO I EUR 26.7m EUR 19.0m FFO I per share EUR 0.40 EUR 0.29 EPRA NAV per EUR 15.82 EUR 12.99 share EPS EUR 1.03 EUR 1.27 LTV 56.0% 58.7% 3
Slide 4: S IMMO share Outstanding performance
S IMMO share Outstanding performance Performance 01 January 2017 – 30 June 2017 • S IMMO AG: 27.0% • IATX: 15.2% • ATX: 18.7% Performance 01 January 2014 – 31 December 2016 • S IMMO AG: 62.1% • IATX: 23.3% • ATX: 21.2% Indexed from 01 January 2014 to 30 June 2017 4
Slide 5: HY results 2017
HY results 2017
Slide 6: Excellent results
Excellent results Consolidated income statement 01-06/2017 01-06/2016 01-06/2015 Revenues 97.5 95.3 92.2 Rental income 58.5 58.5 54.6 Revenues from operating costs 19.3 18.4 16.7 Revenues from hotel operations 19.6 18.3 20.9 Other operating income 0.9 1.3 1.4 Property operating expenses -29.9 -31.2
Slide 7: Excellent results
Excellent results Consolidated income statement 01-06/2017 01-06/2016 01-06/2015 EBITDA 43.8 43.0 43.1 Depreciation and amortisation -4.3 -4.0 -3.8 Results from property valuation 69.3 106.9 9.7 Operating result (EBIT) 108.9 145.9 48.9 Financial result -19.0 -35.3 -20.6 Participating certificates re
Slide 8: Financing
Financing • Cost of funding as at 30 June 2017: 3.00% (after closing of sales 2.83%) Prudent debt • Average weighted interest rate for all long-term loans: 1.92% management • Average weighted final maturity of long-term loans: 5.4 years • LTV ratio for secured financing: 42.7% Loan-to-value ratio •
Slide 9: Value-creating process: Purchase, Leveraging potentials, Sale
Value-creating process 1 Purchase 2 Leveraging potentials 3 Sale 9
Slide 10: Increasing value through selling
Increasing value through selling • Sale of the properties Hoch Zwei and Plus Zwei • Selling price EUR 75m above acquisition costs in 2010 • Considerable improvement of important balance sheet figures (LTV & EPRA NAV) • Profits realised – integral part of cycle- oriented strategy Hoch Zwei, Vienna 10
Slide 11: Increasing value through selling
Increasing value through selling • Withdrawal from Bulgarian market • Sale of Serdika Center & Offices • Net inflow of approx. EUR 80m • Positive effect on consolidated net income for the period Serdika Center, Sofia 11
Slide 12: We create value – with our strong earnings and cash flow generating portfolio
We create value – with our strong earnings and cash flow generating portfolio.
Slide 13: Attractive properties & real values
Attractive properties & real values 1.3m m² space 6.0% EUR 2,176,478,000 Rental yield IFRS property portfolio value 94.5% 79.2% 20.8% Occupancy rate Commercial properties Residential properties
Slide 14: Strong earnings and cash flow generating portfolio
Strong earnings and cash flow generating portfolio CEE BERLIN EUR 790.9m book value 4.5% vacancy rate PRAGUE 8.1% rental yield BRATISLAVA Germany BUDAPEST EUR 724.3m book value 5.6% vacancy rate 4.9% rental yield Austria ZAGREB BUCHAREST EUR 661.2m book value 6.9% vacancy rate 4.8% rental yield SOFI
Slide 15: Robust business model: Focus on commercial properties
Robust business model Focus on commercial properties • Nearly 80% of the portfolio are 79.2% commercial properties* • Berlin office market offers great Commercial potential Residential • Ongoing focus on Germany: 20.8% • Purchase of 22 properties with roughly 83,000 m² usable space City split AUT/GE
Slide 16: We create value – through project development
We create value – through project development
Slide 17: Current projects
Current projects 101 Neukölln, Berlin QBC, Vienna Siebenbrunnengasse, Vienna Einsteinova, Bratislava The Mark, Bucharest 17
Slide 18: QBC, Vienna
