Tag Immobilien Ag · XETR:TEG
Tag Immobilien — H1 2023 Earnings Presentation
37 slides from Tag Immobilien's earnings presentation, August 2023
Slide 1: Conference call presentation H1 2023
Conference call presentation H1 2023 TAG Immobilien AG | August 2023| 1
Slide 2: Content
Content I. TAG highlights H1 2023 3 II. TAG financials H1 2023 7 III. TAG German portfolio H1 2023 12 IV. TAG portfolio valuation H1 2023 15 V. TAG Poland portfolio H1 2023 17 VI. TAG guidance FY 2023 21 VII. Appendix 23 Income statement, Income statement details Germany and Poland, balance sheet,
Slide 3: TAG highlights H1 2023
TAG highlights H1 2023 TAG Immobilien AG | August 2023| 3
Slide 4: TAG highlights H1 2023: disposals, re-financings and operational performance
TAG highlights H1 2023: disposals, re-financings and operational performance 1 1,051 units (including one commercial building) sold in H1 2023 with total gross sales proceeds of EUR 161.8m and expected net cash proceeds of EUR 143.1; units sold at average gross yield of 4.4% with current vacancy a
Slide 5: TAG highlights H1 2023: financial performance and German portfolio
TAG highlights H1 2023: financial performance and German portfolio Q2 2023 Q1 2023 H1 2023 H1 2022 FY 2022 FFO I (EURm) 46.5 42.6 89.1 96.2 189.4 FFO I (EUR/share) 0.27 0.24 0.51 0.66 1.19 FFO II (EURm) 60.5 51.1 111.6 100.6 247.3 Financial performance FFO II (EUR/share) 0.35 0.29 0.64 0.69
Slide 6: TAG highlights H1 2023: Poland
TAG highlights H1 2023: Poland Q2 2023* Q1 2023 H1 2023* H1 2022 FY 2022 Revenues from sale of properties (EURm) 32.2 58.1 90.3 65.8 337.6 Rental revenues (EURm) 2.7 1.5 4.2 1.2 2.7 Operational performance FFO I Poland** (EURm) -0.1 -0.3 -0.4 --- --- Poland Adjusted net income from sales Poland (EUR
Slide 7: TAG financials H1 2023
TAG financials H1 2023 TAG Immobilien AG | August 2023| 7
Slide 8: TAG income statement
TAG income statement* (in EURm) Q2 2023 Q1 2023 H1 2023 H1 2022 FY 2022 Slight increase in net actual rent Q-o-Q by EUR 0.8 despite portfolio sales in Germany as a result 1 of ongoing rental growth in Germany and Poland. Net actual rent** 1 87.4 86.6 174.1 169.1 339.9 Expenses from property -13.2 -1
Slide 9: TAG EBITDA, FFO and AFFO calculation
TAG EBITDA, FFO and AFFO calculation (in EURm) Q2 2023* Q1 2023 H1 2023* H1 2022 FY 2022* EBIT Germany -408.8 51.0 -357.8 361.3 118.1 EBITDA (adjusted) rental business increases Q-o-Q (EUR 3.8m) mainly as a EBIT Poland rental** 2.1 0.7 2.8 0.0 0.0 1 result of higher net rental income (EUR 3.4m). Tot
Slide 10: TAG EPRA NTA calculation
TAG EPRA NTA calculation EPRA Net Tangible Assets EPRA NTA bridge in EUR/share (in EURm) 30 Jun-2023 31 Dec-2022 Equity (without minorities) 2,957.6 3,198.5 -2.50 + Deferred taxes on investment properties and 0.69 554.7 638.6 financial derivatives + Fair value of financial derivatives -3.0 -6.1 + Di
Slide 11: TAG financing structure
TAG financing structure Debt structure as of 30 Jun-2023 Key financial KPIs as of 30 Jun-2023 Debt volume Ø interest rate % fixed rates Ø Maturity total financial 5.0 years debt Ø Maturity bank loans 6.3 years Bank loans EUR 2,351m 2.2% 94% Ø Interest rate total financial 5% 3% debt 2.3% Corporate b
