HIAG Immobilien Holding AG · SIX:HIAG
HIAG Immobilien — H1 2015 Earnings Presentation
38 slides from HIAG Immobilien's earnings presentation, Sep 1, 2015
Slide 1: HIAG Immobilien Half-Year Results 2015
HIAG Immobilien Half-Year Results 2015 September 1st, 2015 © HIAG Immobilien 1
Slide 2: Disclaimer
Disclaimer The financial data as well as the other information presented herein constitute selected information. The information in this presentation does not constitute an offer or invitation and may not be construed as a recommendation by us to purchase, hold or sell shares of HIAG Immobilien Hold
Slide 3: Agenda
Agenda 1. Highlights 2. Portfolio 3. Financial Results Half-Year 2015 4. Major Developments 5. Market 6. Outlook 7. IR Agenda 8. Appendix HIAG Immobilien 3
Slide 4: Highlights
Highlights • Increase in property income by 7.4% to CHFm 25.1 • Increase in operating income without revaluation by 9.0% to CHFm 26.2 • CHFm 24.2 net profit • Earnings per share CHF 3.02 • Growth of portfolio to CHF 1.2 bn • Solid financing structure with equity ratio at 53.9% and LTV of 38.3% • Bon
Slide 5: Agenda
Agenda 1. Highlights 2. Portfolio 3. Financial Results Half-Year 2015 4. Major Developments 5. Market 6. Outlook 7. IR Agenda 8. Appendix HIAG Immobilien 5
Slide 6: HIAG Immobilien's portfolio is highly diversified by use…
HIAG Immobilien’s portfolio is highly diversified by use… Others 3.3% Building land 8.1% Industry, commercial 27.7% Office 10.5% Industry, commercial and Distribution, Logistics Retail 37.2% 14.2% Distribution, Logistics 9.5% Residential, Residential commercial 21.4% 5.2% Mainly Residential 26.5% Ba
Slide 7: …and let to a diversified base of strong tenants…
…and let to a diversified base of strong tenants… Top 10 tenants (Group) based on annualised property income Tenants and credit rating Share of annualised rental Cumulative share of (Moody’s, S&P, Fitch) income: annualised rental income: ABB Group, industry (A2 / A / A-) 5.3% 5.3% Hewlett-Packard, I
Slide 8: …with a long-dated expiry profile
…with a long-dated expiry profile Expiry profile based on property income * Letting to residential tenants and in redeve- 34.0% lopment segment. 24.0% 17.0% 10.0% 7.0% 4.0% 3.0% 1.0% Juli 15 - Juni 16 Juli 16 - Juni 17 Juli 17 - Juni 18 Juli 18 - Juni 19 Juli 19 - Juni 20 Juli 20 - Juni 21 2021-2032
Slide 9: Agenda
Agenda 1. Highlights 2. Portfolio 3. Financial Results Half-Year 2015 4. Major Developments 5. Market 6. Outlook 7. IR Agenda 8. Appendix HIAG Immobilien 9
Slide 10: Income statement
Income statement in CHFm 30.06.2015 30.06.2014 D CHFm D% Property income 25.1 23.4 +1.7 7.4% Other operating income 1.1 0.6 0.5 68.3% Total operating income without revaluation 26.2 24.0 +2.2 9.0% Revaluation of properties 15.2 16.2 -1.0 -6.2% Total operating income 41.4 40.2 +1.2 3.0% Total operati
Slide 11: Annualised property income +3.4% YTD
Annualised property income +3.4% YTD in CHFm* 31.12.2013 30.06.2014 31.12.2014 30.06.2015 D CHFm D% Target annualised property income 57.0 58.1 59.1 61.2 +0.8 +1.3% Actual annualised property income 46.6 49.0 49.8 51.5 +1.7 +3.4% Actual property income 42.2 23.4 47.4 25.1 +7.4% • Like for like incre
Slide 12: Continuing reduction of vacancy rate
Continuing reduction of vacancy rate in % 30.06.2015 31.12.2014 Yielding properties 10.0% 11.7% Yielding properties undergoing repositioning* 33.0% 33.8% Redevelopment properties 22.2% 24.9% Total portfolio 16.3% 18.0% * properties Mandachstrasse 50-56 (Niederhasli), Lorzenpartkstrasse 2-16 (Cham) a
Slide 13: Revaluation of properties within expected fluctuation range
