Slide 1: Conference call presentation FY 2017
Conference call presentation FY 2017 1
Slide 2: Content
Content 22 I. TAG highlights Q4 and FY 2017 3 II. TAG financials Q4 and FY 2017 6 III. TAG portfolio FY 2017 13 IV. TAG acquisitions and disposals FY 2017 17 V. TAG guidance FY 2018 21 VI. Appendix 23 Portfolio details, vacancy reduction and rental growth by region Portfolio valuations details
Slide 3: TAG highlights Q4 and FY 2017
3 TAG highlights TAG acquisitions Q4 and 2016 FY 2017
Slide 4: TAG highlights Q4 2017
TAG highlights Q4 2017 44 FY 2017 FY 2016 Q4 2017 Q3 2017 Vacancy (residential units) 4.8% 6.1% 4.8% 5.3% Operational L-f-L rental growth Y-o-Y 2.0% 2.0% 2.0% 1.9% performance L-f-L rental growth Y-o-Y incl. vacancy reduction 3.1% 3.7% 3.1% 3.0% FFO I (EUR m) 127.4 97.0 34.1 33.9 FFO I (EU
Slide 5: TAG highlights FY 2017
TAG highlights FY 2017 55 Strong increase in FFO, AFFO and Dividend FFO, AFFO FFO I up Y-o-Y by EUR 30.4m (+31%) and by EUR 0.15 (+21%) on a per share basis and AFFO up Y-o-Y by EUR 34.1m (+68%) and by EUR 0.21 (+57%) on a per share basis Dividend Dividend guidance for FY 2017 increased toda
Slide 6: TAG financials Q4 and FY 2017
6 TAG financials TAG acquisitions Q4 and 2016 FY 2017
Slide 7: TAG income statement (IFRS)
TAG income statement (IFRS) 77 FY 2017 FY 2016 Q4 2017 Q3 2017 1 Strong increase in rental income of EUR 17.8m Y-o-Y (in EUR millions) (adjusted)* (adjusted)* driven by new acquisitions (c. 5,000 units in FY 2017) 1 and total l-f-l rental growth of 3.1%. Rental income 293.0 275.2 75.0 74.7 Expenses
Slide 8: TAG EBITDA, FFO and AFFO calculation
TAG EBITDA, FFO and AFFO calculation 88 (in EUR millions) FY 2017 FY 2016 Q4 2017 Q3 2017 Net income 313.7 200.7 220.0 19.6 1 Improved EBITDA of EUR 23.1m Y-o-Y mainly + Income tax 82.8 46.0 58.7 4.5 result of higher net rental income (+EUR 16.5m), higher net revenue from services (+EUR 7.7m) + Net
Slide 9: TAG balance sheet (IFRS)
TAG balance sheet (IFRS) 99 (in EUR millions) 31 Dec-2017 30 Sep-2017 31 Dec-2016 1 Book value of investment properties increased by Non-current assets 4,243.8 3,993.8 3,843.6 EUR 388.2m in 2017 mainly due to portfolio valuation Investment property 1 4,166.0 3,925.6 3,777.8 (+EUR 293.0m) and new acq
Slide 10: TAG EPRA NAV calculation
TAG EPRA NAV calculation 10 10 EPRA NAV bridge (in EUR / share) (in EUR millions) 31 Dec-2017 30 Sep-2017 31 Dec-2016 Equity (without minorities) 1,625.9 1,409.9 1,350.9 + Deferred taxes on investment properties and financial 362.3 305.9 287.1 derivatives + Fair value of financial 8.4 7.5 4.0 deriva
Slide 11: TAG cost of debt and LTV
TAG cost of debt and LTV 11 11 Cost of debt Ø Continuous reduction of average cost of debt from FY 2015 onwards. Average cost of debt as of 31 Dec-2017 3.74% 3.45% excluding already refinanced corporate bond due 3.15% 2.34% Aug-2018 (effective coupon 4.83%) on a pro- forma basis down to 2.14%.
