Hiag Immobilien Holding Ag · SIX:HIAG

Hiag Immobilien — FY2016 Earnings Presentation

37 slides from Hiag Immobilien's earnings presentation, Mar 20, 2017

  1. Slide 1: HIAG Immobilien Holding AG Business Year 2016

    HIAG Immobilien Holding AG Business Year 2016 20 March 2017 © HIAG, 20.03.2017 1

  2. Slide 2: Disclaimer

    Disclaimer The financial data as well as the other information presented herein constitute selected information. The information in this presentation does not constitute an offer or invitation and may not be construed as a recommendation by us to purchase, hold or sell shares of HIAG Immobilien Hold

  3. Slide 3: Agenda

    Agenda 1. Highlights & update on strategy implementation 2. Financial results Year-End 2016 3. Major developments 4. Market and outlook 5. Financial calendar HIAG 3

  4. Slide 4: Highlights

    Highlights  Collected property income raised by 2.4% to CHFm 52.4  Increase in annualised property income by 5.4%  Increase in EPRA-earnings by 8.6% to CHFm 30,5  Net cash effect from capital recycling of CHFm 46.8  Growth of portfolio to CHFm 1’242  Increase of the duration to 3.1 years after

  5. Slide 5: Further acquisitions in line with strategy

    Further acquisitions in line with strategy Office 2 6 1 2 Office 1 8 1 1 1 2 1 1 1 2 8 3 Basel 2 1 1 4 1 1 1 1 1 4 3 1 4 9 1 St Gallen 3 2 Zurich 1 1 1 1 8 1 3 1 Lucerne 3 Neuchâtel 1 Bern Davos Office Lausanne 1 1 1 2 1 1 Sion Bellinzona Geneva HIAG 5

  6. Slide 6: HIAG Data – an IaaS one-stop shop for cloud service provider

    HIAG Data – an IaaS one-stop shop for cloud service provider HIAG Data Cloud 4.0 Hybrid Portal Swiss Hybrid Cloud Direct Swiss Open Swiss S3 Swiss Hybrid CRM & Cloud Object Store AZURE Cloud Certification Secure Private Network HIAG 6

  7. Slide 7: HIAG Data's broad partner framework enables scalability

    HIAG Data’s broad partner framework enables scalability HIAG 7

  8. Slide 8: HIAG Data's customer base is growing

    HIAG Data’s customer base is growing as business models transfer to the Cloud HIAG 8

  9. Slide 9: Stable and attractive mix of uses with little exposure to office markets

    Stable and attractive mix of uses with little exposure to office markets Others 3.5% Building land 8.7% Industry, Commercial Office 29.8% 12.0% Industry, Commercial and Distribution, Logistics 40.2% Retail 13.6% Distribution, Logistics 10.4% Residential Residential / 17.2% Commercial 4.8% Residentia

  10. Slide 10: A strong, stable and diversified tenant base

    A strong, stable and diversified tenant base Top 10 tenants (Group) based on annualised property income Tenants and credit rating Share of annualised rental Cumulative share of (Moody’s, S&P) income: annualised rental income: Hewlett-Packard, IT (Baa2/BBB) 4.8% 4.8% ABB Group, industry (A2/A) 4.7% 9

  11. Slide 11: Expiry profile: increase in weighted average lease term to 5.2 years

    Expiry profile: increase in weighted average lease term to 5.2 years * Letting to residential tenants and in redeve- 41.0% lopment segment. 20.0% 10.0% 7.0% 6.0% 6.0% 5.0% 5.0% 2017 2018 2019 2020 2021 2022 2023-2029 Perpetual* Expiry profile based on property income as of 01.01.2017 HIAG 11

  12. Slide 12: Project pipeline – upcoming projects with expected investment of CHFm 246.5

    Project pipeline – upcoming projects with expected investment of CHFm 246.5 HIAG 12

  13. Slide 13: Agenda

    Agenda 1. Highlights & update on strategy implementation 2. Financial results Year-End 2016 3. Major developments 4. Market and outlook 5. Financial calendar HIAG 13