Revaluation of properties within expected fluctuation range in CHFm 30.06.2015 30.06.2014 Revaluation of properties 15.2 16.2 Thereof revaluation of promotion projects 3.7 2.6 Thereof adjustment costs for environmental risks -0.1 - Main drivers: • Dornach (CHFm +5.0) • Baar, The Cloud (CHFm +2.7) •
Slide 14: Discount rate used in the portfolio evaluation: no significant yield compression
Discount rate used in the portfolio evaluation: no significant yield compression 30.06.2015 31.12.2014 Weighted average real discount rate yielding portfolio** 4.73% 4.77% Weighted average real discount rate redevelopment portfolio** 4.66% 4.67% Weighted average real discount rate total portfolio**
Slide 15: Operating expenses
Operating expenses in CHFm unless otherwise stated 30.06.2015 30.06.2014 D CHFm D% Personnel expenses 3.8 3.1 0.7 22.6% Thereof Long Term Incentive Plan 2014-2019 (LTIP) 0.5 - 0.5 # Full-time employees Core Team / HR-PF Services 25.9 24.2 # Full-time employees Facility Management 12.8 13.2 Maintenan
Slide 16: Balance sheet
Balance sheet in CHFm 30.06.2015 31.12.2014 D CHFm D% Properties 1’082.1 1’048.7 Properties held for sale 114.0 102.4 GAV 1’196.1 1’151.1 44.9 3.9% LTV-Ratio 38.3% 37.0% Swiss GAAP FER NAV 673.6 675.6 Swiss GAAP FER NAV per share 84.20 84.45 Capital contribution reserves 105.8 132.2 -26.4 Equity rat
Slide 17: Continous portfolio growth
Continous portfolio growth GAV growth in CHFm 2013 (12M) 2014 (12M) 2015 (6M) HIAG Immobilien 17
Slide 18: Financing structure
Financing structure in CHFm 30.06.2015 31.12.2014 Bank financing 485.2 487.8 Bond - - Total 485.2 487.8 • Most of the Group’s financing agreements are entered into for an indefinite period*; such agreements provide for termination only in certain circumstances (e.g. insolvency, breach of interest pa
Slide 19: Strong credit metrics and solid capital structure – LTV-ratio of 38%
Strong credit metrics and solid capital structure – LTV-ratio of 38% in CHFm 31.12.2013 30.06.2014 31.12.2014 30.06.2015 GAV 1’065.3 1'122.1 1'151.1 1’191.1 Unpledged properties Cash & cash equivalents 19.0 69.2 62.2 26.4 Gross financial debt 507.7 487.7 487.8 485.2 Due within 12 months* 40.3 11.0 1
Slide 20: Agenda
Agenda 1. Highlights 2. Portfolio 3. Financial Results Half-Year 2015 4. Major Developments 5. Market 6. Outlook 7. IR Agenda 8. Appendix HIAG Immobilien 20
Slide 21: Baar «The Cloud»
Baar «The Cloud» Show apartment finished in June 2015 Under construction • Construction status: topping out in July / costs and timing in plan • Investment volume CHFm 67 • 35% of condominiums sold and signed reservations as of August 31st, 2015 HIAG Immobilien 21
Slide 22: Windisch «Feinspinnerei»
Windisch «Feinspinnerei» Construction starting in October 2015 Commercialization / further development • Project Spinnerkönig fully let as at Juli 2015 • Commercialization Project Spinnerei III as at August 2015: 82% • Project Feinspinnerei: construction to start in October 2015 HIAG Immobilien 22
Slide 23: Bremgarten «Jeld-Wen»
Bremgarten «Jeld-Wen» Construction starting in October 2015 Under redevelopment • Within 2 years, 2‘500 m 2 office and 4‘900 m2 commercial space added during operation • Investment volume of approximately CHFm 15 • Rental agreement was prolonged by 12 years HIAG Immobilien 23
Slide 24: «Papieri» Biberist
«Papieri» Biberist Masterplan approved boosting Under redevelopment • Communal authorities approve unanimously Masterplan Papieri 2033 • High bay storage in permission process • Land swap with Canton for development in preparation for renaturation project of Emme HIAG Immobilien 24
Slide 25: Dornach competition in preparation
Dornach competition in preparation • Property transfer on January 12th, 2015 after the fulfilment of the contractually designated conditions of execution • Negotiation on follow up rental agreement ongoing • Urbanist Competition in preparation, expected to be commenced in 2016 HIAG Immobilien 25
