Tag Immobilien Ag · XETR:TEG
Tag Immobilien — FY 2023 Earnings Presentation
46 slides from Tag Immobilien's earnings presentation, Mar 12, 2024
Slide 1: Conference call presentation FY 2023
Conference call presentation FY 2023 TAG Immobilien AG | March 2024 | 1
Slide 2: Content
Content I. TAG highlights FY 2023 3 II. TAG financials FY 2023 7 III. TAG German portfolio FY 2023 12 IV. TAG Polish portfolio FY 2023 16 V. TAG guidance FY 2024 21 VI. Appendix 23 Income statement details Germany and Poland, FFO bridge, balance sheet, EPRA NAV calculations Overview and strategy
Slide 3: TAG highlights FY 2023
TAG highlights FY 2023 TAG Immobilien AG | March 2024 | 3
Slide 4: TAG highlights FY 2023: overview
TAG highlights FY 2023: overview 1 FFO I of EUR 171.7m (Guidance: EUR 170-174m) corresponds to a reduction of 9% y-o-y (2022: EUR 189.4m) FFO I guidance achieved as a result of higher financing costs Vacany rate in the German portfolio and good operational performance within EBITDA (adjusted) fr
Slide 5: TAG highlights FY 2023: financial performance & German portfolio
TAG highlights FY 2023: financial performance & German portfolio FY 2023 FY 2022 Q4 2023 Q3 2023 FFO I (EURm) 171.7 189.4 39.1 43.5 FFO I (EUR/share) 0.98 1.19 0.22 0.25 FFO II (EURm) 255.6 247.3 90.7 53.2 Financial performance FFO II (EUR/share) 1.46 1.56 0.52 0.30 31 Dec-2023 31 Dec-2022 3
Slide 6: TAG highlights FY 2023: Poland
TAG highlights FY 2023: Poland FY 2023 FY 2022 Q4 2023 1) Q3 2023 2) Revenues from sale of properties (EURm) 485.8 337.6 296.3 99.2 Rental revenues (EURm) 11.6 2.7 3.9 3.5 FFO I Poland 3) (EURm) -1.7 --- -2.0 0.7 Adjusted net income from sales Poland (EURm) 82.8 59.3 54.8 4.8 Operational performance
Slide 7: TAG financials FY 2023
TAG financials FY 2023 TAG Immobilien AG | March 2024 | 7
Slide 8: TAG income statement
TAG income statement 1) (in EURm) FY 2023 FY 2022 Q4 2023 Q3 2023 1 Net actual rent increased by EUR 10.9m (3.2%) y-o-y, thereof EUR 2.0m within the German portfolio (total l-f-l rental growth of 2.3% less impact from asset disposals) and EUR 8.9m within the Polish portfolio (newly finished projects
Slide 9: TAG EBITDA, FFO and AFFO calculation
TAG EBITDA, FFO and AFFO calculation (in EURm) FY 2023 1) FY 2022 1) Q4 2023 1) Q3 2023 1) 1 EBITDA (adjusted) from the rental business increased by EUR 2.9m. Reduction of EUR 5.9m in Germany, mainly as a result of asset disposals, and EBIT Germany -512.8 118.1 -208.7 53.6 increase of EUR 8.8m in th
Slide 10: TAG EPRA NTA calculation
TAG EPRA NTA calculation EPRA NTA’s reduced by 12% in FY2023 as a result of valuations adjustments in the German portfolio EPRA Net Tangible Assets EPRA NTA bridge in EUR/share (in EURm) 31 Dec-2023 31 Dec-2022 Equity (without minorities) 2,885.2 3,198.5 + Deferred taxes on investment properties and
Slide 11: TAG financing structure
TAG financing structure Debt structure as of 31 Dec-2023 Key financial KPIs as of 31 Dec-2023 Debt volume Ø interest rate % fixed rates Ø Maturity total financial 4.8 years debt 1% Ø Maturity bank loans 5.8 years Bank loans EUR 2,299m 2.2% 95% 3% Ø Interest rate total financial 2.2% Corporate bonds
Slide 12: TAG German portfolio FY 2023
TAG German portfolio FY 2023 TAG Immobilien AG | March 2024 | 12
Slide 13: TAG German portfolio rental growth and capex allocation
TAG German portfolio rental growth and capex allocation 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) 20.9 24.6 25.2 17.5 17.2 TAG creates attractive re
Slide 14: TAG German portfolio vacancy reduction residential units
TAG German portfolio vacancy reduction residential units Strong track record of recurring vacancy reduction after acquisitions leads to significant value creation Acquisitions Acquisitions +0.1% +0.8% 5.9% 5.8% 5.7% 5.7% 5.4% 5.5% 1) Acquisitions 5.3% 1) 5.2% +0.1% 4.8% 4.7% 4.7% 4.6% 4.4% 4.5% 1) 4