  14. Slide 14: Income statement as of 31 December 2016

    Income statement as of 31 December 2016 in CHFm 31.12.2016 31.12.2015  CHFm % Property income 52.4 51.2 +1.2 +2.4% Revaluations of properties 20.0 31.5 -11.5 -36.6% Total operating income without revaluations 53.8 54.1 -0.2 -0.4% Total operating expenses -17.8 -20.5 +2.8 -13.5% EBITDA 56.0 65.0 -9

  15. Slide 15: Increase of annualised property income by CHFm 2.8 (+5.4%)

    Increase of annualised property income by CHFm 2.8 (+5.4%) in CHFm 31.12.2014 31.12.2015 31.12.2016  CHFm % Target annualised property income 60.4 61.0 63.9 +2.9 +4.8% Actual annualised property income 49.8 51.4 54.2 +2.8 +5.4% Actual property income 48.7 51.2 52.4 +1.2 +2.4% (1.1) 2.4 1.4 54.2 51

  16. Slide 16: Further decrease of vacancy rate to 15.3%

    Further decrease of vacancy rate to 15.3% in % 31.12.2016 31.12.2015 Yielding properties 11.7% 11.1% Yielding properties undergoing repositioning* 32.5% 32.4% Redevelopment properties 15.2% 19.3% Total Portfolio 15.3% 16.0%  Like for like vacancy rate (without acquisiton of Yverdon site)  Yielding

  17. Slide 17: Revaluation of properties in line with expectations and….

    Revaluation of properties in line with expectations and…. in CHFm 31.12.2016 31.12.2015 Revaluations of properties +20.0 +31.5 Thereof revaluation promotion +2.4 +6.7 Thereof adjustment costs for environmental risks -0.0 +0.2  Positive contributions: Biberist, Meyrin, St. Margrethen and Yverdon  N

  18. Slide 18: …not mainly driven by a stable discount rate

    …not mainly driven by a stable discount rate 8.00% 7.00% 7.00% 7.00% 7.00% 6.30% 6.30%  Promotion projects 6.00% discounted at 2.25%, Lowest «promotion» effect will 5.00% discount disappear after units are 4.88% 4.78% 4.73% rate 4.44% 4.44% sold 4.00% Weighted average 4.00% discount  Reduction in

  19. Slide 19: Lower operating expenses due to one time effects

    Lower operating expenses due to one time effects in CHFm 31.12.2016 31.12.2015  CHFm % Personnel expenses 5.6 7.6 -2.0 -26.4% Maintenance and repairs 3.6 3.5 +0.1 +3.1% in % of GAV 0.29% 0.29% Insurance and fees 0.9 0.8 +0.1 +15.5% Energy costs and building maintenance 2.4 2.4 - - Rent and leases

  20. Slide 20: Key financial figures per share

    Key financial figures per share in CHF 31.12.2016 31.12.2015 Earnings per share 5.8 7.4 Earnings per share without revaluation 3.3 3.5 Earnings per share without revaluation including revaluation of promotion 3.6 4.3 EBT per share without revaluation and non cash taxes 4.3 3.6 EPRA Earnings per shar

  21. Slide 21: Balance sheet as of 31 December 2016

    Balance sheet as of 31 December 2016 in CHFm 31.12.2016 31.12.2015  CHFm % Properties 1’176.3 1’105.3 Properties held for sale 66.0 118.7 GAV 1’242.3 1’224.0 +18.2 +1.5% LTV Ratio 36.2% 36.8% Swiss GAAP FER NAV 729.1 708.7 Swiss GAAP FER NAV per share* 90.7 88.6 Capital contribution reserves 75.5

  22. Slide 22: Further increase in the financing duration

    Further increase in the financing duration in CHFm 31.12.2016 31.12.2015 Bank financing 297.7 402.3 Bonds (CS rating: Low BBB stable / Vontobel rating: BBB stable) 215.0 100.0 Total 512.7 502.3 • Bonds represent 41.9% of financing structure (20.0% as of 31.12.2015) • Current LTV ratio of 36.2% (36.8

  23. Slide 23: Steady increase of NAV, dividend and share price since IPO

    Steady increase of NAV, dividend and share price since IPO IPO Mai 2014 31.12.2016 HIAG 23

