TAG Immobilien AG · XETR:TEG
TAG Immobilien — Q3 2011 Earnings Presentation
40 slides from TAG Immobilien's earnings presentation, 2011
Slide 1: TAG Immobilien AG Q1-Q3 2011
TAG Immobilien AG Q1-Q3 2011 Q1-Q3 2011 TAG I 1
Slide 2: Content
Content I. Group overview page 3-5 • TAG investment case, highlights Q3, Q4 • Combined entity TAG – Colonia II. Portfolio page 6-21 • Overview • Residential • Salzgitter • Commercial • Vacancy reduction Overview III. Group financials page 22-24 • Consolidated balance sheet IV. Financial structure pa
Slide 3: TAG investment case
TAG investment case I. Focus: High-quality EUR 1.3bn German residential real estate in metropolitan regions such as Hamburg, Berlin, North Rhine Westphalia, Salzgitter, Leipzig and Munich II. Plus: Solid EUR 479m German commercial real estate with solvent tenants (30% Siemens) III. Solid financing s
Slide 4: What to expect in Q4?
What to expect in Q4? I. Acquisition of 3,228 units in Saxony and Hamburg region completed on 1st November financed by capital increase in kind, issuance of shares at EUR 8.00 • NAV & FFO enhancive II. Capital increase in kind at Colonia: TAG increases stake in Colonia from ca. 60% to ca. 70% via Gr
Slide 5: Highlights Q3 figures
Highlights Q3 figures • EBT of EUR 53.4m - of which EUR 23.0m revaluations - and operating profit of EUR 2.6m in Q3 • Revaluations are approx.1.5% year-on-year Group summary • Rental growth of the assets 2.5% • Vacancy reduction residential quarter-on-quarter - TAG and Colonia from 13.3% to 12.5% -
Slide 6: Combined entity TAG - Colonia: Portfolio
Combined entity TAG - Colonia: Portfolio Total TAG Colonia Units 27,586 8,699 18,887 Floor Area sqm 2,021,943 859,193 1,162,750 Real Estate Volume TEUR 1,724,357 904,246 820,111 Vacancy % 11.7 6.3 15.7 Net Actual Rent EUR/sqm 5.36 6.00 4.84 Combined entity Q1-Q3 2011 TAG I 6
Slide 7: Combined entity TAG - Colonia: Integration and synergies
Combined entity TAG - Colonia: Integration and synergies Old target Already achieved Visible from New target Comment General Largely already EUR 11.2 million administrative visible; the rest per year already expenses EUR 10 million EUR 11 million from Q3 2011 EUR 11 million achieved Transfer of Prop
Slide 8: Portfolio total
Portfolio total Real estate volume Rental profit per segment Volumen in EUR million in EUR million 1,842 58.8 2000 60 1600 22.1 40.2 820 35.0 40 34.4 Portfolio 1200 978 804 19.0 770 318 17.3 12.8 800 15.8 479 543 20 418 452 17.7 22.9 22.2 400 18.6 499 479 386 318 0 0 12/31/08 12/31/09 12/31/10 09/30
Slide 9: Portfolio residential by region
Portfolio residential by region* Munich 2% Leipzig 6% Hamburg 20% NRW Portfolio 12% Others 4% Berlin 30% Salzgitter 26% *as of 09/30/2011 by book value Q1-Q3 2011 TAG I 9
Slide 10: Portfolio residential by region
Portfolio residential by region Region Hamburg Region Berlin Region Saxony/Leipzig Average asset rent: EUR 5.35 Average asset rent: EUR 4.79 Average asset rent: EUR 4.40 – Number of accommodation – Number of accommodation – Number of accommodation units: 5,079 units: 8,261 units: 1,968 – 20% of the
Slide 11: Micro Location Salzgitter
Micro Location Salzgitter Portfolio Units Lebenstedt 6,267 Fredenberg 2,082 Hallendorf 365 Fredenberg Inhabitants in these districts 41,000 (40%) Q1-Q3 2011 TAG I 11
Slide 12: Portfolio Salzgitter – concrete next steps
Portfolio Salzgitter – concrete next steps Vacancy reduction • Overall vacancy in Salzgitter: 10% • Vacancy in our portfolio: 23% • We are in above-average location…making a single digit vacancy target obvious • 2,000 units are missing for elderly tenants • Chances/angles for marketing: 1. Simply ha
Slide 13: Portfolio Salzgitter - success in letting
Portfolio Salzgitter - success in letting • Re-letting shows big success since TAG took over the asset and property management • At the same time cancellations decreased • Net absorption: annualised on track for single-digit vacancy in 2014 35 Delta between 32 new contracts and cancellation for resi