Slide 15: TAG portfolio valuation overview Germany
TAG portfolio valuation overview Germany Portfolio valuation result Development of gross yield H2 2023 vs. H1 2023 H2 2023 1) H1 2023 2) H2 2022 ∑H2 22-H2 23 6.5% 6.3% 6.1% 5.9% -260.4 -471.2 -353.8 -1,085.4 5.7% in EUR m 5.4% 5.3% semi-annual valuation result (w/o 5.1% -4.1% -7.4% -5.5% c. -16% cap
Slide 16: TAG Polish portfolio FY 2023
TAG Polish portfolio FY 2023 TAG Immobilien AG | March 2024 | 16
Slide 17: TAG Polish rental business: portfolio data
TAG Polish rental business: portfolio data Continuous strong rental results and a growing portfolio Rentable Fair value (IFRS) Units In-place Vacancy Vacancy Net actual rent l-f-l rental growth Region area EURm # yield Dec-2023 Dec-2022 EUR/ sqm/month 1) y-o-y sqm Dec-2023 Residential units 1,452 63
Slide 18: TAG Polish rental business: completion of units over time
TAG Polish rental business: completion of units over time 18 18 New rental projects totaling 430 units started in Q4 2023, further new projects will follow in the course of FY 2024 and in the years thereafter c. 6,700 c. 10,500 Units in operation c.10,500 Units under construction c. 430 +521 Units p
Slide 19: TAG Polish sales business: sales results
TAG Polish sales business: sales results 3,586 units sold in FY 2023 after 2,389 units in 2022 (under pro-forma consolidation of ROBYG since 1 Jan-2022); increase in sales prices y-o-y at c. 15-20%, strongly increased sales volume Sold units and sales volume per quarter 706 527 441 715 972 845 1,060
Slide 20: TAG Poland sales business: revenue recognition
TAG Poland sales business: revenue recognition 3,812 units handed over in FY 2023 after 3,788 units in 2022 (under pro-forma consolidation of ROBYG since 1 Jan-2022); Q4 traditionally strongest quarter in terms of revenue recognition Units handed over and revenue per quarter 339 538 401 2,510 583 28
Slide 21: TAG guidance FY 2024
TAG guidance FY 2024 TAG Immobilien AG | March 2024 | 21
Slide 22: TAG EBITDA and FFO guidance FY 2024 (unchanged)
TAG EBITDA and FFO guidance FY 2024 (unchanged) in EURm 2024e 2023 Total 230 – 234 236.4 EBITDA FFO I 1) 170-174m +/-0% Rental Business 218 – 222 227.6 (EUR) 0.98/s vs. 2023 11 – 13 8.8 FFO II 1) 217-223m -9% EBITDA (EUR) 1.25/s vs. 2023 Sales Business 64 – 70 100.6 Dividend depending on market cond
Slide 23: APPENDIX
APPENDIX TAG Immobilien AG | March 2024 | 23
Slide 24: TAG income statement details Germany and Poland
TAG income statement details Germany and Poland APPENDIX Poland - Poland – Poland - Poland – Germany Poland Total Germany Poland Total Germany Poland Total (in EURm) Rental Sales Rental Sales Q4 2023 Q4 2023 Q4 2023 FY 2023 FY 2023 FY 2023 FY 2022 FY 2022 FY 2022 Q4 2023 Q4 2023 FY 2023 FY 2023 Net
Slide 25: TAG FFO I bridge 2023e to 2024e
TAG FFO I bridge 2023e to 2024e in EURm APPENDIX c.7 (c.4) c.8 (c.6) c.4 (c.4) ~172 (c.3) (c.2) ~172 FFO I 2023e l-f-l rental Reduced rents from Rent increase Poland Higher maintenance Increased personnel Reduced interest costs Increased Other FFO I 2024e guidance growth Germany disposals Germany an
Slide 26: TAG balance sheet
TAG balance sheet APPENDIX (in EURm) 31 Dec-2023 31 Dec-2022 1 Investment properties relate to the German portfolio (EUR 5,368.5m; YE 2022: EUR 6,078.2m) and the Polish portfolio (EUR 566.8m; YE 2022: EUR 491.7m). Reduction in the German portfolio mainly Non-current assets 6,368.9 6,936.1 refers to
Slide 27: TAG EPRA NAV calculations
TAG EPRA NAV calculations APPENDIX EPRA NRV EPRA NTA EPRA NDV Net reinstatement value Net tangible assets Net disposal value (in EURm) 31 Dec-2023 31 Dec-2023 31 Dec-2023 Equity (before minorities) 2,885.2 2,885.2 2,885.2 Difference between fair value and book value for properties valued at cost 51.
