Tag Immobilien Ag · XETR:TEG
Tag Immobilien — Q3 2022 Earnings Presentation
37 slides from Tag Immobilien's earnings presentation, Nov 22, 2022
Slide 1: Conference call presentation Q3 2022
Conference call presentation Q3 2022
Slide 2: Content
Germany Poland Content I. TAG highlights Q3 2022, refinancings and outlook 3 II. TAG financials Q3 2022 9 III. TAG German portfolio Q3 2022 14 IV. TAG Poland portfolio Q3 2022 18 V. TAG guidance 21 VI. Appendix 24 – 37 Income statement details Germany and Poland Balance sheet EPRA NAV calculat
Slide 3: TAG highlights Q3 2022, refinancings and outlook
Germany Poland 3 TAG highlights Q3 2022, refinancings and outlook TAG Immobilien AG | November 2022 | 3
Slide 4: TAG highlights Q3 2022 Germany
Germany TAG highlights Q3 2022 Germany 44 Q3 2022 Q2 2022 FY 2021 Q3 2021 Vacancy (residential units) 4.8% 5.2% 5.5%*/5.4% 5.7% Vacancy (total portfolio) 5.2% 5.5% 5.7% 6.0% Operational performance l-f-l rental growth y-o-y 1.5% 1.5% 1.5% 1.8% German portfolio l-f-l rental growth y-o-y (incl
Slide 5: TAG highlights Q3 2022 Poland
Poland TAG highlights Q3 2022 Poland 55 Q3 2022* Q2 2022* 9M 2022* 9M 2021 FY 2021 Revenues from sale of properties (EURm) 32.5 58.2 98.4 55.8 63.4 Result operations Poland 6.3 6.4 11.4 6.1 6.7 Units handed over 401 538 1.000 521 575 Operational performance Units sold 441 527 1.036 320 412 Poland Bu
Slide 6: Refinancings and outlook
Germany Poland TAG Refinancings and outlook Comprehensive safeguarding measures for refinancings in 2023 Overview of refinancing measures Financial impact EUR 202m gross proceeds In July 2022, TAG Immobilien completed a rights issue transaction generating gross proceeds of EUR 202m 1 Rights Issue co
Slide 7: No material funding requirements in FY 2023
Germany Poland TAG Refinancings and outlook No material funding requirements in FY 2023 2022-2023 Maturing instruments Targeted financing options Instrument Volume Type of Source Amount Timing Comments Commercial Paper EUR 25m Additional Based on 50% LTV of c. EUR 450m German mortgage EUR 250m 2023
Slide 8: High visibility of stabilized FFO I development for 2023-2025
Germany Poland TAG Refinancings and outlook High visibility of stabilized FFO I development for 2023-2025 c. 9% one-time drop in FFO I from 2022E to 2023E stabilized FFO I level from ~190 (c.8) 2024E onwards c.8 (c.2) (c.5) (c.10) ~172 1 2 (c.4) c.4 3 (c.1) One-time effects on 2023E FFO I: 1 Reduced
Slide 9: TAG financials Q3 2022
Germany Poland 9 TAG financials Q3 2022 TAG Immobilien AG | November 2022 | 9
Slide 10: TAG income statement
Germany Poland TAG income statement* (in EURm) Q3 2022 Q2 2022 9M 2022 9M 2021 FY 2021 Net actual rent** 1 85.0 84.8 254.1 249.3 333.1 1 Slight increase in net actual rent Q-o-Q by EUR 0.2m mainly as a result of ongoing rental growth. Expenses from property -14.8 -15.8 -46.1 -45.0 -61.8 management**
Slide 11: EBITDA, FFO and AFFO calculation
Germany Poland TAG EBITDA, FFO and AFFO calculation (in EURm) Q3 2022 Q2 2022 9M 2022 9M 2021 FY 2021 Consolidated net profit 33.1 269.5 334.9 362.4 585.6 Q-o-Q increase of EBITDA adjusted (Germany) follows improved net rental - Net income Poland 2.4 -10.9 -9.7 -10.0 -17.9 1 income development and l
Slide 12: EPRA NTA calculation
Germany Poland TAG EPRA NTA calculation EPRA Net Tangible Assets EPRA NTA bridge in EUR/share (in EURm) 30 Sep-2022 31 Dec-2021 Equity (without minorities) 3,378.0 3,039.7 + Deferred taxes on investment properties and financial 727.8 653.8 1.86 derivatives -0.93 -3.06 0.47 +/- Fair value of financia
