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Patrizia — PATRIZIA Immobilien — H1 2015 Earnings Presentation

41 slides from Patrizia's earnings presentation, Aug 6, 2015

  1. Slide 1: Conference Call on H1 2015

    Conference Call on H1 2015 Business Development, Financials & Outlook 2015 6 August 2015 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  REVIEW H1 – EVENTS HAPPENED  ASSETS UNDER MANAGEMENT  BRIDGE INVESTMENTS  CO-INVESTMENTS  THIRD PARTIES  OWN INVESTMENTS  FINANCIALS Q2/H1  OUTLOOK FY 2015 PATRIZIA Immobilien AG| © 2015 2

  3. Slide 3: Key Financials H1 2015

    Key Financials H1 2015 In EUR‘000 Q2 2015 Q2 2014 H1 2015 H1 2014 Comment Operating result 9,335 5,458 16,811 21,450 Solid Q2 could not offset Q1, EBT 8,035 2,019 11,648 15,190 resulting in H1 results below previous year‘s level Net profit for the period 7,297 3,271 10,147 15,311 30.06.2015 31.12.20

  4. Slide 4: Highlights Q2 2015

    Highlights Q2 2015 BRIDGE INVESTMENTS MANCHESTER  80,000 sqm mixed use site with existing buildings and building plots  Further details see slide 13, 18 HARALD  Takeover of a Swedish Real Estate Fund with more than 14,000 units in Germany and Sweden via a voluntary public offer  Further details

  5. Slide 5: Agenda

    Agenda  REVIEW H1  ASSEST UNDER MANAGEMENT – ASSET ALLOCATION  BRIDGE INVESTMENTS  CO-INVESTMENTS  THIRD PARTIES  OWN INVESTMENTS  FINANCIALS Q2/H1  OUTLOOK FY 2015 PATRIZIA Immobilien AG| © 2015 5

  6. Slide 6: Assets under Management

    Assets under Management ASSETS UNDER MANAGEMENT (IN EUR BILLION) AUM ROSE BY 15% TO EUR 16.8BN 18 16.8 17 16  47% of AuM managed on behalf of third parties without PATRIZIA equity involvement 15 14  7% of AuM on PATRIZIA’s own balance sheet: 13 7.9 Bridge investments as short-term investments 12 i

  7. Slide 7: Growth of PATRIZIA since 2007

    Growth of PATRIZIA since 2007 INCREASE STABLE EARNINGS MAINLY THROUGH GROWTH OF ASSETS UNDER MANAGEMENT TARGET 2015: GROWTH OF ANOTHER EUR 2BN  Outflow of EUR 1.6bn in Q3 due to sale of SÜDEWO +2.2 16.8 ≥ 16.6  Biggest acquisitions in H1 so far worth EUR 1.3bn, more than EUR 870m new AuM already s

  8. Slide 8: Asset Allocation of Funds and Co-Investments

    Asset Allocation of Funds and Co-Investments Capital Commitments Investor Domicile by Equity Commitment by Investor Type in Business Volume 8% 6% 7% 36% 21% 92% 30% Pension funds National institutional investors Saving banks International institutional investors Insurances Other  189 investors in t

  9. Slide 9: Asset Allocation of PATRIZIA, Funds and Co-Investments

    Asset Allocation of PATRIZIA, Funds and Co-Investments Geographical Footprint Sectors1 * of Assets1 2% 2% 2% 4% 2% 9% 10% 5% 49% 73% 5% 2% 6% 30% Germany BeNeLux Residential Logistics UK & Ireland France Office Hotel Nordics Other Retail Health GROWTH EXPECTATIONS Light Industrial Other Residential:

  10. Slide 10: Assets under Management and Staff in Germany and Abroad

    Assets under Management and Staff in Germany and Abroad INCREASING ASSETS UNDER MANAGEMENT REQUIRE TO STRENGTHEN LOCAL TEAMS NO CHANGE IN STAFF NUMBERS SINCE Q1 2015: 800 EMPLOYEES IN TOTAL, THEREOF 83 ABROAD Assets under Management in EUR billion International Employees by Country excl. Germany* 16