Slide 14: Portfolio Salzgitter - vacant flats are let at higher rents
Portfolio Salzgitter - vacant flats are let at higher rents • Rents per sqm and month for new lettings since TAG took over the property management 5,00 4.82 4.78 4.72 Portfolio 4,50 4.41 4.41 average new rents in the portfolio 4,00 Jan 11 Feb 11 Mar 11 Apr 11 May 11 Jun 11 July 11 Aug 11 Sep 11 Q1-Q
Slide 15: Portfolio Salzgitter - tenant mix is changing
Portfolio Salzgitter - tenant mix is changing • New tenants who are financed by social security payments (Hartz IV) in % of all new lettings 75% Portfolio 50% 50% 50% 40% 38% 34% 25% Jan 11 Feb 11 Mar 11 Apr 11 May 11 Jun 11 July 11 Aug 11 Sep 11 Q1-Q3 2011 TAG I 15
Slide 16: Portfolio Salzgitter - maintenance
Portfolio Salzgitter - maintenance Maintenance p.a. in EUR m • Maintenance costs can be optimised: 4,0 – Central management – Public tender for smaller 3,5 packages 3,0 3.5 • From 4 Oct 2011 onwards: Portfolio 2,5 – General contractor 2.8 2.5 – At fixed price 2,0 – With direct and thus improved 1,5
Slide 17: Portfolio Salzgitter - already cash flow positive
Portfolio Salzgitter - already cash flow positive average monthly cash flow in Ek • 2010: net cash negative by 2.7m 350 • H1 2011: net cash negative by 1.5m • Since July 2011: 250 – Cash flow positive … +275 – …although there we are catching up Portfolio with the refurbishment backlog 150 (350 units
Slide 18: Portfolio commercial
Portfolio commercial 12/31/2009 12/31/2010 09/30/2011 • sqm total 342,911 sqm 335,686 sqm 323,902 sqm • sqm rental 324,971 sqm 323,063 sqm 298,944 sqm • current rental p.a. net of charged costs (EUR m) 26.6 26,0 25.9 • current rental net of charged costs (EUR/sqm) 6.81 6.70 7.23 • vacancy 5.2% 3.8%
Slide 19: Portfolio commercial
Portfolio commercial Duration of commercial rental agreements* TOP 5 tenants as of 9/30/2011** Rental p.a. in % of Top unlimited Tenants in TEUR Ten tenants 7% < 10 years >1 year 8% 18% Siemens AG 9,627 37% EPCOS AG 1,215 4.7% Schenker Deutschland AG 984 3.8% Portfolio State/City authorities 565 2.2
Slide 20: Portfolio – vacancy rate reduction – residential
Portfolio – vacancy rate reduction – residential Portfolio Q1-Q3 2011 TAG I 20
Slide 21: Portfolio – vacancy rate reduction – residential
Portfolio – vacancy rate reduction – residential Proven track record of reducing Portfolio vacancies rapidly and steadily in new acquisitions Q1-Q3 2011 TAG I 21
Slide 22: Group financials (IFRS)
Group financials (IFRS) Consolidated balance sheet (in EUR m) 12/31/2010 09/30/2011 1,926 1,926 219 204 2000 2000 544 1600 1600 1, 832 Group finanicals 1,191 1,191 1200 1200 365 1,166 918 800 800 658 400 400 273 216 168 94 0 0 Assets Liabilities Assets Liabilities Non-current assets Equity Current a
Slide 23: TAG rental financial result
Group financials (IFRS) TAG rental financial result 61 58.8 51 Group finanicals 41 • Vacancy reduction • Better cost structure 31 36.3 • Carry after interest shows 30.2 that growth is profitable 21 25.6 19.1 17.4 22.5 11 11.1 8.2 1 Q1-Q3 - 2009 Q1-Q3 - 2010 Q1-Q3 - 2011 Net rental profit Interest on
Slide 24: Financial structure
Financial structure TAG Credit periods as of 09/30/2011: EUR m 2011: 20 2% 2012: 151 14% Financial structure 2013: 263 23% 2014: 191 17% 2015: 57 5% 2016: 113 10% 2017: 144 13% 2018: 15 1% 2019: 0 0% 2020: 34 3% 2030: 130 12% Total 1090 100% Stahltwiete, Hamburg Q1-Q3 2011 TAG I 24
Slide 25: Financial structure
Financial structure 12/31/2009 12/31/2010 09/30/2011 Bank borrowings in TEUR 525,856 647,655 1,117,985 non-current 400,939 523,512 968,512 current 124,917 124,143 149,473 net borrowing costs -25,329 -31,185 -44,583 Financial structure Average interest levels in % 12/31/2009 12/31/2010 09/30/2011 non
Slide 26: Financial structure
Financial structure Bank borrowings Loan to Value / Equity ratio in EUR m in % 1000 70 968.5 67.4 60 Financial structure 800 59.1 50 53.0 600 40 523.5 30 400 29.9 400.9 20 24.5 200 23.0 10 124.9 124,1 141.4 0 0 12/31/2009 12/31/2010 09/30/2011 12/31/2009 12/31/2010 09/30/2011 Current liabilities LTV
