Tag Immobilien Ag · XETR:TEG

Tag Immobilien — Q3 2020 Earnings Presentation

38 slides from Tag Immobilien's earnings presentation, November 2020

  1. Slide 1: Conference call presentation Q3 2020

    Conference call presentation Q3 2020

  2. Slide 2: Content

    Content 22 I. TAG highlights Q3 2020 3 II. TAG financials Q3 2020 6 III. TAG German portfolio Q3 2020 12 IV. TAG acquisitions Germany YTD 2020 16 V. TAG Poland business update 18 VI. TAG increased guidance FY 2020, new guidance FY 2021 20 VII. Appendix 24  German portfolio details by region  Germa

  3. Slide 3: TAG highlights Q3 2020

    33 TAG highlights Q3 2020 TAG Immobilien AG | November 2020 | 3

  4. Slide 4: TAG highlights Q3 2020

    TAG highlights Q3 2020 44 Q3 2020 Q2 2020 FY 2019 Q3 2019  Vacancy (residential units) 4.8% 5.1% 4.5%/ 4.6%* 4.9%  Vacancy (total portfolio) 5.3% 5.6% 4.9% 5.2% Operational performance  l-f-l rental growth y-o-y 1.4% 1.4% 1.9% 2.0% German portfolio  l-f-l rental growth y-o-y (incl. vacancy reduc

  5. Slide 5: TAG Covid business update

    TAG Covid 19 business update 55 Voluntary waiver  From March until June 2020 no rent increases on the basis of adjustments to local comparative rents on rent  No terminations due to loss of income caused by the Corona crisis and no evictions of inhabited apartments during this time increases until

  6. Slide 6: TAG financials Q3 2020

    66 TAG financials Q3 2020 TAG Immobilien AG | November 2020 | 6

  7. Slide 7: TAG income statement

    TAG income statement* 1 Increase in net actual rent y-o-y by EUR 4.0m as a result of l-f-l- rental growth and portfolio acquisitions. Majority of acquisitions in 2020 closed in Oct-2020. 77 2 Net rental income increased y-o-y by EUR 4.9 mainly driven by higher net actual rent (EUR 4.0m) and lower an

  8. Slide 8: TAG EBITDA, FFO and AFFO calculation

    TAG EBITDA, FFO and AFFO calculation 88 (in EURm) Q3 2020 Q2 2020 9M 2020 9M 2019 FY 2019 1 For reasons of comparability to FY 2018 effects from first time application of IFRS 16 were eliminated in FFO in FY 2019. In line Net income -23.7 180.7 189.1 267.9 456.4 with most peers, this adjustment no l

  9. Slide 9: TAG balance sheet

    TAG balance sheet 99 (in EURm) 30 Sep-2020 31 Dec-2019 Non-current assets 5,625.1 5,301.5 1 EUR 297.8m higher investment properties is driven by EUR 174.2m valuation Investment property 1 5,497.8 5,200.0 result, EUR 54.6m capex, EUR 42.6m acquisitions and first-time consolidation Vantage. Deferred t

  10. Slide 10: TAG EPRA NTA calculation

    TAG EPRA NTA calculation 10 10 EPRA Net Tangible Assets in EUR/share (in EURm) 30 Sep-2020 31 Dec-2019 Equity (without minorities) 2,391.9 2,342.6 + Effect from conversion of convertible bond 188.5 324.2 + Deferred taxes on investment properties and financial derivatives 542.9 492.8 + Fair value of

  11. Slide 11: TAG financing structure

    TAG financing structure 11 11 Debt structure as of 30 Sep-2020 Key financial KPIs as of 30 Sep-2020 Ø Maturity total financial debt 6.7 years Ø Maturity bank loans 8.0 years 3% Ø Interest rate total financial debt 1.50% Debt volume Ø interest rate % fixed rates 6% 9% Ø Interest rate bank loans 1.77%

  12. Slide 12: TAG German portfolio Q3 2020

    12 12 TAG German portfolio Q3 2020 TAG Immobilien AG | November 2020 | 12

  13. Slide 13: TAG German portfolio as of Sep-2020

    TAG German portfolio as of 30 Sep-2020 13 13 Regionally focused and efficiently managed residential portfolio in Northern and Eastern Germany Portfolio as of 30 Sep-2020 31 Dec-2019  TAG is a leader in affordable housing in Northern and Eastern Number of units 85,100 84,510 Germany. Lettable area i

  14. Slide 14: TAG German portfolio rental growth and capex allocation

    TAG German portfolio rental growth and capex allocation 14 14 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) 15.1 19.2 20.4 21.8  TAG creates attractive r