Slide 13: TAG financing structure
Germany Poland TAG financing structure Debt structure as of 30 Sep-2022 Key financial KPIs as of 30 Sep-2022 Debt volume Ø interest rate % fixed rates 4% Ø Maturity total financial debt 5.0 years 8% Ø Maturity bank loans 6.9 years EUR 2,106m 1.78% 97% 13% Ø Interest rate total financial debt 1.62% E
Slide 14: TAG German portfolio Q3 2022
Germany 14 TAG German portfolio Q3 2022 TAG Immobilien AG | November 2022 | 14
Slide 15: TAG portfolio at a glance
Germany TAG portfolio at a glance Leading company in the affordable housing sector in Northern and Eastern Germany Strategy TAG is a specialist for affordable housing in Eastern and Northern Germany and among the largest owners of residential properties in Eastern Germany Fully integrated platfo
Slide 16: TAG German portfolio rental growth and capex allocation
Germany 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) 20.4 21.6 20.9 23.2 15.8 TAG creates attra
Slide 17: TAG German portfolio vacancy reduction residential units
Germany TAG German portfolio vacancy reduction residential units 17 17 Strong track record of vacancy reduction; temporary increases in H1 2020 and H1 2021 as a result of the Covid-19-pandemic Acquisitions Acquisitions Acquisitions +0.8% +0.1% +0.3 5.9% Acquisitions 5.8% 5.7% 5.7% +0.1% 5.4% 5.5%* 5
Slide 18: TAG Poland portfolio Q3 2022
Poland 18 TAG Poland portfolio Q3 2022 TAG Immobilien AG | November 2022 | 18
Slide 19: TAG Poland portfolio delivers strong value
Poland TAG Poland portfolio delivers strong value Addition of ROBYG – the leading player in Polish residential market - enhances TAG’s presence in Poland and adds the Warsaw market with an established local portfolio Strategy Key portfolio metrics 30 Sep-2022 Building a portfolio of residential pr
Slide 20: TAG Poland portfolio rental units on offer
Poland TAG Poland portfolio rental units on offer 20 20 First build-to-hold projects in Poland finished in Wroclaw in 2021 and Poznan in 2022 (www.vantagerent.pl) Build-to-hold projects at 30 Sep-2022 Dorzecze Legnickiej IV Buforowa 89 II/III Legnicka 33 Hawelanska 2 Total (Wroclaw) (Wroclaw) (Wrocl
Slide 21: TAG guidance
Germany Poland 21 TAG guidance TAG Immobilien AG | November 2022 | 21
Slide 22: FFO and dividend guidance FY 2022
Germany Poland TAG FFO and dividend guidance FY 2022 after Capital Increase in Jul-2022 FFO I +4% FFO I/s* -3% (EUR) 188-192m 1.20 vs. 2021 (EUR) vs. 2021 FFO II +33% FFO II/s* +22% 247-253m 1.58 (EUR) vs. 2021 (EUR) vs. 2021 suspended to strengthen capital and Dividend financing base * based on 175
Slide 23: FFO and dividend guidance FY 2023
Germany Poland TAG FFO and dividend guidance FY 2023 FFO I -9% FFO I/s* -18% (EUR) 170-174m 0.98 vs. 2022 (EUR) vs. 2021 FFO II -3% FFO II/s* -12% 240-246m 1.39 – 1.40 (EUR) vs. 2022 (EUR) vs. 2022 depending on market conditions and Dividend completions of refinancings * based on 175,391,091 average
Slide 24: Appendix
24 APPENDIX TAG Immobilien AG | November 2022 | 24
Slide 25: Income statement details Germany and Poland
Germany Poland TAG income statement details Germany and Poland Germany Poland Total Germany Poland Total Germany Poland Total (in EURm) APPENDIX Q3 2022 Q3 2022 Q3 2022 9M 2022 9M 2022 9M 2022 FY 2021 FY 2021 FY 2021 Net actual rent* 84.3 0.7 85.0 252.2 1.9 254.1 332.5 0.5 333.1 Expenses from proper
Slide 26: Balance sheet