Slide 28: TAG overview and strategy
TAG overview and strategy Leading German affordable housing player and major Polish development business Strategy for German portfolio TAG is a specialist for affordable housing in Eastern and Northern Germany and among the largest owners of residential properties in Eastern Germany APPENDIX Ful
Slide 29: TAG German portfolio details by region
TAG German portfolio details by region APPENDIX Region Units Rentable IFRS BV Gross Vacancy Vacancy Net actual Re-letting l-f-l rental l-f-l rental growth Mainte- Capex # area EURm yield Dec- Dec- rent rent growth Y-o-Y incl. nance EUR/sqm sqm Dec- 2023 2022 1) EUR/ EUR/ Y-o-Y vacancy EUR/sqm 2023 s
Slide 30: TAG German portfolio vacancy reduction and rental growth
TAG German portfolio vacancy reduction and rental growth APPENDIX Vacancy development FY 2023 1) l-f-l rental growth (Y-o-Y) FY 2023 Gera 3.8% 1.7% Gera from 3.9% to 2.0% -1.9% 3.0% Hamburg Leipzig from 8.6% to 7.7% 2.4% -0.9% Leipzig 2.6% Chemnitz from 8.0% to 7.4% -0.6% 1.6% 2.5% Berlin Hamburg fr
Slide 31: TAG German portfolio valuation details
TAG German portfolio valuation details APPENDIX Dec-2023 Dec-2023 Dec-2023 Share of operational Dec-2022 Dec-2022 Dec-2022 Region YTD 2023 Share of yield Fair value Fair value Implied performance/ other Fair value Fair value Implied (in EURm) Valuation result compression (IFRS BV) EURm (EUR/sqm) mul
Slide 32: TAG services business – FFO contribution 2023
TAG services business – FFO contribution 2023 EUR 14.2m (+ EUR 4.1m y-o-y) of FFO generated from services business Quality improvement FFO generation APPENDIX FFO Facility Craftsmen Energy Multimedia Condominium 1) 1) Others services management services services services management (in EURm) busines
Slide 33: TAG return on capex German portfolio 2023
TAG return on capex German portfolio 2023 Total capex 1) APPENDIX (EUR 86.2m) Equity (EUR 41.4m) Equity + Debt (EUR 44.8m) Modernisation of flats Large modernisation measures Share of total capex: c.48% Share of total capex: c.52% Return on equity invested: 25%-30% Return on total investment
Slide 34: TAG Polish portfolio overview
TAG Polish portfolio overview Established Polish build-to-sell and build-to-hold platform, based on the fully integrated Vantage and ROBYG businesses APPENDIX Portfolio strategy and geographic breakdown Key portfolio metrics 31 Dec-2023 Building a portfolio of residential properties via own projec
Slide 35: TAG Polish build-to-hold portfolio mid-term development
TAG Polish build-to-hold portfolio mid-term development Overview of the planned development for the build-to-hold pipeline APPENDIX Overview of the Polish build-to-hold portfolio Potential scenarios for the build-to-hold portfolio Scenario 1: Scenario 2: Growth only by using Additional growth via su
Slide 36: Overview of Polish residential rental market
Overview of Polish residential rental market After exceptional high growth in FY 2022, rents have stabilised in FY 2023 +3% APPENDIX 20.73 Average rental offer price for new stock (EUR/sqm/month) (% y-o-y as of YE 2023, w/o f/x effects) -5% +2% Throughout 2023, there was a high demand for apartmen
