Tag Immobilien Ag · XETR:TEG
Tag Immobilien — Q2 2016 Earnings Presentation
28 slides from Tag Immobilien's earnings presentation, August 2016
Slide 1: Conference call presentation Q2 2016
Conference call presentation Q2 2016
Slide 2: Content
Content 22 CONTENT I. TAG highlights Q2 2016 3 II. TAG financials Q2 2016 6 III. TAG portfolio Q2 2016 12 IV. TAG revised guidance 2016 17 V. Appendix 19 Acquisitions and disposals 2015 Portfolio valuation 2015 Capex and maintenance Capital markets heads-up Bonds and convertibles Managem
Slide 3: TAG highlights Q2 2016
3 TAG highlights Q2 2016
Slide 4: TAG highlights Q2 2016
TAG highlights Q2 2016 44 Q2 2016 Q1 2016 FY 2015 Q2 2015 Vacancy (residential units) 7.1% 7.5% 7.5%/7.7%* 8.7% HIGHLIGHTS L-f-L rental growth Y-o-Y 1.9% 1.9% 1.6% 1.3% Operational L-f-L rental growth Y-o-Y incl. vacancy reduction 3.9% 3.8% 3.3% 2.3% performance Net in-place rents (EUR/sqm)
Slide 5: TAG highlights Q2 2016 – early conversion
TAG highlights Q2 2016 – early conversion 55 HIGHLIGHTS Facts regarding the subject convertible bond Transaction rationale Convertible bond 2019 ISIN DE000A1PGZM3 Share price performance in recent years has made the convertible bond 2019 trade up deep into the money, which enables TAG to propo
Slide 6: TAG financials Q2 2016
6 TAG financials Q2 2016
Slide 7: TAG income statement (IFRS)
TAG income statement (IFRS) 77 (in EUR millions) Q2 2016 Q1 2016 H1 2016 H1 2015 FY 2015 Rental revenues in Q2 increased due to portfolio INCOME STATEMENT acquisitions effective as of Feb. 2016 and through Rental revenues 68.3 67.7 136.0 128.9 259.3 rental growth and vacancy reduction Expenses fro
Slide 8: TAG FFO calculation
TAG FFO calculation 88 (in EUR millions) Q2 2016 Q1 2016 H1 2016 H1 2015 FY 2015 Net income 22.1 18.0 40.1 48.3 147.3 + Taxes FFO 3.6 1.7 5.3 10.1 27.8 + Net financial result 21.4 21.9 43.3 48.5 96.0 EBIT 47.1 41.6 88.7 106.9 271.1 - Net financial result (cash, after -19.7 -20.1 -39.8 -43.7 -84.0 on
Slide 9: TAG balance sheet (IFRS)
TAG balance sheet (IFRS) 99 (in EUR millions) 30 Jun-2016 31 Dec-2015 BALANCE SHEET Non-current assets 3,659.3 3,605.4 Investment property 3,586.6 3,531.1 Deferred tax assets 42.6 43.6 Other non-current assets 30.1 30.7 Current assets 146.3 165.1 Real estate inventory 11.1 12.8 Cash inflows from r
Slide 10: TAG NAV calculation
TAG NAV calculation 10 10 (in EUR millions) 30 Jun-2016 31 Dec-2015 NAV per share development 30 Jun-2016 NAV compared to 31 Dec-2015: Equity (without minorities) 1,126.4 1,085.1 + Deferred taxes on investment properties and financial derivatives 249.7 245.1 NAV reduction of EUR 0.55 due to divide
Slide 11: TAG debt financing structure
TAG debt financing structure 11 11 Debt maturity profile as of 30 Jun-2016 in EUR millions Interest rates and maturities (1) Corporate bonds FINANCING STRUCTURE EUR 435m (EUR 310m) Bank loans EUR 1,847m (EUR 611m) Ø interest rate: 2016: 2017: 2018: 4.52% (4.83%) 310 Ø interest rate: EUR EUR EUR 59m
Slide 12: TAG portfolio Q2 2016
12 TAG portfolio Q2 2016
Slide 13: TAG portfolio in total as of Jun-2016
TAG portfolio in total as of 30 Jun-2016 13 13 Geographic regions in accordance with decentralized management PORTFOLIO / PLATFORM clusters and strategic relevance Change in 2016: split of region “Dresden” into two regions (“Dresden” and “Chemnitz”) in accordance with new internal management and
Slide 14: TAG portfolio in total – H1 2016 by region
TAG portfolio in total – H1 2016 by region 14 14 Region Units Rentable IFRS BV In- Vacancy Vacancy Actual Re- L-f-l L-f-l rental Mainte- Capex Comments # area TEUR place June Dec. net letting rental growth nance EUR/ sqm yield 2016 2015 cold rent growth y-o-y incl. EUR/ sqm % % % rent EUR/ y-o-y vac