  11. Slide 11: Agenda

    Agenda  REVIEW H1 – EVENTS HAPPENED  ASSETS UNDER MANAGEMNT  BRIDGE INVESTMENTS – “MANCHESTER “ AND “HARALD”  CO-INVESTMENTS  THIRD PARTIES  OWN INVESTMENTS  FINANCIALS Q2/H1  OUTLOOK FY 2015 PATRIZIA Immobilien AG| © 2015 11

  12. Slide 12: The Strategy behind “Bridge Investments”

    The Strategy behind “Bridge Investments” DISPOSAL STRATEGY FOR “MANCHESTER” AND “HARALD” Balanced as bridge investments within inventories  PATRIZIA has bought two portfolios on its own account and aims to divest smaller sub-portfolios individually  Portfolio sales to existing PATRIZIA vehicles/in

  13. Slide 13: Bridge Investment „Manchester First Street“

    Bridge Investment „Manchester First Street“ PATRIZIA’S FIRST INVESTMENT IN THE UK PRIVATE RENTAL SECTOR (‘PRS’)  Signing in May 2015, closing on 30 June 2015  Purchase price: approx. GBP 100m (EUR 140m)  80,000 sqm mixed use site with:  Melia-Innside-Hotel (208 beds)  9 bar and restaurant units

  14. Slide 14: Bridge Investment “Harald” – Transaction Highlights

    Bridge Investment “Harald” – Transaction Highlights UNIQUE OFF-MARKET TRANSACTION PATRIZIA’s 3rd largest residential real estate transaction  c. EUR 900m transaction volume (GAV for 100% of shares)  Core competency – attractive residential portfolio with c. 13,500 units in PATRIZIA’s home market w

  15. Slide 15: PATRIZIA’s 3rd largest residential real estate transaction

    PATRIZIA’s 3rd largest residential real estate transaction IN RECENT YEARS, PATRIZIA HAS SUCCESSFULLY COMPLETED THREE LARGE PORTFOLIO ACQUISITIONS IN GERMANY Transaction volume ( EUR bn) Residential units (number) 3.0 35,000 32,000 2.5 2.5 30,000 25,000 2.0 21,000 20,000 1.5 1.4 15,000 14,000 1.0 0.

  16. Slide 16: Portfolio Overview

    Portfolio Overview ATTRACTIVE PORTFOLIO WITH MORE THAN 14,000 RESIDENTIAL UNITS >5,000 units in Berlin, >1,200 units in Bavaria, remainder located across metropolitan areas in West Germany GERMANY SWEDEN 1 “Kiel“ (Kiel) 1 “Umeå“ > 3,500 residential units > 500 residential units 2 “Romanum“ (Bavar

  17. Slide 17: Unique Opportunity: Off-Market Transaction

    Unique Opportunity: Off-Market Transaction GERMAN RESIDENTIAL REAL ESTATE IS A VERY SOUGHT AFTER INVESTMENT PRODUCT EVEN WELL ESTABLISHED MARKET PLAYERS HAVE TO THINK “OUTSIDE THE BOX” TO SOURCE ATTRACTIVE INVESTMENT OPPORTUNITIES European real estate investment sector: very competitive market envir

  18. Slide 18: Bridge Investments – Financials

    Bridge Investments – Financials KEY ITEMS OF THE P&L AND BALANCE SHEET  If we sell sub-portfolios in the form of a share deal, the result is shown in the Income from the deconsolidation of subsidiaries item  If we sell them in form of an asset deal, the achieved sales price is shown in revenues an

  19. Slide 19: Agenda

    Agenda  REVIEW H1 – EVENTS HAPPENED  ASSETS UNDER MANAGEMENT  BRIDGE INVESTMENTS  CO-INVESTMENTS – IMPACT OF SÜDEWO SALE ON H2/2015  THIRD PARTIES  OWN INVESTMENTS  FINANCIALS Q2/H1  OUTLOOK FY 2015 PATRIZIA Immobilien AG| © 2015 19

  20. Slide 20: Sale of the SÜDEWO Group (I)

    Sale of the SÜDEWO Group (I) THE TRANSACTION  PATRIZIA received an unsolicited offer by Deutsche Annington SE  In its role as investment manager, PATRIZIA analysed and subsequently presented this offer to the investor consortium for consideration SÜDEWO WAS ONE OF PATRIZIA‘S BIGGEST CO-INVESTMENTS