Slide 37: Overview of Polish residential sales market
Overview of Polish residential sales market Average offer price gross (EUR/sqm, w/o fit-out costs) Strongly increasing sales prices throughout major Polish cities in FY 2023 +22% (% y-o-y as of YE 2023, w/o f/x effects) APPENDIX c. 4,000 +21% +14% c 3,500 c. 3,300 +19% In FY 2023, a strong increas
Slide 38: TAG LTV calculation
TAG LTV calculation APPENDIX (in EURm) 31 Dec-2023 31 Dec-2022 Non-current and current liabilities to banks 2,290.3 2,522.0 Non-current and current liabilities from corporate bonds and other loans 523.9 798.6 Non-current and current liabilities from convertible bonds 463.5 460.6 Cash and cash equiva
Slide 39: TAG net financial result calculation
TAG net financial result calculation (in EURm) FY 2023 FY 2022 Q4 2023 Q3 2023 APPENDIX + Interest income 6.6 4.7 3.2 1.8 - Interest expenses -72.6 -54.0 -17.5 -18.5 + Other financial result -13.7 16.7 -8.3 -0.6 = Net financial result -79.7 -32.6 -22.6 -17.3 + Financial result from convertible/corpo
Slide 40: TAG cost of debt and LTV
TAG cost of debt and LTV APPENDIX Cost of debt Ø in % LTV in % 44.8% 45.1% 43.2% 47.0% 2.2% 46.7% 1.7% 1.4% 2.1% 1.5% 2019 2020 2021 2022 2023 31 Dec-2019 31 Dec-2020 31 Dec-2021 31 Dec-2022 31 Dec-2023 TAG Immobilien AG | March 2024 | 40
Slide 41: TAG other financing metrics
TAG other financing metrics APPENDIX ICR Net financial debt/ EBITDA adjusted Net financial debt in EUR/ sqm 1) 586 606 6.0x 12.7x 11.3x 9.3x 479 504 7.4x 10.9x 11.6x 460 4.7x 5.2x 5.6x 1) 1) 2019 2020 2021 2022 2023 2019 2020 2021 2022 2023 2019 2020 2021 2022 2023 1) 6.0x reflects the total adjuste
Slide 42: TAG financial covenants overview as of Dec-2023
TAG financial covenants overview as of 31 Dec-2023 Covenants leave extensive flexibility for further refinancing's APPENDIX Instrument Volume Comments • Mostly ICR/ DSCR or LTV covenants with material headroom Bank loans EUR 2,299m • “Soft covenants”, i.e. breach does not lead to an termination of t
Slide 43: TAG FFO and dividend historical development
TAG FFO and dividend historical development APPENDIX FFO I / FFO II in EURm FFO I / FFO II per share in EUR Dividend per share in EUR FFO I FFO II FFO I FFO II 256.5 247.3 0.93 1.51 1.56 0.88 Dividend 221.9 c.220 0.82 depending on 1.46 market 1.29 c.1.25 conditions 188.8 Dividend suspension to 182.0
Slide 44: TAG ESG ratings
TAG ESG ratings TAG ranks among the top ratings in the real estate sector APPENDIX * not responsive level: rating only based on publicly available information, no participation of TAG in an active rating process TAG Immobilien AG | March 2024 | 44
Slide 45: TAG share data
TAG share data Shareholder structure as of 31 Dec-2023 Share information as of 31 Dec-2023 APPENDIX 5.9% BlackRock Inc., USA Market cap EUR 2,316m 5.9% 4.9% MFS (Massachusetts Financial Services Company), USA 4.9% NOSH issued 175.5m 4.9% 4.9% BayernInvest Kapitalverwaltungsgesellschaft mbH, GER NOSH
Slide 46: Martin Thiel CFO and Co-CEO, Dominique Mann
Martin Thiel Dominique Mann TAG Immobilien AG CFO and Co-CEO 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.com www.t