Tag Immobilien Ag · XETR:TEG

Tag Immobilien — Q3 2015 Earnings Presentation

30 slides from Tag Immobilien's earnings presentation, May 11, 2015

  1. Slide 1: Conference Call presentation Q3 2015 Figures

    Conference Call presentation Q3 2015 Figures

  2. Slide 2: Content

    Content 22 CONTENT I. TAG highlights Q3 2015 and outlook 3 II. TAG financials Q3 2015 6 III. TAG valuation Q3 2015 12 IV. TAG portfolio and platform 15 V. TAG acquisitions and disposals 19 VI. Appendix 23  Strategy  Capex and maintenance  Capital markets heads-up  Bonds and convertibles  Manage

  3. Slide 3: TAG highlights Q3 2015 and outlook

    3 TAG highlights Q3 2015 and outlook

  4. Slide 4: TAG highlights Q3 2015

    TAG highlights Q3 2015 44  Vacancy (residential units) Continued reduction to 8.4% compared to 9.0% L-f-L at YE 2014 and 8.1% HIGHLIGHTS in October 2015  Net in-place rents 5.02 EUR/sqm compared to 4.97 EUR/sqm L-f-L at YE 2014 Solid  L-f-L rental growth 1.5% Y-o-Y or 2.6% Y-o-Y including vacancy

  5. Slide 5: TAG outlook

    TAG outlook 55 HIGHLIGHTS  FFO EUR 74m – EUR 75m vs. EUR 79.5m – EUR 81.8m as implied in Nov-2014. Difference relate to EUR 3m timing differences between sales and acquisitions, EUR 1m higher cash taxes and temporarily reduced net rental income margin Updated of EUR 1.5m (compensation by current st

  6. Slide 6: TAG financials

    6 TAG financials Q3 2015

  7. Slide 7: TAG income statement (IFRS)

    TAG income statement (IFRS) 77 (in EUR millions) Q3 2015 Q2 2015 9M 2015 9M 2014 FY 2014  Reduced rental income due to portfolio sale of 972 INCOME STATEMENT Rental income 64.5 64.8 193.4 192.9 257.4 residential units in Berlin end of Q2 2015 (EUR 0.9m rent per quarter), new acquisitions of Expense

  8. Slide 8: TAG FFO calculation

    TAG FFO calculation 88 (in EUR millions) Q3 2015 Q2 2015 9M 2015 9M 2014 FY 2014 Net income 67.0 20.3 115.2 63.5 29.0 FFO + Taxes 18.5 3.8 28.6 19.4 54.1 + Net financial result 25.9 23.8 74.4 83.0 118.0 EBIT 111.4 47.9 218.2 165.9 201.1 - Net financial result (cash, after one off’s) -20.1 -21.5 -63.

  9. Slide 9: TAG balance sheet (IFRS)

    TAG balance sheet (IFRS) 99 (in EUR millions) 30 Sep-2015 31 Dec-2014 BALANCE SHEET (historical) Non-current assets 3,527.5 3,421.6  Change 30 Sep-2015 vs. 31 Dec-2014 includes Investment property 3,441.7 3,331.6 annual revaluation gain of EUR 61.2m and EUR 32.9m valuation gains from acquistions in

  10. Slide 10: TAG NAV calculation

    TAG NAV calculation 10 10 30 Sep- 31 Dec-2014 (in EUR millions) 2015 (historical) NAV per share development 30 Sep-2015 NAV compared to 31 Dec-2014: Equity (without minorities) 1,054.8 979.5 + Deferred taxes on investment properties and financial 240.2 211.3  Approx. EUR 0.97 per share increase due

  11. Slide 11: TAG debt financing structure

    TAG debt financing structure 11 11 Debt maturity profile as of 30 Sep-2015 in EUR millions Interest rates and maturities (1) Ø cost of debt p.a. 3.2% 4.0% 3.7% 3.8% 4.0% 3.6% 3.7% 2.1% 3.3% 1.9% 3.3% Bonds FINANCING STRUCTURE EUR 435m (310m) Bank loans EUR 1,834m (852m) Ø interest rate: 4.52% (4.83%

  12. Slide 12: TAG valuation

    12 TAG valuation Q3 2015

  13. Slide 13: TAG portfolio valuation Sep-2015

    TAG portfolio valuation 30 Sep-2015 13 13 Region 2015 2015 2015 Revaluation Capex Net 2014 2014 2014 Fair Value Fair Value Implied gain / loss acquisitions Fair Value Fair Value Implied (in EUR millions) (IFRS) (EUR / sqm) multiple and other (IFRS) (EUR / sqm) multiple VALUATION movements 12/31/2014

  14. Slide 14: TAG annual valuation by CBRE Sep-2015

    TAG annual valuation by CBRE 30 Sep-2015 14 14  Comments on valuation results 30 30 30 VALUATION Sep- Sep- Sep-  Yield compression in “A-Locations” like Berlin and Stuttgart Assumptions / drivers 2015 2014 2013 (Stuttgart included in “Other”) as well as in some cities of Cap rate (%) 5.59 5.56 5.5