Slide 12: TAG German portfolio H1 2023
TAG German portfolio H1 2023 TAG Immobilien AG | August 2023| 12
Slide 13: 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 22.7 TAG creates attractive rental
Slide 14: TAG German portfolio vacancy reduction residential units
TAG German portfolio vacancy reduction residential units Strong track record of recurring vacancy reduction after acquisitions leads to significant value creation Acquisitions Acquisitions +0.1% +0.8% 5.9% 5.8% 5.7% 5.7% Acquisitions Acquisitions 5.4% 5.5%* +0.1% 5.3%* 5.2% +0.1% 5.1% 4.8% 4.8% 4.7%
Slide 15: TAG portfolio valuation H1 2023
TAG portfolio valuation H1 2023 TAG Immobilien AG | August 2023| 15
Slide 16: TAG portfolio valuation overview Germany
TAG portfolio valuation overview Germany Portfolio valuation result Development of gross yield 5.9% 5.9% H1 2023 vs. H1 2022 H1 2023 H1 2022 5.7% 5.5% 5.4% 5.3% -471.2 256.5** 5.1% in EUR m semi-annual valuation result (w/o capex) -7.4% +4.0% thereof from yield compression/ expansion -8.3% +3.4%
Slide 17: TAG Poland portfolio H1 2023
TAG Poland portfolio H1 2023 TAG Immobilien AG | August 2023| 17
Slide 18: 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 30 Jun-2023 Building a portfolio of residential properties via own project developme
Slide 19: 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 cas
Slide 20: TAG Rental portfolio Poland
TAG Rental portfolio Poland Continious strong rental results and a growing portfolio Rentable Fair value (IFRS) Units In-place Vacancy Vacancy Net actual rent l-f-l rental growth Region area EURm # yield Jun-2023 Dec-2022 EUR/ sqm/month* y-o-y sqm Jun-2023 Residential units 510 22,126 55.6 5.5% 3.7%
Slide 21: TAG guidance FY 2023
TAG guidance FY 2023 TAG Immobilien AG | August 2023| 21
Slide 22: 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 23: Appendix
APPENDIX TAG Immobilien AG | August 2023| 23
Slide 24: TAG income statement details Germany and Poland
TAG income statement details Germany and Poland Poland - Poland – Poland - Poland – Germany Poland Total Germany Poland Total APPENDIX (in EURm) Rental Sales Rental Sales Q2 2023 Q2 2023 Q2 2023 H1 2023 H1 2023 H1 2023 Q2 2023 Q2 2023 H1 2023 H1 2023 Net actual rent* 84.8 2.7 2.7 0.0 87.4 169.9 4.2
Slide 25: TAG balance sheet
TAG balance sheet (in EURm) 30 Jun-2023 31 Dec-2022 APPENDIX Non-current assets 6,532.3 6,936.1 Investment property 1 6,128.6 6,569.9 The change in investment properties mainly results from property revaluation (EUR -455.5m), capex 1 in H1 2023 (EUR 40.5m) and investments in Poland (EUR 36.8m). Furt
Slide 26: TAG EPRA NAV calculations
TAG EPRA NAV calculations APPENDIX EPRA NRV EPRA NTA EPRA NDV Net reinstatement value Net tangible assets Net disposal value (in EURm) 30 Jun-2023 30 Jun-2023 30 Jun-2023 Equity (before minorities) 2,957.6 2,957.6 2,957.6 Difference between fair value and book value for properties valued at cost 91.