  15. Slide 15: TAG German portfolio vacancy reduction residential units

    TAG German portfolio vacancy reduction residential units 15 15 Strong track record of vacancy reduction due to TAG’s active asset management approach Acquisitions Vacancy rate +0.5% 6.1% 5.9% Acquisitions 5.7% 5.6% +0.3% Acquisitions 5.5% 5.3% 5.3% 5.2% 5.2% 5.2% +0.1% 5.0% 5.1% 4.8% 4.9% 4.9% 4.8%

  16. Slide 16: TAG acquisitions Germany YTD 2020

    16 16 TAG acquisitions Germany YTD 2020 TAG Immobilien AG | November 2020 | 16

  17. Slide 17: TAG acquisitions Germany YTD 2020

    TAG acquisitions Germany YTD 2020 17 17 Total* Signing 2020 Units 4,338 Bernburg Net actual rent 4.97 in EUR/sqm/month Vacancy 21.2% Purchase price in EURm 168.7 Net actual rent in EURm p.a. 11.4 Dessau Saxony, Thuringia, Saxony-Anhalt: Location Merseburg, Plauen, Gotha, Magdeburg, Dessau et.al. Clo

  18. Slide 18: TAG Poland business update

    18 18 TAG Poland business update TAG Immobilien AG | November 2020 | 18

  19. Slide 19: Poland overview current and planned projects

    Poland overview current and planned projects 19 19 Unlocking superior returns by addressing the growing demand of the Polish residential-for-rent market Strategic rationale Current locations  Against the backdrop of its strong macroeconomic and demographic growth, Poland is experiencing a structura

  20. Slide 20: TAG increased guidance FY 2020

    20 20 TAG increased guidance FY 2020 TAG Immobilien AG | November 2020 | 20

  21. Slide 21: TAG increased guidance FY 2020

    TAG increased guidance FY 2020 21 21  increase in FFO I guidance as a result of good operational development in 2020 and, FFO I 170-173m +7% albeit to a smaller part, due to successful closing of majority of acquisitions signed in (EUR) after 168-170m vs. 2019 2020 already by Oct-2020. Germany FFO

  22. Slide 22: TAG new guidance FY 2021

    TAG new guidance FY 2021 22 22  based on the current portfolio including all signed acquisitions/disposals until Oct-2020 FFO I (for purpose of the guidance no further acquisitions/disposals in 2020/2021 assumed) +5% 178-182m (EUR) vs. 2020  FFO I guidance 2021 purely refers to German renting busi

  23. Slide 23: TAG FFO bridge 2020 – 2021

    TAG FFO bridge 2020 – 2021 23 23 (in EUR m) -4.5 +1.0 -1.5 +14.5 -1.0  Expected increase in net actual rent of c. EUR 14.5m (c. 4.5% y-o-y) driven by c. 2.0% total l-f-l- rental growth and c. 2.5% effects from acquisitions/disposals in 2020.  Higher expenses from property management of c. EUR 4.5m

  24. Slide 24: Appendix

    24 24 APPENDIX TAG Immobilien AG | November 2020 | 24

  25. Slide 25: TAG German portfolio details by region

    TAG German portfolio details by region 25 25 Region Units Rentable IFRS BV Gross Vacancy Vacancy Net actual Re-letting l-f-l rental l-f-l rental Mainte- Capex # area EURm yield Sep- Dec- rent rent growth growth nance EUR/sqm sqm Sep- 2020 2019* EUR/ sqm EUR/ y-o-y y-o-y incl. EUR/sqm 2020 sqm vacanc

  26. Slide 26: TAG German portfolio vacancy reduction and rental growth

    TAG German portfolio vacancy reduction and rental growth 26 26 Vacancy development 9M 2020* l-f-l rental growth (y-o-y) 9M 2020 APPENDIX 2.5% Chemnitz Chemnitz -0.3% from 7.6% to 7.3% 1.4% 2.2% Hamburg Erfurt -0.2% from 2.9% to 2.7% 1.6% 1.9% Erfurt Rhein-Ruhr -0.1% from 2.1% to 2.0% 1.5% 1.6% from

  27. Slide 27: TAG German portfolio valuation overview

    TAG German portfolio valuation overview 27 27 Portfolio valuation result Development of gross yield APPENDIX 8.0% 7.1% 6.7% 6.5% 7.0% 6.3% 6.1% H1 2020 vs. H2 2019 H1 2020 H2 2019 5.9% 6.0% 174.0* 202.7 5.0% in EUR m 4.0% semi-annual valuation uplift (w/o capex) 3.3% 4.2% 3.0% 2.0%  thereof from yi