Slide 12: TAG debt financing structure
TAG debt financing structure 12 12 Debt maturity profile as of 31 Dec-2017 Interest rates Corporate bonds EUR 316m (13%) Ø interest rate: Bank loans 4.41% EUR 1,946m (77%) 100% fixed rates Total Ø interest rate: financial debt Convertible bonds 2.24% EUR 2,524m EUR 262m (10%) 98% fixed rates Ø 2
Slide 13: TAG portfolio FY 2017
13 TAGTAG acquisitions portfolio 2016 FY 2017
Slide 14: TAG portfolio in total as of 31 Dec-2017
TAG portfolio in total as of 31 Dec-2017 14 14 TAG is a leader in affordable housing in Northern and Eastern Germany. The portfolio is structured in ten defined regions in and around large and mid-sized cities. The management of these regions is conducted in a decentralized fashion. TAG’s lo
Slide 15: TAG strong vacancy reduction continues
TAG strong vacancy reduction continues 15 15 TAG exhibits strong local presence in its core regions which allows for excellent market knowledge and efficient operation of properties. Levering on its strong local network TAG explicitly aims to acquire smaller and / or geographically diversified p
Slide 16: TAG attractive and efficient rental growth
TAG attractive and efficient rental growth 16 16 TAG creates attractive rental growth from regular rent increases and tenant turnover (“basis l-f-l rental growth”) and Rental growth from vacancy reduction (leading to “total l-f-l rental growth”) achieved with moderate Targeted and efficient
Slide 17: TAG portfolio valuation FY 2017
TAG portfolio valuation FY 2017 17 17 Key metrics Total valuation gain of EUR 549.7m before change in treatment of transaction costs (H1 2017: EUR 296.2m / H2 2017: Dec-2017 Jun-2017 Dec-2016 Dec-2016 EUR 253.5m) leads to c. 14% annual valuation uplift and c. 80 bps (adjusted for (as reported) gro
Slide 18: TAG acquisitions and disposals FY 2017
TAG acquisitions and disposals TAG acquisitions 2016 FY 2017
Slide 19: TAG acquisitions FY 2017
TAG acquisitions FY 2017 19 19 Signing Brandenburg Saxony- Saxony- Saxony Thuringia Total Anhalt Anhalt, Lower Saxony, Thuringia Feb-2017 Mar-2017 Jun-2017 Oct-2017 Nov-2017 2017 Units 1,441 1,252 1,445 328 480 4,946 Current net cold rent 4.77 4.82 4.78 4.91 4.32 4.78 Brandenburg EUR/sqm/month Vacan
Slide 20: TAG disposals FY 2017
TAG disposals FY 2017 20 20 Signing Brandenburg Freiburg Berlin Halle an der Ongoing Total Saale disposals Feb-2017 Jun-2017 Oct-2017 Nov-2017 2017 2017 Units 535 457 267 265 427 1,951 Current net cold Brandenburg rent 3.61 6.21 6.65 3.48 --- --- EUR/sqm/month Vacancy 33.4% 0.0% 3.5% 23.9% --- --- S
Slide 21: TAG guidance FY 2018
21 TAG TAG acquisitions guidance 2016 FY 2018
Slide 22: TAG guidance FY 2018
TAG guidance FY 2018 22 22 FFO EUR 127.4m (guidance 2017: EUR 119m-121m , FY 2016: EUR 97.0, 31% increase Y-o-Y); difference to guidance from Aug-2017 mainly driven by c. EUR 3.2m lower maintenance Results FY 2017 costs and c. EUR 1.9m lower financing costs). FFO/s EUR 0.87 (guidance 2017: EUR 0
Slide 23: APPENDIX
23 23 APPENDIX APPENDIX TAG Immobilien AG | November 2017
Slide 24: TAG portfolio details by region
TAG portfolio details by region 24 24 Region Units Rentable IFRS BV In- Vacancy Vacancy Current Re- L-f-l rental L-f-l rental Mainte- Capex # area EURm place Dec- Dec- net cold letting growth growth nance EUR/sqm sqm yield 2017 2016 rent rent Y-o-Y Y-o-Y incl. EUR/sqm APPENDIX EUR/ EUR/ vacancy sqm
Slide 25: TAG vacancy reduction and rental growth
TAG vacancy reduction and rental growth 25 25 Vacancy development per region L-f-l rental growth per region (Y-o-Y) 2017 2017 APPENDIX 2016 2016 TAG Immobilien AG | February 2018 | 25 Basis l-f- l Including vacancy reduction
Slide 26: TAG portfolio valuation details