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 APPENDIX # area EURm yield Jun- Dec- rent rent growth Y-o-Y incl. nance EUR/sqm sqm Jun- 2023 2022* EUR/ EUR/ Y-o-Y vacancy EUR/sqm 2023 sqm
Slide 28: TAG German portfolio vacancy reduction and rental growth
TAG German portfolio vacancy reduction and rental growth APPENDIX Vacancy development 6M 2023* l-f-l rental growth (Y-o-Y) 6M 2023 Gera 4.4% 1.8% Gera from 3.9% to 3.1% -0.8% Leipzig 3.0% from 8.0% to 7.9% 2.1% Chemnitz -0.1% Hamburg 2.5% Leipzig from 8.6% to 8.6% +/-0% 2.6% Chemnitz 2.5% Berlin fro
Slide 29: TAG German portfolio valuation details
TAG German portfolio valuation details APPENDIX Jun-2023 Jun-2023 Share of operational Dec-2022 Dec-2022 Dec-2022 Region Jun-2023 YTD 2023 Share of yield Fair value Implied performance/ other Fair value Fair value Implied (in EURm) Fair value (IFRS) Valuation result compression (EUR/sqm) multiple ma
Slide 30: TAG LTV calculation
TAG LTV calculation APPENDIX (in EURm) 30 Jun-2023 31 Dec-2022 31 Dec-2021 Non-current and current liabilities to banks 2,515.1 2,522.0 2,066.5 Non-current and current liabilities from corporate bonds and other loans 537.3 798.6 546.3 Non-current and current liabilities from convertible bonds 462.0
Slide 31: TAG net financial result calculation
TAG net financial result calculation APPENDIX (in EURm) Q2 2023 Q1 2023 H1 2023 H1 2022 FY 2022 + Interest income 0.5 1.0 1.5 13.0 3.0 - Interest expenses -18.1 -18.4 -36.5 -23.2 -54.0 + Other financial result -4.7 -0.1 -4.8 0.3 18.4 = Net financial result -22.4 -17.4 -39.8 -9.9 -32.6 + Financial re
Slide 32: TAG cost of debt and LTV
TAG cost of debt and LTV APPENDIX Cost of debt Ø in % LTV in % 2.3% 2.1% 44.8% 45.1% 46.7% 47.5% 43.2% 1.7% 1.5% 1.4% 2019 2020 2021 2022 30 Jun-2023 31 Dec-2019 31 Dec-2020 31 Dec-2021 31 Dec-2022 30 Jun-2023 TAG Immobilien AG | August 2023| 32
Slide 33: TAG other financing metrics
TAG other financing metrics ICR Net financial debt/ EBITDA adjusted Net financial debt in EUR/ sqm APPENDIX 12.7 651 7.4 11.6 586 6.4 11.3 504 5.2 5.6 10.9 460 479 4.2 10.1 2019 2020 2021 2022 LTM 2023* 2019 2020 2021 2022 LTM 2023* 2019 2020 2021 2022 30 Jun-2023 6.4x reflects the total adjusted EB
Slide 34: TAG financial covenants overview as of Jun-2023
TAG financial covenants overview as of 30 Jun-2023 Covenants leave extensive flexibility for further refinancings APPENDIX Instrument Volume Comments • Mostly ICR/ DSCR or LTV covenants with material headroom Bank loans EUR 2,351m • “Soft covenants”, i.e. breach does not lead to an termination of th
Slide 35: TAG ESG ratings
TAG ESG ratings TAG ranks among the top ratings in the real estate sector APPENDIX ESG rating and award improvements TAG’s ESG disclosure improvement Since 2020 we have placed particular emphasis on improving our ESG performance and reporting in order to better meet the expectations of Sustainalyt
Slide 36: TAG share data
TAG share data Shareholder structure as of 30 Jun-2023 Share information as of 30 Jun-2023 APPENDIX 9.9% MFS (Massachusetts Financial Services Company), USA Market cap EUR 1,520m 9.9% NOSH issued 175.5m 4.9% BayernInvest Kapitalverwaltungsgesellschaft mbH, GER 4.9% NOSH outstanding 175.4m 4.7% 4.7%
Slide 37: 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