  24. Slide 24: Agenda

    Agenda 1. Highlights & update on strategy implementation 2. Financial results Year-End 2016 3. Major developments 4. Market and outlook 5. Financial calendar HIAG 24

  25. Slide 25: Frauenfeld «Walzmühle» Construction planned to start in 2017

    Frauenfeld «Walzmühle» Construction planned to start in 2017 In planning • Three building permits granted, comprising 8 Lofts, 21 apartments and 2’300 m 2 of office and commercial area • Total expected investment volume of approximately CHFm 23 HIAG 25

  26. Slide 26: Windisch «Feinspinnerei» and «Kunzwerk»

    Windisch «Feinspinnerei» and «Kunzwerk» Under construction/commercialisation • Commercialisation of «Feinspinnerei» at 55% end of February 2017 • Co-working initiative «Kunzwerk» in cooperation with the Village office started in October 2016 • Further development potential of 2’000 m 2 residential H

  27. Slide 27: Baar «The Cloud»

    Baar «The Cloud» Commercialisation • 86% of condominiums sold or reserved end of February 2017 • Focus on commercialisation of roof tops designed by Naomi Hajnos • Negotiations with former general planner HSSP ongoing HIAG 27

  28. Slide 28: Meyrin «The Hive»

    Meyrin «The Hive» Under construction • Site positioned as «The Hive» (www.thehive-gva.ch) and IT cluster • Delivery of new building «Hive 2» planned in Q2 2017 • «Hive 1» in preparation to be refurbished after move of HP Inc. and HPE to «Hive 2» HIAG 28

  29. Slide 29: Bremgarten Partial site redevelopment

    Bremgarten Partial site redevelopment Under construction • Office building completed and handed over • Completion of phase 2 expected by 1 st July 2017 • Total annual rent after completion at CHFm 1.5 up from CHFm 0.8 • end of 2016 HIAG 29

  30. Slide 30: Biberist «Papieri» HIAG Data DC infrastructure in realisation

    Biberist «Papieri» HIAG Data DC infrastructure in realisation Yielding/under construction • Rental agreement for the high bay storage generating CHFm 1 annual rent • Phase 1 DC infrastructure for HIAG Data operative in Q2 2017 (in Office Building) • Phase 2 will be delivered end of 2018 (1 MW IT loa

  31. Slide 31: Niederhasli Doka Schweiz commits to the site

    Niederhasli Doka Schweiz commits to the site Under redevelopment • Agreement with Doka Schweiz on the framework for a long-term development • Office building of 2‘600 m 2 and commercial halls of 4‘200 m 2 to be developed • Building permit process delayed due to planning zone HIAG 31

  32. Slide 32: Yverdon «Village 52» New acquisition at attractive location

    Yverdon «Village 52» New acquisition at attractive location Yielding • Annualised property income at CHFm 1.4, gross yield 6.7% • Optimisation of tenant structure and site marketing HIAG 32

  33. Slide 33: Agenda

    Agenda 1. Highlights & update on strategy implementation 2. Financial results Year-End 2016 3. Major developments 4. Market and outlook 5. Financial calendar HIAG 33

  34. Slide 34: Market

    Market  Interest rate environment not expected to change fundamentally despite expected FED increases  Relatively high real estate yields still attracting additional capital inflow in area acquisition  Increasing negotiation power of office and retail tenants  Production in residential staying a

  35. Slide 35: Outlook

    Outlook  Property income expected to increase at around 4%  Capital recycling expected to be around CHFm 50+  HIAG is continuously evaluating opportunities but closely looking at sustainability of rental income  HIAG Data expects to have annualised revenue of around CHFm 5 by end of 2017  Combi

  36. Slide 36: Agenda

    Agenda 1. Highlights & update on strategy implementation 2. Financial results Year-End 2016 3. Major developments 4. Market and outlook 5. Financial calendar HIAG 36

  37. Slide 37: Financial calendar

    Financial calendar 20 April 2017 General Meeting in Frauenfeld (TG) 4 September 2017 Publication half-year results 2017 investor.relations@hiag.com www.hiag.com HIAG 37

HIAG Immobilien Holding — FY2016 Earnings Presentation on 6ix