  15. Slide 15: TAG portfolio and platform

    15 TAG portfolio and platform

  16. Slide 16: TAG portfolio in total as of Sep-2015

    TAG portfolio in total as of 30 Sep-2015 16 16  Geographic regions in accordance with decentralized PORTFOLIO / PLATFORM management clusters and strategic relevance  Recent portfolio acquisitions in Nov-2015 (3,080 units) not included as of 30 Sep-2015 due to closing in Q4 2015 Portfolio as of 30

  17. Slide 17: TAG portfolio in total – Q3 2015 by region

    TAG portfolio in total – Q3 2015 by region 17 17 Region Units Rentable IFRS BV In-place Vacancy Vacancy Actual Re- L-f-l rental L-f-l rental Mainte- Capex Comments area yield net cold letting growth growth nance rent rent y-o-y y-o-y incl. PORTFOLIO / PLATFORM Q3 2015 2014 EUR / EUR / vacancy EUR /

  18. Slide 18: TAG vacancy reduction track record

    TAG vacancy reduction track record 18 18  Residential units 2013-2015  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 v

  19. Slide 19: TAG acquisitions and disposals

    19 TAG acquisitions and disposals

  20. Slide 20: TAG acquisitions 2015

    TAG acquisitions 2015 20 20 Signing Saxony/Saxony- NRW/ Anhalt Brandenburg Rügen Brandenburg Lower Saxony May-2015 Jun-2015 Jul-2015 Nov-2015 Nov-2015 DISPOSALS & ACQUISITIONS Units 860 134 180 1,776 1,304 Brandenburg Rentable area in sqm 49,900 11,400 11,500 97,200 84,600 Actual net cold rent 4.64

  21. Slide 21: TAG disposals 2015

    TAG disposals 2015 21 21 Signing Berlin (Marzahn/ Stuttgart Single unit sales DISPOSALS & ACQUISITIONS Hellersdorf) (Commercial) and privatisation Apr-2015 Oct-2015 2015 Units 972 182 533 Actual net cold rent 5.26 13.64 --- EUR/sqm/month Actual net cold rent p.a. 3.5 4.1 2.7 EURm Vacancy 1.7% 0.6% -

  22. Slide 22: TAG capital recycling strategy in 2015

    TAG capital recycling strategy in 2015 22 22 TAG constantly analyzes regional markets and its portfolio to determine the best point in time to realize highest value by targeted disposals DISPOSALS & ACQUISITIONS Portfolio Sales Acquisitions Portfolio sales  Units: 1,154  Units: 4,254 Re-investment

  23. Slide 23: Appendix

    23 APPENDIX

  24. Slide 24: TAG strategy

    TAG strategy 24 24 The three pillar TAG investment case and strategy framework APPENDIX  “High Yield” investment profile  Highest FFO and dividend yield profile amongst peer group  Total return focus on distributions to shareholders rather than un-crystalized NAV growth  Anti-cyclical investment

  25. Slide 25: TAG capex and maintenance

    TAG capex and maintenance 25 25 APPENDIX 2014 2015 in EUR millions Q1 Q2 Q3 Q4 Total Q1 Q2 Q3 Total Maintenance Residential 5.75 5.89 6.05 6.23 23.92 6.45 7.09 5.38 18.92 Commercial 0.59 0.53 0.06 0.15 1.33 0.14 - 0.03 0.22 0.33 Capex Residential 7.73 6.55 6.98 9.83 31.09 6.80 9.88 13.56 30.24 Comme

  26. Slide 26: TAG capital markets heads-up

    TAG capital markets heads-up 26 26 Institution Analyst Recommen- Target price Date dation in EUR  High/Low (Q3 2015) EUR 13.05/EUR 9.56 Oddo Seydler Manuel Martin Buy 13.20 03-Nov-15  Number of shares (issued) APPENDIX Bankhaus Lampe Georg Kanders Buy 13.50 30-Oct-15 136.6m VictoriaPartners Bernd

  27. Slide 27: TAG bonds and convertibles

    TAG bonds and convertibles 27 27  Two corporate bonds outstanding (issued in 2013 and 2014)  One convertible remaining after conversions/ clean up call in 2012 and 2015 APPENDIX and (partly) buy back of convertibles in 2013, convertible trades in the money  Clean up call of 6.5% convertible bond

  28. Slide 28: TAG Management Board

    TAG Management Board 28 28 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

  29. Slide 29: TAG de-centralized management structure

    TAG de-centralized management structure 29 29 Strategic Portfolio Acquisitions / Central Shared Service centralized functions APPENDIX FM Services Management / Sales Procurement Center Marketing  Definition of portfolio, location and property management concepts and standards  Support of LIMs on a

  30. Slide 30: TAG Contacts

    30 30 TAG Contacts 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 40 380 32-3

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