Slide 27: Stock market data TAG as of 09/30/2011
Stock market data TAG as of 09/30/2011 High/Low (Q1-Q3 2011) EUR 7.39/EUR 5.85 Shareholder structure Number of shares 64.428m Ruffer LLP, UK* 18% Taube Hodson Stonex, UK* 5% Market capitalisation EUR 389m IPConcept/FvS Strategie SICAV, L* 5% Stock exchange SDAX/EPRA Threadneedle, UK* 5% Free Float *
Slide 28: Capital increases and acquisitions of TAG 2009-2011
Capital increases and acquisitions of TAG 2009-2011 +5,48 +5,86 69.90 64.42 Capital measures Q2/2011 Q4/2011 Marzahn North Germany/ Saxony Placement of shares in May for EUR 7.00 in November for EUR 8.00 Q1-Q3 2011 TAG I 28
Slide 29: Outlook 2011 – further growth
Outlook 2011 – further growth Long term perspective • Focused, transparent access to an attractive asset class – with the best possible cash flows and yields (returns) • Financial investments in attractive real estate assets, to enhance value New acquisitions Acquisitions • Acquisitions at existing
Slide 30: NAV - enhancement
NAV - enhancement in EUR per share according to EPRA definitions 10 8 8.75 8.43 8.19 TAG acquistions improving 3,5 7.63 Acquisitions • Profitability 6 6.67 • Cash flow 6.03 • NAV 4 2 0 2009 2010 Q1-2011 Q2-2011 Q3-2011 Q4-2011(e) (e): estimated Q1-Q3 2011 TAG I 30
Slide 31: Recent acquisitions 2011
Recent acquisitions 2011 Acquisitions Q1-Q3 2011 TAG I 31
Slide 32: Acquisitions 2010: TAG Nordimmobilien
Acquisitions 2010: TAG Nordimmobilien TAG Nordimmobilien S.à r.l. Properties 37 Units 789 Floor area in sqm 51,300 Net rental EUR/sqm 5.05 Vacancy from 14.0% to 6.2% Purchase price: EUR 43m Acquisitions Capital issue against contribution in kind 2.4m new shares to be issued Issue price EUR 5.50 Regi
Slide 33: Acquisition 2010: FranconoWest and TAG Sachsenimmobilien
Acquisition 2010: FranconoWest and TAG Sachsenimmobilien FranconoWest AG TAG Sachsenimmobilien GmbH Properties 1,525 Units 436 Floor area sqm 96,895 Floor area in sqm 29,104 Vacancy from 6.8% to 6.0% Vacancy from 9.6% to 7.2% Region NRW Region Saxony Acquisitions • Purchase price: EUR 31.3m • Capita
Slide 34: Acquisition 2011: Marzahn
Acquisition 2011: Marzahn DOM Portfolio Units 612 Floor area in sqm 43,591 Net rental EUR/sqm 4.29 Vacancy 1.47% Acquisitions Purchase price: EUR 25.2m Q1-Q3 2011 TAG I 34
Slide 35: Acquisition 2011: Hellersdorf/Marzahn
Acquisition 2011: Hellersdorf/Marzahn Units 461 Floor area in sqm 26,921 Net rental EUR/sqm 5.20 Vacancy 6% Acquisitions Purchase price: EUR 17.6m Two high-rises specifically cater to the needs of senior residents. Q1-Q3 2011 TAG I 35
Slide 36: Acquisition 2011: North Germany and Saxony
Acquisition 2011: North Germany and Saxony Units residential 3,228 Units commercial 76 Floor area in sqm 208,757 Net rental EUR/sqm 5.44 Vacancy 6.2% Acquisitions Purchase price: EUR 150m Capital issue against contribution in kind 5,476,924 new shares to be issued Regional focus: Issue price EUR 8.0
Slide 37: Appendix
TAG TAG Immobilien AG Appendix see
Slide 38: Management Board
Management Board Rolf Elgeti, CEO Colonia Real Estate AG, Management Board since February 2011 TAG Immobilien AG, Management Board (since July 2009), Supervisory Board from 2008 onwards Bau-Verein zu Hamburg AG, Management Board (since July 2009) Founder of Elgeti Ashdown Advisors Ltd. (2007
Slide 39: Contacts
Contacts Rolf Elgeti CEO Telefon: +49 40 380 32-307 TAG Immobilien AG Telefax: +49 40 380 32-388 ir@tag-ag.com Steckelhörn 5 20457 Hamburg Hans-Ulrich Sutter CFO Telefon: +49 40 380 32-0 Telefon: +49 40 380 32-171 Telefax: +49 40 380 32-388 Telefax: +49 40 380 32-388 ir@tag-ag.com www.tag-ag.com App
Slide 40: Disclaimer and Copyright
Disclaimer Disclaimer and Copyright This document (presentation) does not constitute an offer or invitation or form part of an offer or invitation to subscribe for or purchase any securities and, neither this document or anything contained herein shall form the basis of any contract of commitment wh