TAG portfolio valuation details 26 26 Share of Change in FY 2017 Dec-2016 Dec-2016 Dec-2016 Region Dec-2017 Dec-2017 Dec-2017 FY 2017 Share of operational treatment of Net Fair value Fair value Implied Fair value Fair value Implied Revaluation yield performance/ APPENDIX transaction revaluation (IFR
Slide 27: TAG EPRA Earnings
TAG EPRA Earnings 27 27 (in EUR millions) FY 2017 FY 2016 Q4 2017 Q3 2017 Net income 313.7 200.7 220.1 19.6 APPENDIX Valuation result -293.0 -163.1 -253.7 0.2 Deferred income taxes on valuation result 76.9 43.6 64.1 0.0 Net revenues from sales 0.0 -1.8 0.9 -0.3 Cash taxes on net revenues from sales
Slide 28: TAG LTV calculation
TAG LTV calculation 28 28 APPENDIX (in EUR millions) 31 Dec-2017 30 Sep-2017 31 Dec-2016 Non-current and current liabilities to banks 1,935.4 1,927.1 1,826.5 Non-current and current liabilities from corporate bonds 322.2 322.0 443.7 Non-current and current liabilities from convertible bonds 256.2 25
Slide 29: TAG maintenance and capex
TAG maintenance and capex 29 29 APPENDIX in EUR millions 2016 2017 Total portfolio Q1 Q2 Q3 Q4 Total FY Q1 Q2 Q3 Q4 Total FY Maintenance 6.6 6.6 5.8 6.0 25.0 7.3 6.9 7.5 7.4 29.1 Capex 9.6 11.7 13.6 11.6 46.5 7.9 9.9 11.8 13.2 42.8 Total 16.2 18.3 19.4 17.6 71.5 15.2 16.8 19.3 20.6 71.9 in EUR/sqm 2
Slide 30: TAG return on capex
TAG return on capex 30 30 Modernisation is key element of TAG’s strategy Methodology APPENDIX Capex measures can be broken down into Incremental revenues 1 = Return on investment Modernisation of vacant flats Total investment (longer term vacancy) Modernisation during re-letting Incremental
Slide 31: TAG return on capex
TAG return on capex 31 31 Total capex APPENDIX FY 2017: EUR 42.8m FY 2016: EUR 46.5m Single unit program Property based program (Equity financed) (Modernisation capex, partly debt financed) Share of total capex: c.63% in FY 2017 (c.56% in FY 2016) Share of total capex: c. 37% in FY 2017 (c.44% in FY
Slide 32: TAG services business
TAG services business 32 32 Facility management (100% owned subsidiary) Caretaker services, cleaning services and gardening APPENDIX In place since 2012 Main target: improve quality in comparison to external services 2016 2017 2018E Revenues (EURm) 6.5 9.2 9.5 c. 46,000 units covered in 2017
Slide 33: TAG services business
TAG services business 33 33 Energy services (100% owned subsidiary) Heating services for tenants (TAG as owner and operator of heating facilities) APPENDIX In place since 2016 Main target: create additional income for TAG and reduce energy costs/ service charges for tenants in EUR/m 2016 201
Slide 34: TAG services business
TAG services business 34 34 Condominium management (100% owned subsidiary) Condominium management (“WEG-Verwaltung”) APPENDIX for homeowners’ associations Includes management for third parties as well as management of units owned by TAG 4 main locations (Berlin, Erfurt, Gera and Hamburg) wit
Slide 35: TAG shareholder structure
TAG shareholder structure 35 35 Shareholder structure as of 31 Dec-2017 APPENDIX Number of shares (issued) 146.5m Market capitalisation (31 Dec-2017) EUR 2.3bn Stock indices MDAX/EPRA Free Float * 100% * Deutsche Börse definition including institutional investors Erfurt Gera Wittenberg TAG I
Slide 36: TAG management board
TAG management board 36 36 APPENDIX Claudia Hoyer Martin Thiel Dr. Harboe Vaagt COO CFO CLO Key responsibilities: Property and Key responsibilities: Controlling, Key responsibilities: Legal, Human Asset Management, Acquisitions and Accounting, Financing, Taxes, Resources and Transactions Dispo
Slide 37: TAG notes
TAG notes 37 37 APPENDIX TAG Immobilien AG | February 2018 | 37
Slide 38: TAG contacts
38 38 TAG TAGcontacts Contacts Martin Thiel Dominique Mann TAG Immobilien AG Martin Thiel CFO Dominique Head Mann of Investor & Public Relations TAG Immobilien AG CFO Head of Investor & Public Relations Steckelhörn 5 Phone: +49 40 380 32-222 Phone: +49 40 380 32-305 Steckelhörn 5 20457 Hamburg Phone