Germany Poland TAG balance sheet (in EURm) 30 Sep-2022 31 Dec-2021 Increase in book value of investment property by EUR 318.2m, mainly due to revaluation in 1 Germany (EUR 274.2m), first time consolidation of ROBYG (EUR 105.3m), further investments in Non-current assets 7,239.0 6,659.8 Poland (EUR 9
Slide 27: EPRA NAV calculations
Germany Poland TAG EPRA NAV calculations EPRA NRV EPRA NTA EPRA NDV APPENDIX Net reinstatement value Net tangible assets Net disposal value (in EURm) 30 Sep-2022 30 Sep-2022 30 Sep-2022 Equity (before minorities) 3,378.0 3,378.0 3,378.0 Difference between fair value and book value for properties val
Slide 28: Cost of debt and LTV
Germany Poland TAG cost of debt and LTV Cost of debt Ø in % LTV in % APPENDIX 47.3% 44.8% 45.1% 44.9% 43.2% 1.92% 1.73% 1.62% 1.49% 1.39% 31 Dec-2018 31 Dec-2019 31 Dec-2020 31 Dec-2021 30 Sep-2022 2018 2019 2020 2021 9M 2022 Unchanged LTV target of c. 45% ensures a conservative financial policy a
Slide 29: Other financing metrics
Germany Poland TAG other financing metrics ICR Net financial debt/ EBITDA adjusted Net financial debt in EUR/ sqm APPENDIX 609 13.6 6.5 12.7 479 504 5.6 449 460 4.2 5.2 11.6 3.8 11.2 10.9 2018 2019 2020 2021 9M 2022 2018 2019 2020 2021 9M 2022 2018 2019 2020 2021 9M 2022 Strong improvement of ICR
Slide 30: LTV calculation
Germany Poland TAG LTV calculation (in EURm) 30 Sep-2022 31 Dec-2021 APPENDIX Non-current and current liabilities to banks 2,436.1 2,066.5 Non-current and current liabilities from corporate bonds and other loans 762.1 546.3 Non-current and current liabilities from convertible bonds 459.2 457.8 Cash
Slide 31: Net financial result calculation
Germany Poland TAG net financial result calculation (in EURm) Q3 2022 Q2 2022 9M 2022 9M 2021 FY 2021 APPENDIX + Interest income 3.0 12.6 15.6 0.7 4.3 - Interest expenses -15.7 -11.5 -27.2 -42.7 -50.7 + Other financial result 0.1 0.5 0.6 1.7 3.1 = Net financial result -12.7 1.6 -11.1 -40.4 -43.3 + F
Slide 32: TAG German portfolio details by region
Germany 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 Sep- Dec- rent rent growth y-o-y incl. nance EUR/sqm sqm Jun- 2022 2021* EUR/ EUR/ y-o-y vacancy EUR/sqm APPENDIX
Slide 33: TAG German portfolio vacancy reduction and rental growth
Germany TAG German portfolio vacancy reduction and rental growth Vacancy development 9M 2022* l-f-l rental growth (y-o-y) 9M 2022 APPENDIX Gera from 6.9% to 4.6% -2.3% 3.5% Leipzig 1.5% Leipzig from 9.3% to 8.0% -1.3% Berlin 3.2% 2.2% Salzgitter from 6.4% to 5.4% -1.0% Gera 3.1% Total residential -0
Slide 34: TAG portfolio valuation overview Germany
Germany TAG portfolio valuation overview Germany Portfolio valuation result Development of gross yield H1 2022 vs. H1 2021 H1 2022 H1 2021 6.5% 6.3% 6.1% 256.5* 305.6** 5.9% in EUR m 5.7% 5.5% 5.3% semi-annual valuation uplift (w/o capex) 4.0% 5.2% 5.2% thereof from yield compression 85% 89% the
Slide 35: TAG German portfolio valuation details
Germany TAG German portfolio valuation details APPENDIX Sep-2022 Sep-2022 Share of operational Dec-2021 Dec-2021 Dec-2021 Region Sep-2022 YTD 2022 Share of yield Fair value Implied performance/ other Fair value Fair value Implied (in EURm) Fair value (IFRS) Valuation result compression (EUR/sqm) mul
Slide 36: TAG share data
Germany Poland TAG share data Shareholder structure as of 15 Nov-2022 Share information as of 30 Sep-2022 9.9% MFS (Massachusetts Financial Services Company), USA Market cap EUR 1.44m 9.9% NOSH issued 175.5m 7.3% BlackRock Inc., USA NOSH outstanding 175.4m 7.3% Treasury shares 0.1m 4.9% 4.9% BayernI
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