QBC, Vienna Highly modern office space • Realisation of up to 42,000 m² • S IMMO as investor with a stake of 35% (building sections 1 and 2) • Excellent location: next to Vienna's Central Station, new CBD with several group headquarters 18
Slide 19: Neukölln, Berlin
101 Neukölln, Berlin Attractive retail and office space • 22,000 m² • Renovation and restructuring into modern, loft type office and retail space in high frequency area • Central location in Neukölln 19
Slide 20: Einsteinova, Bratislava
Einsteinova, Bratislava Modern and sustainable office project • roughly 23,500 m² • Planned completion in Q1 2018 • 85% pre-let • Renowned tenants like Uniqa • Old town closeby • Shopping and recreation possibilities in direct vicinity 20
Slide 21: Development pipeline
Development pipeline Germany • 13 projects with an investment volume of EUR 245m Austria • 3 projects with an investment volume of EUR 214m CEE • 6 projects with an investment volume of EUR 187m The Mark, Bucharest 21
Slide 22: Positive outlook
Positive outlook A Kx am
Slide 23: Strong NAV growth
Strong NAV growth In EUR 15.82 14.62 12.93 11.75 12.02 10.63 9.35 9.76 9.34 8.70 8.31 7.83 6.96 7.18 2011 2012 2013 2014 2015 2016 HY 2017 Book value per share EPRA NAV per share Value potential: S IMMO share lists at a price well below EPRA NAV 23
Slide 24: Sustainable dividend policy
Sustainable dividend policy 2.98 In EUR 1.17 0.46 0.41 0.40 0.36 0.29 0.30 0.24 0.20 0.15 0.10 2011 2012 2013 2014 2015 2016 Dividend Earnings per share 24
Slide 25: Agenda 2017/2018
Agenda 2017/2018 • Use of generated funds: • Pushing development of current projects • Investment in companies with value potential • Further purchases of properties with sustainable yields in Germany 25
Slide 26: S IMMO's qualities
S IMMO's qualities • Strong earnings and cash flow generating portfolio • Great value potential • Attractive development pipeline • Dynamic value creation • Excellent results • Sustainable dividend policy
Slide 27: Thank you for your attention!
Thank you for your attention!
Slide 28: Appendix
Appendix
Slide 29: Coverage
APPENDIX Coverage Research house Target price Last update Recommendation Baader Bank EUR 13.80 23 August 2017 Hold Erste Group EUR 13.00 06 July 2017 Buy Raiffeisen Centrobank EUR 15.00 16 August 2017 Buy SRC Research EUR 13.50 30 May 2017 Accumulate Average target price EUR 13.83 29
Slide 30: Company history
APPENDIX Company history S IMMO AG founded: Entry into the Entry into the 17 June 2014: First stock-exchange Hungarian German Issue of first listed real estate market market S IMMO company in Austria corporate bond 1987 1999 2001 2003 2005 2008 2010 2014 First CEE First investment in investment Slov
Slide 31: Financial calendar 2017
APPENDIX Financial calendar 2017 29 May 2017 Record date 13 June 2017 29 August 2017 Annual General Dividend ex Results for the Meeting day first half year 2017 30 May 2017 Results for the 14 June 2017 first quarter Record date 2017 dividend Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec 05 Apri
Slide 32: Services
APPENDIX Services We offer the following services on our redesigned website www.simmoag.at/en: Newsletter subscription/RSS feeds/e-Mail services Follow us on Twitter: Our network on Xing: http://twitter.com/simmoag https://www.xing.com/companies/simmo View our videos on YouTube: View our profile o
Slide 33: Disclaimer
APPENDIX Disclaimer These materials have been prepared by S IMMO AG (the "Company") solely for informational purposes, is intended for your use only and does not constitute an offer or commitment, a solicitation of an offer or commitment, or any advice or recommendation to enter into or conclude a