  21. Slide 21: Sale of the SÜDEWO Group (II)

    Sale of the SÜDEWO Group (II) SOURCES OF INCOME CO-INVESTMENT SÜDEWO WAS SHOWN AS INCOME FROM PARTICIPATIONS IN THE P&L  Acquisition fee in 2012 of EUR 10.3m was shown in revenues  Approx. EUR 15m income from participations p.a. have to be compensated in the coming years  First tranche of the per

  22. Slide 22: PATRIZIA Capital Allocation

    PATRIZIA Capital Allocation IN EUR MILLION, AS OF 30.06.2015 ASSETS UNDER MANAGEMENT INVESTMENT CAPITAL PARTICIPATION IN % THIRD PARTIES 7,899 ‒ 0 CO-INVESTMENTS 7,697 190.2 RESIDENTIAL 5,993 148.1 GBW GmbH 2,910 55.7 Now free equity 5.1 Süddeutsche Wohnen GmbH 1,610 15.0 due to sale of 2.5 WohnModu

  23. Slide 23: Agenda

    Agenda  REVIEW H1 – EVENTS HAPPENED  ASSETS UNDER MANAGEMENT  BRIDGE INVESTMENTS  CO-INVESTMENTS  THIRD PARTIES  OWN INVESTMENTS  FINANCIALS Q2/H1  OUTLOOK FY 2015 PATRIZIA Immobilien AG| © 2015 23

  24. Slide 24: Third Party Business

    Third Party Business PATRIZIA GewerbeInvest KVG  First purchase (EUR 24m) for the new fund “PATRIZIA Real Invest HP” with focus on German core properties  Two new funds launched in H1 2015  Further real estate development secured under purchase contracts PATRIZIA GrundInvest KVG  Officially lice

  25. Slide 25: Agenda

    Agenda  REVIEW H1 – EVENTS HAPPENED  ASSETS UNDER MANAGEMENT  BRIDGE INVESTMENTS  CO-INVESTMENTS  THIRD PARTIES  OWN INVESTMENTS  FINANCIALS Q2/H1  OUTLOOK FY 2015 PATRIZIA Immobilien AG| © 2015 25

  26. Slide 26: Consolidated Real Estate – Own Portfolio

    Consolidated Real Estate – Own Portfolio TARGET 2015  approx. 150 units left, that implies 930 units to be sold H1 2015 ACTUAL VALUES  sale of 272 units  804 units left  sale of approx. 12,000 units from 2007-2014 UNITS UNITS UNITS REGION/ CITY 30.06.15 SHARE 31.12.14 SHARE 31.12.07 SHARE Cologn

  27. Slide 27: Agenda

    Agenda  REVIEW H1 – EVENTS HAPPENED  ASSETS UNDER MANAGEMENT  BRIDGE INVESTMENTS  CO-INVESTMENTS  THIRD PARTIES  OWN INVESTMENTS  FINANCIALS Q2/H1  OUTLOOK FY 2015 PATRIZIA Immobilien AG| © 2015 27

  28. Slide 28: Service Business – Income Structure

    Service Business – Income Structure A SIMPLE WAY FOR STEADY GROWTH  Increase in earnings mainly through growth of assets under management FEE SPLIT H1 2015: EUR 54.5m H1 2014: EUR 49.0m Services H1 2015: EUR 32.4 (60%) Real Estate H1 2015: EUR 22.1m (40%) H1 2014: EUR 24.3m (50%) Investment House H

  29. Slide 29: Service Business in Detail – How we earn Fees

    Service Business in Detail – How we earn Fees SERVICE REVENUES BY FEE STREAM SERVICE FEES BY BUSINESS UNIT 106.3  Asset- and Fund Management Fees 106.2  Acquisition Fees 2,7  Sales Fees 10.7 Co-Investments  Others Third Parties  Performance Fees 17.7 67.8 54.5 54.5 0.6 34.5 49.0 49.0 7.0 5.3 11

  30. Slide 30: Sources of Income – Service Business Revenues

    Sources of Income* – Service Business Revenues Fee structure Fees Q2 2015 Q2 2014 H1 2015 H1 2014 2014 Fixed percentage of the purchase costs of single Acquisition Fee EUR 2.1m EUR 2.2m EUR 10.2m EUR 18.8m EUR 34.5m assets or portfolios at the time of acquisition Fixed percentage of the proceeds/sal