  28. Slide 28: TAG German portfolio valuation details

    TAG German portfolio valuation details 28 28 Share of Sep-2020 Sep-2020 Sep-2020 operational Dec-2019 Dec-2019 Dec-2019 Region YTD-2020 Share of yield Fair value Fair value Implied performance/ Fair value Fair value Implied (in EURm) Valuation result compression (IFRS) (EUR/sqm) multiple other marke

  29. Slide 29: TAG income statement details Germany and Poland

    TAG income statement details Germany and Poland 29 29 Germany Poland Total Germany Poland Total Germany Poland Total (in EURm) Q3 2020 Q3 2020 Q3 2020 9M 2020 9M 2020 9M 2020 FY 2019 FY 2019 FY 2019 APPENDIX Net actual rent* 80.1 0.0 80.1 239.8 0.0 239.8 315.0 0.0 315.0 Expenses from property -15.4

  30. Slide 30: TAG EPRA NAV calculations

    TAG EPRA NAV calculations 30 30 New EPRA metrics APPENDIX EPRA NAV EPRA NRV EPRA NTA EPRA NDV Net asset value Net reinstatement value Net tangible assets Net disposal value (in EURm) Q3 2020 Q3 2020 Q3 2020 Q3 2020 Equity (before minorities) 2,391.9 2,391.9 2,391.9 2,391.9 Effect from conversion of

  31. Slide 31: TAG EPRA Earnings

    TAG EPRA Earnings 31 31 (in EURm) Q3 2020 Q2 2020 9M 2020 9M 2019 FY 2019 Net income Germany -25.0 182.7 190.9 267.9 456.4 Valuation result -0.2 -174.9 -174.2 -211.0 -414.1 APPENDIX Deferred income taxes on valuation result 0.6 38.5 43.3 48.6 76.7 Net income from sales 0.0 0.6 1.0 0.0 0.4 Cash taxes

  32. Slide 32: TAG convertible bonds transactions Aug-2020

    TAG convertible bonds transactions Aug-2020 32 32 APPENDIX  To finance acquisitions in Germany of more than c. 4,200 units with a total purchase price of Rationale c. EUR 163m for the transactions  To reduce dilution effects for shareholders from the outstanding convertible bonds in Aug-2020  For

  33. Slide 33: TAG cost of debt and LTV

    TAG cost of debt and LTV 33 33 Cost of debt Ø in % LTV in % APPENDIX 3.45 62.7 3.15 57.1 52.3 47.3 2.34 1.92 44.8 45.7 1.73 1.50 31 Dec- 31 Dec- 31 Dec- 31 Dec- 31 Dec- 30 Sep- 31 Dec- 31 Dec- 31 Dec- 31 Dec- 31 Dec- 30 Sep- 2015 2016 2017 2018 2019 2020 2015 2016 2017 2018 2019 2020  Continuous re

  34. Slide 34: TAG LTV calculation

    TAG LTV calculation 34 34 APPENDIX (in EURm) 30 Sep-2020 31 Dec-2019 31 Dec-2018 Non-current and current liabilities to banks 2,017.3 1,901.2 1,855.5 Non-current and current liabilities from corporate bonds and other loans 576.7 403.0 285.8 Non-current and current liabilities from convertible bonds

  35. Slide 35: TAG strong development of financing metrics

    TAG strong development of financing metrics 35 35 ICR Net financial debt/ EBITDA adjusted Net financial debt in EUR/ sqm APPENDIX 485 460 453 450 449 445 5.2 13.4 4.7 12.5 3.8 11.5 3.0 11.3 11.2 10.9 2.3 1.9 2015 2016 2017 2018 2019 Q3 2020 2015 2016 2017 2018 2019 Q3 2020 2015 2016 2017 2018 2019 3

  36. Slide 36: TAG interest coverage ratio (ICR) calculation

    TAG interest coverage ratio (ICR) calculation 36 36 (in EURm) Q3 2020 Q2 2020 9M 2020 9M 2019 FY 2019 APPENDIX + Interest income 0.1 9.1 10.5 0.3 0.5 - Interest expenses -75.1 -12.8 -100.7 -45.0 -79.4 + Other financial result -2.1 1.2 -1.4 0.5 1.4 = Net financial result -77.1 -2.6 -91.5 -44.2 -77.6

  37. Slide 37: TAG share data

    TAG share data 37 37 Shareholder structure as of 30 Sep-2020 Share information as of 30 Sep-2020 APPENDIX Market cap EUR 3.8bn 9.9% MFS (Massachusetts Financial Services Company), USA NOSH issued 146.5m 9.9% 9.6% The Capital Group Companies Inc., USA NOSH outstanding 146.2m 9.6% 5.9% BlackRock Inc.,

  38. Slide 38: TAG contacts

    TAG contacts 38 38 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.c

TAG Immobilien — Q3 2020 Earnings Presentation on 6ix