Slide 26: Agenda
Agenda 1. Highlights 2. Portfolio 3. Financial Results Half-Year 2015 4. Major Developments 5. Market 6. Outlook 7. IR Agenda 8. Appendix HIAG Immobilien 26
Slide 27: Market
Market • Economic slow down will have impact on real estate market, but no direct impact on yielding portfolio expected • Space requirements might be revised in sectors that have to expect long term impact of stronger CHF • Condominiums still attractive at low financing cost, but less sales off plan
Slide 28: Agenda
Agenda 1. Highlights 2. Portfolio 3. Financial Results Half-Year 2015 4. Major Developments 5. Market 6. Outlook 7. IR Agenda 8. Appendix HIAG Immobilien 28
Slide 29: Outlook
Outlook • Property income expected by around +4% in 2015 (without acquisitions) • Operative income by around +6% in 2015 (excl. revaluation, without acquisitions) • 150 condominiums at CHFm 171 for sale in 3-4y horizon • HIAG Immobilien to stick to its acquisition metrics HIAG Immobilien 29
Slide 30: Agenda
Agenda 1. Highlights 2. Portfolio 3. Financial Results Half-Year 2015 4. Major Developments 5. Market 6. Outlook 7. IR Agenda 8. Appendix HIAG Immobilien 30
Slide 31: IR Agenda
IR Agenda September 9th, 2015 EPRA Annual Conference, Berlin October 1st, 2015 Investora, Zürich October 23rd, 2015 Site visit «The Cloud», Baar November 13th, 2015 Vontobel Immobilientag 2015, Zürich March 21st, 2016 Publication annual result 2015 April 19th, 2016 General Meeting 2016 investor.rela
Slide 32: Agenda
Agenda 1. Highlights 2. Portfolio 3. Financial Results Half-Year 2015 4. Major Developments 5. Market 6. Outlook 7. IR Agenda 8. Appendix HIAG Immobilien 32
Slide 33: Key financial figures per share
Key financial figures per share in CHF 30.06.2015 30.06.2014 Earning per share 3.02 3.44 Earning per share without revaluation 1.12 1.17 Earning per share without revaluation including revaluation of promotion 1.58 1.54 EPRA Earnings per share 1.59 1.60 Swiss GAAP FER NAV per share 84.20 84.45 EPRA
Slide 34: Portfolio key figures
Portfolio key figures in CHFm 30.06.2015 31.12.2014 Portfolio 1’196 1’151 Yielding Portfolio 705 703 Redevelopment Portfolio 491 448 Annualised property income 51.5 49.8 Number of properties 115 115 Number of redevelopment properties 54 53 Number of projects 51 51 Vacancy rate 16.3% 18.0% HIAG Immob
Slide 35: Condominium sales
Condominium sales Promotion projects Stegbünt Spinnerei III The Cloud # of condominiums 63 50 102 # reservations payed 0 6 14 # sales contracts signed 60 35 22 % of condominiums sold as of 31.07.2015 95% 70% 22% % of condominiums sold and paid reservations as of 31.07.2015 95% 82% 35% Total target r
Slide 36: Cash flow
Cash flow in CHFm 30.06.2015 30.06.2014 Funds from operations incl. sales of condominiums +20.9 +13.6 Cash Flow from Investments -16.8 -60.8 Cash Flow from Financing -28.9 +102.4 HIAG Immobilien 36
Slide 37: Portfolio split by type of use and region
Portfolio split by type of use and region Others Others Building land 3.3% 3.3% 8.1% Geneva Industry, 10.5% commercial 27.7% Office Aargau 10.5% 27.7% Basel-Land 14.2% Retail 14.2% Distribution, Logistics Solothurn 9.5% 5.2% Zürich 9.5% Residential and commercial 5.2% Residential Zug 21.4% 21.4% GAV
Slide 38: EPRA key financial figures
EPRA key financial figures in CHFm except otherwise stated 30.06.2015 30.06.2014 EPRA Earnings 12.7 11.5 EPRA Earnings per share (CHF) 1.59 1.60 EPRA NAV 737.2 732.0 EPRA NNAV 673.4 675.0 EPRA NAV per share (CHF) 92.15 91.49 EPRA vacancy rate (yielding portfolio) 14.3% 15.8% EPRA vacancy rate (yield
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