  31. Slide 31: Sources of Income – Participations

    Sources of Income – Participations INVESTMENT RESULT AS GROWTH TRIGGER INCOME FROM PARTICIPATIONS EARNINGS FROM COMPANIES ACCOUNTED FOR USING THE EQUITY METHOD H1 H1 H1 H1 EUR million EUR million 2015 2014 2014 2015 2014 2014 SÜDEWO WohnModul I Asset Management Fee 3.6 3.6 7.3 Earnings from companie

  32. Slide 32: Operating Result

    Operating Result CALCULATION OF THE ADJUSTED FIGURES In TEUR 2nd quarter 2015 2nd quarter 2014 1st half 2015 1st half 2014 2014 EBT (IFRS) 8,035 2,019 11,648 15,190 41,998 Amortisation on fund management contracts 492 621 984 1,241 2,485 Unrealised change in the value of 0 0 0 0 -51 investment prope

  33. Slide 33: Staff Costs

    Staff Costs NUMBER OF EMPLOYEES REMAINED CONSTANT SINCE THE END OF MARCH 2015  Increase in staff costs by 22.8% to EUR 43.5m (H1 2014: EUR 35.4m) due to new appointments (+10% FTE y-o-y) and salary adjustments in line with market trends  EUR -3.2m effect from provisions for long-term variable comp

  34. Slide 34: P&L

    P&L EUR'000 Q2 2015 Q2 2014 H1 2015 H1 2014 2014 Revenues 55,525 37,601 102,807 84,649 291,815 Income from the sale of investment property 1,383 2,067 2,969 5,512 17,019 Changes in inventories -14,540 1,494 -22,219 5,178 -110,509 Other operating income 5,945 2,636 7,079 3,860 7,143 Income from the d

  35. Slide 35: Positive Development of the Financial Situation

    Positive Development of the Financial Situation BANK LOANS VS. EQUITY RATIO  Financing via bank loans at property/portfolio level, bonded loans on corporate level  Bonded loans with a remaining term to 30 June 2016 and 2018 bearing interest at 4.5% and 4.65%; may be repaid prematurely  Free of de

  36. Slide 36: Net Asset Value

    Net Asset Value NAV / INVESTMENTS SEGMENT SHOULD REPRESENT ONLY 20% OF THE OPERATING RESULT FOR 2015  Investment property and inventories were sold in H1 2015 at a profit with a gross margin of 10.2% and 8.7% respectively, thus confirming the value retention of the properties  The whole service bu

  37. Slide 37: Balance Sheet

    Balance Sheet ASSETS EQUITY AND LIABILITIES EUR'000 30.06.2015 31.12.2014 EUR'000 30.06.2015 31.12.2014 A. Non-current assets A. Equity Goodwill 610 610 Share capital 69,385 69,385 Other intangible assets 38,417 39,407 Capital reserve 198,576 198,576 Software 10,229 10,795 Retained earnings Investme

  38. Slide 38: Agenda

    Agenda  REVIEW H1 – EVENTS HAPPENED  ASSETS UNDER MANAGEMENT  BRIDGE INVESTMENTS  CO-INVESTMENTS  THIRD PARTIES  OWN INVESTMENTS  FINANCIALS Q2/H1  OUTLOOK FY 2015 PATRIZIA Immobilien AG| © 2015 38

  39. Slide 39: New Outlook 2015

    New Outlook 2015 FIRST OUTLOOK FOR 2015  Increase in operating result (EUR 50.2m in 2014) by approx. 10% NEW OUTLOOK FOR 2015+2016 (PUBLISHED IN JUNE 2015)  Combined operating result of at least EUR 200 m  Impact from sale of SÜDEWO on EBT (IRFS) and operating result in H2 2015: EUR 116.3m  Sale

  40. Slide 40: Financial Calendar, Conferences and Roadshows

    Financial Calendar, Conferences and Roadshows 2015 August 6  Interim report for the first half of 2015 27  Roadshow with Baader Bank, Vienna September 21 - 22  Berenberg & Goldman Sachs International – German Corporate Conference, Munich 24  Baader Investment Conference, Munich 30  Roadshow wit

  41. Slide 41: 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

PATRIZIA Immobilien — H1 2015 Earnings Presentation on 6ix