Slide 15: TAG vacancy reduction development
TAG vacancy reduction development 15 15 Residential units 2013 - 2016 Realisation of development potential from newly acquired portfolios PORTFOLIO / PLATFORM Proof of successful asset and property management over the last three years Increases in vacancy due to new acquisitions with higher
Slide 16: TAG rental growth development
TAG rental growth development 16 16 PORTFOLIO / PLATFORM Rental growth and vacancy reduction are the two main drivers to further improve the rental income profile of TAG TAG invests in regions with rather stable rent profile and is able to acquire properties with above average vacancy level By
Slide 17: TAG revised guidance 2016
17 TAG revised guidance 2016
Slide 18: TAG revised guidance 2016
TAG revised guidance 2016 18 18 FFO EUR 92-93m after EUR 84-85m (EUR 76.3 in FY 2015) OUTLOOK Increased FFO FFO/share EUR 0.68 after EUR 0.67 (EUR 0.62 in FY 2015) based on current weighted average NOSH Guidance FY 2016 Dividend EUR 0.57 per share (unchanged; EUR 0.55 for FY 2015) FFO per shar
Slide 19: Appendix
19 APPENDIX
Slide 20: TAG acquisitions 2015
TAG acquisitions 2015 20 20 Signing Saxony/Saxony- NRW/ Anhalt Brandenburg Rügen Brandenburg Lower Saxony Saxony Saxony-Anhalt Total May-2015 Jun-2015 Jul-2015 Nov-2015 Nov-2015 Dec-2015 Dec-2015 FY2015 APPENDIX Units 860 134 180 1,776 1,304 972 96 5,322 Rentable area in 49,900 11,400 11,500 97,200
Slide 21: TAG disposals 2015
TAG disposals 2015 21 21 Signing Berlin (Marzahn/ Stuttgart Hamburg Privatisation and Total APPENDIX Hellersdorf) (Commercial) (Wedel) ongoing disposals FY 2015 Apr-2015 Oct-2015 Dec-2015 2015 Units 972 182 100 679 1,933 Actual net cold rent 5.26 13.64 6.60 --- EUR/sqm/month Berlin Actual net cold r
Slide 22: TAG portfolio valuation 2015
TAG portfolio valuation 2015 22 22 Region 2015 2015 2015 Revaluation Capex Net 2014 2014 2014 Fair Value Fair Value Implied gain / loss acquisitions Fair Value Fair Value Implied APPENDIX (in EUR millions) (IFRS) (EUR/sqm) multiple and other (IFRS) (EUR/sqm) multiple movements Berlin 441.1 884.5 14.
Slide 23: TAG capex and maintenance
TAG capex and maintenance 23 23 APPENDIX 2015 2016 Total Total in EUR millions Q1 Q2 Q3 Q4 FY Q1 Q2 H1 Maintenance Residential 6.45 7.09 5.38 5.77 24.69 6.60 6.54 13.14 Commercial 0.11 0.00 0.22 0.19 0.52 0.02 0.10 0.12 Capex Residential 6.80 9.88 13.56 9.35 39.59 9.60 11.66 21.26 Commercial 0.00 0.
Slide 24: TAG capital markets heads-up
TAG capital markets heads-up Institution Analyst Recommen- Price Target Date 24 24 dation in EUR High/Low (H1 2016) EUR 12.36/EUR 9.85 Deutsche Bank Markus Scheufler Hold 12.00 08-Aug-16 APPENDIX Number of shares (issued) 136.6m Bankhaus Lampe Georg Kanders Buy 13.00 05-Aug-16 MM Warburg Moritz
Slide 25: TAG bonds
TAG bonds 25 25 Two corporate bonds outstanding until 2018/ 2020 (issued in 2013 and 2014) APPENDIX Bonds are included in the Open Market, Entry Standard of the Frankfurt Stock Exchange with participation in the Prime Standard for corporate bonds Erfurt Aug 2013/Feb-2014 – Aug-2018 Jun-2014
Slide 26: TAG convertibles
TAG convertibles 26 26 Incentivized conversion in July 2016 for 5.5% convertible bond 2012/2019 APPENDIX Acceptance quota 94%, equals nominal value of EUR 70.1m Clean up call in August 2016 for remaining nominal value of EUR 4.4m 5.5% convertible bond 2012/2019 TAG Immobilien AG | August 201
Slide 27: TAG management board
TAG management board 27 27 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 28: TAG Contacts
28 28 TAG Contacts APPENDIX Martin Thiel Dominique Mann TAG Immobilien AG CFO Head of Investor & Public Relations Steckelhörn 5 Phone: +49 40 380 32-222 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 ir@tag-ag.com ir@tag-ag.com Fax: +49 40